income distribution and environmental quality in china a spatial econometric perspective abstract paying heed to a surge of concern about the serious and continuous environmental degradation that is currently being witnessed in china in this paper we investigate whether income distribution contributes to environmental deterioration environmental degradation can be linked not only to income growth we argue but also to increases in income inequality the study calculated the gini coefficient of 31 province using a data set of 403 city level data in mainland china and estimated the linkage between income distribution and environmental deterioration utilizing balanced data for 31 chinese provinces during the period 1996 2015 first the degree of environmental pollution was calculated by constructing a comprehensive index system which was formulated using the entropy method based on six environmental indicators then a spatial panel regression model was also employed in order to estimate whether income inequality is likely to be a relevant factor in environmental deterioration in china the estimation results showed that using the index and spatial analysis techniques significant spatial positive agglomeration were found existing between chinese provinces in terms of their levels of environmental degradation the influencing factors estimation results substantiated the existence of an invert u shaped relation lending support to the environmental kuznets curve theory more importantly the study found that income inequality played a significant role in preventing environmental degradation suggesting that an appropriate level of income inequality over a delimited period is beneficial to improving environmental quality it should however also be emphasized that optimizing the country s income distribution is remains an important long term task for the chinese government other factors were found to exert different types and magnitudes of impacts on environmental pollution results showed that many factors for instance energy intensity the share of secondary industry population density and foreign direct investment contribute to environmental deterioration conversely our findings also indicate that rising urbanization levels can have a positive effect on environmental quality in addition no clear evidence was found to suggest that local government expenditure is related to environmental degradation

a case for comparative entrepreneurship assessing the relevance of culture as international entrepreneurship gains momentum as a significant and relevant field of research scholars need to address methodological issues that can facilitate the triangulation of research results in this paper we examine the relationship between culture and four personality characteristics commonly associated with entrepreneurial motivation by demonstrating systematic variation in entrepreneurial characteristics across cultures we raise important questions about the boundaries of international entrepreneurship research and the challenges of transcending them

the transaction costs paradigm 1998 presidential address western economic association 1998 presidential address western economic association though the idea can be traced to david hume and adam smith the path breaking first economic analysis of transaction costs did not occur until 1937 when ronald coase published the nature of the firm 1 stigler and boulding perspicaciously reprinted coase s paper in the famous aea readings in price theory 1952 but for a quarter of a century it had no real impact on the profession in the 1940s two significant works were published which touched on transaction costs but these sparks did not ignite a fire 2 the transaction costs paradigm began to blossom in the early 1960s again it was coase who supplied the primum mobile his great paper on social cost was published in early 1961 though aaron director dated that issue of journal of law and economics as 1960 ronald had company this time george stigler s article on information cost came out later the same year and kenneth arrow s work on the appropriability of returns to inventions appeared in 1962 3 the combined wisdom of three brilliant men would perhaps not have been enough except that by the early 1960s science was on their side jargonistic articles on economic development flooded the journals throughout the 1950s but by 1960 economists were beginning to question the explanatory power of this kind of economics after the clarion call of friedman s work on the consumption function a few years earlier in 1957 the great methodological debate began 4 the demand for testable implications was becoming more vociferous by the day and the tendency for economists to be policy oriented was losing hold as the keynesian revolution waned 5 the tide of economic explanation was beginning to swell and the transaction costs paradigm was the beautiful goddess who emerged from the foam i began graduate work at ucla in 1961 and after my ma a year later i turned to audit the price theory lectures of jack hirshleifer and armen alchian the straight as student who knew by heart everything about market imperfections was told that this kind of knowledge did not count by 1963 graduate students at ucla s department of economics were all talking property rights and transaction costs now i knew coase and stigler by heart and could even handle the questions on pricing behavior and mergers at the end of friedman s price theory 1962 moreover i was the luckiest of the lot because in late 1963 armen gave me a copy of a manuscript by harold demsetz 6 one of the great expositors of our time harold wrote about property rights and transaction costs with such clarity and force that i decided then and there to work on these topics for my doctorate since that time my research has all been on the same track in this address i shall confine discussion of the transaction costs paradigm to my own involvement this limitation is imposed by necessity i like to sail the strange seas of thought alone and have seldom read other people s publications with the seriousness they deserve after i left chicago in 1969 from 1976 to 1982 i spent my time on contracts in the petroleum industry and from 1982 to now my research has concentrated on economic reforms in china although these works are all transaction costs oriented the former is not in print because it is proprietary while the latter has mostly been published in chinese after more than half a lifetime on the seashore however i feel it is time to share my small collection of pebbles with colleagues in the wea still you would not be wrong if you feel that i am addressing the subject as if i were a stranger returning from another planet i the nature of transaction costs transaction costs must be defined to be all the costs which do not exist in a robinson crusoe economy this broad definition is necessary because it is often impossible to separate one type of transaction cost from another the toll collector of a bridge serves not only transacting customers but also police against trespassers

