on measuring and comparing total factor productivities in extractive and non extractive sectors we explain why comparing the total factor productivities of extractive and non extractive sectors is likely to be misleading then we propose a correction and implement it for the case of asbestos where it turns out to make a significant difference

angel investors around the world we document that the choice between disintermediated individual angel investments and intermediated private equity and venture capital investments depends on legal economic and cultural differences we find evidence of this using pitchbook s comprehensive data on more than 5000 angel and 80 000 private equity and venture capital investments in 96 countries from 1977 to 2012 the data further indicate that investee firms funded by angels are less likely to successfully exit through either an ipo or an acquisition these findings are robust to propensity score matching methods as well as to clustering standard errors and excluding u s observations among other approaches

nonrenewable resource scarcity nonrenewable resource theory often is summarized by hotelling s rule this paper reviews theoretical extensions and empirical investigations of resource extraction models observed data are often inconsistent with the hotelling rule suggesting that other characteristics of nonrenewable resource supply including exploration heterogeneous ore quality technological progress and capital investment are important determinants of the dynamic behavior of resource prices given the persistent recurrence of concern about nonrenewable resource scarcity measures of nonrenewable resource scarcity and the empirical evidence for the time trends of those measures are reviewed finally the implications of nonrenewable resource scarcity for economic growth are examined

a model of exhaustible resource exploitation with ricardian rent abstract the question of the optimal rate of development of an exhaustible resource such as a mine has long been a concern of resource economists however with few exceptions in the literature it has been implicitly assumed that orebodies are of uniform quality readily distinguished from their surroundings or else that the mining firm is able to choose the order of mining from sections of the mine which may vary in quality e g grade of ore while such simplifying assumptions have led to a rich array of conclusions they stand in contrast to the varying conditions facing the mining engineer in making cut off grade decisions this paper models a situation where because of orebody configurations the firm cannot choose to mine in order of grade an optimal cut off grade is obtained for each point of time of the mine s life in the case of a socially optimizing firm then in a special case the effects of monopoly and various types of mineral taxation are considered for the cut off grade decision and for ultimate recovery

conceptualizing and measuring cultures and their consequences a comparative review of globe s and hofstede s approaches this paper explains why globe used a set of cultural values and practices to measure national cultures we show why there is no theoretical or empirical basis for hofstede s criticism that globe measures of values are too abstract or for his contention that national and organizational cultures are phenomena of different order we also show why hofstede has a limited understanding of the relationship between national wealth and culture furthermore we explain why hofstede s reanalysis of the globe data is inappropriate and produces incomprehensible results we also show the validity of managerial samples in studying leadership finally we explain why hofstede s claim that globe instruments reflect researchers psycho logic reveals ignorance of psychometric methodologies designed to ensure scale reliability and construct validity

reserve and land prices with exploration under uncertainty abstract arrow and chang j econom environ manag 9 1 10 1982 analyze an exploration extraction model with uncertainty about the distribution of deposits reserve prices do not exhibit any rising trend when the unexplored land area is big but in order to know what happens when the unexplored area is smaller a probabilistic analysis not yet performed ibid p 10 is required their conjecture of a rising trend at less than the discount rate is confirmed however land prices can be expected to grow faster than reserve prices which helps discriminate between arrow and chang s and other rationalizations of the failure of resource prices to rise at the discount rate

capital investments and resource extraction from non identical deposits abstract taking account of necessary investments in physical capital we characterize the optimal investment and extraction program for exploiting several non identical deposits of an exhaustible resource under the given technology assumptions capital investments will be concentrated up front if deposits are identical in the case of non identical deposits it may be optimal to have investments spread out over time moreover the smallest deposit is depleted first

on optimal production and the market to book ratio given limited shareholder diversification our purpose is to examine a firm s optimal output decision and valuation when its shareholders hold a limited number of risky assets the primary theoretical result indicates that the market to book ratio is a function of the degree of shareholder diversification our theory suggests a negative relationship between a firm s market to book ratio and shareholder diversification

