the social meaning of money special monies classic interpretations of the development of the modern world portray money as a key instrument in the rationalization of social life money is reductively defined as the ultimate objectifier homogenizing all qualitative distrinctions into an abstract quantity this paper shows the limits of such a purely utilitarian conception of market money a model of special monies is proposed to examine the extraeconomic social basis of modern money the article argues that while money does indeed transform items values and sentiments into numerical cash equivalents money itself is shaped in the process culture and social structure mark the quality of money by institutionalizing controls restrictions and districtions in the sources uses modes of allocation and even the quantity of money the changing social meaning and structure of domestic money specifically married women s money in the united states 1870 1930 are examined as an empirical case study of a special money

corporate sustainability toward a theoretical integration of catholic social teaching and the natural resource based view of the firm even though management scholars have offered several views on the process of corporate sustainability these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences therefore previous work offers an incomplete and somewhat reductionist view of corporate sustainability in this article we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered we do so by integrating the ethical normative perspective of the catholic social teaching cst with the competitive view of the natural resource based view this framework highlights the importance of cst principles and ideas in developing executive moral competences such as moral sensitivity and awareness and moral cognition and motivation moral competences in turn influence the organizational selection of environmental strategies giving leaders the intrinsic motivation to promote both a longer term stance on corporate sustainability efforts and a relentless search for greener business models such strategies move the firm closer towards achieving environmental sustainability hence by bridging the individual normative ethical with the organizational implementational levels of corporate sustainability our framework provides a more realistic coherent and complete perspective on the complex process of achieving corporate sustainability

the effect of cognitive moral development on honesty in managerial reporting this study examines whether truth telling in the form of honest reporting is associated with cognitive moral development conventional agency theory assumes that people are self interested and willing to tell a lie to increase their personal payoffs while recent empirical evidence shows that some people give up monetary rewards to tell the truth e g evans et al account rev 76 537 559 2001 the social psychology literature suggests that cognitive moral development influences individuals ethical decisions we carried out an experiment whereby participants submitted managerial reports in which truth telling decreased their monetary payoff despite the fact that their decisions were not subject to monitoring auditing or reputation effects some participants reported honestly or partially honestly we find the relationship between honest reporting and cognitive moral development to be both positive and linear compared with those at lower stages of cognitive moral development participants at higher stages of cognitive moral development were more likely to submit an honest report and give up potential monetary gains from lying we further examine the economic impact of honest reporting on the firm s profit with the assumption of self interest and profit maximization antle and eppen manag sci 31 163 174 1985 suggest that a contract with a hurdle rate feature reduces managers information rent we find that in comparison with the expected outcome of a hurdle contract the firm can yield higher profits with a trust contract by hiring managers with a p score higher than 16 67

inflation and indexation an empirical approach previous studies have examined various aspects of indexation we can distinguish two major points of interest wage determination and the effects of indexation on macroeconomic fluctuations some scholars have attempted to determine empirically and theoretically the causes of cost of living adjustment cola clauses in wage contracts 3 7 11 the focus in this research is often on major union contracts with wage change a function of both real factors e g the unemployment rate and monetary factors e g past inflation typical results are that past inflation will increase the adoption of indexation while industry specific shocks may cause resistance to indexation in addition kaufman and woglom 7 have shown that current labor market conditions have a significant impact on long term contracts research has also been concerned with the effect of wage indexation on the macroeconomy 1 2 5 6 how can wage indexation schemes be designed so as to alleviate the substantial income redistribution due to inflation and the use of contracts in nominal

religion and human capital abstract evidence indicates that education is positively associated with religious activity however it is not necessarily the case that education increases religious activity the results in this study suggest that education is not an exogenous determinant of attendance at weekly religious services and religious contributions furthermore no causal effect of education on religious activity is found when education is treated as endogenous

the determination of escalator clauses in collective agreements u ntil very recently the literature on the wider usage of escalator clauses has dealt mainly with their impact on inflation unemployment the trade balance and the exchange rate it is equally important however to understand why and in what circumstances employers and labor unions agree to incorporate such clauses in work contracts in the past few years shavell 1976 azariadis 1978 and blinder 1978 have outlined a theoretical framework for explaining the emergence of indexation to the best of our knowledge however none of the assumptions deriving from these models have been subjected to empirical testing the purpose of this paper is first to develop and test a number of these assumptions and second to consider the problem of simultaneity between two types of adjustments to inflation indexation versus shorter contract duration in the first section we summarize the contributions of the three aforementioned authors to the theory of wage indexation and extract from them a number of verifiable assumptions the second section provides an empirical framework since adjustments to uncertainty about inflation can take the form of shorter contract duration or indexation those two variables are simultaneously determined to overcome the problem of dummy endogenous variables in a simultaneous equation system we have applied the method suggested by heckman 1978 based on the use of maximum likelihood estimators in the third section we analyse the results and in the conclusion we draw their implications for economic policy