inequality and the environmental kuznets curve abstract is income inequality harmful to the environment the answer to this question has not reached a consensus in the literature this study seeks to provide insight into this question by examining the influence of income inequality on the environmental kuznets curve ekc i e the impact of income inequality on the ekc turning point two potential mechanisms through which inequality may affect the ekc turning point by reducing public demand for environmental protection and by increasing a power of capital owners to prevent such protection using a large sample n 170 174 of countries we find evidence of the ekc for so2 emissions and income inequality has a significant impact on the ekc turning point income inequality increases the ekc turning point suggesting that high inequality can be damaging to the environment the results are robust to potential outliers different data sources of income inequality a different so2 emissions measure changes in model specification different samples and an alternative estimation method we also find that inequality appears to be more important than corruption in determining the ekc turning point

income inequality and co2 emissions in the g7 1870 2014 evidence from non parametric modelling abstract we examine whether income inequality effected carbon emissions in what are now the world s wealthiest countries over the period 1870 2014 employing a non parametric panel estimation method with cross sectional and time varying coefficients we find that the relationship between income inequality and co2 emissions is highly non linear in terms of signs and significance the nonparametric coefficient function for income inequality is found to vary over the period 1870 2014 income inequality exhibits a significant positive effect from 1870 to 1880 and a significant negative impact from 1950 to 2000 on co2 emissions we also find that for extended periods between 1881 and 1949 and between 2000 and 2014 there is no significant relationship between the two variables

the bias in centrally planned prices the historical verdict must be surely in on the great central planning experiment soviet block economies are fleeing central planning philosophy in droves nonetheless the brute fact constraining movement from central planning to market economy is the necessity of vastly increasing prices kurtzman 1988 the point of this note is to look back on the central planning debate of the 1930s and 40s with the perfect wisdom of hindsight and ask why none of the participants predicted this answer by an easy process of elimination we focus on the anti central planning side of the debate after all if disinterested members of the pro central planning side of the debate after all if disinterested members of the pro central planning side had reached the correct answer surely they would have switched sides the brunt of the anti central planning position was carried by two alone von mises and hayek so we reconsider their arguments using a bit of statistical notation to sharpen the points at issue the argument is that von mises and hayek focused on the complex technical issues in involved in central planning and ignored the simple incentives facing planners a concluding speculation is offered as to why neither von mises nor hayek got it right

national business ideology and employees prosocial values employees prosocial values have been shown to foster helping cooperating and volunteering behaviors which in turn increase firm performance however despite the importance of prosocial values there is a general neglect of this area in the international arena as more trade occurs globally interest in cross cultural prosocial values is growing we therefore build on socialization theory and introduce national business ideology as a country level determinant of employees prosocial values we thus argue that transformational leadership and professional altruism are key elements of a national business ideology s stimulation of employees prosocial values while corporate corruption is considered to be an impediment based on 19 026 individuals from 17 countries our cross level analyses point to the national business ideology explaining national level variances above and beyond cultural aspects results support our hypothesis that national business ideology including transformational leadership and professional altruism is positively related to employees prosocial values the hypothesis on corporate corruption however was not supported instead results indicate that employees apply rationalization strategies to justify corruption with prosocial values being important for organizational performance as well as social welfare in general we thus draw attention to socialization processes in national corporate work contexts

design and implementation of carbon cap and dividend policies an important concept in discussions of carbon management policies is cap and dividend where some fraction of the revenues of an auction on emission allowances is returned to citizens on an equal per capita basis this policy tool has some important features it emphasizes the fact that the atmosphere is a common property resource and it is a highly transparent measure that can be effectively used to protect the income of low income individuals in this paper we examine this policy in the california context and focus on the costs and impacts of a cap and dividend scheme when applied to carbon emissions associated with electricity natural gas and transportation services we find that cap and dividend can effectively be used to address the economic impacts of carbon management policies making them progressive for the lowest income members of society we find that the majority of households receive positive net benefits from the policy even with the government retaining half of the auction revenue if auction revenues are instead dedicated only to low income households the majority of low income households can be fully compensated even with the state government retaining upwards of 90 of auction revenues for other purposes

the cross cultural research imperative the need to balance cross national and intra national diversity this paper provides a brief overview of the evolution of comparative management theories paradigms and highlights the contribution of the cross vergence construct despite progress most studies of work values across countries continue to suffer from two primary limitations the first is the fallacious assumption of cultural homogeneity with nations given the growing diversity of the workforce within country intra national variations can often be as significant as cross national differences the second is the fallacious assumption of cultural stability over time since cultures evolve albeit slowly it is important to take these changes over time into consideration and be aware of the paradoxes inherent within any given society hence the paper calls for the need to balance cross national and intra national diversity in order to truly understand cross cultural phenomena and thus further improve the quality of cross cultural research

