Gender and Piece Rates, Commissions, and Bonuses

Previous work shows that establishments with higher proportions of women are more likely to use piece rates but that individual women are less likely to receive performance pay. We present a model in which lower expected tenure and labor force attachment are positively associated with piece rates but are negatively associated with other forms of performance pay. Analysis of the National Longitudinal Survey of Youth (NLSY) confirms that women are more likely to be paid piece rates and simultaneously less likely to be paid commissions and bonuses.     

On optimal control of income generating activities, and the value of flexible production design

The paper provides a closed form solution for the value of a firm which costlessly can change its mode of operation between two activities. The technology is such that production is zero from the inactive production line. In addition we assume that the production potential on any production line is idle when not operated, else the production follows a geometric Brownian motion. Although this framework is rather general, it is motivated by the problem to produce a natural resource located in two separate wells/ores, using a single (flexible) production unit. For what seems to be reasonable parameter values, the flexible unit is seen to achieve a surprisingly large value relative to the value achievable by a comprehensive unit, producing both alternatives simultaneously. In addition it is interesting to note that switching might occur even if the active production line gives the highest immediate income.     

The U.S. health care expenditure: evidence from 2001 to 2009

This study utilizes state-level data from 2001 to 2009 to estimate the impact of the 2007 financial crisis upon health care expenditures. Higher death rates are consistently found to have a positive and statistically significant impact on health expenditures. While mental health and COPD are not generally found to impact expenditures, increases in the percentage of the population diagnosed with cholesterol and obesity tend to increase health expenditures. Increases in health expenditures slowed considerably after the financial crisis. Even though recessions (high unemployment rates) are generally found to have a positive impact on health expenditures, the post-financial crisis time period is estimated to have much lower health expenditures than in other time periods. Our results can be used to give insight into the conditions under which the slower rate of increase in health expenditures can be expected to increase. More research will be needed to be able to more completely explore not only the reasons for these changes in health expenditures but also whether they are likely to continue into the future.     

Wilhelm Röpke and Richard C. Koo On Secondary Deflations and Balance Sheet Recessions

The concept of a ‘secondary deflation’ was developed in the 1930s by the German economist Wilhelm Röpke, who saw it as something different from a normal depression. While a primary deflation is a necessary reaction to the inflation from a boom period, a secondary deflation is independent and economically purposeless. Röpke argued that secondary depressions occurred in the US, Germany, France and Switzerland during the 1930s, but was vague on what made them follow primary depressions. Recently, the Taiwanese–American economist Richard C. Koo has claimed to have discovered the ‘Holy Grail of macroeconomics’, that is, what made the Great Depression so deep and long. During the Great Depression, the bursting of the asset price bubble resulted in private sectors having more debt than assets; as they shifted from maximising profits to minimising debt, the consequent debt deflation shrank the economy. According to Koo, Western economies today are suffering from a similar ‘balance sheet recession’. Strengthened by the notion of a balance sheet recession, Röpke's long‐lost insights might advance our understanding of the business cycle in general and the present crisis in the US and the Eurozone in particular.     

Consequences of ambivalence on satisfaction and loyalty

The key objective of this study was to understand the consequences of subjective ambivalence on customer satisfaction, loyalty, and the satisfaction–loyalty relationship. The conceptual and theoretical discussions were derived largely from recent research in social psychology and integrated with marketing literature on satisfaction and loyalty. Given that product evaluations are typically positive and extreme, these findings indicate a negative relationship between ambivalence and satisfaction. Even though a great deal of the variance in ambivalence is shared with satisfaction, ambivalence did prove to have an independent and direct effect on loyalty. Ambivalent consumers are not only less loyal because they are less satisfied, but for other reasons, as well. Ambivalence was not found to moderate the satisfaction–loyalty relationship. The results of the study underscore the importance of taking ambivalence into consideration when measuring satisfaction and modeling satisfaction–loyalty relationships. © 2005 Wiley Periodicals, Inc.     

An examination of consumers’ cross-shopping behaviour

This study addresses antecedents of cross-shopping behaviour. Five theory-driven hypotheses are derived and tested. The results indicate that impulse buying tendency and perceived time pressure have a statistically significant negative effect on supermarket patronage. Product assortment and price consciousness have a statistically significant negative effect on speciality store patronage, while impulse buying tendency and convenience orientation have a statistically significant positive effect on speciality store patronage. Perceived time pressure has a statistically significant positive effect on meat store patronage. This effect is, however, not statistically significant on seafood store patronage. The findings have managerial implications for both supermarkets and speciality stores.     

A randomized trial to assess the effectiveness of an infant home safety programme

The aim of this study was to test an intervention aimed at addressing the risk of injury in infants 2 - 12 months of age. A non-blinded, randomized controlled trial was conducted, whereby parents were randomly assigned to either a control or one of two intervention groups. Parents completed questionnaires regarding safety behaviours and injuries at the 2 (baseline), 6 and 12 month immunization visit at the community health unit. During the 2 month visit to the health unit, the two intervention groups received a home safety kit containing nine items, an instructional brochure and a risk assessment checklist. Subjects randomized to the safety kit plus home visit group also received a standardized home visit from a community health nurse. Two of the 14 parental safety behaviours showed a significant increase in use among parents in the intervention groups. Neither of the interventions was associated with a reduction in parent-reported injuries among children. It was concluded that home visitation may provide a beneficial adjunct to the provision of safety devices and may increase use by parents.