Can national infrastructure spending reduce local unemployment? Evidence from an Australian roads program

We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To address the likely funding endogeneity problem, we exploit variation in spending due to pork-barreling, and find that higher government expenditure on roads substantially reduces local unemployment.     

Allocative efficiency measurement with endogenous prices

In the nonparametric measurement of allocative efficiency, output prices are fixed. If prices are endogenous, the overall output in the market determines the allocative efficient point. We develop an alternative semi-nonparametric model that allows prices to be endogenously determined.     

Illustrating the importance of Austrian business cycle theory: A reply to Murphy,Barnett, and Block; A call for quantitative study

Murphy et al. (2009) criticize Young’s (2005) test of Austrian business cycle theory (ABCT) using US industry-level quarterly job reallocation data and the federal funds rate as a monetary policy indicator. I argue that not only are Murphy et al.’s specific criticisms misguided; more importantly, they all but completely rule out the type of empirical study that Young (2005) advocates: specifically, one that (1) is quantitative and distinguishes between statistical and economic significance and (2) attempts to exploit a hypothesis that is both a prediction of ABCT and not a prediction of competing monetary theories of the cycle. I argue that empirical studies embodying (1) and (2) are critical to ABCT as a research program. Furthermore, I review the existing econometric studies of ABCT from the last 10 years and conclude that there is much room for improvement along these lines.     

Trust, reputation and relationships in grazing rights markets: An experimental economic study

Trust is frequently a requirement for economic exchanges and the management of natural resources. Providing public information on past actions can promote trust through the formation of reputations. We developed an economic experiment to test whether a formal reputation mechanism could facilitate trusting relationships in the tradable grazing rights markets. Providing information to create formal public reputations for market participants did not increase the overall efficiency of the market. However, it did result in greater equality of income between partners, suggesting that participants showed more concern for their partners when they knew they would be rated. Even with public reputation information, bilateral relationships remained central to the market. Market failures in existing grazing rights markets may be better addressed by measures to increase communication between partners rather than simply relying on a formal reputation mechanism.     

Experience and a firm's performance in foreign markets: A commentary essay

Wu and Lin (2010) extend several prominent themes in the experience and subsidiary performance literature in their empirical examination of the foreign expansion of Taiwanese MNEs. This commentary essay considers the themes in Wu and Lin (2010) against the backdrop of the considerable volume of research that has been conducted on experiential learning and firm performance in both the international business and strategy literatures. Five weak axioms about the relationships between experience, foreign market entry strategy, and performance emerge in this review. Based on these weak axioms, the commentary concludes that scholars need to concentrate future research on understanding the management and process-related issues that concern the effective management of a firm's experiential learning processes to foster better capability and knowledge development from a firm's experience, as well as translate such developments into improved performance prospects for a firm.     

Inequality and Unsustainable Growth:TWO Sides of the Same Coin?

Over the long run, sustained growth is central to poverty reduction.The rapid growth seen in much of the world over the past few decades, notably, but not only, in China and India, has led to an unprecedented reduction in poverty.And, in general, increases in per capita income tend to translate into proportionate increases in income of the poor.As Dollar and Kraay memorably put it, "Growth Is Good for the Poor."Some inequality is integral to the effective functioning of a market economy and the incentives needed for investment and growth.But too much inequality might be destructive to growth.Beyond the risk that inequality.     

Value Congruence and Charismatic Leadership in CEO–Top Manager Relationships: An Empirical Investigation

Although charismatic leadership theorists have long argued that leader–follower value congruence plays a central role in the development of charismatic relationships, few studies have tested this proposition. Using data from two studies involving a total of 329 CEOs and 1807 members of their top management teams, we tested the hypothesis that value congruence between leaders and their followers is empirically linked to follower perceptions of the charisma of their leader. Consistent with a relational perspective on charismatic leadership, strong support was found for the hypothesis that perceived value congruence between leaders (CEOs) and their followers (members of their top management teams) is positively related to follower perceptions of the degree of charisma possessed by the leader. Conversely, only limited support was found for the hypothesis that actual value congruence is linked to perceptions of charismatic leadership. Implications of these findings for research and practice are discussed.     

Investigating the immediate and long-term effects of job stressors on frontline service employees

Two studies investigate the immediate and long-term effects of job stressors on frontline service employees (FSEs). Using cognitive appraisal theory, we develop and test a conceptual model of two job stressors (crowding and emotional labor) that affect coping strategies and job outcomes. Study 1, which is a field experiment, investigates the immediate effects of crowding in a single firm. Study 2 extends the findings of Study 1 and investigates the long-term effects of emotional labor and crowding on FSEs across multiple firms. The results show that crowding has a negative impact on coping strategies and job-related outcomes. In addition, emotional labor can lead to long-term negative outcomes, such as emotional exhaustion and decreased job retention, for some FSEs. Consequently, service organizations should consider strategies or tactics that prevent high levels of customer crowding and help FSEs deal with emotional labor.     

The veterinary medicine industry in Britain in the twentieth century

Economic historians have focused research effort on accounting for the growth and significance of Britain's pharmaceutical industry, but little effort has so far been directed at the veterinary medicine industry, which formed an important part of the wider sector. This article addresses that gap. Factors responsible for that sector's relative insignificance until the 1950s included a general tendency to slaughter rather than to treat sick animals, the absence of advanced medicines until the innovation of sulpha drugs and antibiotics, and difficult relations with the wider pharmaceutical industry. Thereafter output of veterinary medicines increased dramatically, arising from an exponential growth in the demand for intensively farmed poultry meat. Since the 1980s a decline in the use of drugs in agriculture has caused the industry to concentrate on the health needs of domestic animals rather than those of livestock.