differences in managerial values a study of u s hong kong and prc managers in this study of convergence divergence of managerial values four western developed measures machiavellianism locus of control intolerance of ambiguity and dogmatism and the four dimensions of the eastern developed chinese value survey confucian dynamism human heartedness integration and moral discipline were the measures used the findings indicate that often times both culture and the business environment interact to create a unique set of managerial values in a country

china s uneven progress against poverty while the incidence of extreme poverty in china fell dramatically over 1980 2001 progress was uneven over time and across provinces rural areas accounted for the bulk of the gains to the poor though migration to urban areas helped the pattern of growth mattered rural economic growth was far more important to national poverty reduction than urban economic growth agriculture played a far more important role than the secondary or tertiary sources of gross domestic product gdp rising inequality within the rural sector greatly slowed poverty reduction provinces starting with relatively high inequality saw slower progress against poverty due both to lower growth and a lower growth elasticity of poverty reduction taxation of farmers and inflation hurt the poor external trade had little short term impact

rural urban disparity and sectoral labour allocation in china this study examines china s rural urban segmentation and its causes in the context of economic reforms household survey and aggregate data indicate a v shaped process in which rural urban consumption and income differentials decreased between 1978 and 1985 but then have continually increased to historically high levels this sectoral division is consistent with production function estimates based on provincial data that reveal higher labour productivity in urban state owned industries than in rural industries and agriculture to explain the v shaped change we argue that the precedent of successful rural reforms raised farmers relative earnings but the remaining obstacles to an efficient sectoral allocation of labour have prevented china from eliminating dualism recent financial policies consisting of urban price subsidies and increased investment credits have also had influential distribution effects that are biased against the rural sector

union contracts and money wage changes in u s manufacturing industries this paper analyzes the relationship between wage changes negotiated in selected large collective bargaining agreements and industry wide changes in average hourly earnings multiple regressions are used to examine the relationship in two digit manufacturing industries for the period 1958ii to 1978il negotiated wage changes are found to have a major impact on overall movements in hourly earnings the estimated equations have potential applications for short run wage forecasting and for policy analyses

bargaining and distribution in marriage the standard economic model of the family is a common preference model that assumes that a family maximizes a single utility function and implies that family behavior is independent of which individuals receive income or control resources in recent years this model has been challenged by game theoretic models of marriage that do not impose pooling and are therefore consistent with empirical evidence that income controlled by husbands and wives does have different effects on family behavior in this paper the authors review a number of simple bargaining models and relevant empirical evidence and discuss their implications for distribution within marriage

culture and ceo compensation the theory and research on chief executive officer ceo compensation tends to be dominated by assumptions and values reflective of those dominant in the national culture of the united states where most of this work is done this suggests that an underlying theme focuses on how ceo compensation is related to instrumental choices made in a competitive capitalist culture this study seeks to expand the understanding of ceo compensation by examining it in the context of other cultures based on the premise that national culture plays a significant part in the nature of compensation strategies we relate cultural dimensions uncertainty avoidance power distance individualism and masculinity femininity developed by hofstede hofstede 1980a 2001 to several dimensions of ceo compensation these dimensions are total ceo pay the proportion of variable pay to total compensation and the ratio of ceo pay to the lowest level employees the main findings of our paper are 1 all of the different dimensions of ceo pay were related to power distance leading us to infer that ceo pay in a culture is most reflective of the strength of the power structure in a society and 2 total compensation and the ratio of variable pay to total pay are related to individualism we conclude that cultural dimensions can contribute to understanding cross national ceo compensation the implication of this conclusion is that there are different ways that ceo compensation fits into the cognitive schema of various cultures and furthermore that these cognitive schema vary across societies that affect the nature of the cultural matrix into which money is incorporated bloch and parry 1989 p 1 moreover our results imply that particular forms of ceo compensation do not mean the same thing in different cultures but rather carry different symbolic connotations depending on the values dominant in a society thus not only does the compensation structure of a firm within a culture have a symbolic meaning within organizations e g trice and beyer 1993 but it can also be seen as an expression of deeper social values hofstede et al 1990 that may differ across countries

income money ethic pay satisfaction commitment and unethical behavior is the love of money the root of evil for hong kong employees this study examines a model involving income the love of money pay satisfaction organizational commitment job changes and unethical behavior among 211 full time employees in hong kong china direct paths suggested that the love of money was related to unethical behavior but income money was not indirect paths showed that income was negatively related to the love of money that in turn was negatively related to pay satisfaction that in turn was negatively associated with unethical behavior pay satisfaction was positively related to organizational commitment thus the love of money is the root of evil but money is not

