positioning jibs as an interdisciplinary journal journal of international business studies 2011 42 1 9 doi 10 1057 jibs 2010 50 it is with great honor and pleasure as well as in keen anticipation of what we are confident can be achieved by the journal that we begin this three year term as the new editors of the journal of international business studies we are both long term members of the academy of international business aib and readers of jibs for almost as long as we can remember over the years we have watched the ever more promising development of jibs of which we now enjoy more issues per year and in which the gradual progression in the depth and breadth of its content has laid the foundations for what we hope and believe will be a new phase in the flourishing of the journal in the period that now lies ahead in this respect we must begin by paying tribute to all the editorsin chief of the journal that have preceded us whose conscientious efforts have not gone unrewarded naturally enough we owe a debt of gratitude especially to our two most recent predecessors arie lewin and lorraine eden before arie jibs was the long established leading specialist journal within the field of international business ib studies a partially hidden gem for those of us in the know after arie it was recognized much more widely as a top a journal among scholars of business and management even outside the ib field arie raised the stature of jibs in business schools as a whole an achievement that was crucial not just for the journal but for the continued vitality of our field before lorraine if we are brutally honest jibs had remained a rather shambolic affair in terms of its administrative structure and procedures in fact it is a credit to the earlier editors that they managed to achieve so much with such limited resources and systems of support most of which were concentrated in a single office that used to hold responsibility for everything after lorraine jibs has become an exemplar of efficient organizational systems and well managed and clearly understood procedures for conduct including a pioneering code of ethics we should also acknowledge here with warm appreciation the critical contributions that have been made by the aib executive secretariat and especially by managing editor anne hoekman as well as by david bull and his wonderful staff at palgrave whose degree of commitment to the journal and support for it has been second to none when we look at how radically jibs has been transformed under arie s and lorraine s leadership suffice to say that but for the sea changes which they have brought about we would have had to think very hard before offering our services as editors but with the firm foundation that they have given us and with the resulting opportunities that the journal now has in front of it stepping forward as editors is a decision we have made with ease as well as pride journal of international business studies 2011 42 1 9 2011 academy of international business all rights reserved 0047 2506

limit theorems for markets with sequential bargaining this paper models trade as a non coopertative strategic game played at an inlinite sequence of dates a single indivisible commodity is traded buyers and sellers have transferable utility and are characterized by their reservation utilities they meet at random and bargain over the price at which a single unit of the good will be exchanged under a variety of circumstances it is shown that as the costs of search and bargaining become negligible the outcome of the game converges to the competitve flow equilibrium even when there is complete information journal of economic literature classification numbers 022 19x7

on the strategic role of outside options in bilateral bargaining this paper studies a model of the situation in which two players are bargaining face to face over the partition of a unit size cake and moreover one of the players can choose to temporarily leave the negotiating table to search for an outside option a main conclusion is that the equilibrium outcome does not depend on whether a bargainer is allowed within the game form to choose to return to the negotiating table to resume bargaining after having searched for some finite time moreover it is shown that our strategic bargaining search game approximately implements an appropriately defined nash bargaining solution

taxation in a two sided search model abstract this paper analyzes the effects of wage and profit taxation in a simple search and bargaining model wage tax effects depend upon the level of unemployment benefits if unemployment benefits are less than search costs or if benefits are taxed as income then a wage tax decreases unemployment it also decreases the wage thereby overshifting the tax burden profit tax effects depend upon job entry in the short run with a fixed number of jobs filled jobs plus vacancies a profit tax decreases unemployment it also raises the wage again overshifting the tax in the long run the converse holds

dynamic production teams with strategic behavior abstract we analyze if intergenerational teams reveal workers productivities some uncertainty on agents productivities persists when i each agent must work independently or ii technological shocks are agent specific in compulsory teams however when technological shocks are team specific in compulsory teams each worker s productivity is revealed when agents choose to work independently or in teams that problem falls in the class of dynamic games elective teams are preferred by high productivity young workers when the technological shocks are agent specific and maximize the expected utility of a young worker when shocks are team specific

the changing nature of the international business field and the progress of jibs the journal of international business studies jibs is a journal with a high academic standing and the leading journal in the field of international business ib research it has become more open to new authors and to a wider range of ib scholarship ib scholars study cross border aspects of business activity some recent jibs special issues have facilitated certain innovative new streams of ib research both the authors and the reviewers of the journal have become substantially more geographically diverse recently

