home is where the hurt is an econometric analysis of injuries caused by spousal assault using data on injuries presenting at the emergency departments of participating hospitals in the australian state of queensland we examine the nature of injuries resulting from spousal assault and compare them to injuries from non spousal assault and accidental injuries we ask who are the persons most vulnerable to spousal assault are spousal assault injuries more or less severe than injuries from non spousal assault and accidental injuries do the recorded figures for assault injuries on women understate the true number of assault injuries and if so by how much

towards an attention based view of the firm the central argument is that firm behavior is the result of how firms channel and distribute the attention of their decision makers what decision makers do depends on what issues and answers they focus their attention on what issues and answers they focus on depends on the specific situation and on how the firm s rules resources and relationships distribute various issues answers and decision makers into specific communications and procedures the paper develops these theoretical principles into a model of firm behavior and presents its implications for explaining firm behavior and adaptation 1997 by john wiley sons ltd

collective labor supply a single equation model and some evidence from french data in chiappori s 1988 collective model of labor supply hours of work are supposed flexible in many countries however male labor supply does not vary much in that case the husband s labor supply is no longer informative about the household decision process and individual preferences to identify structural components of the model additional information is needed we thus consider an approach in which the wife s labor supply is expressed as a function of the household demand for one specific good we demonstrate that the main properties of chiappori s initial model are preserved and apply our results on french data

attitudes toward risk and the risk return paradox prospect theory explanations this study attempted to explain bowman s risk return paradox in terms of recent research in behavioral decision theory and prospect theory the research emphasized the role of reference or target

female labour supply and marital status decisions a life cycle model this paper studies the interdependence between and the determinants of life cycle marital status and labour force participation decisions of women a dynamic utility maximization model is presented and estimated using longitudinal data on women from the panel study of income dynamics the mle method employed involves solving a dynamic programming problem further a minimum distance estimator is proposed which allows for the incorporation of wage data in a computationally simple way the estimates are used to predict changes in the life cycle patterns of employment marriage and divorce due to differences in education race the female s earnings and her potential husband s earnings the estimation results indicate that the utility gains to marriage are decreasing in the female s wage rate and increasing in her potential husband s earnings while the opposite is found for gains to working ignoring the endogeneity of marital status decisions is shown to lead to an underestimation of own and husband s wage effects on female labour supply

competitive tension the awareness motivation capability perspective this paper investigates competitive tension or the strain between a focal firm and a given rival that is likely to result in the firm taking action against the rival drawing on the awareness motivation capability perspective we show how perceived competitive tension as constructed from managers and industry stakeholders competitor assessments is influenced by the independent and interactive effects of three factors relative scale rival s attack volume and rival s capability to contest our results provide a new avenue for studying competitors and the relationship between competitor analysis and interfirm rivalry in science there is a steady state in which opposing forces hold each other in check until the build up of tension turns the static relationship into dynamic interplay the point when the steel cable snaps the steam chamber s pressure valve opens or one psychological force overwhelms the other in business practice a similar phenomenon exists when tension that one opponent imposes on another triggers rivalrous actions competitor analysis is central to strategy and organization research hitt ireland hoskisson 2005 porter 1980 previous research has explored a number of important issues including conjecture variation amit domowitz fershtman 1988 competitor identification porac thomas 1990 and blind spots zajac bazerman 1991 and has made advances in such areas as theoretical integration of competitor analysis and interfirm rivalry chen 1996 fundamental questions such as who a focal firm s competitors are and how much competition the firm faces from each rival have been implicitly or explicitly addressed by a variety

how does the stock market value corporate social performance when behavioral theories interact with stakeholder theory this study examines how the reference point effect and sunk cost fallacy interact with stakeholder theory and influence how investors evaluate corporate social performance we propose that ex ante pre ipo corporate social performance influences ex post post ipo perceived riskiness and that this relationship is u shaped we also evaluate how ceo duality and company age moderate this u shaped relationship using young and newly public entrepreneurial firms in china and focusing on stock returns in the secondary market empirical results and robustness tests provide strong support for our hypotheses

currency substitution policy rule and pass through evidence from turkey in this article we analyse empirically currency substitution and exchange rate pass through in the turkish economy where their ongoing presence could undermine the implementation of a successful monetary policy especially in a flexible exchange rate regime even though a considerable time has passed after the implementation of a flexible exchange rate regime in turkey by using vector error correction model for the period from 1987 to 2004 we find that the currency substitution and exchange rate pass through still have importance in the turkish economy and the monetary policy stance has been considerably strong possibly as a response of ongoing presence of them if this is the case to avoid the undesired consequences of this strong monetary policy turkey should consider some policy measures to reduce the degree of pass through and currency substitution

leaving home as a self selection device we develop a model of intergeneratioal coresidence and transfers within the family in a setting of asymmetric information following an exchange motive altruistic parents receive services from their children who may make them financial gifts in return however parents do not know the privacyc ost to children of home sharing hence they make additional transfers in order to discipline their children and give them incentives to reveal their true privacy cost we show that only children who stay at the parental home receive an informational rent and that this rent is greaterf or recipients with a low privacy cost

ethical compliance programs and corporate illegality testing the assumptions of the corporate sentencing guidelines this paper analyses the ethical performance of foreign investment enterprises operating in china in comparison to that of the indigenous state owned enterprises collectives and private enterprises it uses both the deontological approach and the utilitarian approach in conceptualization and applies quantitative and econometric techniques to ethical evaluations of empirical evidences it shows that according to various ethical performance indicators foreign investment enterprises have fared well in comparison with local firms this paper also tries to unravel the effect of a difference in business culture and competitive market forces on ethical performance by comparing the behavior of foreign investment enterprises with that of the indigenous state owned enterprises and collectives on the one hand and with that of the indigenous private enterprises on the other