some observations on power and property rights in the inland fisheries of bangladesh abstract this paper examines the causes behind the failure of the fishermen to establish property rights over fishing grounds in the inland fisheries of bangladesh property rights are eventually transferred to socially powerful agents called the lessees who are not part of the fishing community differential costs of establishing and maintaining property rights have been observed as the key element behind the transfer of rights this differential cost stems from power asymmetries and consequently more rent is generally realizable by the lessees differential capacity to realize rent creates the potential for an exchange of rights between them 1997 elsevier science ltd all rights reserved

income inequality and the environment aggregation bias in environmental kuznets curves abstract the environmental kuznets curve assumes an inverted u shaped relation between environmental damage and per capita income recently it has been argued in the literature that in addition to income levels the inequality in the distribution of power and income is positively related to environmental degradation we provide an additional argument based on simple aggregation for including a measure of income dispersion in empirical analyses when the relationship between environmental damage and household income is concave e g resembles an environmental kuznets curve then income inequality is negatively related to total environmental damage results from an empirical analysis of cross national variation indicate that the aggregation effect can run counter to and outweigh the political economy effect for some environmental indicators

rent seeking behaviour and its economic costs in urban land transactions in accra ghana the existing body of knowledge attributes to informal land transactions in sub saharan african cities observed problems in city neighbourhoods substantial resources often backed by donor agencies are therefore being spent in revamping bureaux and governmental bodies in a bid to solve the problems this paper examines the economic impacts of this aspect of market intervention employing insights from rent seeking theory it estimates costs brought to bear on agents by government agencies involvement in the urban land market of accra ghana the sum of these wasteful diversions of resources is found to explain a great deal of the haphazard developments that have come to characterise many neighbourhoods in the city market led regulation emerges as the needed focus of future land policy and management strategy towards this the paper calls for the removal of existing unwarranted market interventions and the reorganisation of responsible bureaux in ways that would induce them to operate efficiently

emulation inequality and work hours was thorsten veblen right we investigate the manner in which a desire to emulate the rich influences individuals allocation of time between labour and leisure greater inequality inducing longer work hours as a result data on work hours in ten countries over the period 1963 98 show that greater inequality is indeed associated longer work hours these veblen effects are large and the estimates are robust using country fixed effects and other specifications because consumption inequality is a public bad a social welfare optimum cannot be implemented by a flat tax on consumption but may be accomplished by more complicated progressive consumption taxes at the close of the nineteenth century thorsten veblen proposed what he termed pecuniary emulation as the foundation of a theory of consumption spending he maintained is driven by relative status considerations that is by the desire to be a particular type of person as much as bythedesire to enjoytheconsumer goodsper se the joneses with whom one had to keep up were not the neighbours but the rich theirleveloflivingbecamethenever attainableobjectiveinaconsumptionarmsrace among the less well to do in the theory of the leisure class he wrote the motive is emulation the stimulus of an invidious comparison especially in any community in which class distinctions are quite vague all canons and reputability and decency and all standards of consumption are traced back by insensible gradations to the usages and thoughts of the highest social and pecuniary class the wealthy leisure class 1934 p 81 while valued by some economists as capturing common sense aspects of consumption as a form of status seeking veblen s view of social preferences was soon eclipsed by the simpler and more tractable neoclassical theory of the consumer relegated to the underworld of economics veblen s ideas have nonetheless resonated over the ensuing years in the writing of duesenberry 1949 leibenstein 1950 and galbraith 1958 at the middle of the past century and schor 1998

stoking the fires co2 emissions and economic growth abstract we examine the relationship between economic development and carbon dioxide emissions a greenhouse gas central to global warming predictions estimates derived from global panel data suggest a diminishing marginal propensity to emit mpe carbon dioxide as gdp per capita rises despite this global carbon dioxide emissions growth will continue at 1 8 percent per annum for the foreseeable future a result that is not sensitive to average output growth instead emissions growth continues because output and population will grow most rapidly in lower income nations with high mpes this latter feature emphasizes the distributional consequences of policies to reduce emissions

managers gender role attitudes a country institutional profile approach in this paper we use the country institutional profile to investigate how selected cognitive normative and regulative aspects of various countries relate to traditional gender role attitudes of managers from these countries our cross level analyses using hierarchical linear modeling control for a number of individual characteristics i e age education gender and social class results support our hypotheses that managers traditional gender role attitudes relate positively to nation level uncertainty avoidance and power distance moreover the results support our predictions that gender egalitarian normative institutions degree of regulation and degree of educational development are negatively related to managers traditional gender role attitudes however results reject our hypotheses regarding nation level religiosity assertiveness and masculinity not showing the proposed relationship with managers traditional gender role attitudes implications for research and practice are discussed

