On recalls, layoffs, variable hours, and labor adjustment costs

The paper analyzes the employment policy of a firm that can vary both hours and the level of employment. The analysis differs from previous work in the adjustment cost literature in that the firm is able to change its employment not only through hires, layoffs, and quits, but also by recalls of employees who were previously laid off. Thus, we introduce the possibility of the firm inventorying the labor input. It is shown that this labor inventory potential is necessary if the firm is to ever lay off workers. Further, it is demonstrated that linear rather than strictly convex adjustment costs are then required if the firm is to always recall employees who were previously laid off prior to hiring new workers.     

Spillover effects of human service facilities in a racially segmented housing market

Previous studies of human service facility spillovers on residential property values have been inconclusive, and have failed to take into account the effects of racial segmentation of housing markets. Likewise, studies of racial discrimination in urban housing markets and price differentials between white and nonwhite areas of the city have failed to consider the impacts of service facilities on prices. This study develops an hedonic price model of housing services in a racially segmented housing market, which considers a variety of human service facilities and their spillover effects. Model results for Oakland, California in 1976 indicate that facilities significantly affect housing prices both positively and negatively, and that these effects vary by racial submarket. Implications of these findings for the interpretation of past discrimination studies, facility impact studies, and social policy are considered.     

Air pollution-mortality models: A demonstration of the effects of random measurement error

Errors of measurement have long been recognized as a chronic problem in statistical analysis. Although there is a vast statistical literature of multiple regression models estimating the air pollution-mortality relationship, this problem has been largely ignored. It is well known that pollution measures contain error, but the consequences of this error for regression estimates is not known. We use Lave and Seskin's air pollution model to demonstrate the consequences of random measurement error. We assume a range of 0% to 50% of the variance of the pollution measures is due to error. We find large differences in the estimated effects on mortality of the pollution variables as well as the other explanatory variables once this measurement error is taken into account. These results cast doubt on the usual regression estimates of the mortality effects of air pollution. More generally our results demonstrate the consequences of random measurement error in the explanatory variable of a multiple regression analysis and the misleading conclusions that may result in policy research if this error is ignored.     

On bivariate generalized binomial and negative binomial distributions

The present paper deals with two types of generalized general binomial (binomial or negative binomial) distributions: (i) a univariate general binomial generalized by a bivariate distribution and (ii) a bivariate general binomial generalized by two independent univariate distributions. The probabilities, moments, conditional distributions and regression functions for these distributions are obtained in terms of bipartitional polynomials. Moreover recurrence relations for the probabilities and moments, independent of the bipartitional polynomials, are given. Finally these general results are applied to the (i) Binomial-Bivariate Poisson and (ii) Bivariate Binomial-Poissons distributions.     

Developing holistic leaders: Four domains for leadership development and practice

Leadership development and practice have traditionally been quite narrow, with a decided focus on the analytical realm of leadership. However, the contemporary climate of corporate scandal and resultant loss of societal confidence, coupled with the evolving demands, needs, and expectations of employees, point to the potential need for a more holistic approach to leadership. Thus, this article proposes how management education and leadership development programs can develop holistic leaders that are adept at operating in the analytical, conceptual, emotional, and spiritual domains of leadership practice. An integrated model for holistic leadership development and practice that addresses all four of these domains is proposed, and grounded in both established and emerging leadership development theory. Additionally, a leadership development classification scheme is proposed based on classroom, job, and organizational contexts.     

Late entry,market shares and competitive survival: The case of synthetic fibers

This paper examines product policy in relation to the experience curve and product life cycle concepts in the context of the experience of the thirteen major firms in the Western European synthetic fibers industry. It examines the hypothesis based on Boston Consulting Group and the Profit Impact of Market Share (PIMS) evidence that late entrants to a market will be at a competitive disadvantage because they lack the accumulated experience of the pioneering firms. For each of the three main synthetic fibres, acrylic, nylon and polyester, it was found that the early entrants who established major market shares early in the growth phase of the product life cycle were able to maintain that leadership nearly twenty years later. In contrast not only did almost all the late entrants fail to achieve significant market shares but in the difficult market conditions between 1974 and 1981 they provided seven out of nine market withdrawals.     

Economies of scale in steam-electric power generation in East-North-Central U.S.

In this study the author investigates firm-level cross-sectional unit cost advantages for electricity generation for 31 regulated private steam-electric utilities in East-North-Central U.S. region during 1987. The production technology is modeled using the implied dual minimum total variable cost translog methodology. Estimates of Zellner’s Seemingly Unrelated Regressions indicate a smooth non-homothetic technology, a typical regional firm-level scale economies of about 0.263, and an implied mean cost-output elasticity of about 0.737. Significant scale economies exist for several of the smaller utilities. The findings support policies which steer energy-intensive industrial location decisions in a direction which captures unutilized unit cost economies in electricity generation.