a behavioral theory of r d expenditures and innovations evidence from shipbuilding i base an integrated model of innovation development and launch on the behavioral theory of the firm this model specifies that research and development expenses are increased when low performance causes problemistic search and when excess resources cause slack search innovations generated by search are launched if low performance gives managers high risk tolerance using data from shipbuilding firms i show that high performance reduces r d intensity and innovation launches and high slack increases r d intensity as predicted

market watch information and availability cascades among the media and investors in the u s ipo market in this study we advance current research on social influence in markets by examining how the recency and availability of information about others actions within and between different communities influence their allocation of attention and their evaluations specifically we examine how the media and investors allocate attention to and evaluate newly public firms in the days following their initial public offerings ipos our findings have implications for understanding the fieldwide processes through which the value of new firms is established in markets

supply chain integration and national collectivism abstract integration at an intra organizational and supply chain sc level has been well studied to determine its benefits and drawbacks the foundation of these studies is their assumption that managers choose integration based on economic considerations following the behavioral theory of the firm btf strategic decisions are not always based on economics but are subject to the usual phenomena associated with aspirational levels in this respect the potential influence and consequences of national culture building aspiration levels on the integration choice of decisionmakers remain unrecognized this study researches the relationship between national collectivism values and the observed internal and external sc integration sci of companies we postulate that national collectivism values generate an aspirational need that moves integration as a potential choice to satisfy this need more into decisionmakers focus we explore the influence of two dimensions of a national culture of collectivism values in group and institutional on decisionmakers choice of higher or lower degrees of plant level integration in addition we explore the operational performance efficacy of firms integration practices we combine data from two multi country datasets using mixed effect models to analyze data from seven countries the results indicate national collectivism values are positively related with plant level use of internal but not of external sci furthermore sci is positively related to operational performance the study supports and extends btf it supports the assumption of behavioral forces in modern firms decision making and adds national culture as an external force to the theory

economic development and the family structure from the pater familias to the nuclear family we provide a theory that is able to account for the observed comovement between the shift in intergenerational living arrangements from coresidence to non coresidence and economic development our theory is consistent with the diminution in the status of the elderly documented by some sociologists the results from our analysis show that when technical progress is fast enough the economy experiences a shift from stagnation to growth there is a transition from coresidence to non coresidence and the social status of the elderly tends to deteriorate

ceo hubris and firm pollution a tricky relationship this article comments on the recent study ceo hubris and firm pollution state and market contingencies in a transitional economy of zhang et al j bus ethics 161 2 459 478 2020 in this journal we very much appreciate the valuable initiative of zhang et al to study the potential effect of ceo characteristics on corporate pollution at the same time we are concerned with the authors interpretation of the regression results and their operationalization of ceo hubris we hope to contribute to the literature on managerial hubris in two ways first we repair the authors inferences and conclusions about the actual effect of ceo hubris on firm pollution with respect to their conflicting regression results second we unpack and clarify the authors vulnerable operationalization of ceo hubris we hope to stimulate more research on 1 the tricky relationship between ceo hubris and firm pollution and 2 managerial hubris more generally through a more rigorous operationalization and measurement of hubris

intergenerational transfers in philippine rice villages gender differences in traditional inheritance customs abstract this paper examines education land and nonland asset transfers from parents to children in five rice villages in the philippines a model with family fixed effects explains transfers better than either individual heterogeneity or observed parent and child characteristics without family fixed effects families facing different land constraints exhibit significantly different patterns of educational investment in children in a subsample with completed inheritance daughters receive less education land and total inheritance but are compensated with nonland assets parents also exhibit preferential behavior towards children of the same gender daughters of better educated mothers receive more land nonland assets and total inheritance better educated fathers give land preferentially to sons but favor daughters in education

control and ownership of assets within rural ethiopian households this article investigates how the control and devolution of productive assets are allocated among husband and wife theory predicts that bargaining power within marriage depends on the division of assets upon divorce and on control over assets during marriage using detailed household data from rural ethiopia we show that assets brought to marriage ownership of assets control within marriage and disposition upon death or divorce are only partly related productive resources are controlled by the household head disposition upon death or divorce only loosely depends on individual ownership during marriage but control is associated with larger claims upon divorce assets brought into marriage have little impact on disposition upon death but matter in case of divorce

currency substitution portfolio diversification and money demand we extend the thomas 1985 dynamic optimising model of money demand and currency substitution to the case in which the individual has no access to bonds denominated in foreign currency we show that in this case the demand for domestic money is influenced by portfolio decisions contrary to what defended by the portfolio balance approach to currency substitution the results obtained in this paper suggest that the significance of an expected exchange rate depreciation term in the demand for domestic money provides a valid test for the presence of currency substitution the results also suggest that in countries facing monetary instability and currency substitution restricting the availability of interest bearing assets denominated in foreign currency may have a destabilising impact on the money demand

the decomposition of antitrust testing a multi level longitudinal model of profit squeeze the idea that certain types of corporate crime are caused by a squeeze on firm profits is a common theme in the current criminological literature this paper drawn from a study of 52 survivor firms over 55 years of economic and criminal activity extends this literature in several ways first the sources of firm profit squeeze are expanded beyond the traditional categories of firm and industry to include macro economic influences second a longitudinal design allows the estimation of changes in the extent and nature of corporate crime as a function of economic and structural changes over time third the typically broad corporate crime typologies which are used to categorize illegal activities are eschewed in favor of greater conceptual and empirical refinement antitrust crime is decomposed into specific crime types and predicted by a multilevel economic model of profit squeeze the findings suggest that only certain forms of antitrust criminality are related to profit squeeze others occur within a munificent environment while some are unrelated to economic conditions the implications of these findings are discussed as well as directions for future research