national culture and dividend policy this interdisciplinary study examines how national culture affects corporate dividend policies the dividend puzzle is one of the most studied yet unresolved issues in financial economics prior theoretical and empirical research has suggested several explanations of the dividend puzzle that are rooted mainly in agency asymmetric information bird in hand and pecking order theories the main intuition behind our analysis is that dividend policy may be determined not only by an objective assessment of the severity of agency and asymmetric information problems within a firm but also by management s and investors subjective perceptions of these problems which hinge on their national culture using schwartz s national culture dimensions conservatism and mastery we find that conservatism is positively related and mastery negatively related to dividend payouts for a sample of 27 462 firm years from 21 countries between 1995 and 2007 these effects are robust to controls for a wide variety of other determinants of dividend policy including investor protection stock market performance financial system configuration tax advantage economic development and dividend catering premium and to alternative culture proxies and sub period windows our findings that national culture affects perceptions of and responses to agency and information asymmetry have important implications for policymakers and multinational enterprises

does income inequality facilitate carbon emission reduction in the us abstrct considering the short and long term impacts of income inequality on carbon emissions as well as the heterogeneity of the emission distribution this paper employs panel ardl and quantile regression models to analyze the effect of income inequality on carbon emissions across us states the findings suggest that higher income inequality increases us carbon emissions in the short term whereas it promotes carbon reduction in the long term furthermore we find that the absolute values for the coefficients on income inequality in the states from the 70th to the 90th quantiles are larger than those from the 10th to the 40th quantiles this indicates that income inequality reduces more carbon emissions in states with higher per capita carbon emissions the results provide important insights for policy makers to improve the quality of economic development and address climate change

households willingness to pay for public housing in the presence of price controls nonmarket housing allocation mechanisms such as queueing prevent households from revealing their marginal willingness to pay for housing through market prices we derive the households marginal willingness to pay using the intuitive idea that the length of the queue for a specific house reflects the households willingness to pay for housing characteristics we apply our methodology to public housing in the amsterdam metropolitan area and show that on average the households marginal willingness to pay for a unit of public housing is close to its marginal costs this suggests that the welfare loss of public housing through distortions in housing supply is rather limited and is mainly through distortions in housing demand we provide indirect evidence of the latter by showing that queueing induces inefficient matching of households and housing

implicit taxes collected by state liquor monopolies state monopolization or taxation aresupposedly justified because of negativeexternalities from alcohol consumption butrecent research questions the efficacy ofsuch policies suggesting that their actualgoals may be revenue generation consideration of this hypothesis isfacilitated by estimates of the implicittaxes charged in monopoly states whichgenerally are substantially higher thantaxes in non monopoly states evidencethat monopolization and high taxes do notaffect the level of externalities is alsoexplained by adjustments that rationalindividuals make to avoid the consequencesof such policies thus providing furthersupport for the revenue maximizationhypothesis

political economy of pension plans impact of institutions gender and culture abstract national pension systems are an important part of financial intermediation and worker welfare in most countries but how and why do they differ internationally controlling for important political economic and social institutions we document that international differences in pension progressivity or how pensions reflect lifetime earnings are negatively related to masculinity uncertainty avoidance individualism long term orientation employment rights average pension levels social trust and economic inequality we also find that pension progressivity is positively related to the economic and societal role of women the extent of catholicism as well as political voice and accountability these results provide important insights for both public policy and mnc managers

the impact of rent control on rents in the free sector in most cases rent control covers only a part of the housing stock this note provides a simple analysis of the impact which rent control and non price rationing exert on the rent in the free sector it is shown that depending on the rationing mechanism rents in the free sector can be higher or lower than in the absence of rent controls

inequality as a cause of environmental degradation abstract this paper advances two hypotheses first the extent of an environmentally degrading economic activity is a function of the balance of power between the winners who derive net benefits from the activity and the losers who bear net costs second greater inequalities of power and wealth lead all else equal to more environmental degradation

economists and public policy chicago political economy versus conventional views both conventional welfare economics and public choice analysis suggest that economists have an important educational role to play in the public policy process in improving the decision making process in sharp contrast information and incentive problems related to voting rules the bureaucracy and the legislature do not arise in cpe because these processes are all perfect agents of interest groups consequently the political process is efficient and there is no scope for beneficial economic analysis as it relates to the sugar program or other public policies that is the polity is efficient or it would be reordered by competing interest groups to make it so but as mitchell 1989 290 stresses the important unanswered question in cpe remains if there is no scope for improvement how and why does change occur

avoiding uncertainty in hofstede and globe this paper compares the uncertainty avoidance ua dimension of national culture across the hofstede and globe models looking at relationships in both data and analysis rather than mutual support we detail major differences and anomalies across the studies we show how these anomalies are resulting in contradictory explanations in research on national differences across a range of individual firm and country level phenomena we clarify the ua measurement in both hofstede and globe and find that the two models are measuring different components of the ua construct we propose a two component model of ua namely ua stress and ua rule orientation and confirm its validity with national culture data from the hofstede and globe studies and economic data from the world bank we also explain the negative globe ua practices values relationship using motivational theories a way forward in future ua related research is suggested the hofstede ua index the globe ua practices scores and the globe ua values scores should be used within the specific domains that they represent that is stress rule orientation practices and rule orientation aspirations respectively resolving the contradictions in ua between and within hofstede and globe will help cross cultural researchers develop more robust theories and more practical recommendations for international business management