the effects of firm optimizing behaviour in matching models this paper considers a matching model of which the search behaviour of jovanovic 1979 and albrecht and jovanovic 1984 are special cases the nature of the generality is that each unemployed worker has more information than firms about his average productivity this results in wage offers falling over the length of an unemployment spell because a long spell is a signal of lower than average productivity the results of the paper are similar to the scarring effect of heckman and borjas 1980 and greenwald 1986 and the discouraged worker effect of schweitzer and smith 1974

maximum likelihood estimation of search costs abstract in a recent paper hong and shum 2006 using price distributions to estimate search costs rand journal of economics 37 257 275 present a structural method to estimate search cost distributions we extend their approach to the case of oligopoly and present a new maximum likelihood method to estimate search costs we apply our method to a data set of online prices for different computer memory chips the estimates suggest that the consumer population can be roughly split into two groups which either have quite high or quite low search costs search frictions confer a significant amount of market power to the firms despite more than 20 firms operating in each of the markets we estimate price cost margins to be around 25 the paper also illustrates how the structural method can be employed to simulate the effects of the introduction of a sales tax

bargaining and strategic search abstract this paper specifies an alternative type of switching friction in a model of sequential bargaining to that suggested by shaked and sutton 1984 an imperfect and costly search technology gives the current insider a bargaining advantage over alternative partners for the firm where all potential partnerships generate the same rent search has a purely strategic value

a frontier approach to measuring the effect of market discrimination a housing illustration one area of particular interest to analysts and policymakers concerned with poverty and discrimination has been the housing market since world war ii housing has been a focus for antipoverty policies and therefore an area in which discrimination could not be tolerated however even though the civil rights act of 1968 expressly prohibits the offering of housing to nonwhites at terms that are different than those afforded whites it has been clearly demonstrated that discrimination continues to be a real problem in both the rental and owner occupied segments of the housing market 17 as james heilbrun points out in his summary of the 1977 survey of housing market practices conducted by the department of housing and urban development

search bargaining money and prices the goal of this paper is to extend existing search theoretic models of fiat money which until now have assumed that the price level is exogenous by explicitly incorporating bilateral bargaining this allows us to determine the price level endogenously and leads to additional insights concerning the role of money for example we find that monetary equilibria are generally inefficient in the sense that output and prices differ from the solution to a social planner s problem although the difference can become small as the discount rate or search friction vanishes we also find that there exist nonstationary inflationary equilibria

price dispersion with directed search we model a market where identical buyers direct their search to identical capacity constrained sellers sellers cannot fully commit to the list price so strategic bargaining may determine the sale price we study search and pricing behavior in symmetric equilibrium sale prices exhibit equilibrium dispersion as they respond naturally to local demand conditions uncoordinated search decisions lead to equilibrium demand heterogeneity so sellers realizing large demand bargain prices up we characterize the sale price distribution parametrically studying how different commitment limitations and market features affect pricing and surplus shares we also determine endogenously

local public expenditures and housing prices this paper estimates a hedonic price model which makes it possible to determine how the price of a unit varies with the set of attributes it possesses in the spanish housing market concretely and by means of capitalisation hedonic price models can be used as an instrument to capture how local public expenditures influence housing prices and by extension how homeowners can indirectly receive benefit from local public investment using individual data for dwellings from the city of barcelona spain for the period 1998 2001 it is found that local policies aimed at enhancing the quality of life or the location specific characteristic of the city of barcelona have a positive impact on housing values

matching search and bargaining abstract first the paper incorporates search for alternative opportunities into a model of strategic bargaining second this search and bargaining model is embedded in a market matching model the solutions are presented in a manner that clarifies the role of the search abilities and the details of the bargaining procedure in the determination of the outcomes the predictions of the model are contrasted with the related literature the main accomplishment is the attainment of a manageable model which is still rich enough to grasp important differences between environments which are not captured by the standard matching models