endogenous gender power household labor supply and the demographic transition abstract we present a microeconomic model of the household in which there exists no difference in spousal preferences but childrearing is more time costly for women bargaining between the wife and the husband forms the basis of household decisions marital bargaining power is determined according to the incomes of the spouses which in turn help to determine their reservation utility levels outside the marriage the endogeneity of bargaining power introduces a non cooperative element to the couples decision making problem because both the husbands and the wives take into account how their pre marital education decisions affect their marital power and the share they extract from household resources in the future the model predicts that wives invest more than is pareto efficient in their education in order to increase their bargaining power in marriage as a consequence couples have fewer children and consume more when exogenous structural changes lead women to invest more in education a corollary of the model is that empowering women directly through social reforms such as a lower gender wage gap leads to lower fertility and higher spousal consumption and leisure

motive opportunity choice and corporate illegality research on corporate illegality spans several distinct literatures and defies ready integration this article helps to overcome those problems analysis of data from 80 u s industrial organizations indicates that lower industry profitability is associated with higher frequencies of detected serious violations of federal environmental laws organizational profitability industry concentration organization size structural complexity organizational decentralization and ethical climate join this variable in statistical interactions also associated with detected instances of serious environmental violations however none of those variables are found to be associated with the incidence of detected nonserious violations these results provide qualified support for a model of corporate illegality in which illegal behaviors are attributable to the interactive effects of motive opportunity and choice they suggest that illegal corporate activities resist simple explanation and that future research on corporate illegality should concentrate on further development of multivariable models

democratizing access to higher education in russia the consequences of the unified state exam reform this is the first paper that evaluates the effects of a reform requiring russian universities to make admission decisions based on the results of a national high school exam we show the reform led to a threefold increase in geographic mobility rates among high school graduates from small cities and towns to start college this is robust to different techniques samples and specifications the reform was also accompanied by increases in students expectations to attend university parental transfers and educational expenditures there is no evidence the reform affected parental labor supply divorce and employment outcomes of graduates who did not move

portfolio theory and currency substitution one of the major reasons friedman 1953 and johnson 1972 advocated flexible exchange rates was to eliminate supply side monetary substitutability which can incapacitate domestic monetary policy however contributors to the currency substitution literature including miles 1978 girton and roper 1981 and mckinnon 1982 have argued that when economic agents hold both domestic and foreign monies variations in foreign interest rates or expected future exchange rates can make domestic money demand functions unstable as economic agents shift resources in response to changes in prospective relative returns as a result they and others have claimed that flexible exchange rates may not secure domestic monetary autonomy l the major purpose of this paper is to demonstrate the conditions under which foreign and domestic monies are substitutes in demand when economic agents have motives to hold both and to contrast the determinants of currency substitutability with those of the more general concept of asset substitutability importantly it is demonstrated that the usual portfolio theoretic justification for including opportunity cost variables such as foreign interest rates foreign inflation rates or expected

intergenerational household formation female labor supply and informal caregiving a bargaining approach children s provision of in kind services to their elderly parents informal caregiving represents an important form of economic transfers to the elderly in this paper we develop and estimate a joint model of informal caregiving and labor force participation decisions of adult daughters who have a frail elderly parent in a broader framework of intergenerational household formation parent and daughter agree to a nash bargaining rule as the solution to the household formation and intrahousehold decision making process however rather than severed relationships the threat point is given by a noncooperative equilibrium defined in terms of voluntary contributions toward a public good the parental well being maximum likelihood parameter estimates derived from the simultaneous multiequation endogenous switching model are generally consistent with expectations our results indicate that competing demands on daughters time reduce both coresidence and informal caregiving we also find that intergenerational coresidence is an important mode of assistance to elderly persons a simulation based on the estimated parameters suggests that public programs designed to meet the long term care needs of elderly persons by subsidizing formal home care services may have substantial effects on intergenerational living and care arrangement decisions

economic decision making by cohabitors findings regarding income pooling cohabitation rates are increasing in the us but little is known about how cohabitors make economic decisions for instance do female cohabitors treat their male partner s income as shared household income when choosing hours worked does income sharing differ among types of cohabitors this study investigates whether or not cohabitors pool income by drawing inferences from a generalized model of labour supply the empirical work uses data from the 1993 current population survey and the 1987 national survey of families and households these data sets provide evidence that cohabitors taken as a group do not pool all income however there is also evidence that cohabitors are not homogeneous in their behaviour income pooling is not rejected for cohabitors in longer term relationships and for those who have a biological child together

child labor school attendance and intrahousehold gender bias in brazil an extensive survey data set of brazilian households is used to test whether intrahousehold gender bias affects the decisions of mothers and fathers to send their sons and daughters to work and to school an intrahousehold allocation model is examined in which fathers and mothers may affect the education investment and the child labor participation of their sons and daughters differently because of differences in parental preferences or differences in how additional schooling affects son s and daughter s acquisition of human capital brazilian household survey data for 1998 are used to estimate the impact of each parent s education on the labor market participation and school attendance of their sons and daughters for labor market participation the father s education has a greater negative impact than the mother s education on the labor status of sons the father s education also has a greater impact on son s labor status than on daughter s for schooling decisions the mother s education has a greater positive impact than the father s education on daughter s school attendance but fathers have a greater positive impact on sons school attendance than on daughter s

domestic violence and divorce law when divorce threats become credible the cost of divorce influences the bargaining position of spouses and thus their behavior within the marriage this study takes advantage of a major and unexpected reduction in divorce costs in spain to estimate the causal effects on domestic violence results suggest a 30 decline in spousal conflict as a consequence of the reform spousal violence is found to have decreased among couples who remained married after the modification in the law which suggests an important role for changes in bargaining within the marriage when divorce becomes a more credible cheaper option