power distribution the environment and public health a state level analysis abstract this paper examines relationships among power distribution the environment and public health by means of a cross sectional analysis of the 50 us states a measure of inter state variations in power distribution is derived from data on voter participation tax fairness medicaid access and educational attainment we develop and estimate a recursive model linking the distribution of power to environmental policy environmental stress and public health the results support the hypothesis that greater power inequality leads to weaker environmental policies which in turn lead to greater environmental degradation and to adverse public health outcomes

an evolutionary approach to understanding international business activity the co evolution of mnes and the institutional environment this paper examines the co evolution of mne activities and institutions external and internal to the firm we develop a theoretical framework for this analysis that draws on the more recent writings of douglass north on institutions as a response to complex forms of uncertainty associated with the rise in global economic interconnectedness and of richard nelson on the co evolution of technology and institutions we link historical changes in the character of mne activities to changes in the institutional environment and highlight the scope for firm level creativity and institutional entrepreneurship that may lead to co evolution with the environment we argue that the main drivers for institutional entrepreneurship are now found in the increasing autonomy of mne subsidiaries thus mne agency derives from more decentralized forms of experimentation in international corporate networks which competence creating nodes of new initiatives can co evolve with local institutions unlike most other streams of related literature our approach connects patterns of institutional change in wider business systems with more micro processes of variety generation and experimentation within and across individual firms this form of co evolutionary analysis is increasingly important to understanding the interrelationships between mne activities and public policy

an international multilevel analysis of product innovation this paper studies multilevel determinants of product innovation by incumbent firms with data from 68 countries covering over 25 000 firms in eight manufacturing sectors the author assesses the predictions of interdisciplinary research on firm behavior in different contexts which have emphasized that product innovation is affected by three sets of factors the extent of global engagement information spillovers and market structure the empirical model of the probability of observing a product innovation a probit model by a firm considers three levels of analysis firm characteristics industry characteristics and the national context the econometric evidence supports the global engagement and information spillovers hypotheses but the evidence on the role of market structure is mixed regarding global engagement the evidence suggests that product innovation by incumbent firms is positively correlated with the act of investing in r d and licensing of foreign technologies and country level average import tariffs reduce the probability of product innovation regarding information spillovers the evidence also shows that a country s patent density is positively correlated with product innovation in contrast concerning the market structure hypotheses country level indicators of business density and of policy induced costs of entry are not robustly correlated with product innovation

the rhetoric and reality of redistribution it is customary when giving a presidential address to begin by remarking on how happy you feel i have an even stronger reason for being happy than most presidents it will at long last permit me to break into the southern economic journal up to this point referees of that august institution have always rejected everything that i sent them finally however i am privileged to put an unrefereed paper in the journal and hence do not have to worry about this one being rejected the audience may feel that although it is nice for me it is hard on the journal but under the sacred traditions of the southern economic association the editors and referees can do nothing about it the blame if there is any has to be laid on me and not on the management of the journal in a way the fact that i will not face referees is important because in this paper i propose to violate a number of implicit taboos in the discussion of income redistribution indeed i propose to argue that most of the current discussion of income redistribution is drastically defective this will not only include rawls it will include what most members of the economic profession normally say on the subject and presumably what the potential referees of this paper would have thought let me very briefly survey the existing economic as opposed to the philosophic literature on the redistribution of income firstly a good many economists have said simply that economics can say nothing about the subject because somebody gains and somebody loses but we can t say whether this is a good or a bad thing with our apparatus hochman and rodgers 9 have started another tradition of dealing with income redistribution in which the government is seen as simply organizing what is essentially a voluntary transfer from the better off american citizens to the less well off american citizens why the government should be used as an instrumentality for this kind of transfer was interestingly enough first explained by milton friedman 6 191 92 such redistribution has the interesting characteristic that it does not actually involve redistribution because the people who make the gift are maximizing their own utility and hence are better off it is a case in which human preferences are so arranged that a given dollar of income benefits two people a full dollar s worth the donor gains a dollar from expending money at its best use to him i e making a gift to the poor and the poor gain the dollar in a somewhat metaphysical sense it can be said here

might makes rights a theory of the formation and initial distribution of property rights this paper is a theoretical and empirical investigation into the formation and initial distribution of property rights violence is singled out as a major constraint on this formation process its role is explicitly modeled in a choice theoretic framework and some of the implications are tested using data collected from contracts written during the california gold rush of 1848

are the economy and the environment decoupling a comparative international study 1960 20051 ecological modernization theory posits that even though economic development harms the environment the magnitude of the harmful link decreases over the course of development in contrast the treadmill of production theory argues that the strong relationship between environmental harms and economic development will remain constant or possibly increase through time to evaluate these competing propositions interactions between economic development and time are used in cross national panel analyses of three measures of carbon dioxide emissions the results vary across the three outcomes as well as between developed and less developed countries providing mixed support for both theoretical perspectives the authors conclude by discussing how both theories could benefit from engaging contemporary research concerning changes within the transnational organization of production and the structure of international trade and how these global shifts influence environment economic development relationships

