Instructional Objectives and Economic Understanding

Much has been written in recent years about the use of instructional objectives, and particularly about the so-called behaviorally stated objectives. Too often, claims made for the usefulness of such objectives are not supported by research. In the study reported here, Dr. Phillips attempted to measure the impact of instructional objectives in a controlled experiment. Unfortunately, contaminating factors prevented the drawing of firm conclusions, but Phillips' work points the way for further study.     

Application of Risk Theory to Interpretation of Stochastic Cash-Flow-Testing Results

Abstract

In this paper we consider the Sparre Andersen insurance risk model. Three cases are discussed: the ordinary renewal risk process, stationary renewal risk process, and s-delayed renewal risk process. In the first part of the paper we study the joint distribution of surplus immediately before and at ruin under the renewal insurance risk model. By constructing an exponential martingale, we obtain Lundberg-type upper bounds for the joint distribution. Consequently we obtain bounds for the distribution of the deficit at ruin and ruin probability. In the second part of the paper, we consider the special case of phase-type claims and rederive the closed-form expression for the distribution of the severity of ruin, obtained by Drekic et al. (2003, 2004). Finally, we present some numerical results to illustrate the tightness of the bounds obtained in this paper.     

Fairness reactions to personnel selection techniques in Singapore and the United States

This study investigates reactions to personnel selection techniques from the perspectives of working adults in the United States and Singapore, and provides a comparison of the two samples. Differences in the cultural values of the two countries are used to generate hypotheses. Working adults in Singapore (N = 158) and the United States (N = 108) rated the process favourability of eleven selection procedures and then indicated the bases for their reactions on seven procedural dimensions. Implications for selection in Singapore, the United States and in international contexts are discussed.     

TESTING FOR MULTIPLE BUBBLES: HISTORICAL EPISODES OF EXUBERANCE AND COLLAPSE IN THE S&P 500

Recent work on econometric detection mechanisms has shown the effectiveness of recursive procedures in identifying and dating financial bubbles in real time. These procedures are useful as warning alerts in surveillance strategies conducted by central banks and fiscal regulators with real‐time data. Use of these methods over long historical periods presents a more serious econometric challenge due to the complexity of the nonlinear structure and break mechanisms that are inherent in multiple‐bubble phenomena within the same sample period. To meet this challenge, this article develops a new recursive flexible window method that is better suited for practical implementation with long historical time series. The method is a generalized version of the sup augmented Dickey–Fuller (ADF) test of Phillips et al. (“Explosive behavior in the 1990s NASDAQ: When did exuberance escalate asset values?” International Economic Review 52 (2011), 201–26; PWY) and delivers a consistent real‐time date‐stamping strategy for the origination and termination of multiple bubbles. Simulations show that the test significantly improves discriminatory power and leads to distinct power gains when multiple bubbles occur. An empirical application of the methodology is conducted on S&P 500 stock market data over a long historical period from January 1871 to December 2010. The new approach successfully identifies the well‐known historical episodes of exuberance and collapses over this period, whereas the strategy of PWY and a related cumulative sum (CUSUM) dating procedure locate far fewer episodes in the same sample range.     

Beyond Philanthropy: Community Enterprise as a Basis for Corporate Citizenship

In this article we argue that the emergence of a new form of organization – community enterprise – provides an alternative mechanism for corporations to behave in socially responsible ways. Community enterprises are distinguished from other third sector organisations by their generation of income through trading, rather than philanthropy and/or government subsidy, to finance their social goals. They also include democratic governance structures which allow members of the community or constituency they serve to participate in the management of the organisation. Partnerships between corporations and community enterprises therefore raise the possibility of corporations moving beyond philanthropic donations toward a more sustainable form of intervention involving long-term commitments to communities. At the same time they change substantively the nature of any collaboration by allowing relationships to proceed on the basis of mutual advantage, thereby broadening their appeal and scope. In doing so, partnerships build capacity and enfranchise communities in a way that avoids the paternalism that has traditionally characterised relationships between corporations and voluntary sector organisations. Power relations are transformed because partners are seen as sources of valuable assets, knowledge and expertise, rather than recipients of patronage or charity.     

Indirect inference for dynamic panel models

Maximum likelihood (ML) estimation of the autoregressive parameter of a dynamic panel data model with fixed effects is inconsistent under fixed time series sample size and large cross section sample size asymptotics. This paper proposes a general, computationally inexpensive method of bias reduction that is based on indirect inference, shows unbiasedness and analyzes efficiency. Monte Carlo studies show that our procedure achieves substantial bias reductions with only mild increases in variance, thereby substantially reducing root mean square errors. The method is compared with certain consistent estimators and is shown to have superior finite sample properties to the generalized method of moment (GMM) and the bias-corrected ML estimator.     

On e-business strategy planning and performance: a comparative study of the UK and Greece

In this research study the effect of Financial and Non-Financial performance of organisations on e-business strategy planning is investigated. The strategic planning parameters of Phillips model are examined when applied to e-business strategy planning. The relationships between these parameters, that is, Formality, Participation, Sophistication and Thoroughness, and Financial and Non-Financial Performance, are examined and the directions of these relationships are investigated. A conceptual model has been constructed and quantitative research methods are used to test four hypotheses. The proposed e-business model was tested in two EU countries, the UK and Greece. A synoptic statistical analysis and comparative numerical results are given showing that in both countries Participation has a positive relationship with Financial Performance and Formality has a positive relationship with Non-Financial Performance. The proposed model is extendable and valid in countries other than the UK and Greece, thus being able to be adapted to and used in other national environments.