the globe debate back to relevance this is a critical summary review of the debate about the global leadership and organizational behavior effectiveness globe study in jibs and other journals between november 2006 and the present issue several contributors did not realize that globe used three essential constructs taken from my publications in a sense entirely different from mine values practices and organizational culture not recognizing the ensuing confusion they had no answer for the question in my 2006 review what did globe really measure if you do not know what you are talking about you can continue arguing for ever beyond the fuzziness of what is measured the debate leaves us with an even more fundamental question what is the use of the globe dimensions

the supply of non renewable resources there exists no formal treatment of non renewable resource nrr supply systematically deriving quantity as function of price we establish instantaneous restricted fixed reserves and unrestricted nrr supply functions the supply of a nrr at any date and location not only depends on the local contemporary price of the resource but also on prices at all other dates and locations besides the usual law of supply which characterizes the own price effect cross price effects have their own law they can be decomposed into a substitution effect and a stock compensation effect we show that the substitution effect always dominates a price increase at some point in space and time causes nrr supply to decrease at all other points this new but orthodox supply setting extends to nrrs the partial equilibrium analysis of demand and supply policies thereby it provides a generalization of many results about policy induced changes on nrr markets the properties of restricted and unrestricted supply functions are characterized for hotelling homogeneous as well as ricardian non homogeneous reserves for a single deposit as well as for several deposits that endogenously come into production or cease to be active

globe practices and values a case of diminishing marginal utility the globe study of national cultures identified nine dimensions of culture these nine dimensions were measured in the form of societal practices as things are and societal values as things should be the correlations between practices and values for societies surprisingly were found to be significantly negative for seven dimensions apparently people s values are contrary to their practices a note which appeared in a recent issue of this journal proposes that these anomalous correlations result from diminishing marginal utility the note argues that marginal utility theory applies to cultural dimensions and that the globe values measure societies marginal preferences for most of the dimensions rather than total preference weights through close analysis of the questionnaire items used by the globe team we show that this is not the case we demonstrate that the globe questions as asked do not elicit marginal preferences in fact they elicit values as claimed by globe but recognizing that values may well be shaped in part by existing practices we call for further study into the globe scores as it is likely that different explanations apply to practices values relationships across different dimensions

on non convex costs and dynamic consistency in an exhaustible resource market noncooperative intertemporal equilibrium in an exhaustible resource market where firms extraction costs are u shaped is analyzed under the hypotheses of contestability theory if there are two or more firms each with an identical deposit then limitations on the total resource stock imply strategic interaction even where there is perfect contestability these results raise questions about the robustness of properties claimed for contestable markets as well as about the realism of expecting that equilibrium may be established in this type of market copyright 1991 by the editors of the scandinavian journal of economics

testing the efficiency of extraction from a stock resource the theoretical conditions for efficient extraction from a known stock resource by a competitive mining firm are reviewed these conditions are tested using proprietary data from a mining firm output price data and coefficient estimates from a translog cost system are used to compute the in situ value of the resource and the stock effect changes in the in situ value over time are then statistically compared with the expected price path the results reject the hypothesis that the data are consistent with the theoretical model and the maintained hypotheses variations of the basic model that incorporate a time varying discount rate an alternative expected price series and a constraint on the rate of output are also tested and rejected 46 references 10 tables

systematic risk and the theory of wage indexation in this article the author integrates the theory of optimal wage indexation with capital market theory the optimal indexation factor in his model depends on workers preferences firm specific variables and economywide capital market variables a major difference between the results of the model and those of the previous literature is that in his model nonsymmetric randomness does not affect the indexation decision in addition the effects of economywide capital market variables can provide an explanation for why the author does not observe wage contracts with more than perfect indexation contracts where real wages rise with unexpected inflation copyright 1990 by the university of chicago

values and marginal preferences in international business in a recent paper in this journal maseland and van hoorn argued that values surveys tend to conflate values and marginal preferences this assertion has been challenged by brewer and venaik who claim that the wording of most survey items does not suggest that these elicit marginal preferences this commentary responds to their claim and restates our original argument we stress that the distinction between values and marginal preferences is a conceptual rather than a semantic issue conflation of the two is a problem of stated preferences methods in general regardless of question formats what is more we argue that support for the marginal preferences interpretation of values survey data does not come from the specific wording of questions used in surveys but from a growing number of paradoxical relations between values ratings and outcomes in values research implications are twofold first we argue that in order to measure values we need to look at alternatives to the stated preferences approach such as revealed preferences and experienced preferences of which the latter seems most promising second we find that values surveys eliciting marginal preferences are useful for understanding and predicting differences in behavior in a given context

