The Federal Student Loan Program: Quantitative implications for college enrollment and default rates

I quantify the effects of alternative student loan policies on college enrollment, borrowing behavior, and default rates in a heterogeneous model of life-cycle earnings and human capital accumulation. I find that the combination of learning ability and initial stock of human capital drives the decision to enroll in college, while parental wealth has minimal effects on enrollment. Repayment flexibility increases enrollment significantly, whereas relaxation of eligibility requirements has little effect on enrollment or default rates. The former policy benefits low-income households, while the latter has negligible effects on these households.     

Macroeconomic stabilization through taxation and indexation: The use of firm-specific information

This paper considers two alternative approaches to stabilizing an economy with firm-specific productivity disturbances. The first uses wage contracts tying wages in each firm to these disturbances as well as the price level. The second uses a taxation scheme together with a wage indexation rule tying wages to prices alone. Both these schemes are viable as long as the firm-specific disturbance is known to all agents. If the firm alone observes the productivity disturbance, under either scheme it has an incentive to misrepresent current conditions. However, a combination of these two schemes is both welfare maximizing and incentive compatible.     

Development and validation of a firm-level vertical and horizontal internationalization metric

The lack of valid and reliable measures of firm-level vertical and horizontal internationalization is impeding the development and testing of hypothesized relationships between these respective dimensions of internationalization and a range of important MNE characteristics, actions, and effects. Through a series of qualitative and quantitative studies using data collected from senior MNE executives (total N?=?3,146), we develop and validate a scale to measure both vertical and horizontal firm-level internationalization. Subscales for each type of internationalization prove to be unidimensional, reliable, temporally stable, and to have predictive, cross-cultural, cross-sectoral, and discriminant validity.     

Risk and Return: A Revisit Using Expected Returns

This paper uses direct estimates of expected returns to examine the link between standard measures of financial risk and investor return requirements. The results show that systematic risk commands a significant positive risk premium, much larger than found using historical returns as proxies for expectations. Furthermore, there are nonlinearities in the relationship between risk and return. Finally, we show that expected returns and risk premiums in the equity markets change over time and that these changes are related to changes in interest rates on U.S. government obligations.     

A survey of corporate perceptions of short-termism among analysts and fund managers

There is a popularly held view that institutional investors and stockbrokers' analysts take a short-term view when making or advising on investment decisions. Short-termism is held to be a particular problem for economies such as the US and the UK which rely heavily on stock exchanges to price securities and help reallocate resources through take-over. This is deemed to be detrimental to long-term corporate development and overall economic growth. The paper seeks to show the extent to which directors of large UK companies perceive that analysts and institutional investors evaluate their companies on short-term criteria. The role of institutional investors in the context of short-termism is important because they own a large proportion of equity. The paper then seeks to explain why some company directors appear to believe in short-termism while others do not. Hence the paper is not investigating whether ‘the City’ is short-termist but is examining the reasons why directors of large publicly quoted companies believe ‘the City’ is or is not short-termist about their company. The conclusion of this paper is that there is some evidence to support the view that ‘the City’ is perceived as being short-termist towards some companies but that the phenomenon is more narrowly focused and of lesser importance than its supporters claim.     

Customer mind-set of employees throughout the organization

Previous research has provided strong evidence for the benefits of embracing a market orientation, an organizational focus highlighting the needs of customers, and the creation of customer value. This study extends this focus on the customer to the individual worker level. A construct, customer mind-set (CMS), is developed that reflects the extent to which an individual employee believes that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job. In this exploratory study, the authors develop a parsimonious scale for measuring CMS. Relationships between CMS and significant organizational variables are examined to establish CMS's validity and provide some tentative insights into its value to researchers and practitioners. The authors believe the CMS construct will allow for operational-level analysis of the extent to which a customer orientation is embraced throughout an organization, permitting managers to implement targeted improvement strategies. Karen Norman Kennedy is an assistant professor of marketing at the University of Alabama at Birmingham. She earned her Ph.D. from the University of South Florida. Her research interests include customer orientation and cultural change in organizations, as well as the evolving role of customers and employees in today's marketplace. Her work has been published in theJournal of Personal Selling and Sales Management, theJournal of Services Marketing, Industrial Marketing Management, and theJournal of Marketing Education. Felicia G. Lassk is an assistant professor in the Marketing Group of Northeastern University. She received her Ph.D. from the University of South Florida. Her research interests include customer orientation, salesperson job involvement, and measurement issues. Her articles have appeared in the theJournal of Personal Selling and Sales Management, Industrial Marketing Management, and theJournal of Marketing Education, among others. Jerry R. Goolsby is the Hilton/Baldridge Eminent Chair of Music Industry Studies at Loyola University New Orleans. He received his Ph.D. from Texas Tech University. His research interests include issues related to market orientation and its implementation, customer and employee relationships, and sales interactions. His work has been published in theJournal of Marketing, theJournal of Marketing Research, theJournal of the Academy of Marketing Science, and other marketing journals.     

Does sustainable intensification of maize production enhance child nutrition? Evidence from rural Tanzania

Food insecurity, child malnutrition, and land degradation remain persistent problems in sub‐Saharan Africa. Agricultural sustainable intensification (SI) has been proposed as a possible solution to simultaneously address these challenges. Yet there is little empirical evidence on if agricultural management practices and inputs that contribute to SI from an environmental standpoint do indeed improve food security or child nutrition. We use three waves of data from the nationally‐representative Tanzania National Panel Survey to analyze the child nutrition effects of rural households’ adoption of farming practices that can contribute to the SI of maize production. We group households into four categories based on their use of three soil fertility management practices on their maize plots: “Nonadoption”; “Intensification” (use of inorganic fertilizer only); “Sustainable” (use of organic fertilizer, maize–legume intercropping, or both); and “SI” (joint use of inorganic fertilizer with organic fertilizer and/or maize–legume intercropping). The results from multinomial endogenous treatment effects models with the Mundlak–Chamberlain device suggest that use of practices in the “SI” category is associated with improvements in children's height‐for‐age and weight‐for‐age z‐scores relative to “Nonadoption,” particularly for children aged 25–59 months. These effects appear to come through improvements in both crop income and productivity.     

Marking Time: An Analysis of Youth Hours of Work and Study in Urban Mexico

This paper argues that a more complex view of work and schooling is critical to poor countries as they implement policies to increase educational attainment. In this analysis of 12–17‐year‐old girls and boys in urban Mexico, we expand the traditional approach in two dimensions by (1) moving from an analysis of participation to one of hours of participation, and (2) broadening the definition of work to include youth's household responsibilities.     

Real and nominal exchange rate variability

Keynote lecture presented to the annual convention of the Austrian Economic Association in Vienna, October 5 and 6, 1989. I would like to thank Paul De Grauwe, Helmut Frisch, and other participants at the convention for their comments and suggestions. I would also like to thank Jack Glen for providing the monthly exchange rate data used in Table 1.