bringing institutions into performance persistence research exploring the impact of product financial and labor market institutions this study challenges the implicit assumption of homogeneity in national institutional environments made in past studies of firm performance persistence we propose that home country institutions matter we focus on the impact of formal institutions in the product financial and labor markets arguing that they affect the size of pools of exchange partners and the types of exchanges allowed and condoned ultimately these restrictions affect competitive intensity among firms and firm performance persistence using data for over 10 000 firms from 33 countries over a 10 year time frame we show that antitrust law strength a product market institution designed to prevent collusion among firms is associated with decreases in performance persistence unskilled labor market flexibility a labor market institution that reduces legal constraints imposed on residual claimants managers and owners to take necessary actions to maintain or enhance profitability is associated with increases in performance persistence product liability law effectiveness another product market institution and corporate control market development a financial market institution are positively associated with performance persistence only in the case of mnes the two remaining financial and labor market institutions public equity market development respectively skilled labor market availability have a positive respectively negative impact for domestic firms only

the dynamic value of mne political embeddedness the case of the chinese automobile industry this paper examines the complex relationship between the embeddedness of multinational enterprises mnes in host country political networks and their long run competitive positions in host emerging markets we report the findings of a longitudinal study of the chinese automobile sector from the early 1980s to the mid 2000s using data from 142 interviews over 11 years and a wide range of secondary sources we explore the process through which the value of political embeddedness changed over time in the face of profound and rapid changes in host country business environments on the basis of this longitudinal study the paper unravels the underlying mechanisms that lead to the declining and even negative value of deep political embeddedness by mnes in a politically stable emerging economy

two ways to success expansion of renewable energies in comparison between germany s federal states abstract expansion of renewable energies is a central pillar of the german energy transition towards a non nuclear renewable system the expansion rate is co determined to a significant degree at the level of the federal states and varies considerably from state to state apart from the existence of natural energy resources and general economic conditions do parties in government play an important role for the development at the state level we consider potentially influential factors in a fuzzy set qualitative comparative analysis fsqca focusing on the expansion of renewable electricity production in all 16 federal german states from 2004 to 2014 as a result two promising ways for accelerated expansion of renewable electricity production can be identified on the one hand a group of economically less developed states have succeeded in promoting expansion and uses it as part of an economic modernization strategy within the economically more developed states however the party political composition of the state governments green party s involvement plays a significant role these results also have implications for other federal countries beyond germany pointing to tailor made policy strategies that consider these specific circumstances

examining the determinants and the spatial nexus of city level co2 emissions in china a dynamic spatial panel analysis of china s cities abstract china now the world s top co2 emitter is facing increasingly pressure to instigate energy saving and emission reduction measures as a result great attention is being paid to the driving forces behind co2 emissions in china literature has to date however tended to exclude the city level due to a scarcity of energy statistics at that scale using gis technology and dynamic spatial panel data models and aided by spatiotemporal modeling that integrates remote sensing data and statistical data this study identifies the determinates and the spatial nexus of co2 emissions at china s city level the results show that the co2 emissions of all of china s cities increased between 1992 and 2013 with the highest co2 emission levels occurring in eastern rather than western or central china in addition an obvious spatial agglomeration effect was observed in city level co2 emissions highlighting the influence cities exert on their neighbors our empirical results also emphasize the influence that factors such as economic growth population the industrialization level capital investment and population density all exert in relation to raising co2 emissions as such the study found little evidence in support of the ekc hypothesis these results further imply that if china persists in its current development pattern the estimated factors will inevitably lead to increased co2 emissions in the long term road density and the traffic coupling factor were in contrast both found to exert strong influences to the mitigation of co2 emissions as such improving the coupling degree between the urban spatial structure of a city and its traffic organization could play an important role in reducing co2 emissions our findings merit attention from chinese policy makers as they shed new light on the path toward developing low carbon cities

the impact of natural culture and economic ideology on managerial work values a study of the united states russia japan and china this study assesses the impact of economic ideology and national culture on the individual work values of managers in the united states russia japan and china the convergence divergence crossvergence cdc framework was used as theoretical framework for the study while the schwartz value survey svs was used to operationalize over investigation of managerial work values across these four countries the findings largely support the crossvergence prospective while also confirming the role of national culture implications from the findings are drawn for the convergence divergence crossvergence of values as well as for the feasibility of multidomestic or global strategies for a corporate culture

appropriation violent enforcement and transaction costs a critical survey this paper focuses on the extension of transaction costs to appropriative activity and coercive power in the property rights approach it has been argued that including the costs of appropriation and violent enforcement in transaction costs is based on the assumption that coaseian bargaining can be extended to any institutional scenario i e voluntary as well as coercive exchange however voluntary transactions cannot capture the logic of coercive power this means that the assumption of an efficient political market is not valid and that the political coase theorem lacks the logical consistency to provide a cornerstone for political theory