a contribution to the theory of depletable resource scarcity and its measures a contribution to the theory of depletable resource scarcity and its measures i introduction the question of devising suitable measures of the scarcity of natural resources has received considerable attention in the past quarter century beginning with the classic study of barnett and morse 1963 this literature includes a long series of articles of which the collection edited by smith 1979 is an excellent example and which for the moment culminates with the illuminating paper by hall and hall 1984 the present paper expands upon hall and hall s review of the received literature following this a stylized model of exhaustible resource production builds upon some of the classical insights the model suggests that it may be worthwhile to de emphasize the use of unit cost and of rent as measures of scarcity at least in a ricardian context where firms are physically constrained to mine varying qualities of ore simultaneously it also de emphasizes the importance of the question of ultimate exhaustibility of the resource rather it emphasizes the role of capital which is sometimes neglected in extraction models and thereby the role of the exhaustibility of the deposit in influencing the choices of an extracting firm ii classical and classic treatments malthus and ricardo as elaborated by barnett and morse differed in their treatment of agricultural land malthus 1798 assumed a fixed quantity of land 1 so that food production could be expanded to feed a growing society at the extensive margin until the land constraint was reached thereafter more food could be obtained only at higher costs by exploiting the intensive margin ricardo 1817 was at once more pessimistic and more optimistic the quality of land was non homogeneous the best land would be farmed first so that diminishing returns would result from any expansion costs at the extensive and intensive margins would rise and would continue rising as population increased 2 while ricardo did emphasize the role of the intensive margin he did not discuss an ultimate limit even though he was obviously aware of one ricardo lived on an island and had corresponded with malthus instead he advocated removal of trade barriers as a means of avoiding the need to move further into the extensive as well as intensive margin hall and hall 1984 365 6 discern four types of scarcity in the non renewable resource literature namely malthusian and ricardian flow and stock scarcities their discussion is summarized in table i the important questions are 1 whether a limit on total quantity produced is envisaged 2 whether the resource is of uniform quality or whether there are depletion effects which cause quality to decrease through time and 3 whether marginal extraction costs rise at any time as a result of constraints inherent in the characteristics of the resource the distinguishing feature of malthusian scarcities turns on the existence of an ultimate limit to total production which in turn reflects malthus s emphasis on the ultimate fixity of the quantity of cultivable land the distinguishing feature of the ricardian scarcities is that there is no ultimate limit to land rather than diminishing returns at the extensive margin 3 with these definitions malthusian flow scarcity is the most general concept there are three columns in table i with binary entries in each column thus a total of 2 sup 3 8 types of scarcity can be imagined using this classification scheme table ii extends table i to include all eight possibilities and then categories the entries most of the categories have interpretations and are treated in the literature even more importantly it is clearer than in table i that attaching the labels malthusian or ricardian is sometimes suggestive but that trying to stretch the malthusian and ricardian notions developed for self renewing agricultural land to mining can lead to inaccuracies and possibly to confusion

a partial characterization of a history dependent subgame perfect equilibrium the case of an exhaustible resource duopoly abstract if there is a quasi fixed cost of production from an exhaustible resource there may exist history dependent subgame perfect equilibria other than those where duopolists produce an equal amount in each period the model exemplifies the relevance of chakrabarti s theorem on existence of such equilibria

when elephants fight the grass gets trampled the globe and hofstede projects four aspects of the debate between hofstede and javidan et al are highlighted first it is shown that characterizing cultures either on the basis of aggregated self perceptions or on the basis of aggregated perceptions of others in one s society are not equivalent procedures each has inherent errors and neither can be considered as providing the one best way to denote national cultures furthermore the number of dimensions of national culture that can be usefully studied must be proportional to the limited number of nations available for comparative analyses third although hofstede and javidan et al appear to differ on optimal ways of aggregating individual level data to the nation level both appear to have done so in a way that does not prevent detection of differing relations between items at different levels of analysis finally we need greater clarity as to the ways in which national wealth relates to other aspects of culture it is a major component of contemporary national cultures and must be retained as an element within nation level analyses