equilibrium in a market with sequential bargaining this paper considers a market where pairs of agents who are interested in carrying out a transaction are brought together by a stochastic process and upon meeting initiate a bargaining process over the terms of the transaction the basic bargaining problem is treated with the strategic approach the paper derives the steady state equilibrium agreements analyzes their dependence on market conditions such as the relative numbers of agents of different types and discusses their relations with the competitive equilibrium outcome and other results in the search equilibrium literature this paper considers a market that operates in the following way pairs of agents who have mutual interest in carrying out a transaction are brought together by a stochastic process when two agents meet they initiate a bargaining process over the terms of the transaction if two agents reach an agreement a transaction takes place and they leave the market of course the bargaining positions and hence the agreement reached in any particular meeting will be affected by the conditions prevailing in the market these will include the chances that each of the negotiating parties have of meeting other partners in the event that the agreement in the current negotiations is delayed also the expected length of time required to achieve an alternative transaction and the expected behavior of alternative partners the study of such a market mechanism is of interest for two reasons firstly it captures some realistic aspects of the trade in certain specific markets e g asset markets such as housing and some labor markets secondly it contributes to an understanding of the micro mechanisms of price formation and their role in shaping market outcomes in both cases the features studied are largely neglected in the traditional market equilibrium analyses the related literature includes the articles by diamond 4 5 diamond and maskin 6 mortensen 8 9 and zusman and bell 13 these articles consider markets of the type described above in which transactions are concluded at pairwise meetings of agents the major difference between our work and these articles is in the approach to the basic bargaining problem in the cited articles it is assumed that a meeting is concluded with an instantaneous agreement which divides the associated surplus in an arbitrary predetermined way when the surplus is assumed to be divided equally the division rule is in fact nash s axiomatic bargaining solution in contrast the present paper treats the basic bargaining problem with the strategic approach see rubinstein 19 which constitutes an attempt to look into the bargaining black box this approach explicitly models the time dimension of the bargaining process describes in detail the bargaining procedure and justifies the agreement as a perfect equilibrium in

measuring the impact of crime on house prices this paper uses data on over 2800 house sales in jacksonville fl to estimate the impact of crime on house prices a gis programme is used to develop neighbourhood characteristics that are unique t

from the editors can i trust your findings ruling out alternative explanations in international business research the complex nature of international business research with its cross country and multilevel nature complicates the empirical identification of relationships among theoretical constructs the objective of this editorial is to provide guidance to help international business scholars navigate this complexity and ensure that readers can trust their findings we provide suggestions for how to rule out alternative explanations explaining key considerations not only in empirical analyses but also in theory building and in research design our discussion covers both qualitative and quantitative studies because we believe that it is imperative to understand how trustworthiness is established in both traditions even for international business researchers who self identify with only one this enables scholars to have a broader scope of knowledge when interpreting past research in the field and to be more adept at explaining their design choices to a diverse audience

systematic assessment error and intrajurisdiction property tax capitalization over the past twelve years considerable evidence has accumulated on the extent to which intercommunity differences in property tax burdens are capitalized into property values 17 21 8 7 25 recently linneman 14 has analyzed the validity of this evidence after taking into consideration alternative models of local government finance in the model that he believes best represents the spirit of the tax capitalization literature local government expenditures are financed wholly by property tax receipts he demonstrates that in this case a perfect correlation between taxes and public goods makes it econometrically impossible to estimate property value equations unless measurement errors and omitted variables are present he therefore asserts that existing results on the tax capitalization issue are of nebulous value

a structural model of the demand for owner occupied housing abstract the goal of the analysis in this paper is to estimate a structural model of the demand for owner occupied housing in our framework the buyer selects the value of the house the size of the mortgage and the length of stay in the house we estimate a housing demand equation which includes both the length of stay and the loan to value ratio as endogenous variables one empirical result of interest is that the income elasticity of demand for housing found in the structural housing demand equation is much larger than the value estimated in the reduced form we also point out some occasions when it is important to distinguish between a reduced form and a structural model of housing choices

not by productivity alone how visibility and specialization contribute to academic earnings the popular adage publish or perish has long defined individual career strategies as well as scholarly investigations of earnings inequality in academe as researchers have relied heavily on rese

estimating house price indexes in the presence of seller reservation prices we analyze a bias in transaction based price indexes due to the presence of seller reservation prices we develop a model in which the ratio of sellers reservation prices to the market value affects trading volume and biases of observed transaction prices when trading volume decreases increases index returns are estimated with an upward downward bias we propose a new econometric procedure to mitigate the bias and use simulations to demonstrate the effectiveness of the procedure we construct a reserve conditional unbiased index for the los angeles housing market which substantially differs from a traditional repeat sale index

the role of external search in bilateral bargaining we consider the problem of bargaining between two individuals who can also search for possible alternatives to each other s offers we explicitly incorporate the search activity into the process of bargaining a disagreement in bargaining will lead each individual to search for an outside offer in the hope of improving his future bargaining position and attaining a more favorable outcome we model the interlaced phases of bargaining and search over time as an extensive noncooperative game we characterize the associated subgame perfect equilibrium outcome and strategies finally we show that superior search ability yields an individual a more favorable outcome and hence represents a greater bargaining strength

