Does accessibility to local public employment agencies matter? Answers from a French quasi-experiment

We question whether accessibility to local public employment agencies impacts exits from unemployment. We deal with the potential endogeneity of the residential location of jobseekers by using the unanticipated creation of a new agency in the French region of Lyon as a quasi-natural experiment. We use exhaustive and geo-located individual data on jobseekers and local public employment agencies. Contrary to past evidence based on aggregated data, we find no evidence that jobseekers with improved accessibility to the local public employment services experience an improvement of their probability of exiting unemployment. We however find evidence of transitory organizational effects. These findings strongly question the costly strategy of a fine distribution of local public employment agencies across the territory while suggesting that institutional issues are key.     

Corporate Finance and Sustainability: the Case of the Electric Utility Industry

The electric utility industry is in transition but needs to move even faster if the country is to meet its emissions goals. The industry has historically moved cautiously, but policies and regulatory approaches must avoid unintentionally reinforcing the status quo. Incentive‐oriented policies and redesigned regulations must balance environmental sustainability with economic sustainability. The authors draw on well‐established corporate finance principles to guide more effective policies. Shareholder‐focused utility executives must make investments conditioned by three elements: (1) the return on equity the utility can expect to make on each project; (2) the investors' required return on equity capital for each project; and (3) the size of the investment. The well‐established economic value added (EVA) model can assist policy analysis: V=(r‐k)I; where V is the shareholder value created, r is the return on equity, k is the return investors require if they are to invest in the stock, and I is the scale of the project. Any new incremental V translates into higher stock prices. All three elements of their model (i.e., risk, return, and scale) require attention by regulators and policymakers to create value for shareholders. The authors show how the right state policies could create powerful incentives for shareholder focused utility executives to support such transitions.     

Do I Really Want to Work Here? Testing a Model of Job Pursuit for MBA Interns

Job pursuit refers to the intentions, decisions, or behaviors indicative of a candidate's interest in a particular employer. This study develops and tests a process model of job pursuit for MBA interns with data collected before, during, and after their internships. Our model integrates theory from the person‐environment fit and organizational socialization literature. Results show pre‐entry person‐organization (P‐O) fit and social aspects tactics jointly motivate proactive information seeking about the employer (from those inside and outside the assigned department) during the internship, and interactively motivate information seeking outside the assigned department. Yet, only information seeking inside the assigned department is related to learning about the employer. Learning about the employer also predicts job‐acceptance intentions, which in turn predicts job‐acceptance decisions. The model developed in this study should serve as a guide to help human resource managers understand job pursuit and acceptance in internships and other similar employment relationships. © 2014 Wiley Periodicals, Inc.     

Domestic financial market frictions,unrestricted international capital flows,and crises in small open economies

Summary. We present an example of a small open economy where small increases in the world interest rate may induce a sharp decline in output and a precipitous depreciation of the exchange rate. Due to a costly state verification problem in domestic credit markets, combined with unrestricted international capital flows, our economy generates two long-run equilibria, one with low GDP and a relatively depreciated real exchange rate (RER), and one with high GDP and a relatively appreciated RER. The first is always a saddle, while the second may be a sink or a source, depending on the level of the world interest rate. A crisis is identified with the economy switching from an equilibrium path approaching the high-output steady state to the saddlepath approaching the low-output steady state. In Mexicos recent history, periods of growth associated with appreciation of the RER have alternated with periods of sharp contraction and depreciation of the RER. Our economy displays such behavior in response to changes in the world interest rate.Received: 9 April 2002, Revised: 20 March 2003JEL Classification Numbers: E5, F4.G. Antinolfi, E. Huybens: We thank Steve Fazzari, Tim Kehoe, Todd Keister, Manuel Santos, Karl Shell and especially Bruce Smith for very helpful discussions. Jaime Calleja Alderete, Eduardo Camero Godínez, and Juan Vargas Hernández provided excellent research assistance. All remaining errors are ours. Huybens was an assistant professor in the Centro de Investigación Económica, ITAM, at the time this article was written, and part of this work was completed while Antinolfi was a visiting scholar at the Federal Reserve Bank of St. Louis. The views expressed herein are those of the authors, and do not reflect those of the World Bank or the Federal Reserve Bank of St. Louis. Correspondence to: G. Antinolfi     

Environmental Policy Theory Given Bounded Rationality and Other-regarding Preferences

Established environmental policy theory is based on the assumption of homo economicus. This means that people are seen as fully rational and acting in a self-regarding manner. In line with this, economics emphasizes efficient policy solutions and the associated advantages of price incentives. Behavioral economics offers alternative, more realistic views on individual behavior. In this paper we investigate opportunities to integrate bounded rationality and other-regarding preferences into environmental policy theory to arrive at recommendations for more effective policies. For this purpose, we will address decisions made under risk and uncertainty, intertemporal choice, decision heuristics, other-regarding preferences, heterogeneity, evolutionary selection of behaviors, and the role of happiness. Three aspects of environmental policy are considered in detail, namely sustainable consumption, environmental valuation and policy design. We pay special attention to the role of non-pecuniary, informative instruments and illustrate the implications for climate policy.     

Throwing It All Away: Exploring Affluent Consumers’ Attitudes Toward Wasting Edible Food

The skewed allocation of food across the world population is a major concern, as the result is that some of us live in abundant supply while others spend their life in constant scarcity. While researchers have studied a variety of issues related to the amounts of food being wasted, or the waste of edible food across consumers with different demographic characteristics, less is known about the drivers of attitudes toward food waste. Based on survey data from a sample of affluent Norwegian consumers, we test how subjective food knowledge, environmental concern, age, and income are related to consumer attitudes toward wasting edible food. We find that all variables except income drive consumer attitudes. Implications for theory and public policy are offered.     

Technological experience and the technology adoption decisions in small manufacturing firms

This paper investigates changes in factors bearing on technology adoption decisions in small manufacturing firms. It is hypothesized that, as a firm's experience with technology increases and its technological capabilities grow, the decision process is gradually modified and puts more weight on those factors which are more closely related to the true potential of the technology. An empirical study shows the more innovative firms to have an outward orientation dominated by clients and suppliers, and to pay more attention to the added flexibility brought about by new technology. It is also shown that functional groups within the company play a more important role in the decision-making process.