resource characteristics extraction costs and optimal exploitation of mineral resources this paper modifies the traditional theories ofnon renewable resource exploitation where reserve sizeis assumed to be the major determinant of extractioncosts in a competitive model of resourceexploitation characteristics of aggregate reservesare considered as a determinant of extraction cost then dynamic solutions for the price and exploratoryefforts are developed various price paths arefeasible under different assumptions with regard tothe changes in the reserve characteristics over time past empirical research shows that there is noconsistent price path for all materials in fact itis the quality of newly discovered reserves as well astheir size that has affected material prices todemonstrate the complexity of a firm s decision torecover mineral from new deposits potentials forsubstantial high quality marine mineral resources areevaluated as a substitute for land based resources however several factors including the decreasingtrend in marine mining r d expenditures and thepotential impact of large scale marine mining on priceof minerals indicate that mining of mostnon hydrocarbon marine minerals will not take place inthe near future

grade selection under uncertainty least cost last and other anomalies abstract grade selection rules for heterogeneous resource deposits with increasing marginal extraction costs are derived it is shown that contrary to the conventional wisdom it can be optimal to extract the least cost deposits last there are a number of rules that are compatible with dynamic profit maximization under certainty nevertheless none explains empirical regularities in actual extraction patterns when uncertainty about future price is introduced however the theoretical model conforms closely not only to observed grade selection patterns but also to observed mineral industry price paths

strike when the force is with you optimal stopping with application to resource equilibria optimal investment in a nonrenewable resource project occurs when the rate of increase of the project s forward value falls to the force of interest this stopping rule yields a financial interpretation of resource quality as being a property of the project rather than of individual units of reserves it also leads to re interpretations of a rent as the present value of the project rather than of units of reserves and b hotelling s insight as not a rule for the path of rents but an equilibrium algorithm for price the analysis is extended to sequential development of pesticides antibiotics and forests

sectoral supply of minerals of varying quality in this sectoral model of mineral production investment in capacity and variation in orebody grade and volume help explain some stylized facts more than one grade of ore may be exploited simultaneously mine exhaustion but not necessarily entry occurs in declining order of grade the price may rise or fall but is likely to fall initially young industry and must eventually rise at less than the interest rate unless demand expands rapidly these trends exhibit fluctuations due to entry and exhaustion of deposits resource price cyclicality is reinforced because mines keep producing at capacity when the price is falling

endogenous growth with a limited fossil fuel extraction capacity campbell 1980 and following authors have discussed a limited resource extraction capacity as an augmentation of the well known hotelling model we integrate a limited extraction capacity and related investments in the endogenous growth model of tsur and zemel 2005 to study its effect on economic development the capacity constraint gives rise to three effects on the one hand higher energy costs and the reallocation of production towards capacity investments decrease production available for consumption research and or capital investments energy costs and reallocation effect on the other hand research investments may increase which boosts available production research effect depending on the capital endowment and the strength of the effects long run consumption may be boosted or depressed in particular the capacity constraint may render everlasting consumption growth non optimal in a resource rich economy furthermore we find that capacity investments may be postponed to later points in time if the capital endowment is high

returns to scale adjustment costs and the optimal investment of the mining firm abstract this paper analyses the optimal investment programme of a competitive mining firm for two different technologies and capital adjustment costs in the first part the case of a variable proportions technology with decreasing returns to scale is studied and it is concluded that under the assumption of a constant mineral price a first stage in the exploitation period of the deposit will occur in which capital stock is increasing in the second part the optimal investment programme is determined when there are constant returns to scale and hotelling s rule governs the dynamics of the mineral price

adjustment costs uncertainty and the theory of investment the case of non renewable natural resources abstract this paper examines the effects of mineral price and extraction cost uncertainty on the investment program of a competitive resource extracting industry that faces convex costs of adjustment the results show that depletion of mineral reserves will slow down if the marginal adjustment cost function is concave or linear whereas the effect will be ambiguous if the function is convex