recovering individual preferences for non market goods a collective travel cost model traditional recreation demand models do not make a distinction between a household and an individual as the reference decision making unit thus assuming that a family maximizes a single utility function even if the family consists of different individuals such models ignore the possibility of family members divergent preferences for non market goods this study proposes a novel approach the collective travel cost model ctcm to eliciting individual preferences for a non market good such as a recreation site by using revealed preference data this approach accounts for the intra household resource allocation and the role of each household member s preferences we show that the collective travel cost model can be applied to estimating a recreation demand model that yields individual welfare estimates appropriate for policy analysis of non market goods such as the willingness to pay to access a recreation site we find that how resources are distributed within the household reflects significant differences in welfare measures

moving back home insurance against labor market risk this paper demonstrates that the option to move in and out of the parental home is a valuable insurance channel against labor market risk which facilitates the pursuit of jobs with the potential for high earnings growth using monthly panel data i document an empirical relationship among coresidence individual labor market events and subsequent earnings growth i estimate the parameters of a dynamic game between youths and parents to show that the option to live at home can account for features of aggregate data for low skilled young workers small consumption responses to shocks high labor elasticities and low savings rates

monetary transfers from children and the labour supply of elderly parents evidence from vietnam in the absence of a broad based pension scheme the elderly in developing countries may rely on monetary transfers made by their children and on their own labour supply this article examines whether monetary transfers from children help to reduce elderly parents need to work taking the possible endogeneity of children s transfers in the parents labour supply into account and using maximum likelihood methods and vietnamese data we find that monetary transfers help the elderly cope with risks associated with old age or illness at the same time however monetary transfers are not sufficient to fully substitute for parents labour supply

international currency substitution and the income velocity of money abstract this paper presents new empirical evidence on the degree to which international currency substitution destabilizes domestic money demand it also provides an explanation of some apparent discrepancies among previous empirical studies of currency substitution this explanation hinges on the distinction between the elasticity of currency substitution and the cross elasticity of money demand a large small value of one elasticity does not imply a large small value of the other a large cross elasticity is required for currency substitution to destabilize domestic money demand the empirical evidence presented here is consistent with the view that these cross elasticities are typically small

strategic reference point theory how can executives achieve a match between expected external environmental conditions and internal organizational capabilities that facilitates improved performance this paper argues that a firm s choice of reference points can help achieve strategic alignment capable of yielding improved performance and potentially even a sustainable competitive advantage building upon prospect theory and other relevant theoretical perspectives the strategic reference point srp matrix is developed a firm s srp consists of three dimensions internal capability external conditions and time a theory is developed which posits an optimal srp structure and propositions are offered which articulate the expected relationships between the srp strategic choice behavior and firm performance the paper closes with some suggestions for using strategic reference points in both research and practice

currency substitution the recent experience of bolivia abstract one of the more puzzling aspects of bolivia s economic performance since 1986 has been the rapid increase in the share of foreign currency deposits in the domestic banking system that has occurred notwithstanding low inflation rates and a high degree of external stability an analysis of the determinants of currency substitution in bolivia shows that economic variables are statistically significant but have a fairly low explanatory power compared to variables that measure the degree of inertia in the currency substitution process hence conventional fiscal and monetary measures may not be sufficient to reverse the process of currency substitution this points toward an interesting asymmetry where currency substitution increases rapidly with macroeconomic instability but is difficult to reverse even after years of macroeconomic stability

extended families and child well being studies of household behavior have established the distribution of resources among household members predicts spending and savings patterns however there is a paucity of evidence on the relationship between the well being of individual family members and the distribution of resources within an extended family including non co resident family members given the central role the family plays in many models of economic behavior this is an important gap in the literature using rich longitudinal survey data from the indonesia family life survey ifls evidence is presented on the relationship between three measures of health and education related human capital of children and the distribution of resources among extended family members ifls is ideally suited for this research since the survey collects detailed information about income and wealth from both coresident and non co resident family members the empirical model is founded on a natural extension of the collective model of household decision making chiappori 1988 1992 to the extended family the model is particularly appealing in this context because it places few restrictions on preferences of individual family members and does not specify a specific bargaining mechanism that underlies negotiations the collective model yields empirical tests of whether the behavior of family members is pareto efficient a special case of the model allows all family members to be completely altruistic which is observationally equivalent to a unitary model of family behavior that special case is rejected by the data however the restrictions of the efficient model are not rejected indicating that non co resident family members are able to co ordinate allocation decisions with respect to child human capital investments in such a way as to make no family member better off without another member being worse off

desperate housewives communication difficulties and the dynamics of marital un happiness this paper develops a model of marital dissolution based on communication difficulties the quality of a marriage depends on the proximity of an action to a target the target is unknown and must be learned over time each individual receives private signals about the target and can communicate them only imperfectly to his or her spouse because of imperfect communication spouses may hold different beliefs about the optimal action the action actually chosen is a compromise of the spouses distinct beliefs if a couple s beliefs diverge too widely one or both of them may prefer to dissolve the marriage the paper explores how poor communication contributes to marital unhappiness as well as its implications for the dynamics of divorce risk the welfare properties of divorce decisions and the role of counseling when the distribution of decision making power in the household favors men wives but not husbands can find themselves trapped for prolonged periods in a marriage that leaves them as unhappy as it is possible to be without seeking relief through divorce

the normalization of deviant organizational practices the non performing loans problem in china research on deviant organizational practices has demonstrated that normative and cognitive institutional forces contribute to making deviance acceptable data from a survey of 3 751 chinese firms were applied to test the idea that a clearly articulated alternative identity is necessary if a firm is to resist the normalization of deviance widespread acceptance of delinquency in repaying loans was shown to make it more likely that a firm adopts that practice but this normalization process is less likely for firms with a stronger anti deviance identity