religion and work micro evidence from contemporary germany abstract using micro data from contemporary germany this paper studies the connection between protestantism and modern day labor market outcomes to address the endogeneity in self declared religion i exploit a provision in a sixteenth century peace treaty which determined the geographic distribution of catholics and protestants reduced form and instrumental variable estimates provide no evidence of an effect of protestantism on hourly wages however relative to their catholic counterparts protestants do appear to work longer hours the patterns in the data are difficult to reconcile with explanations based on institutional factors or religious differences in human capital acquisition religious differences in individuals values however can account for most of the estimated effects

occupational choice and the spirit of capitalism the british industrial revolution triggered a socioeconomic transformation whereby the landowning aristocracy was replaced by industrial capitalists rising from the middle classes as the economically dominant group we propose a theory of preference formation under financial market imperfections that can account for this pattern parents shape their children s preferences in response to economic incentives middle class families in occupations requiring effort skill and experience develop patience and a work ethic whereas upper class families relying on rental income cultivate a refined taste for leisure these class specific attitudes which are rooted in the nature of preindustrial professions become key determinants of success once industrialization transforms the economic landscape i introduction the industrial revolution was more than capital accumulation and growth it also set off a social and political transformation that redefined hierarchies in society and reshaped the distribution of income and wealth before the onset of industrialization in eighteenth century britain wealth and political power were associated with the possession of land over the course of the nineteenth century a new class of entrepreneurs and businessmen emerged as the economic elite for the most part the members of this class rose from humble beginnings and had their social origins in the urban middle classes the landed elite was left behind and eventually lost its political and economic predominance many observers of the time linked this reversal in economic fortunes to differences in values attitudes and ultimately preferences across social classes there are countless examples both in scholarly and in fictional writing of portrayals of members of the landowning class as averse to work unwilling to save ill disposed tocommercialactivity andunabletoconsidermoneyassomething

monetary intelligence and behavioral economics the enron effect love of money corporate ethical values corruption perceptions index cpi and dishonesty across 31 geopolitical entities monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness this study explores the dark side of monetary intelligence and behavioral economics dishonesty corruption dishonesty a risky prospect involves cost benefit analysis of self interest we frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty respectively we theorize the magnitude and intensity of the relationship between love of money and dishonest prospect dishonesty may reveal how individuals frame dishonesty in the context of two levels of subjective norm perceived corporate ethical values at the micro level cev level 1 and corruption perceptions index at the macro level cpi level 2 collected from multiple sources based on 6382 managers in 31 geopolitical entities across six continents our cross level three way interaction effect illustrates as expected managers in good barrels high cev high cpi mixed barrels low cev high cpi or high cev low cpi and bad barrels low cev low cpi display low medium and high magnitude of dishonesty respectively with high cev the intensity is the same across cultures with low cev the intensity of dishonesty is the highest in high cpi entities risk seeking of high probability the enron effect but the lowest in low cpi entities risk aversion of low probability cpi has a strong impact on the magnitude of dishonesty whereas cev has a strong impact on the intensity of dishonesty we demonstrate dishonesty in light of monetary values and two frames of social norm revealing critical implications to the field of behavioral economics and business ethics

wealth warmth and well being whether happiness is relative or absolute depends on whether it is about money acquisition or consumption abstract a central question in consumer and happiness research is whether happiness depends on absolute or relative levels of wealth and consumption to address this question the authors evaluate a finer level than overall happiness and distinguish three specific types of happiness with money with the acquisition of an item and with the consumption of an item they find that happiness with money and with acquisition is relative and that happiness with consumption can be either absolute or relative depending on whether the consumption is inherently evaluable or not including both lab and field data this research yields implications for how to increase consumer happiness from one generation to the next

an economic analysis of the protestant reformation this paper seeks to explain the initial successes and failures of protestantism on economic grounds it argues that the medieval roman catholic church through doctrinal manipulation the exclusion of rivals and various forms of price discrimination ultimately placed members seeking the z good spiritual services on the margin of defection these monopolistic practices encouraged entry by rival firms some of which were aligned with civil governments the paper hypothesizes that protestant entry was facilitated in emergent entrepreneurial societies characterized by the decline of feudalism and relatively unstable distribution of wealth and repressed in more homogeneous rent seeking societies that were mostly dissipating rather than creating wealth in these societies the roman church was more able to continue the practice of price discrimination informal tests of this proposition are conducted by considering primogeniture and urban growth as proxies for wealth stability

the effect of protestantism on education before the industrialization evidence from 1816 prussia across prussian counties and towns protestantism led to more schooling already in 1816 before the industrial revolution this supports a human capital theory of protestant economic history and rules out a weberian explanation of protestant education just resulting from industrialization