what did globe really measure researchers minds versus respondents minds the globe research program expanded the hofstede model of five dimensions of national cultures to 18 a re analysis based on globe s 2004 summary book produced five meta factors one was significantly correlated with gnp capita and from the hofstede dimensions primarily with power distance three more correlated significantly with hofstede s individualism uncertainty avoidance and long term orientation the fifth included the few globe questions that related to hofstede s dimension of masculinity versus femininity globe s respondents minds classified the questions in a way that the researchers minds did not account for and which closely resembles the original hofstede model

bank dependence in emerging countries cross border information percolation in mutual fund equity investing in contrast to the literature involving u s bank domestic lending we find that mutual funds affiliated with lending banks reduce their equity investment and turnover in the non u s listed stock of their non u s borrowers compared to non lending banks or unaffiliated mutual funds reduced equity holdings increase loan spreads preserving the lending bank s cross border information monopoly equity market holdings and turnover are reduced when banks lend to firms in emerging nations and when the geographic distance between the lender and the mutual fund manager is greatest thereby long range information percolation may benefit global institutions at the expense of individual subsidiaries

trends in natural resource commodity prices an analysis of the time domain abstract this paper attempts to reconcile the theoretical predictions of increasing real prices for nonrenewable natural resource commodities obtained from hotelling style models with the empirical findings of falling prices for these commodities a theoretical model for relative price movements is derived for the case of exogenous technical change and endogenous change in the grade of ores mined the model suggests a u shaped time path for relative prices the implied price movements are tested for all the major metals and fuels and the model parameters are found to be statistically significant for 11 out of the 12 commodities tested

optimal pricing use and exploration of uncertain natural resource stocks abstract units of natural resources to be called mines are assumed distributed over an unexplored territory according to a poisson process in space at any moment total reserves and unexplored land are given society can determine the rate of consumption and the rate of exploration reserves are drawn down by consumption and increased by discoveries made during exploration the amount of unexplored land is decreased by exploration at any moment the payoff of society is a concave function of consumption less a linear function of exploration with future payoffs discounted optimal policies are considered and in particular it is shown for a large amount of unexplored land the shadow prices of reserves and of unexplored land move in random cycles but show only a slight upward tread thereby casting some light on the failure of mineral prices to rise at the market rate of interest

explaining the negative correlation between values and practices a note on the hofstede globe debate this note provides an explanation for the presumably counterintuitive negative correlations between values and practices reported by the global leadership and organizational behavior effectiveness project we argue that such results are compatible with basic microeconomic insights concerning diminishing marginal utility this explanation implies that values surveys as they are generally elicit marginal preferences rather than underlying values therefore they are a problematic instrument for the measurement of cultures and need to be improved so as to discriminate between the importance attached to an objective in general and that attached to it given current levels of satiation

leading cultural research in the future a matter of paradigms and taste the styles and approaches used in cross cultural organizational research are nearly as varied as the cultures under study we see two variations of one dominant style in the work of hofstede and the globe research consortium in this commentary i shall place these approaches in context and discuss alternatives that seem to be highly promising but largely overlooked based on this analysis i conclude that it may well be time that this form of large scale multi country survey be set aside for the development of alternative mid range theories having a more direct application and explanation for organizational phenomena in a cultural and national context

exhaustible resources and alternative equilibrium concepts we compare the open loop and feedback nash equilibria that obtain in oligopolistic resource markets when the resource is exhaustible and privately owned when the resource is common property the two equilibrium concepts are known to yield significantly different results under the regime of private property the choice of equilibrium concept does not appear to be as important restricting our attention to the cases of iso elastic demand and zero extraction costs and linear demand and quadratic extraction costs we identify instances where the open loop and feedback nash equilibria coincide and demonstrate that in other cases the two equilibria do not differ significantly

the economics of exploration for non renewable resources abstract the literature on exploration for non renewable resources is surveyed following a brief synopsis in section 2 section 3 focuses on issues related to the world market for resources section 4 considers more microeconomic supply related issues linked to the exploration of the small region or play section 5 turns to the small but growing literature on exploration as a learning process related to r d the latter sections pay particular attention to empirical and policy aspects

