Return Migration,Self‐selection and Entrepreneurship

Are return migrants more entrepreneurial? Existing literature has not addressed how estimating the impact of return migration on entrepreneurship is affected by double unobservable migrant self‐selection, both at the initial outward migration and at the final inward return migration stages. This paper exploits exogenous variation provided by the civil war and the incidence of agricultural plagues in Mozambique, as well as social unrest and other shocks in migrant destination countries. The results lend support to overall negative unobservable return migrant self‐selection, which results in an under‐estimation of the effects of return migration on entrepreneurial outcomes when using a ‘naïve’ estimator that does not control for self‐selection at both the initial migration and at the final return migration stages.     

Institutions and Values: A Methodological Inquiry

Economics entails a study of institutions regardless of the school of thought, and it is inherently an analysis of institutional transformation with a vision toward creating positive social change through economic arrangements. However, the conceptions of institutions, identity of individuals, human nature as it pertains to economics, identification of the economic sphere, its concerns, and studying its evolution, all vary substantively across schools of thought. We examine the following issues: (i) the differences in the ontological identity of the individual between heterodox approaches, new institutional economics (NIE), and the neoclassical school; (ii) the central point of divergence between original institutional economics (OIE) and NIE, despite both schools being committed to the project of an “institutionally” centered approach to economics; and (iii) the absence of a cohesive project to explore foundational theoretical congruencies among those heterodox approaches that have a shared vision, values, and a common ontological identity of socially embedded people.     

Parallel search for the best alternative

I wish to thank Ken Burdett, James Foster, Dale Mortensen and Kevin Roberts for many helpful suggestions. Thanks are also due to the comments of the participants at seminars at University of Minnesota, Michigan State University, Northwestern University, University of Pittsburgh, and those at the Midwestern Math Economics Conference (1989) and Econometric Society Summer Meetings (1990). Research supported by NSF Grant SES-8708325.     

Integrated modeling for exploring sustainable agriculture futures

Sustainable agriculture meets human needs for food, enhances the quality of life of people, protects the integrity of natural systems, and is economically profitable. Making a transition to agricultural sustainability involves difficult choices and an understanding of the complex trade-offs associated with different agricultural pathways. In this paper, we describe the development and application of a decision support tool—AgFutures—for exploring alternative futures for agricultural sustainability in the Lower Mainland of British Columbia. The main core of the model is simulation of future land-use changes in different scenarios and assessment of social, economic and environmental consequences under these scenarios. Evolution of land-use is simulated as a result of not only biophysical conditions but also as a result of human behaviour and choices, specifically related to lifestyle, agricultural management practices and institutional policies. Eight different scenarios are generated and compared for their impacts on sustainability in the Lower Mainland.AgFutures helps users to identify desirable future scenarios and the set of choices and trade-offs that they are willing to accept. Identification of these allows decision-makers to formulate policies that would lead to achieving the goals of sustainable agriculture. The novel aspect of this model lies in its design and methods, which represent a balance between the need for rigour and the need for a tool that can be used by a wide array of users.     

Measuring Ethical Sensitivity and Evaluation

Measures of student ethical sensitivity and their increases help to answer questions such as whether accounting ethics should be taught at all. We investigate different sensitivity measures and alternatives to the well-established Defining Issues Test (DIT-2, Rest, J. R. et al. [1999, Postconventional Moral Thinking: A Neo-Kohlbergian Approach (Lawrence Erlbaum Associates, Mahwah, NJ]), frequently used to measure the effects of undergraduate accounting ethics education. Because the DIT measures cognitive development, which increases with age, the DIT scores for younger accounting students are typically lower, have limited range, and are not likely to vary sufficiently with corresponding choices in ethical dilemmas. Since the DIT measures only the moral judgment component of ethical decision-making, we consider the multidimensional ethical scale (MES) to allow respondents to provide explanations for their moral and other judgments. The MES has been used to measure attitudes related to justice, utility, contractualism, egoism, and relativism. Unfortunately, the MES is not comparable in one-dimension to the DIT, and unlike the DIT, the MES has no theoretical or objective base. Therefore, we construct a comparable one-dimensional relative measure, a Composite MES Score, obtained from previous research on practicing accountants. We compare the reliability of this measure to the DIT in explaining the ethical choices of 54 specially chosen, somewhat homogeneous students, whose ages range from 18 to 19, and who are taking a second semester freshman accounting course at a private, religion-affiliated university. These particular students are relatively untrained in the formal use of questionable accounting choices. These students are less likely to recognize the dilemmas of the MES and are also less likely to demonstrate sufficient variation in their DIT scores, traditionally low for freshmen students. As freshmen, they are recent graduates of high school and more likely guided by other ethical influences including friends, family, or contractual obligations (some of the MES constructs) rather than higher cognitive development. This study confirms suspicions. We find the DIT scores do not vary sufficiently to explain the moral reasoning of freshmen. For eight dilemmas and 24 choices we find the DIT score correlates with only three choices, whereas the MES regression models have at least one significant construct for 23 out of 24 ethical choices. The Composite MES Score (a relative measure) also explains 23 out of 24 choices and is statistically related to the DIT in only one of the choices. Unlike the DIT, the Composite MES permits pretest and retesting with different dilemmas to evaluate changes in ethical sensitivity. These results argue for relative rather than absolute measures of sensitivity and guides beyond cognitive development (the DIT-score) to explain undergraduate student sensitivity.     

Exploring the Process of Ethical Leadership: The Mediating Role of Employee Voice and Psychological Ownership

The study of ethical leadership has emerged as an important topic for understanding the effects of leadership in organizations. In a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. Results suggest that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different. Employee voice mediated the relationship between ethical leadership and psychological well-being. Feelings of psychological ownership mediated the relationship between ethical leadership and job satisfaction. A discussion of theoretical and practical implications concludes the article.     

The influence of customer loyalty on small island economies: an empirical and exploratory study

There is growing consensus that companies' long-term success is reliant on building and sustaining strong customer relationships. This study explores the antecedents of loyalty in business to business (B2Bs) using Guernsey's telecommunication industry as a case study. It examines how these influence customer loyalty orientation and factors that help service providers improve loyalty rates. Extant literature pays little attention to the antecedents of loyalty in small island economies. Prior research focuses on cultural, environmental and macro-economic issues. Drawing on Dick and Basu's (Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(Spring), 99–113, 1994) loyalty model, this research explores loyalty antecedents that are cognisant of distinct market conditions that can impact customer loyalty within the telecommunications sector of a small island economy. It seeks to advance understanding of loyalty in B2B relationships in this context and identify factors that contribute towards converting passively loyal customers to being actively loyal customers.     

Forecasting data vintages

This article provides a discussion of Clements and Galvão’s paper “Forecasting with vector autoregressive models of data vintages: US output growth and inflation.” Clements and Galvão argue that a multiple-vintage VAR model can be useful for forecasting data that are subject to revisions. They draw a “distinction between forecasting future observations and revisions to past data,” which focuses forecasters’ attention on yet another real time data issue. This comment discusses the importance of taking data revisions into consideration, and compares the multiple-vintage VAR approach of Clements and Galvão to a state space approach.