the determinants of female headship in jamaica results from a structural model much of the existing research on female headship in developing countries presumes that female headed households fhhs are the result of a breakdown in family relations such as abandonment out of wedlock pregnancy divorce or widowhood in other words the existence of fhhs is seen to be a constraint imposed on women by social or cultural forces however in jamaica fhhs represent 42 of all households this extremely high incidence one of the highest in the world indicates that the conventional assumptions about fhhs might not apply in jamaica indeed the sociological and anthropological literature suggests that jamaican women actively choose to live and raise children on their own and that fhhs are a response to local social and economic conditions this article departs from the previous research on headship by treating the formation of fhhs as endogenous and investigating the extent to which the rate of fhhs can be explained by economic forces recent game theory approaches to analyzing household behavior provide a convenient starting point for the household formation model developed here bargaining models assume that an individual s willingness to form a household with a partner depends on the outside opportunities available to that individual in essence an individual makes a comparison between the utility attainable inside and outside a union and chooses the living arrangement that gives the highest welfare following the bargaining framework the approach in this article is to explicitly allow alternative prospects threat points to influence a woman s choice of residence the method is to estimate each woman s welfare in the counterfactual status and compare it with her observed level of well being a test of the economic content of the household formation decision is to see whether the predicted welfare level in the counterfactual status influences a woman s headship choice most of the empirical work using the bargaining framework tests

price policy poverty and power within rural west african households abstract this paper explores the impact of agricultural price policy on poverty in west africa a region in which prices are an important tool for raising rural household incomes a game theoretic collective model of household income generation and resource allocation is developed that incorporates three features typical of west african rural households preference heterogeneity among women and men individual resource control and power mediated bargaining over resource control in the face of changes in households economic environments to explore price effects the model is used to simulate the income impacts of large increases in cotton prices accompanying fast paced agricultural liberalisation in burkina faso in the 1980s the paper shows that where resources are controlled individually by household members rather than pooled pareto efficiency in income generation does not hold the impact of agricultural price policy on poverty is mediated by bargaining over resource control within households bo

labour supply welfare rankings and the measurement of inequality abstract this paper presents an analysis of inequality using utility based measures of welfare derived from different approaches to modelling household labour supplies the almost ideal demand system specification of preferences is selected for the estimation of a neoclassical household model and of individual decision models which incorporate different assumptions concerning the intra household distribution of income using the rosen 1976 tax perception methodology the study also explores the implications of a model which does not constrain time at home to leisure welfare rankings and inequality measures defined on equivalent income are compared for each type of model the analysis uses australian unit record data on 3 352 households drawn from the australian bureau of statistics 1981 82 income and housing sample survey file the results indicate the sensitivity of welfare orderings and inequality measures to the choice of decision model and to the specification of lump sum transfers between family members a comparative study of equivalent incomes and selected money income variables also illustrates the limitations of observed household and individual incomes as welfare indicators for the analysis of inequality and for policy design

static and intertemporal household decisions we discuss the most popular static and dynamic models of household behavior our main objective is to explain which aspects of household decisions different models can account for using this insight we describe testable implications identification results and estimation findings obtained in the literature particular attention is given to the ability of different models to answer various types of policy questions

intergenerational support and the life cycle incomes of young men and their parents human capital investments coresidence and intergenerational financial transfers this article examines the resource allocations of parents in the form of both shared residence with and financial transfers to their young adult sons based on an overlapping generations model incorporating a game between parents and adult children estimates of the determinants of such transfers are obtained from the kinship linked cohorts of the national longitudinal surveys the estimates suggest that both types of parental assistance are as important as governmental transfers in supporting young men and are responsive to the current and anticipated earnings of their offspring suggesting that young men cannot adequately smooth their consumption without parental help

dynamic female labor supply the increase in female employment and participation rates is one of the most dramatic changes to have taken place in the economy during the last century however while the employment rate of married women more than doubled during the last 50 years that of unmarried women remained almost constant to empirically analyze these trends we estimate a female dynamic labor supply model using an extended version of eckstein and wolpin 1989 to compare the various explanations in the literature for the observed trends this dynamic model provides a much better fit to the life cycle employment pattern than a static version of the model and a standard static reduced form model heckman 1979 the main finding using the dynamic model is that the rise in education levels accounts for about 33 percent of the increase in female employment and the rise in wages and narrowing of the gender wage gap account for another 20 percent while about 40 percent remains unexplained by observed household characteristics we show that this unexplained portion can be empirically attributed to cohort specific changes in preferences or the costs of child rearing and household maintenance finally the decline in fertility and the increase in divorce rates account for only a small share of the increase in female employment rates

sharing rule identification for general collective consumption models we propose a method to identify bounds i e set identi cation on the shar ing rule for a general collective household consumption model unlike the eects of distribution factors it is well known that the level of the sharing rule cannot be uniquely identi ed without strong assumptions on preferences across households of dierent compositions our new results show that though not point identi ed without these assumptions narrow bounds on the sharing rule can be obtained we get these bounds by applying revealed preference restrictions implied by the collective model to the household s continuous aggregate demand functions we obtain informative bounds even if nothing is known about whether each good is public private or assignable within the household though having such infor mation tightens the bounds we apply our method to us 1999 2009 psid data this application obtains tight sharing rule bounds that yield useful conclusions regarding the eects of income and wages on intrahousehold resource sharing and on the prevalence of individual as opposed to household level poverty

why do most italian youths live with their parents intergenerational transfers and household structure more than 80 of italian men aged 18 30 live with their parents we argue that one contributing factor to this remarkably high rate of cohabitation is parents tastes for co residence in order to investigate the role of parental preferences we estimate the effect of exogenous changes in parental income on rates of cohabitation in italy using shiw micro data from 1989 to 2000 the key econometric issue is the potential endogeneity of parental income in order to identify a source of exogenous variation in parental income we use changes in fathers retirement age induced by the 1992 reform of the italian social security system as an instrumental variable for parental income by raising retirement age this reform forced some fathers to remain in the labour market longer than they would have otherwise therefore raising their disposable income we use a two sample instrumental variable tsiv strategy our tsiv estimates indicate that a rise in parents income significantly raises the children s propensity to live at home a 10 increase in annual parental income results in approximately a 10 rise in the proportion of boys living with their parents although we cannot definitely rule out alternative interpretations these results are consistent with our hypothesis that cohabitation is a normal good for italian parents