population technology and fragmentation the european miracle revisited abstract the effects of political fragmentation on long run development seem to have changed over the course of human history technological leaders used to be empires but the industrial revolution started in the fragmented europe this paper sets up a model to help us think about this puzzle there are two sets of mechanisms at play a standard scale effect which benefits unified regions since technology is a non rivalrous good and several competition effects both negative like wasteful armies and positive incentives to invest in new technologies we apply the model to analyze the preindustrial divergence between china and europe

the love of money satisfaction and the protestant work ethic money profiles among univesity professors in the u s a and spain this study tests the hypothesis that university professors lecturers in the u s and spain with different money profiles based on factors success budget motivator equity and evil of the love of money scale will differ in work related attitudes and satisfaction results suggested that achieving money worshipers with high scores on factors success motivator equity and budget had high income work ethic and high satisfaction with pay level pay administration and internal equity comparison but low satisfaction with external equity comparison careless money admirers high success but low budget had low intrinsic job satisfaction and low satisfaction with pay level and life apathetic money managers low evil and low motivator had the highest intrinsic job satisfaction and life satisfaction money repellent individuals high evil and low success had low income work experience work ethic and low satisfaction with pay administration money does not provide the same motivation for people in all four money profiles results are discussed in light of the effectiveness of using money to reward people with different money profiles intrinsic motivation and unethical behavior

the effect of published reports of unethical conduct on stock prices this study adds to the empirical evidence supporting a significant connection between ethics and profitability by examining the connection between published reports of unethical behaviour by publicly traded u s and multinational firms and the performance of their stock using reports of unethical behaviour published in the wall street journal from 1989 to 1993 the analysis shows that the actual stock performance for those companies was lower than the expected market adjusted returns unethical conduct by firms which is discovered and publicized does impact on the shareholders by lowering the value of their stock for an appreciable period of time whatever their views on whether ethical behaviour is profitable managers should be able to see a definite connection between unethical behaviour and the worth of their firm s stock stockholders the press and regulators should find this information important in pressing for greater corporate and managerial accountability

a continuous state space approach to convergence by parts abstract using a continuous state space approach this note extends feyrer s feyrer j 2003 convergence by parts manuscript dartmouth college available at http www dartmouth edu jfeyrer parts pdf study of the proximate determinants of the shape of the long run distribution of income per capita contrary to feyrer s finding of the primacy of total factor productivity tfp the results here imply that traps in both tfp growth and capital accumulation may matter

a cross national assessment of the values of latin america managers contrasting hues or shades of gray we draw upon studies from the social sciences to develop and test hypotheses about similarities and differences in the importance of values among managers in 12 latin american countries using the rokeach value survey data from 1015 owner managers of small businesses indicated convergence among values relating to group interests but significant variation among values serving individual interests in addition several groups of countries were identified as culturally similar whereas brazil and mexico remained culturally discrete the results suggest that common perceptions of latin america as a culturally homogeneous region are stereotypical and incorrect and that divergence in the importance of values can explain differences in business phenomena across the region

the long run educational cost of world war ii an important component of the long run cost of a war is the loss of human capital suffered by school age children who receive less education austrian and german individuals who were 10 years old during the conflict or were more directly involved through their parents received less education than comparable individuals from nonwar countries such as switzerland and sweden we also show that these individuals experienced a sizable earnings loss some 40 years after the war which can be attributed to the educational loss caused by the conflict the implied consequences in terms of gross domestic product loss are calculated

how much does honesty cost small bonuses can motivate ethical behavior although people generally try to avoid lying the lure of potential monetary payoffs often leads to unethical behavior the current research investigates whether small monetary rewards for honesty help people resist the temptations of larger incentives or whether they backfire and lead to even more dishonesty four experiments address these issues experiment 1 shows that a 1 bonus led people to act more honestly when they could have lied to obtain 4 an identical bonus however did not increase dishonesty experiment 2 uses a different context and again shows that a 1 bonus led people to act more honestly it also finds no evidence that this small payoff crowded out subsequent altruistic behavior experiment 3 shows that a 1 bonus increased people s honesty even when the payoffs for lying increased to 8 12 and 16 but not when the payoff for lying increased to 20 experiment 4 finds that smaller bonuses for honesty still had an impact although it tended to be somewhat weaker in addition com

are you satisfied with your pay when you compare it depends on your love of money pay comparison standards and culture we develop a theoretical model of income and pay comparison satisfaction with two mediators love of money and pay comparison standards examine the direct and the indirect paths of our model and treat culture the us vs spain as a moderator based on 311 professors in the us and spain we demonstrate a positive direct path and a negative indirect path our subsequent multi group analysis illustrates for american professors their direct path shows that income is directly related to high pay comparison satisfaction their indirect path reveals the following new insights professors with high income have a strong love of money orientation set their pay equity comparison standards deserved pay and other s salary significantly higher than their own salary and as a consequence have low pay comparison satisfaction for spanish professors love of money is not related to their pay comparison standards which are slightly non significantly higher than their own self reported income neither the direct nor the indirect path is significant the standardized total effect of income to pay satisfaction is positive for american professors but negligible for spanish professors are you satisfied with your pay when you compare our results demonstrate that pay comparison satisfaction depends on not only one s income but also one s love of money and pay equity comparison standards which may vary across cultures