bargaining and search with recall a two period model with complete information two standard results of previous bargaining models state that delay is generally not expected to occur under complete information and bargaining outcome depends crucially on the bargainers intrinsic characteristics that determine their reservation prices and in general bargainers with better reservation prices tend to get better outcomes this paper considers a bilateral bargaining problem with complete information in which one of the bargainers the buyer is allowed to search while bargaining more importantly we assume that the buyer is allowed to recall past outside offers we find that quite contrary to the standard results of previous complete information bargaining models complete information renders no guarantee for immediate resolution of bargaining and the effect of changing the buyer s search cost on each player s bargaining outcome is unpredictable the major driving force of these two results is the assumption that the buyer can recall past outside offers

estimating the effect of racial discrimination on first job wage offers in this paper we develop and implement a method for bounding the extent to which labor market discrimination can account for racial wage differentials the method is based on a two sided search matching model that formally accounts for unobserved heterogeneity and unobserved offered wages we find that racial differences in offered wages are proportionately twice three times as large as racial differences in accepted wages for high school dropouts high school graduates the results indicate that discrimination could account for the entire racial wage offer differential for high school dropouts and for high school graduates i e the bound on the extent of discrimination is not informative

bargaining search costs and equilibrium price distributions this paper studies a bargaining model of equilibrium price distributions consumers choose a seller at random and face search costs to switching to another store in the market equilibrium the prices at all stores are determined simultaneously as the perfect equilibrium of a bargaining game in this game the buyer has the outside option to search for another seller differences between the sellers types create price dispersions typically the number of active sellers increases with higher search costs the market equilibrium converges to the competitive equilibrium under perfect information when search costs become small

assessing the impact of jibs as an interdisciplinary journal a network approach in this editorial we assess the cross disciplinary connections of jibs by examining its citation network which spreads across no less than 36 disciplines or fields using a citation network of 166 citing and 645 cited journals we investigate jibs interdisciplinarity using the intermediation and integration approaches of network analysis our analyses of citation patterns for a 12 year time period 2001 2012 suggests that jibs is helping bridge disciplines that do not often otherwise talk to each other a task of critical importance for new knowledge creation we also find that jibs is enabling integration of knowledge from a diverse set of disciplines in comparison to other prominent leading management journals

equilibrium price distributions equilibrium price distributions for a homogeneous product consistent with individual incentives are investigated they arise in informationally imperfect markets in which the only primitive datum is the distribution of search costs it is shown that single multi and continuous price distributions are all viable long run phenomena depending on the nature of search costs a method for computing equilibrium price distributions is also provided jevons law of one price has long been an accepted dictum in economic theory in a classroom presentation it still serves sometimes implicitly as a major premise in many micro models of market interaction much of the descriptive theory as well as welfare analysis hinges on this assumption yet one s day to day experience reveals that price differentials are a viable phenomenon and that looking for lower prices may very well be a rewarding activity the prospects of eventually hitting a bargain and the resulting price reduction would more than compensate for the cost incurred during the search process moreover the existence of price dispersions appear to be an empirically stable phenomenon snapshots of markets for relatively homogeneous products reveal substantial and recurring price differentials stigler 1961 and pratt wise and zeckhauser 1979 for example report some evidence supporting this claim an important article by stigler 1961 focused economists attention on the crucial role played by the informational structure of markets it gave rise to the study of the

asymmetry imperfectly transferable utility and the role of fiat money in improving terms of trade abstract we modify the kiyotaki and wright 1991 j economic theory 53 215 235 1993 amer econom rev 83 63 77 framework so that there is a universal double coincidence of wants in all barter matches we also introduce divisible service sidepayments into the model and allow agents to bargain over bundles of goods services and money in bilateral matches in asymmetric matches the agent that values the other s good more dearly will typically have to make a substantial service sidepayment to complete the bargain when sidepayments transfer utility imperfectly the general equilibrium is inefficient agents barter too much when barter is inefficient a robust monetary equilibrium may exist which improves welfare both robust monetary equilibria and welfare improving monetary equilibria require asymmetric matches imperfectly transferable utility and monetary exchange yields better expected terms of trade than barter in contrast to other search models money does not speed up trade