national context and individual employees trust of the out group the role of societal trust out group trust is a crucial driver of international business performance however employees from different countries vary in their levels of out group trust the aim of this study is therefore to capture national forces driving out group trust based on kramer s theorizing on the multiple bases of trust we argue that at the societal level dispositional categorization based and rule based trust influence employees out group trust in particular we argue for dispositional and rule based societal trust to increase and for categorization based societal trust to decrease employees out group trust through different types of socialization using data on 25 622 employees from 42 countries we find partial support for the coexistence of these bases of societal trust disentangling trust forming and trust impeding models we find support for dispositional and rule based societal trust as drivers of employees out group trust and for categorization based societal trust as impeding employees out group trust in a combined model however rule based trust is not significantly related to employees out group trust considering the coexistence of trust and distrust employees out group trust develops through socialization effects conveying general trust in others i e high dispositional trust and the equality of social groups i e low categorization based trust

identifying the impacts of income inequality on co2 emissions empirical evidences from oecd countries and non oecd countries abstract the emergence of environmental quality challenges is rooted in social problems which mainly come from income inequality and power gap income inequality and climate change have been highlighted as hindering the achievement of sustainable development and environmental protection globally though existing literature has estimated the influences of income inequality on co2 emissions relatively little is known about the long run and short run effects from a cross national perspective therefore the aim of this study is to shed light on the long run and short run relationships between income inequality and per capita co2 emissions based on balanced country level panel dataset for 78 countries from 1990 to 2017 in order to understand how a country s economic level affects the link between inequality and co2 emissions this study classified the sample countries into three groups oecd countries low income non oecd countries and high income non oecd countries the fmols and dols model is applied to examine the relationship between the income inequality and per capita co2 emission meanwhile the estimates of an ardl model revealed the long run and short run effects our empirical results indicate that there is a long term cointegration relationship between income inequality and per capita co2 emissions higher income inequality promotes emission reductions in oecd countries and high income non oecd countries while the influences are insignificant in low income non oecd countries in the long run per capita income carbon intensity population size and urbanization were also considered in this study the estimates of an ardl model indicate that whilst income inequality does not have a significant impact on co2 emissions in the short run per capita national income positively affects co2 emissions meaning that income growth will accelerate emissions carbon intensity positively affects co2 emissions in the long term indicating that increased income facilitates increased energy use and emissions but that progress in co2 recycling technology may ultimately reduce emissions neither population size nor urbanization rate exerted any obvious effects on per capita co2 emissions from a policy perspective governments have an onerous task ahead of them in balancing economic efficiency and distributary justice lastly we provide insights for policy makers that in order to realize the goal of emission reductions in the long run it may be best to proceed by making reasonable national income redistribution policies and by adjusting the welfare system

the income inequality and carbon emissions trade off revisited abstract this paper investigates the marginal effect of income inequality on carbon emissions per capita we use a panel consisting of 68 countries over a 50 year period from 1961 to 2010 we report estimates that support the hypothesis that there is a trade off between carbon emissions per capita and income inequality this trade off is not homogeneous across countries and depends upon the level of development measured by income per capita using panel smooth transition regression we find that this relationship is negative for countries with low to moderate income per capita but becomes slightly positive after passing a threshold located around fifteen thousand 2011 us dollars moreover the inequality elasticity of emissions per capita is comparable in magnitude to its income elasticity therefore both inequality and income levels are crucial to define policies to reduce carbon emissions this implies a challenge to policymakers who pursue to reduce both income inequality and carbon emissions

asia s materialists reconciling collectivism and materialism materialism has an ugly face the dominant view of materialism regards materialists as self prioritizing individuals who oppose collective and prosocial goals in favor of a lifestyle led by money possessions and status the present research argues that there is a side of materialism that is concerned with collective oriented interests we examine the nature and consequences of collective oriented materialism the belief system that ascribes importance to possessions for their symbolic and signaling capacities to construct desirable social attributes drawing from cultural and consumer theories we find considerable support that materialists espouse a collective oriented quality to an otherwise self oriented interest towards possessions

ethical preferences for influencing superiors a 41 society study with a 41 society sample of 9990 managers and professionals we used hierarchical linear modeling to investigate the impact of both macro level and micro level predictors on subordinate influence ethics while we found that both macro level and micro level predictors contributed to the model definition we also found global agreement for a subordinate influence ethics hierarchy thus our findings provide evidence that developing a global model of subordinate ethics is possible and should be based upon multiple criteria and multilevel variables