research notes using relative deprivation theory to explain satisfaction with income and pay level a multistudy examination this article reports four studies in which we applied relative deprivation theory to the prediction of satisfaction with income and pay level the proposed model specified both social comparisons a

diagnosing measurement equivalence in cross national research many researchers have pointed out that it is necessary to ensure measurement equivalence in cross national comparative research three aspects of measurement equivalence translation metric and calibration equivalence are necessary to establish the cross national reliability and validity of items used to measure theoretical constructs this paper discusses these issues and proposes two recently developed empirical techniques multiple group lisrel and optimal scaling for use in diagnosing cross national measurement equivalence these techniques are illustrated by reanalysis of a pioneering u s and japanese study the two techniques yield convergent results indicating measurement equivalence for some but not all ordinal level items under consideration the findings demonstrate that the proposed methods are useful diagnostic tools for exploring measurement equivalence several suggestions for reducing the likelihood of problems with measurement equivalence and a number of methods for dealing with items where lack of equivalence persists are also discussed

landownership concentration and the expansion of education we study the relationship between large landownership concentration and the expansion of mass education in nineteenth century prussia cross sectional estimates show a negative association between landownership concentration and enrollment rates fixed effects panel estimates indicate that regions with an initially stronger landownership concentration exhibit increasing enrollment rates this relationship is not driven by differences in the supply of schooling we argue that the implementation of agricultural reforms including the stepwise abolition of serfdom is an important driver of the change in enrollment the results are consistent with the interpretation that emancipation from labor coercion increased the private demand for education

conservative protestants and wealth how religion perpetuates asset poverty1 the association between cultural orientation and material outcomes is fundamental to sociology research this article contributes to the understanding of this relationship by exploring how religious affiliation affects wealth ownership for conservative protestants cps the results demonstrate that religion affects wealth indirectly through educational attainment fertility and female labor force participation the results also provide evidence of a direct effect of religion on wealth low rates of asset accumulation and unique economic values combine to reduce cp wealth beyond the effects of demographics the findings improve understanding of the relationship between religious beliefs and inequality

on optimal wage indexation the observed practice of contracting for labor services in advance introduces stickiness or friction into the economic system in the presence of monetary and real stochastic disturbances the stability of the levels of employment and output hinges on the nature of the wage contracts in this paper we demonstrate the existence of optimal indexation schemes that are capable of eliminating the aforementioned friction by duplicating the equilibrium that would obtain if labor services were contracted for after the stochastic disturbances were realized

incentives predestination and free will i introduction max weber s 1930 the protestant ethic and the spirit of capitalism argues that the protestant reformation set the stage for post medieval economic growth using an occupational study of germans from 1895 weber shows that protestants dominate the mercantile or capitalist occupations in that country at that time period weber also argues that between 1600 and 1900 protestant countries advanced faster than their catholic neighbors and that this was the result of calvin s urging acceptance of material success and the dogma of predestination 1 an ocean of work beginning with rachfahl 1909 and sombart 1913 has since attacked weber s theological generalizations see giddens 1992 for a review tawney 1926 and robertson 1933 argue weber s causal interpretation is wrong and that economic growth laid the framework for protestantism not protestantism for economic growth samuelsson 1961 disputes the very correlation between protestantism and economic success which is the basis of the weberian hypothesis the correlation between protestantism and economic success is certainly weaker than weber suggests even in the german data that weber himself uses furthermore more modem data tends to find only a modest link between protestantism and economic success as in winter 1974 and tomes 1994 2 however for centuries there were gaps in economic success between protestant and catholic nations and new findings on early modem data tend to confirm differences between protestants and catholics at least within the u s as weber s arch critic samuelsson himself writes there is some truth in the contention that the protestant countries and especially those adhering to the reformed church were particularly vigorous economically given that there was some correlation between protestantism and economic success before the mid to late 20th century the question then becomes why this correlation existed some elements of protestant theology clearly encourage capitalism usury doctrines became less rigid under calvinism nelson 1972 avarice was de emphasized as a sin weber claims that luther s concept of a calling includes worldly success and that this is a prominent difference with catholic doctrine although this theological claim has been subject to much debate e g sombart 1915 there still appears to be some basic truth to this point one of the largest theological gaps between the denominations is that calvinism accepts the dogma of predestination while catholicism argues for a dogma of free will 3 for the purposes of this paper we will follow weber and accept broad brush definitions of doctrine rather than getting mired in the more subtle features of the two doctrines under predestination a spiritual elite is preordained before the beginning of time and will receive eternal life 4 under free will it is only through a lifetime of good actions that individuals are accepted into heaven 5 weber argues that predestination creates a more lasting basis for economic growth than the dogma of free will in this paper we present a model that formally treats weber s claim under particular circumstances and show how predestination could create the correlation between protestantism and growth that existed in the pre modern era our model also suggests conditions under which a more successful society would favor the doctrine of predestination which can be seen as a formalization of tawney s and robertson s view that economic growth created the reformation in this essay both free will and predestination create incentives which spur good behavior 6 under the doctrine of free will good behavior is motivated by an increased probability of getting into heaven under the doctrine of predestination this incentive is irrelevant because individual actions do not determine spiritual outcomes instead an individual s actions are motivated by a desire to receive positive behavior from others by convincing them that he is part of the spiritual elite