nominal loss aversion housing equity constraints and household mobility evidence from the united states abstract this paper exploits the recent variation in us house prices to examine the effect of equity constraints and nominal loss aversion on household mobility detailed data from the 1985 1996 national longitudinal survey of youth nlsy79 were matched with house price data from 149 metropolitan areas to estimate instrumental variables linear probability and semi parametric proportional hazard models of intra metropolitan mobility household mobility is significantly influenced by nominal loss aversion there is little evidence that low equity because of fallen house prices constrains mobility

search frictions and market power in negotiated price markets we provide a framework for empirical analysis of negotiated price markets using mortgage market data and a search and negotiation model we characterize the welfare impact of search frictions and

sample selection and biases in local house value indices abstract analysis of cross sectional or intertemporal variations in house values among localities requires reliable house value indices however prior studies applying the hedonic method to transaction data have reported price series that may be biased our paper investigates a possible cause of bias and uses a censored regression technique extended to an intertemporal model to derive an unbiased index we apply our method to 1971 1991 data from the miami florida msa and find evidence in time varying amounts of bias our results suggest that prior studies using the hedonic method and samples consisting only of sold houses have understated the intertemporal variability of house prices

gaining more by stocking less a competitive analysis of product availability the price competition between two firms can affect their decisions about product availability with occasional stockouts a firm loses from foregone sales yet it may indirectly benefit from the higher price a competitor is able to charge the more prone customers are to search elsewhere for the product upon encountering a stockout the greater is the gain from the reduced price competition between firms this paper establishes conditions whereby the strategic interaction of reduced price competition between firms outweighs the loss from foregone sales in such cases a firm can increase its expected profits by choosing to stock less these results provide a competitive rationale for the high stockout levels observed in some retail situations and have implications for the analysis of product availability in public policy settings

price setting and competition in a simple duopoly model the paper studies a market in which there are two sellers and one buyer each agent wants to trade at most one unit of an indivisible commodity the sellers are uncertain whether the buyer is receiving offers from one or both of them at any given time this model induces competitive and monopolistic outcomes for particular parameter values but other things being equal as the buyer becomes very patient the equilibrium price converges to the competitive one

from the editors advancing interdisciplinary research in the field of international business prospects issues and challenges doi 1 0 1 057 jibs 2009 4 1 two decades ago jibs published john dunning s presidential address at the aib annual meeting in san diego in which he made a passionate plea for a more interdisciplinary approach to international business ib studies based on a careful analysis of the major economic social political and institutional changes taking place at the time dunning 1989 411 observed

the study of international business a plea for a more interdisciplinary approach scholastic efforts to study and teach international business is entirely dependent on our capability to marshal and organise the necessary human and other assets so as to supply a range of end products which are acceptable to the academic community of which we are part our paymasters and the main purchasers of our products viz the business community of course the determinants of success of the practice and study of ib are interrelated and in our particular pursuit for excellence there is no unique or sure fire recipe for success but i observe that in an ever increasingly complex world of international business which is dominated by rapid and far reaching changes in technology and by environmental turbulence this is no less true of successful practitioners rarely in seeking to identify the reasons for business achievement is one able to find a single common denominator sometimes excellence is primarily based on innovatory ingenuity sometimes on the access to or control of key inputs or markets sometimes on aggressive or novel methods of advertising and marketing sometimes on super efficient capital budgeting sometimes on dynamic and imaginative entrepreneurship sometimes on the diversity of operational experiences and capabilities and sometimes on an unusual aptitude to manage human relationships but in most cases success is founded on some amalgam of these and it is the way in which these discrete though increasingly interdependent advantages are ombined with each other and with complementary assets in different countries and cultures which contemporary research suggests is the key competitive advantages of international firms call it what you will e g

the long side of the market and the short end of the stick bargaining power and price formation in buyers sellers and balanced markets the determinants of bargaining power and price formation in a dynamic exchange market where new traders enter randomly over time are studied when agents on the long side of the market possess the option to wait for the arrival of future partners the terms of trade in the spot market must honor the value of this option the equilibrium terms of trade are expressed in intuitive closed form equations that highlight the distinct influences of short run spot market conditions and long run market demographics i introduction few concepts in economics are as intuitive as the idea that traders on the long side of a market wind up holding the short end of the stick that is they receive little or none of the gains from trade consider for instance the classic setting in which b identical buyers each with unit demands for an indivisible homogeneous good face s identical sellers each with one unit of the good for sale it is well known that in a broad class of one shot trading games all of the surplus in this setting goes to the short side of the market in equilibrium that is if b s buyers bid the price up to their reservation value often it is only when b s that market institutions the rules of the game have any bearing on the equilibrium division of surplus this classic result is somewhat brittle because of the discontinuity in the terms of trade when moving from positive to negative levels of excess demand its logic is familiar however from bertrand competition and it is very compelling the option value to an agent frozen out of a trade in a one shot market game is his reservation payoff of zero any outcome that confers nonzero surplus to a long side agent cannot be sustained in equilibrium because all of the long side agents who would otherwise be frozen out possess a strict incentive to undercut