the role of investment in multiple deposit extraction some results and remaining puzzles abstract papers by olsen and by cairns and lasserre analyze equilibrium in a resource industry where deposit quality varies and where extraction requires capital investment the papers substantially qualify the conventional understanding of such matters as the form of hotelling s rule the role of deposit size the simultaneous extraction from deposits of different quality and the price path the argumentation however a intricate and the crucial role of investment as such a not easily distinguishable we clarify the intuition behind the results bring out the role of the various assumptions and raise important remaining issues

conceptualizing and measuring culture in international business and management from challenges to potential solutions understanding the influence of culture on business operations has been one of the most enduring components of international business ib and international management im theorizing and empirical investigation while several critiques and debates questioned the significant progress made in this domain the special issue we introduce here is meant to demonstrate that further advancement on how we conceptualize and measure culture is not only needed but also possible we provide an overview of past and current approaches in the measurement of culture in ib im and the challenges associated with these approaches and emphasize the important yet insufficiently acknowledged link between the theoretical conceptualization of culture and its measurement we then introduce the four articles included in the special issue and highlight how they break away from the addiction to approaches that have been very useful in getting where we are today but that might not always be useful in advancing knowledge beyond what we already know last but not the least we offer our own perspective on promising directions in conceptually and methodologically rethinking the study of culture in ib and im

conceptualizing and measuring distance in international business research recurring questions and best practice guidelines distance is a central concept in international business research yet there is debate about the construct as well as its operationalization in this editorial we address three of the most important recurring questions posed by authors editors and reviewers by examining the theory methods and data of distance research we discuss 1 how to theorize on distance and 2 what method and 3 what data to use when constructing a distance index we develop practical recommendations grounded in theory illustrating and supporting them by calculating cross country distance indices for all available country pairs and two of the most used distance indices cultural and institutional we show that whereas a specific method to calculate distance may matter to some extent the choice for a specific cultural or institutional framework to measure cultural or institutional distance has a major impact on country pair distances overall this editorial highlights the importance of matching data and method to the theoretical argument

maxing out globally individualism investor attention and the cross section of expected stock returns we examine the role of cultural difference in the pricing of positive extreme returns max for 47 000 stocks from 42 countries from 1990 to 2012 we find that investors overpay for stocks with high max and that max premium the spread from long short strategy based on low and high max stocks is both statistically and economically significant worldwide the negative relation between idiosyncratic volatility and expected returns or idiosyncratic volatility puzzle exists only for stocks with high max implying that the puzzle may arise from the overpayment for stocks with high max and the subsequent return reversal consistent with the expectation that overpayment will be stronger for overconfident investors the max premium is larger in countries with high individualism index idv than it is in countries with low idv furthermore we find the max premium to be larger and the difference in the max premium between high and low idv countries to be more pronounced when vix and volatility are high our fi

equilibrium transitions from non renewable energy to renewable energy under capacity constraints abstract we study the transition between non renewable and renewable energy sources with adjustment costs over the production capacity of renewable energy assuming constant variable marginal costs for both energy sources convex adjustment costs and a more expensive renewable energy we show the following with sufficiently abundant non renewable energy endowments the dynamic equilibrium path is composed of a first time phase of only non renewable energy use followed by a transition phase substituting progressively renewable energy to non renewable energy before a last time phase of only renewable energy use the investment into renewable energy may either begin before actual production of renewable energy or be delayed until the energy price achieves a sufficient gap with respect to the renewable energy cost with an initially abundant non renewable resource the features of the transition between non renewable and renewable energy do not depend upon the initial resource stock

negative practice value correlations in the globe data unexpected findings questionnaire limitations and research directions the study of culture and cultural values continues to be hotly debated among cross cultural researchers worldwide starting with the seminal work of kluckhohn and strodtbeck and hofstede and continuing with more recent efforts researchers have continued to develop and empirically examine cultural value frameworks in an attempt to understand how cultural differences affect work related behaviors and attitudes the purpose of this commentary is to briefly describe the interesting and counterintuitive findings from the global leadership and organizational behavior effectiveness globe project summarize the different interpretations of these findings offered by maseland and van hoorn and by brewer and venaik provide a critique of their arguments and finally offer a list of possible alternative interpretations and explanations for the conflicting findings in the globe study