income inequality in the people s republic of china trends determinants and proposed remedies the issue of income inequality in the people s republic of china prc has attracted world wide attention leading to a sizable literature this paper attempts to provide a nonexhaustive literature review of the prc s inequality trends and determinants and suggested government interventions it discusses profiles of income inequality along three dimensions interhousehold disparity regional divides and urban rural gaps this is followed by an exploration of the driving forces behind rising inequality including the notorious hukou system policy biases location or geographic factors globalization and education finally the paper summarizes and proposes government interventions for containing or reducing income inequality in the prc important areas for future research are also suggested in the final section of the paper

substitutability and protectionism latin america s trade policy and imports from china and india this article examines the trade policy response of latin american governments to the rapid growth of chinese and indian exports in world markets to explain more protection in sectors where a large share of imports originates in china and india the protection for sale model is extended to allow for region specific degrees of substitutability between domestic and imported varieties of a good the results suggest that more protection toward chinese and indian goods can be explained by the higher substitutability of chinese and indian goods with domestic varieties the data support the model which performs better than the original protection for sale framework in explaining latin america s structure of protection

the importance of work goals an international perspective the paper probes into the basic question of what individuals seek from working results from a representative sample of the labor force in seven countries n 8192 showed that the two most dominant work goals are interesting work and good pay these were consistent internationally across different organizational levels between the genders and among different age categories

was weber wrong a human capital theory of protestant economic history max weber attributed the higher economic prosperity of protestant regions to a protestant work ethic we provide an alternative theory protestant economies prospered because instruction in reading the bible generated the human capital crucial to economic prosperity we test the theory using county level data from late nineteenth century prussia exploiting the initial concentric dispersion of the reformation to use distance to wittenberg as an instrument for protestantism we find that protestantism indeed led to higher economic prosperity but also to better education our results are consistent with protestants higher literacy accounting for most of the gap in economic prosperity

toward an ethical theory of organizing current organizations are underpinned by utilitarian ethics of modernity pure economic motive driven organizations detach themselves from larger societal interest rising number of corporate scandals and intraorganizational income inequalities are breeding similar trends in society at large current organizations base their competitive advantage on resources and capabilities which boils down to economic supremacy at all cost whether it is named i o or rbv of the firm this theoretical article posits ethics based trust as the main competency and capability for attaining sustained competitive advantage it in no way condemns utility view of the firms but treats it as a natural yet secondary outcome of genuine ethicality of the firm cultivating an ethical culture in the firm through identifying antecedents organizational practices and the outcomes where profitability is an automatic but secondary outcome under the supremacy of ethics is detailed in the multilevel model presented in this article the main call of this article is to posit ethics and morality over and above short term profits so that organizations fulfill their trustee role for society through enacting socio humanistic theories within organizations a brief analysis of the proposed ethical theory of firm is undertaken in light of the schooling notion in the contemporary organization theory literature

real exchange rates in small open oecd and transition economies comparing apples with oranges abstract we find that productivity gains in tradables cause an appreciation of the real exchange rate via both tradable and nontradable prices in the cee 5 and have no affect in the baltic countries while they lead to a depreciation of the real exchange rate of tradables in oecd economies that overcompensates the appreciation due to nontradable prices rising net foreign liabilities lead to a real appreciation in the baltic countries instead of the expected depreciation found in oecd and cee 5 countries these differences are due to the different impact of the fundamentals on the real exchange rate depending on the time horizon studied

income and quality of life does the love of money make a difference this paper examines a model of income and quality of life that controls the love of money job satisfaction gender and marital status and treats employment status full time versus part time income level and gender as moderators for the whole sample income was not significantly related to quality of life when this path was examined alone when all variables were controlled income was negatively related to quality of life when 1 the love of money was negatively correlated to job satisfaction and 2 job satisfaction was positively related to both income and quality of life income was negatively related to quality of life for full time high income and male employees when these two conditions failed to exist income was not related to quality of life for part time median or low income and female employees this model provides new insights regarding the impact of the love of money and job satisfaction on the income quality of life relationship