demand shocks and open economy puzzles abstract we pose good markets frictions on top of an otherwise standard two country international real business cycle irbc model shopping for goods takes effort which prevents perfect matching between customers and producers an increase in search effort implies increased measured productivity demand shocks increase expenditures and search effort simultaneously increasing output consumption productivity and the trade deficit and appreciating the real exchange rate thus we solve the backus smith puzzle and we show that the cross country correlation of consumption is higher than that of output standard irbc models cannot account for these puzzles along with movements in tfp

student portfolios and the college admissions problem we develop a decentralized bayesian model of college admissions with two ranked colleges heterogeneous students and two realistic match frictions students find it costly to apply to college and college evaluations of their applications are uncertain students thus face a portfolio choice problem in their application decision while colleges choose admissions standards that act like market clearing prices enrollment at each college is affected by the standards at the other college through student portfolio reallocation in equilibrium student college sorting may fail weaker students sometimes apply more aggressively and the weaker college might impose higher standards applying our framework we analyse affirmative action showing how it induces minority applicants to construct their application portfolios as if they were majority students of higher caliber

price dispersion inflation and welfare we examine the implications of inflation for both price dispersion and welfare in a monetary search economy in our economy if the degree of buyers incomplete information about prices is fixed both price dispersion and real prices are increasing in inflation as the inflation rate approaches the friedman rule both price dispersion and welfare losses vanish if households choose the number of prices to observe then the optimal inflation rate may exceed the friedman rule as inflation induces search and up to a point raises welfare by eroding market power

how does home equity affect mobility abstract the impact of the housing crash on household mobility is theoretically ambiguous households that have little or negative equity are less likely to move because the proceeds from the sale of the home may not be large enough to pay off the original mortgage and provide a sufficient down payment on a new home on the other hand at sufficiently negative levels of home equity household mobility may actually increase through the foreclosure channel in this paper we develop and empirically test a model that incorporates both of these mechanisms our empirical results based on data for florida homeowners provide evidence of a non monotonic relationship between home equity and mobility although default induced mobility did increase following the financial crisis this increase did little to offset the substantial decline in voluntary moves due to home equity lock in we find that on net household mobility declined by roughly 25 in our sample because of reductions in equity

a model of job and worker flows we develop a model of gross job and worker flows and use it to study how the wages permanent incomes and employment status of individual workers evolve over time and how they are affected by aggregate labor market conditions our model helps explain various other features of labor markets such as the size and persistence of the changes in income that workers experience due to displacements or job to job transitions the length of job tenures and unemployment duration and the amount of worker turnover in excess of job reallocation we also examine the effects that labor market institutions and public policy have on the gross flows as well as on the resulting wage distribution employment and aggregate output in the equilibrium from a theoretical point of view we study the extent to which the competitive equilibrium achieves an efficient allocation of resources

immigration reform and farm labor markets farmers throughout the united states report a shortage of workers at the same time there are proposals to strengthen the enforcement of existing immigration laws in this paper we develop an equilibrium approach to examine the impact of removing undocumented workers from the california agricultural labor market and to infer whether there is evidence of shortages using individual worker data we find evidence that is consistent with a persistent shortage in some sub sectors of the california farm labor market further we conduct counter factual policy simulations over a range of possible policy alternatives and find that removing 50 all undocumented farm workers from the state would lead to an increase in wages of over 22