toward an aspiration level theory of open innovation although open innovation has become increasingly established in the management literature comprehensive theoretical explanations of what drives firms to be open are sparse taking the perspective of the behavioral theory of the firm we conceive of open innovation as a form of nonlocal search arguing that firms will turn to open innovation when substantially under or over performing relative to their aspirations we further enquire how this relationship is moderated by firm specific innovation related resources human capital research and development investment and patents employing a representative survey of uk firms we find some evidence of moderation allowing us to present explanations of search through open innovation and contribute to the behavioral theory of the firm itself

the choice of insurance in the labor market employment protection and unemployment benefits are considered the most prominent insurance devices for workers to protect themselves against the risk of unemployment it occurs that societies either choose a high level of employment protection relative to unemployment benefits or vice versa this paper explains where countries locate on this trade off it is argued that higher coverage of voters out of the labor force with intra household transfers yields a politico economic equilibrium with relatively high employment protection and relatively low unemployment benefits cross country data and survey data on voters preferences are presented that corroborate the outcomes of the model

the effect of transfers on household expenditure patterns and poverty in south africa abstract this paper uses household level unit record data from south africa to examine the behavioural and welfare impacts of private and public transfers we allow for joint endogeneity of resource variables and the expenditure shares our results show that crowding out of private transfers as a result of the introduction of public pensions holds only for poor households and not for the non poor both private transfers and public pensions significantly reduce poverty but private transfers have a larger impact on expenditure patterns the results also reject the hypothesis of income pooling underlying the conventional unitary model by finding that the marginal impact on expenditures are different for public pension received private transfer received and other resources flowing into the household the principal conclusions are robust to changes in specification

prices parents and young people s household formation an economic theory of young people s decision to live apart from parents is presented and used to structure econometric analyses of the processes of leaving the parental home and returning to it which employ data from the british household panel survey for the first half of the 1990s the econometric estimates support the predictions of the theory in particular tighter housing markets as indicated by higher regional relative house prices significantly retard home leaving especially the formation of partnerships and encourage returns to the parental home young people with larger current income are more likely to leave but less likely to return to the parental home

corporate reputation s invisible hand bribery rational choice and market penalties drawing upon rational choice and investor attention theories we examine how accusations of corporate bribery and subsequent investigations shape market reactions using event study methodology to measure loss in firm value for public firms facing bribery investigations from 1978 to 2010 we found that total market penalties amounted to 60 61 billion we ran moderated multiple regression analysis to examine further the degree to which the unique characteristics of bribery explain variations in market penalties companies committing bribery in less corrupt host countries and with the involvement of compromised executives experienced greater market penalties than did other companies after partitioning share value losses into components for regulatory penalties class action settlements and loss to reputation we found that reputational penalties account for 81 8 of every dollar of share value loss omission of reputational penalties in rational choice calculus underestimates bribery costs by 4 5 times the results suggest that firms should not underestimate the importance of market imposed reputational penalties by merely considering regulator imposed fines and sanctions

who marries whom in a surging housing market abstract this paper investigates the impact of a surging housing market on marital sorting our empirical analysis shows that there is increasing assortativeness on original family background in response to housing price appreciation that is for husbands when the down payment doubles one more year of paternal schooling predicts a marriage in which the father in law s schooling is 0 057 year greater than in a scenario in which the down payment does not increase the rising assortativeness could exacerbate the already expanding inequality caused by the booming housing market in addition to the benchmark analysis we find that a divorce reform which awards assets proportionate to the shares the spouses paid for the initial down payment rather than awarding equal shares upon divorce alleviates assortativeness the evidence suggests that joint investment in housing is likely to be a significant consideration in marital sorting

preference heterogeneity power and intrahousehold decision making in rural malaysia abstract this paper examines conjugal household responsibilities roles preference heterogeneity and intrahousehold power relations in rural malay families its three major contributions are to provide an effective initial indicator of separate spheres within the family develop and implement a method for measuring the extent of conjugal preference heterogeneity and illustrate the value of combining this direct measure of preference heterogeneity with a measure of power in estimating household expenditure patterns for three major items food schooling and housing improvement these three measurement innovations applied to the rural malaysia context demonstrate the potential for more direct efforts to model and measure intrahousehold decisions

marital division of labor with risk of divorce the role of voice enforcement of contracts it is assumed that emotional ties can be relied on to enforce implicit marital contracts by voice therefore in the present model divorce has economic consequences not only because the economies of scale from living together are destroyed but also because the scope for such voice enforcement is weakened moreover perhaps surprisingly i find that it is ambiguous how an increase in the probability of divorce influences predivorce allocation of time even when preferences are assumed to be homothetic

why micro credit may leave women worse off non cooperative bargaining and the marriage game in south asia abstract micro credit programmes targeting women continue to grow in south asia although research suggests that wives frequently hand over loans to their husbands women may also be unable to control the income generated by micro enterprises this article presents an intra household bargaining model explaining these findings and showing how credit may leave women worse off while benefiting men this game theoretic model also shows why a woman might rationally choose to give her loan to her husband even though she does not expect to benefit and knows he may not repay finally the article identifies the conditions necessary for micro credit to benefit women

reputation and decision making under ambiguity a study of u s venture capital firms investments in the emerging clean energy sector this study examines the role of reputation on decision making under ambiguity drawing on social cognition and behavioral theories we propose that a firm s reputation exerts dual pressures on its decision making under ambiguity on the one hand a firm s reputation increases its aspirations for future performance and promotes its engagement in risky strategies to achieve them on the other hand preserving the already established reputation requires a firm to deliver consistent performance over time which promotes greater use of risk reduction strategies our analyses of the u s venture capital firms investments in the clean energy sector from 1990 to 2008 demonstrate that while reputable firms are more likely to invest in the emerging sector they also employ risk reduction strategies more extensively the sector s legitimation further influences these firms investment decisions both directly and through its interaction with firm reputation