executive compensation and tournament theory empirical tests on danish data this article adds to the empirical literature on tournament theory as a theory of executive compensation i test several propositions of tournament models on a rich data set containing information about 2 600 executives in 210 danish firms during a 4 year period i ask are pay differentials between job levels consistent with relative compensation is pay dispersion between levels higher in noisy environments is the dispersion affected by the number of tournament participants is average pay lower in firms with more compressed pay structures does wider pay dispersion enhance firm performance most of the predictions gain support in the data

introduction to the economics of religion after a very long hiatus economists have begun again to study the relationship between economics and religion this article seeks to summarize and evaluate the principal themes and empirical findings that have appeared in some 200 recent papers on the economics of religion although some of the research concerns the economic consequences of religiosity most applies standard economic theory to the study of individual religious activity the characteristics of religious groups and the impact of regulation and competition on religious markets

which countries have state religions among 188 countries 72 had no state religion in 2000 1970 and 1900 58 had a state religion throughout and 58 had 1 or 2 transitions we use a hotelling spatial competition model to analyze the likelihood that the religion market would be monopolized similar forces influence a government s decision to establish a state religion consistent with the model the probability of state religion in 1970 and 2000 is increasing with the adherence rate to the main religion has a nonlinear relation with population and has little relation with per capita gdp the probability of state religion decreases sharply under communism but lagged communism has only a weak effect with costly adjustment for institutions the probability of state religion in 1970 or 2000 depends substantially on the status in 1900 this persistence is much stronger for countries with no major regime change than for countries with such a change

identifying human capital externalities theory with applications the identification of aggregate human capital externalities is still not fully understood the existing mincerian approach confounds positive externalities with wage changes due to a downward sloping demand curve for human capital as a result the mincerian approach yields positive externalities even when wages equal marginal social products we propose an approach that identifies human capital externalities whether or not aggregate demand for human capital slopes downward another advantage of our approach is that it does not require estimates of the individual return to human capital applications to u s cities and states between 1970 and 1990 yield no evidence of significant average schooling externalities copyright 2006 wiley blackwell

monetary intelligence and behavioral economics across 32 cultures good apples enjoy good quality of life in good barrels monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness this study explores the bright side of monetary intelligence and behavioral economics frames money attitude in the context of pay and life satisfaction and controls money at the macro level gdp per capita and micro level z income we theorize managers with low love of money motive but high stewardship behavior will have high subjective well being pay satisfaction and quality of life data collected from 6586 managers in 32 cultures across six continents support our theory interestingly gdp per capita is related to life satisfaction but not to pay satisfaction individual income is related to both life and pay satisfaction neither gdp nor income is related to happiness money makes people happy our theoretical model across three gdp groups offers new discoveries in high gdp rich entities high income not only reduces aspirations rich motivator and power but also promotes stewardship behavior budget give donate and contribute and appreciation of achievement after controlling income we demonstrate the bright side of monetary intelligence low love of money motive but high stewardship behavior define monetary intelligence good apples enjoy good quality of life in good barrels this notion adds another explanation to managers low magnitude of dishonesty in entities with high corruption perceptions index cpi risk aversion for gains of high probability tang et al 2015 doi 10 1007 s10551 015 2942 4 in low gdp poor entities high income is related to poor budgeting skills and escalated happiness these managers experience equal satisfaction with pay and life we add a new vocabulary to the conversation of monetary intelligence income gdp happiness subjective well being good and bad apples and barrels corruption and behavioral ethics

a cross cultural comparative study of managerial job attitudes effective managerial performance is influenced by the types of rewards which managers seek in their work environment and by their perceptions of the degree to which their job expectations are being satisfied this research provides empirical evidence on the nature of job related values and outcomes in 4 countries canada france japan and the uk the survey data reveal that the types of job outcomes sought by managers differ significantly from one culture to another the results should be of practical value to companies seeking to develop more effective management motivational devices in the countries studied moreover the approach and methodology may provide a useful model for further cross cultural studies

urban rural gap and poverty traps in china a prefecture level analysis urban rural gap and regional inequality are long standing problems in china and result in considerable number of studies this article examines the dynamic behaviours of incomes for both urban and

urban income inequality in china revisited 1988 2002 abstract using newly available spatial price deflators this paper shows that inequality evaluations in the literature overstate the magnitude of inequality and inequality changes in china as well as the role played by regional differences in the recent inequality rise