racial differences in homeownership and housing wealth 1970 1986 racial differences in homeownership and housing wealth 1970 1986 black couples are found to own a disproportionately low share of aggregate housing wealth in the united states because they are less likely than whites to be homeowners and because black owned houses have lower market values than white owned houses probability of ownership and house value equations corrected for selectivity bias are estimated with national data for 1970 1980 and 1986 trends in racial differences in homeownership and house value are identified and reasons for their existence are investigated i introduction the wage gap between blacks and whites has been the subject of many labor market studies during the last two decades these studies spawned similar analyses of racial differences in other markets such as housing concern over the black white differential in economic well being continues today with recent attention focusing on the wealth gap between blacks and whites andrew brimmer 1988 points out that blacks owned only 3 0 percent of accumulated wealth in the united states in 1984 even though blacks received 7 6 percent of total money income that year and they comprised 11 percent of all households 1 the equity accumulated in homes constituted the most important form of wealth held by blacks but even so the black share of home equity was only 4 4 percent of the total the value of black owned housing will be disproportionately low if a blacks are not as likely as whites to own homes and b blacks houses are relatively less valuable than whites houses in this paper we investigate both of these possibilities with national data on black and white households covering the period 1970 86 2 existing research has concentrated primarily on racial differences in the probability of homeownership with an eye toward determining the extent of discrimination 3 at least two prominent congressmen joseph kennedy of massachusetts and henry gonzalez of texas have charged that government regulators routinely allow discrimination in home mortgage lending because most studies have relied on data from the 1960s and early 1970s often covering only certain metropolitan areas no reliable estimates of the national trend in black homeownership and housing market discrimination during more recent years exist the question of how much housing blacks consume relative to whites given the decision to own has received only scant attention in the literature yet both decisions influence wealth distribution our study compares the racial differentials in these two dimensions of the housing choice ownership and value a basic hypothesis of the paper is that house value differentials by race will be larger than homeownership differentials by race since the factors that determine house prices are more numerous and probably more susceptible to discriminatory influence than the conditions that influence the decision to own rather than rent ii a model of the homeownership choice this section describes a model of the homeownership decision that can be applied to available data the model is similar to those of previous studies in that it relates the probability of owning a home to several explanatory variables reflecting economic demographic and locational characteristics of the household it differs in an important respect however in that it is estimated on a sample that contains only husband and wife households 4 most earlier studies that have used samples drawn from the entire population have controlled for different household types e g single female headed widowed by means of dummy variables this procedure generally constrains the impact of race on the housing choice to be equal for all household types in addition mcdonald 1974 has pointed out that the current values of variables such as income and labor market activity are more apt to misrepresent their permanent levels for single person or female headed households

bargaining and search with incomplete information about outside options abstract this paper considers a model of bargaining in which the seller makes offers and the buyer can search at a cost for an outside option the outside option cannot be credibly communicated and the seller s offer is recallable by the buyer for one period there are essentially two equilibrium regimes for sufficiently high search cost the game ends immediately otherwise the search occurs in equilibrium compared to the case where the buyer can communicate his outside option the seller is worse off and the game results in search for a smaller set of values of the search cost i e less equilibrium delay c72

towards a renaissance in international business research big questions grand challenges and the future of ib scholarship in this article we review critiques of international business ib research with a focus on whether ib scholarship tackles big questions we identify three major areas where ib scholars have addressed important global phenomena but find that they have had little influence outside of ib and only limited effects on business or government policy we propose a redirection of ib research towards grand challenges in global business and the use of interdisciplinary research methods multilevel approaches and phenomena driven perspectives to address those questions we argue that ib can play a more constructive and vital role by tackling expansive topics at the business societal interface

alternative value estimates of owner occupied housing evidence on sample selection bias and systematic errors abstract numerous econometric models have used various estimates of housing value as dependent variables the three most common measures in order of descending popularity have been homeowner estimates sales price and assessed value each of these measures has limitations the use of sales price can cause sample selection bias while owner and tax assessor estimates are subject to measurement error this study investigates the magnitude of the selection bias associated with sales price samples and whether the errors in owner and assessor estimates are systematically related to independent variables typically included in estimated equations our most important conclusion is that the use of owner estimates may cause bias in the estimated coefficients on many independent variables

endogenous availability in search equilibrium bargaining power by shopping at two firms and then bringing those firms into competition with one another knowing this firms adjust quoted prices to keep customers from exercising this option we compare equilibrium prices and availability firm profits and customer welfare under duopoly with those that would obtain under monopoly wefind that for low levels of exogenous customer search costs duopolists provide lower prices and lower availability while for high customer search costs duopolists provide the same price but greater availability than would a monopolist

duration to first job and the return to schooling estimates from a search matching model this paper investigates the properties of the joint distribution of the duration to the first post schooling full time job and of the accepted wage for that job within a search matchingbargaining theoretic model the model provides an interpretation of the observations on duration to first job and accepted wages that differentiates between behavioural influences and market fundamentals in determining the accepted wage schooling relationship the return to schooling is appropriately measured by differences in the wage offer distribution which depends only on market fundamentals we use data from the 1979 youth cohort of the national longitudinal surveys of labor market experience to follow several school leaving cohorts of young males a model which allows for five types of heterogeneous workers within schooling race groups fits the duration and wage data well for all such groups offer probabilities for all groups are estimated to be close to one mean offered wages are about 1000 less than mean accepted wages and the internal annual rate of return for attending college relative to graduating from high school is 32 for blacks and 17 for whites this paper investigates the properties of the joint distribution of the duration to the first post schooling full time job and of the accepted wage for that job within a search matching bargaining model it is a well established empirical regularity that hazard rates are decreasing with the duration of search unemployment it is also true for the data we use that the sample mean of the accepted wage associated with the first job is not increasing with duration these findings hold for both black and white male youth at all levels of schooling conditional on schooling however the time between leaving school and working at the first full time job is longer for blacks and their accepted mean wage is lower conditional on race the time between leaving school and working at the first full time job is shorter for those with higher levels of schooling and their accepted mean wage is higher interestingly blacks display a similar pattern of duration and accepted wages to whites who are one level of schooling below e g black high school graduates and white high school dropouts

source or storer ib s performance in a knowledge network the absence of systematic assessment of ib s performance as a reference discipline prolongs questioning of the contribution that ib scholarship makes to other business fields put simply do ib journals export more ideas to allied disciplines than they import from them difficulty in evaluating the merits of let alone the need for solutions offered to boost interdisciplinary relevance slows validation of the ontological principles and epistemic standards of ib research this paper begins to fill this gap it establishes a knowledge network composed of 39 high impact journals that represent the domains of management marketing finance economics operations it accounting human resources organizational behavior and ib we collected citation exchanges among these 39 journals from 2000 through 2007 a log multiplicative model evaluated multiple dimensions of association to determine the sources and storers of knowledge within the network the network from pathfinder analysis was used to determine each journal s contribution to network entropy these analyses indicate that ib journals functioned as storers not sources of ideas within the sampled knowledge network over the studied period the results help interpret opposing proposals to fortify ib studies highlight the tradeoff between exploitation and exploration in knowledge development and dissemination and elaborate jibs s boundary spanning performance within the sampled network

search hedonic prices and housing demand the conventional model of the housing market does not take into account the search process for a suitable housing unit based on a dynamic search theory this paper develops and estimates a truncated regression model of the rental housing market with stochastic and unobserved truncation points the author s model provides a joint estimation of the hedonic rice and the reservation rent equations the results turn out to be superior to the ordinary least squares estimates of either the traditional housing demand function or the hedonic price equation copyright 1992 by mit press

search bargaining and signalling in the market for legal services over the last eight centuries lawyers in common law countries have generally been precluded from buying their clients cases recently a number of economists and lawyers have argued that sale should be allowed so as to eliminate moral hazard particularly when contingent fees are used this argument is based on full information reasoning however if the lawyer has private information about the case value then compensation demands potentially signal this value when the client can search over lawyers we provide a formal model and a family of computational examples that show that allowing possibly partial purchase can reduce expected social efficiency

income taxation in a frictional labor market a new model of wage dispersion is used to examine welfare aspects of income taxation the model retains the dynamics of wage posting models while exogenizing search effort therefore allowing more insight into policy issues the results highlight effects that standard analyses do not take into account the optimal income tax should depend on an incidence effect between workers and firms this incidence effect arises from firms trying to lower wages as much as possible an employment tax proves in certain cases to be the best method to encourage labor force participation

a dynamic equilibrium model of search bargaining and money abstract this paper considers dynamic equilibria in a model with random matching strategic bargaining and money equilibrium in the bargaining game is characterized in terms of a simple differential equation when we embed this characterization into the monetary economy the model can generate outcomes such as limit cycles that never arise if one imposes a myopic nash bargaining solution as has been done in the past journal of economic literature classification numbers c78 d83 e31

an empirical model of wage dispersion with sorting we estimate an equilibrium on the job search model with endogenous search intensity workers differ by skill firms by productivity workers respond to mismatch by intensive search and sorting may result from complementarities in the match level production function the model is estimated on danish matched employer employee data firms are ranked through revealed preference by the fraction of hires that is poached from other firms the poaching rank identification is obtained by firm rank conditional mobility and wage patterns wage variation is decomposed into four sources sorting 40 worker heterogeneity 32 firm heterogeneity 18 and frictional competition 10 a social planner can improve output net of search cost by 1 5 relative to the decentralized solution