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

gender of children bargaining power and intrahousehold resource allocation in china abstract based on the prevalent son preference in china this paper proposes a new measure of relative bargaining power within the household using data from china health and nutrition survey we show that a woman with a first born son has a 3 9 percentage points greater role in household decision making than a woman with a first born daughter having a first born son improves the mother s nutrition intakes and reduces her likelihood of being underweight while thinking of these impacts as being channeled through intrahousehold bargaining power we cannot fully rule out other possible direct effects of a first born son on the outcomes

motives for private income transfers private income transfers are becoming increasingly recognized as a key aspect of the u s economy the majority of private income transfers occur inter vivos i e between living persons but very little is known about this type of transfer behavior this paper tests alternative hypotheses concerning motivation for inter vivos transfers two motives are considered altruism and exchange evidence presented here casts doubt on the altruistic model of transfer behavior observed patterns for inter vivos transfers are more consistent with exchange related motives this finding has important implications for the effects of public transfer programs on the distribution of economic well being

the impact of competitors firm power divergence on chinese smes environmental and financial performance competitor pressure is one of the major reasons that a sme engages in environmentally friendly or damaging activities extant research has argued that environmental strengths and concerns have mirror opposite relationships with stakeholder antecedents as well as with performance outcomes we suggest this argument does not reflect the reality building on stakeholder management and red queen theories we hypothesize that environmental strengths and concerns have differential relationships with competitors firm power exchange and financial performance for chinese smes results of ten interviews a pretest and a large scale field study indicate that competitors firm power divergence has a positive relationship with environmental strengths yet the link between this divergence and environmental concerns does not exist further environmental strengths mediate the relationship between competitors firm power divergence and financial performance of chinese smes

intra family distribution of paid work time this article analyses the intra family distribution of paid work time in five european countries france germany italy spain and the uk to that end we formulate a collective model which allows us to characterize the efficient labour supply decisions of each spouse this two equation model is then simultaneously estimated by using national panel data drawn from the european community household panel echp 1994 2001 empirical results clearly show that in all sample countries the labour supply of wives is affected by own wages household and own nonlabour incomes and the number of children whereas evidence for husbands differs across countries

the joint determination of household membership and market work the case of young men except in special cases market work and household membership are jointly chosen a nash bargaining model of family behavior is used to specify stochastic structural relationships two indirect utility functions and a market and a reservation wage function that jointly determine work consumption and household membership the maximum likelihood estimates of the implied trinomial probit model differ sharply from those obtained when either market work or household membership is taken as exogenous this application to white male youths from the national longitudinal surveys shows the insurance function of families parents insure their sons against poor market opportunities

the economic determinants of young people s household formation the paper derives predictions about the impact of the price of housing young adults income and parental income on the probability that a young adult in the united kingdom lives apart from his her parents it shows that the predicted effect of the price of housing is intimately related to the price elasticity of housing demand it uses longitudinal data on a cohort of britons born in 1958 surveyed in the national child development study to estimate dynamic models of first departure from the parental home and particularly to estimate the impact of housing price on the timing and destination of first departure excerpt

the empirical content of nash bargained household behavior in households whose allocation decisions can be represented as nash bargained household decisions extrahousehold environmental parameters eeps serve as pure shifters of the threat points the comparative statics of changes in demands due to changes in these eeps are given these are incorporated into a comprehensive statement of the empirical content of nash bargained household behavior including a nash generalization of barten s 1966 fundamental matrix equation of the theory of consumer demand estimation and data requirements are discussed along with nested testing of the following structure the neoclassical model is nested in the nash bargained model which in turn is nested in an unrestricted model of household demands emphasized throughout is the enriched menu of explanatory variables for demand analysis provided by the nash model as well as the model s ability to jointly analyze i household formation and ii intrahousehold allocation decisions

the deterrence effects of vicarious punishments on corporate financial fraud this study extends the research on corporate financial fraud by developing a new perspective on the deterrence effects of vicarious punishments premised on social learning theory we posit that firms vicariously learn about punishments from their peers by picking up modeling cues environmental cues and social cues in the inhibitive learning process thus being deterred from committing future fraudulence using a matched sample of 604 observations of chinese listed firms between 2002 and 2008 our findings show that an observing firm is deterred from committing fraud if the peers in its industry are caught and punished we further find that such deterrence effects are subject to how the observing firm evaluates the possibility of being caught and the likelihood it will be punished the same way if it violates similar prohibitions in particular inhibitive learning effects are positively moderated by punishments of prominent firms and model observer similarity but negatively attenuated by the development of the legal system our study sheds light on the corporate fraud literature by illuminating the indirect inhibitive learning process from vicarious punishments and identifying the conditions for differential learning deterrence outcomes of the observing firms

instrumental and integrative logics in business sustainability prior research on sustainability in business often assumes that decisions on social and environmental investments are made for instrumental reasons which points to causal relationships between corporate financial performance and corporate social and environmental commitment in other words social or environmental commitment should predict higher financial performance the theoretical premise of sustainability however is based on a systems perspective which implies a tighter integration between corporate financial performance and corporate commitment to social and environmental issues in this paper we describe the important theoretical differences between an instrumental and integrative logic in managing business sustainability we test the presence of each logic using data from 738 firms over 13 years and find evidence of integrative logic applied in business

canadian contributions to family economics canadian scholars have made substantial contributions to the relatively new field of family economics these include new models of how men and women match in marriage markets and of how decisions are made in multi person households several were early contributors to the literature on married women s labour supply and labour supply in a family context and helped to develop empirical methods in this area a particular focus has been on the impacts of policy relevant parameters such childcare costs on family labour supply and child well being new work on child development the impact of early life conditions and the processes of intergenerational transmission also highlight the importance of family context in determining economic well being

