Comparing inequality aversion across countries when labor supply responses differ

We analyze to which extent social inequality aversion differs across nations when controlling for actual country differences in labor supply responses. Towards this aim, we estimate labor supply elasticities at both extensive and intensive margins for 17 EU countries and the US. Using the same data, inequality aversion is measured as the degree of redistribution implicit in current tax-benefit systems, when these systems are deemed optimal. We find relatively small differences in labor supply elasticities across countries. However, this changes the cross-country ranking in inequality aversion compared to scenarios following the standard approach of using uniform elasticities. Differences in redistributive views are significant between three groups of nations. Labor supply responses are systematically larger at the extensive margin and often larger for the lowest earnings groups, exacerbating the implicit Rawlsian views for countries with traditional social assistance programs. Given the possibility that labor supply responsiveness was underestimated at the time these programs were implemented, we show that such wrong perceptions would lead to less pronounced and much more similar levels of inequality aversion.     

Circulation of autonomous agents in production and service networks

The inherent complexity characterizing production and/or service networks strongly favors decentralized and self-organizing mechanisms to regulate the flows of matter and information in circulation. This basic observation motivates us to study the flow dynamics in queueing networks roamed by autonomous agents which, at a given time and at a given vertex location, select their routing according to (individual) historical data (such as waiting times) collected during their past progression in the network. For several simple network configurations and despite the intrinsically non-Markovian character of the dynamics, we are able to discuss analytically the emerging collective dynamics that such a circulation of autonomous agents generates. Feedback loops in the network topology coupled with the presence of delays in the routing selection mechanisms produce a wealth of dynamical phenomena like self-sustained generically stable oscillations, spatio-temporal patterns, stabilization by noise phenomena and oscillator synchronization that are explicitly discussed in this paper.     

GARCH models without positivity constraints: Exponential or log GARCH?

This paper provides a probabilistic and statistical comparison of the log-GARCH and EGARCH models, which both rely on multiplicative volatility dynamics without positivity constraints. We compare the main probabilistic properties (strict stationarity, existence of moments, tails) of the EGARCH model, which are already known, with those of an asymmetric version of the log-GARCH. The quasi-maximum likelihood estimation of the log-GARCH parameters is shown to be strongly consistent and asymptotically normal. Similar estimation results are only available for the EGARCH (1,1) model, and under much stronger assumptions. The comparison is pursued via simulation experiments and estimation on real data.     

TRADE DIVERSIFICATION,INCOME, AND GROWTH: WHAT DO WE KNOW?

This paper surveys the empirical literature on export and import diversification and its linkages with growth. We review widely used measures of diversification and the evidence about their evolution focusing on how export diversification relates to trade liberalization and economic development. We also discuss the linkages between trade diversification and productivity at the firm and industry level, highlighting new advances on the linkages between import diversification and productivity.     

The optimal capital structure of the firm with stable Lévy assets returns

This article builds a new structural default model under the assumption that a firm’s assets return follows a dynamics displaying jumps of both signs. In essence, we expand the work of Hilberink and Rogers (itself an extension of the Leland and Toft framework), which deals only with negative jumps. In contrast, we make use of stable Lévy processes, and we compute the values of the firm, debt and equity under this assumption. Theoretical credit spreads can also be obtained in our framework. They prove to be consistent with the empirical credit spreads observed in financial markets.      

Leading by Example: A Model of Organizational Citizenship Behavior for the Environment

Organizational citizenship behaviors for the environment (OCBEs), which are based on individual, voluntary and informal initiatives, are increasingly considered as an essential ingredient of corporate greening. Drawing on the emerging literature on this issue, this paper explores the determinants and consequences of managers' OCBEs. A study of 304 managers from the manufacturing sector allowed us to validate a new model of managers' OCBEs based on structural equation modeling. The model shows the role of environmental values and perceived behavioral control (PBC) in the adoption of OCBEs. As expected, the model also shows positive and significant relationships between OCBEs, environmental management practices and performance in this area. The study sheds new light on the impacts of OCBEs and explores the reasons why they can be used to lead by example and to improve environmental performance. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment