The power of positivity? The influence of positive psychological capital language on crowdfunding performance

We extend the entrepreneurship literature to include positive psychological capital — an individual or organization's level of psychological resources consisting of hope, optimism, resilience, and confidence — as a salient signal in crowdfunding. We draw from the costless signaling literature to argue that positive psychological capital language usage enhances crowdfunding performance. We examine 1726 crowdfunding campaigns from Kickstarter, finding that entrepreneurs conveying positive psychological capital experience superior fundraising performance. Human capital moderates this relationship while social capital does not, suggesting that costly signals may, at times, enhance the influence of costless signals. Post hoc analyses suggest findings generalize across crowdfunding types, but not to IPOs.     

Patents and invention in Jamaica and the British Atlantic before 1857 †

Before 1852 the English patent system operated at both a domestic and a global level, allowing inventors to extend its operation beyond England to the colonies, where it interacted in territories such as Jamaica with a colonial system of patents and grants. It therefore provides one of the few examples of a workable global patent system, and an important case study of the structures that supported the development and circulation of technology within the British Atlantic during the early stages of the industrial revolution. Providing a framework of ‘tiered’ rather than ‘parallel’ powers and jurisdictions, the imperial patent system was a flexible instrument that inventors could use strategically to promote transnational technological innovation, in which people, ideas, and skills moved back and forth between Britain and colonies such as Jamaica. Patenting, which was concentrated in wealthy plantation colonies that sought greater productivity, was therefore a key part of the economic development of empire.     

Comments on Jeff R. Crump's ‘The end of public housing as we know it: public housing policy,labor regulation and the US city’

Jeff Crump's discussion of housing policy in the United States is highly polemic but not very analytic or informative. Crump argues that federal housing policy is attempting to move people out of public housing and into the private housing market and the lowwage labor force. However, he fails to support his argument with credible evidence. My comments point out the most egregious of Crump's claims. I start with Crump's most extreme contentions that housing policy is coercing public housing residents into the low‐wage labor force. I then question his dismissive attitude toward the problems confronted by residents of distressed public housing and policies designed to help low‐income families move out of impoverished neighborhoods. I subsequently show how Crump exaggerates the extent to which federal housing policy is clearing central cities of subsidized low‐income housing. I conclude with a few words on the serious issues that a more informed critique of US housing policy could have raised. L'exposé de Jeff Crump sur la politique du logement aux Etats‐Unis relève principalement de la polémique, plus que de l'analyse ou de l'information. Selon lui, la politique fédérale tente de déplacer la population des logements sociaux vers les marchés de l'habitat privé et de la main‐d'?uvre à bas salaires. Toutefois, il n'apporte aucune preuve crédible à son propos. Ma réaction porte sur ses arguments les plus insignes, en commençant par ses allégations extrémistes selon lesquelles la politique du logement contraint les habitants des logements publics à des emplois peu rémunérés. Je remets ensuite en cause son dédain à l'égard des difficultés que rencontrent les résidents des logements sociaux insalubres, sans oublier les politiques prévues pour aider les familles à faibles revenus à quitter les quartiers pauvres. En conséquence, à mon avis, Crump exagère la mesure dans laquelle la politique fédérale élimine des centres‐villes les habitats à loyer modéré subventionnés. En quelques mots, ma conclusion porte sur les questions graves qu'aurait pu soulever un commentateur mieux documenté sur la politique du logement aux Etats‐Unis.     

Fixed Exchange Rates and Disinflation in Emerging Markets: How Large Is the Effect?

We examine developing countries which have institutional quality ratings for the effects of exchange rate rigidity on inflation. The level of institutional development exerts no effect on the impact of currency regimes. However, the interaction of institutional quality and exchange rates has, in the most plausible specifications, a negative impact on inflation. This suggests that fixed exchange rates exert at most a contingent effect on inflation, and indicates that countries in Eastern Europe and Latin America contemplating currency pegs would be better off improving institutional quality prior to adopting the euro or dollar and expecting a large subsequent disinflationary effect. JEL no.  F31, O11     

The Role of Expectations in Explaining the Cross-Section of Stock Returns

We find highly significant results when the cross-section of market-adjusted stock returns is regressed against changes in analyst expectations this year about: (1) this year's earnings, (2) next year's earnings, (3) long-term earnings growth, and (4) noise (measured as the standard deviation of analyst forecasts). Surprisingly, changes in expectations about this year's earnings are not significant in a multiple regression with the other independent variables. Changes in expectations about next year's earnings are highly significant but with an impact that is much smaller than that of changes in expectations about the long-term growth in earnings. Changes in noise are also statistically significant and are negatively related to market-adjusted returns, an indication that the signal to noise ratio, rather than merely the signal, is what drives price adjustments to new information.     

Distinguishing external from internal scale effects: The case of public infrastructure

The recent applied production theory literature focusing on the economic performance of firms has increasingly recognized the importance of scale effects on costs and therefore efficiency. These scale effects may include short run returns due to fixity of privately demanded inputs (i.e., capital, long run internal returns to scale, and external factors affecting costs. Since these different types of scale effects can be thought of as shifts in and movements along cost curves, the different cost effects of such factors can be identified in a framework which explicitly takes them into account in the definition ofscale.In this article we formalize such a framework, and then use it to measure short run, long run (internal) and external scale effects from fixity of private capital, nonconstant returns to scale and public infrastructure. We then use these measures to identify the impacts of these different scale factors on productivity growth. The focus on public infrastructure as an important external scale factor is motivated by the current theoretical and policy interest in this issue; we show how a structural production theory model provides a rich basis for the analysis of the cost effects of infrastructure investment.