corporate tax integration in the united states a general equilibrium approach this paper presents estimates of static and dynamic general equilibrium resource allocation effects for four alternative plans for corporate and personal income tax integration in the united states a medium scale numerical general equilibrium model is used which integrates the u s tax system with consumer demand behavior by household and producer behavior by industry results indicate that total integration of personal and corporate taxes would yield an annual static efficiency gain of around 6 billion 1973 dollars partial integration plans yield less dynamic effects are larger and our analysis indicates that full integration may yield gains whose present value is as large as 500 billion or about 1 0 percent of the discounted present value of the gnp stream to the u s economy after correction for population growth plans differ in their distributional impacts although these findings depend on the nature of replacement taxes used to preserve government revenues the size of dynamic resource allocation effects is sensitive to the choice of the replacement tax while static gains are reasonably robust

geographic poverty traps a micro model of consumption growth in rural china how important are neighbourhood endowments of physical and human capital in explaining diverging fortunes over time for otherwise identical households in a developing rural economy to answer this question we develop an estimable micro model of consumption growth allowing for constraints on factor mobility and externalities whereby geographic capital can influence the productivity of a household s own capital our statistical test has considerable power in detecting geographic effects given that we control for latent heterogeneity in measured consumption growth rates at the micro level we find robust evidence of geographic poverty traps in farm household panel data from post reform rural china our results strengthen the equity and efficiency case for public investment in lagging poor areas in this setting copyright 2002 john wiley sons ltd

dignity and dreams what the earned income tax credit eitc means to low income families money has meaning that shapes its uses and social significance including the monies low income families draw on for survival wages welfare and the earned income tax credit eitc this study based on in depth interviews with 115 low wage eitc recipients reveals the eitc is an unusual type of government transfer recipients of the eitc say they value the debt relief this government benefit brings however they also perceive it as a just reward for work which legitimizes a temporary increase in consumption furthermore unlike other means tested government transfers the credit is seen as a springboard for upward mobility thus by conferring dignity and spurring dreams the eitc enhances feelings of citizenship and social inclusion

from farmers to merchants conversions and diaspora human capital and jewish history from the end of the second century ce judaism enforced a religious norm requiring fathers to educate their sons we present evidence supporting our thesis that this change had a major influence on jewish economic and demographic history first the high individual and community cost of educating children in subsistence farming economies 2nd to 7th centuries prompted voluntary conversions of jews that account for a share of the reduction from 4 5 to 1 2 million second the jewish farmers who invested in education gained the comparative advantage and incentive to enter skilled occupations during the urbanization in the abbasid empire in the near east 8th and 9th centuries and they did select themselves into these occupations third as merchants the jews invested even more in education a precondition for the mailing network and common court system that endowed them with trading skills demanded all over the world fourth the jews generated a voluntary diaspora within the muslim empire and later to western europe fifth the majority of world jewry lived in the near east when the mongol invasions in the 1250s brought this region back to a subsistence farming economy in which many jews found it difficult to enforce the religious norm and hence converted as it had happened centuries earlier jel j1 j2 n3 o1 z12 z13

interprovincial disparities in china output and consumption 1952 1987 the flood of economic information from china in recent years has permitted reassessment of the chinese model of development and the extent to which china s own development experience has conformed to it the prevailing consensus of the 1970s concerning the substance of the model itself typically characterized in terms of the chinese leadership s objectives and priorities and its strategy for pursuing them has stood up quite well the same cannot be said about past appraisals of the extent to which china s economic reality has been reshaped to accord with the model s prescriptions one of the most widely remarked elements of the chinese model is the high priority assigned to regional objectives and more specifically to balance in the distribution of productive capacity and equity in the distribution of income and hence consumption during the maoist era i e prior to 1979 the central government pursued regional objectives through such measures as interregional transfers of investment resources effected via the planning system subsidization of health and education expenditures in poor regions and attempts to maintain a safety net of state relief effected largely via control of grain surpluses in short there is little doubt that prior to 1979 the chinese leadership placed an unusually high value on the spread of modern growth and the improvements in welfare associated with it and persistently acted to limit the emergence or widening of interregional disparities although china s post mao leaders have shown greater concern with efficiency and with the potential trade offs between efficiency and such goals as balance and equity their continuation of many redistributive policies indicates that they have not abandoned regional objectives but how successful has china been in achieving these objectives

the long breadth of cities revisiting worldwide urbanization patterns 1950 2030 abstracta comparative analysis of population dynamics worldwide contributes to profile distinctive demographic and economic trajectories of urban growth discriminating processes of settlement conc

a cross national study of managerial values this study investigated cross national differences in managerial values a total of 567 managers from twelve nations participated in the study managerial values were assessed by means of rokeach s value survey factor analysis of the eighteen instrumental values included in rokeach s value survey revealed four underlying value dimensions the value dimension that included the instrumental values broadminded capable and courageous was ranked as the most important value dimension by managers from all twelve nations national differences were found on three of the four value dimensions