currency substitution capital mobility and money demand abstract this paper re examines the currency substitution cs issue by specifying a general portfolio balance pb model where domestic residents demand for foreign money is distinguished from their demands for foreign non monetary assets the latter possibility which reflects international capital mobility as opposed to cs per se is already a key feature in the open economy macro literature the inclusion of foreign money leaves the usual asset demand functions unchanged in the pb model that ignores cs at least as far as the appropriate rate of return arguments and their signs are concerned although this suggests that cs is of limited importance in macro modelling it implication for the estimation of money demand functions is pursued an initial attempt is made to empirically isolate the separate efects of high capital mobility and currency substitution for canada germany the united kingdom and the united states the results while not conclusive due to high multicollinearity problems bring into question the empirical as well as the theoretical relevance of currency substitution

why good firms do bad things the effects of high aspirations high expectations and prominence on the incidence of corporate illegality recent high profile corporate scandals involving prominent high performing firms cast doubt on assertions that the costs of getting caught decrease the likelihood such high performers will act illegally we explain this paradox by using theories of loss aversion and hubris to examine a sample of s p 500 manufacturers results demonstrate that both performance above internal aspirations and performance above external expectations increase the likelihood of illegal activities the sample firms prominence enhanced the effects of performance above expectations on the likelihood of illegal actions prominent and less prominent firms displayed different patterns of behavior when their performance failed to meet aspirations

parent child bargaining parental transfers and the post secondary education decision schooling decisions are often modelled within a unitary preference framework in this article an alternative to the unitary preference model is proposed in which parents and child have conflicting preferences over parental transfers and the level of post secondary schooling and participate in cooperative bargaining as a means of resolving this conflict comparisons of the implications of the bargaining and unitary preference models motivate tests of parental altruism and income pooling to test these hypotheses reduced form transfer and schooling equations are estimated using data from the high school and beyond surveys the evidence suggests that the unitary preference model be rejected

search method use by unemployed youth this article presents a search model which shows that search method choices should be related to their costs and expected productivities as well as to nonwage income and wage offer distributions the empirical evidence then shows that the most frequently used search methods i e friends and relatives and direct applications without referral are also the most productive in generating offers and acceptances the number of methods used is affected by factors that presumably reflect opportunities as well as income sources and needs specific methods are chosen in a manner that generates positive average effects on outcomes for those using them

the detection of earnings manipulation presented are a profile of a sample of earnings manipulators their distinguishing characteristics and a suggested model for detecting manipulation the model s variables are designed to capture either the financial statement distortions that can result from manipulation or preconditions that might prompt companies to engage in such activity the results suggest a systematic relationship between the probability of manipulation and some financial statement variables this evidence is consistent with the usefulness of accounting data in detecting manipulation and assessing the reliability of reported earnings the model identifies approximately half of the companies involved in earnings manipulation prior to public discovery because companies that are discovered manipulating earnings see their stocks plummet in value the model can be a useful screening device for investment professionals the screening results however require determination of whether the distortions in the financial statement numbers r

the red queen effect competitive actions and firm performance we investigate the red queen effect as a contest of competitive moves or actions among rivalrous firms the results from a multi industry study of over 4 700 actions confirms the existence of red q

currency substitution and exchange rate instability the turkish case abstract in this paper we present evidence for the extent of currency substitution and its effects on exchange rate instability in turkey following the capital account liberalization in 1987 the private sector has responded to the failed stabilization efforts of successive governments by requesting higher real interest rates on government debt and by increasing its holdings of foreign exchange at the expense of domestic currency theoretical models of exchange rate determination indicate that exchange rate instability increases with the degree of currency substitution we use an exponential garch e garch model for exchange rate depreciation and find evidence in support of this hypothesis furthermore we test for the extent of currency substitution in determining short run dynamics of real money balances utilizing the expected depreciation series obtained from the e garch model

the liability of good reputation a study of product recalls in the u s automobile industry in this paper we explore opposing theoretical claims about how organizational reputation affects market reactions to product defects on the one hand good reputation could be a disadvantage because expectations about product quality are more likely to be violated by defects in highly reputed products on the other hand a good reputation could be an advantage because of strong inertial effects on reputation orderings we empirically test these competing hypotheses using data on product recalls in the u s automobile industry from 1975 to 1999 our results support for the idea that reputation can be an organizational liability in that highly reputed firms suffer more market penalty as a result of their product recalls we also propose that the reputational effects are moderated by two important factors substitutability and generalism specialism our results show that having few substitutes with an equivalent level of reputation or a focused product identity stemming from specialism buffers the negative market reactions to product recalls we conclude with a discussion on the implications of these results for institutional reputation and status theories

women s participation in local organizations conditions and constraints abstract civic organizations have a capacity to contribute to economic growth and an equitable distribution of welfare by reducing information asymmetries and transaction costs while donors increasingly recognize that group based projects are a means to advocate organizational capacities of target groups it is not clear whether group based organizations always increase efficiency and equity this article analyses the determinants of participation in local development groups ldgs using data from two projects funded by undp in kashmir and gtz in chad a major result of the empirical analysis is the identification of a middle class effect of participation the exclusion of the majority of the poor can be explained by high opportunity costs to join the group especially for income earning women in addition it can be shown that an existing social network is a pre condition for participation finally the assumption has been confirmed that bargaining power of the members is important for their decision to participate in groups

do two earner households base their choice of residential location on both incomes this article focuses on the role of individual incomes in the residential location decisions of two earner households conventional studies often treat households as a black box and describe them by a single utility function the article raises the question is the household utility paradigm an adequate framework for understanding the location decisions of two earner households it tests an implication of the household utility paradigm the income pooling hypothesis for location decisions the results provide evidence for rejecting the hypothesis among childless families but fail to provide evidence for rejecting it when children are present the results raise the need to address intrahousehold dynamics in modelling location decisions