Time series test of nonlinear convergence and transitional dynamics

This paper revisits the income convergence hypothesis by using the nonlinear unit root test of Kapetanios et al. [Kapetanios, G., Shin, Y. and A. Snell, 2003. Testing for a unit root in the nonlinear STAR framework. Journal of Econometrics 112, 359–379.]. Out of the 12 OECD income gaps in which nonlinearity has been detected, two cases of long-run converging and four cases of catching up are found.     

Perceived correlates of illegal behavior in organizations

A survey was conducted of the perceived correlates of illegal abuses in the electronics industry. Human resource directors of thirty-one firms responded to a questionnaire which assessed their perceptions of the degree to which illegal behavior was caused by (1) deficiencies in the moral character of employees (2) the clarity of expectations and standards describing illegal behavior and (3) the presence of reinforcements and punishments contingent on these behaviors. All three variables were related to the frequency of abuses in three areas of organizational crime (e.g. administrative, labor, environment) and three areas of personal crime (theft, falsifying records kickbacks) as reported by the directors and/or indicated by archival records. The implications of these findings are discussed in terms of how organizations may reduce illegal activity. Mitchell, Terence R., Edward E. Carlson Professor of Business Administration and Professor of Psychology, University of Washington. Professor Mitchell's interests are decision making, leadership, and social responsibility. He has recently published articles on these topics in Organizational Behavior and Human Decision Processes, The Academy of Management Review, The Journal of the Academy of Management, and the Journal of Applied Psychology. He is co-author (with J. Larson) of People in Organizations, and a joint author of Birnbaum, Scott and Mitchell, Organization Theory: A Structural and Behavioral Analysis. Mitchell is a fellow of the American Psychological Association, and the American Academy of Management. He is also a member of the Society for Organizational Behavior. Daniels, Denise is a graduate student in organizational behavior and human resources management. Denise's interests are motivation, self-efficacy, and groups. She has recently published in the Journal of Applied Psychology and has presented papers at the Academy of Management national meeting. Hopper, Heidi is a graduate student in organizational behavior and human resources management. Heidi's interests are accountability, attributions, and motivation. She has recently published in the Journal of Applied Psychology and has presented papers at the Academy of Management national meeting. Jane George-Falvy is a Ph.D. Candidate in Organizational Behavior. She received a B.A. degree in psychology. Her primary research interests include the areas of learning and motivation. She has recently co-authored articles which have appeared in the Journal of Applied Psychology, the Academy of Management Best Paper Proceedings, and Group and Organization Management. Her dissertation explores the moderating effects of task complexity and learning stage on the relationship between participation in goal setting and task performance. Gerald R. Ferris is Professor of Labor and Industrial Relations, of Business Administration, and of Psychology, and Caterpillar Foundation University Scholar at the University of Illinois at Urbana-Champaign. He also is the Director of the Center for Human Resource Management at the University of Illinois. He received a Ph.D. in Business Administration from the University of Illinois at Urbana-Champaign, and subsequently served on the Department of Management faculty at Texas A&M University. Ferris is the author of numerous articles published in such journals as the Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Personnel Psychology, Academy of Management Journal, and Academy of Management Review, and he serves as editor of the annual series, Research in Personnel and Human Resources Management.     

Great ratios and Common Cycles: Do They Exist for the UK?

This paper investigates the dynamic interactions between postwar, quarterly UK consumption, investment and income within a VAR framework. Use is made of two developments which allow sets of restrictions to be tested and imposed, and which potentially make the VAR framework much more economically interpretable. One set is placed by neoclassical growth theory and involves the presence of common stochastic trends linking the secular movement of the series (i.e. the great ratios), while the other set is placed by notions of common, or more generally, codependent cycles which have their origin in ideas of comovements between growth rates. Evidence is found to support the existence of the great ratios for the UK, and evidence is also found of a codependent cycle of order one in the growth rates of consumption, investment and income, so that although the cycles are not exactly synchronized, the response of the three growth rates to a shock will be similar from two quarters after the shock has occurred. Moreover, it is lagged consumption shocks that are primarily driving the cycle.