The Optimal Tax Treatment of Housing Capital in the Neoclassical Growth Model

Should housing capital be taxed like other forms of capital? We analyze this question within a version of the neoclassical growth model. We derive the optimal tax treatment of housing capital vis‐à‐vis business capital allowing for relatively general household preferences. In the first‐best, the tax treatment of business and housing capital should always be the same. In the second‐best, in contrast, the optimal tax treatment of housing capital depends on the elasticities of substitution between nonhousing consumption, housing, and leisure. This is because housing taxation may be used to alleviate the distorting effect of taxing labor. As a result, the optimal tax treatment of housing capital may be different from that of business capital. We complement these analytical results with a numerical analysis.     

Is it Spillover or Compensation? Effects of Community and Organizational Diversity Climates on Race Differentiated Employee Intent to Stay

Business ethics scholars have long viewed organizational diversity climate as a reflection of organizational ethics. Previous research on organizational diversity climate, for the most part, has neglected to consider the influence of community diversity climate on employment relations. In order to address this gap in the literature, we examined the relationship between organizational and community diversity climates in impacting employees’ intent to stay with their organization. In doing so, we tested two competing hypotheses. First, we tested for the positive spillover of community diversity climate on employees’ intent to stay in their organization. Second, we tested for the compensation hypothesis, whereby community diversity climate moderated the organizational diversity climate-employee intent to stay relationship, with the above relationship being stronger for individuals hailing from communities with poor diversity climates. In addition, we also posited a three-way interaction model of community diversity climate, organizational diversity climate, and employee racial affiliations with the interaction between organizational and community diversity climates on intent to stay being stronger for the minority employees. The results of the study, which are based on a survey of 165 employees working in a Midwestern US organization, supported the compensation hypothesis with the interactive influence of organizational and community diversity climates on employee intent to stay being stronger for minorities, as opposed to White employees.     

Can performance appraisals motivate employees to improve performance? A Mexican study

In this study of Mexican employees, we examined the relationship between performance appraisal characteristics (appraisal source, appraisal purpose and feedback richness) and perceived reactions of employees to the appraisal characteristics (perceived fairness and perceived accuracy of appraisals) and appraisal outcomes (appraisal satisfaction and motivation to improve). We hypothesized that multisource appraisals, appraisals used for administrative and developmental appraisals (multipurpose appraisals) and appraisals that have a high degree of feedback richness would lead to more perceived accuracy and perceived fairness of appraisals. We further hypothesized that higher levels of perceived fairness and accuracy would lead to higher levels of employee appraisal satisfaction and motivation to improve performance in the future. Results based on a survey of Mexican employees provide support for most of the hypothesized relationships. We discuss implications of the findings for research and practice of performance appraisals in the Mexican context.