why economic reforms fail in the soviet system a property rights based approach jan winiecki why do economic reforms fail in soviet type systems despite the obvious interest of ruling groups in improving the performance of their ailing economies the author applies a property rights based analysis stressing modes of rent maximization by ruling groups as a crucial explanatory variable party apparatchiks and economic bureaucrats particularly benefit from persistent interference in the economic sphere and consequently are most interested in maintaining the status quo the author surveys the impact of these motivations on the content of economic reforms outlines the strategies of counterreformers and predicts the future of reforms in soviet type economies 1 introduction in analyzing the disequilibrium characteristics of contemporary western economies mancur olson 1982 1984a 1984b agrees with the neoclassical macroeconomists in finding that given the tendencies of markets to clear and given the rational expectations of economic agents any disequilibrium indicates that all mutually advantageous transactions have not been consummated having made this point however he asks what can make agents ignore the potential gains from unconsummated transactions and turns his attention toward the structure of incentives and thus of institutions and policies olson insists and rightly so that a satisfactory static and dynamic macroeconomic theory has to explain who among key actors has the incentive to generate economic growth and equilibrate the economy and who does not furthermore no government even an authoritarian one has an incentive to generate serious recessions or disequilibria olson 1984a 637 writes that even in dictatorial systems the dictator has an incentive to make the economy of the country he controls work better since this will generate more tax receipts he can use as he pleases and usually also reduce dissent olson s arguments about incentives institutions and disequilibria offer an ideal basis for an inquiry into why reforms fail in soviet type economies stes in olson s theories of incentives the old roman principle of criminal law cui prodest who gained is applied to modem economies and the results suggest that contrary to widespread opinion it is not necessarily the small but powerful group of high and highest leaders that stands to gain most in terms of power and privilege from the preservation of the existing order a powerful political elite could satisfy its desires for both power and privilege through an alternative undemocratic system one which involves authoritarian don ts rather than totalitarian do s in that perspective the inefficient system of economic control typical in stes involving centrally planned production goals and input rationing would not be a condition sine qua non of an authoritarian solution since totalitarian command and control systems persist however one must seek groups other than the powerful and privileged few which have incentives to resist reforms and keep the economy inefficient the following sections identify the membership and motives of groups having strong incentives to keep the stes inefficient and prevent successful i e market oriented reforms we show how those groups operate and analyze their effects on the economic performance of their countries first the incentives for these groups to prevent decentralized management in the state sector are spelled out then their incentives to prevent the expansion of the more efficient private sector are outlined third having identified who benefits from the status quo and why the paper discusses when and how market oriented reforms are aborted limited or reversed by those who stand to gain from the reforms failure the last two sections consider the prospects of current attempts at economic reform in three specific countries poland the ussr and china and the prospects for economic reform in stes more generally

cultural and leadership predictors of corporate social responsibility values of top management a globe study of 15 countries this paper examines cultural and leadership variables associated with corporate social responsibility values that managers apply to their decision making in this longitudinal study we analyze data from 561 firms located in 15 countries on five continents to illustrate how the cultural dimensions of institutional collectivism and power distance predict social responsibility values on the part of top management team members ceo visionary leadership and integrity were also uniquely predictive of such values

the gini coefficient structure and its application for the evaluation of regional balance development in china abstract the evaluation of balanced regional development should consider not only the economic and ecological benefits but also regional differences a nongrouped gini index is constructed based on a continuous distribution function to evaluate the regionally balanced development of the economy and the environment and the applicability of the method is analyzed given the data characteristics combining the difference in the regional economic base and ecological carrying capacity a multigroup overall gini index mgo gini with regional spatial heterogeneity is further developed along with its decomposition structure this work evaluates and analyses the regional balance in china s development with regard to regional industrial output energy consumption and pollution emissions from 2000 to 2015 using both the nongrouped and the mgo gini the results show that the gini index constructed in this paper can be well adapted to fat tailed data which is a typical feature of china s regional economic and ecological benefits data the regionally balanced development of china does not obviously promote industrial output whereas the regional balance of energy consumption shows the same upward trend when evaluated with both the nongrouped and the mgo gini from 2000 to 2015 in recent years after a period of improvement the regional balance of pollution emissions has experienced a downward trend there is disparity in cleaner production efficiency between regions of china as well as an upward trend in this disparity in recent years china s interregional balance has been enhanced in terms of energy consumption and pollution emissions considering regional spatial heterogeneity whereas the balance of economic output has been further reduced the balance in regional energy consumption plays a supporting role in balanced development among regions the imbalance within developed areas is the main source of regional economic output and energy consumption imbalances and the imbalance in developing areas is the main source of the regional pollution imbalance in china

impact of income inequality and environmental regulation on environmental quality evidence from china abstract china s environmental pollution is of widespread concern and environmental governance has become the country s main method of achieving high quality development environmental quality is a comprehensive indicator which includes many factors such as air water and solid waste pollution this study did not use a single pollutant as a substitute variable for environmental quality firstly we used principal component analysis to construct a comprehensive environmental quality index secondly the stochastic impacts by regression on population affluence and technology and panel quantile regression models were used with data from 30 chinese provinces in china from 1998 to 2017 to analyze the effect of income inequality and environmental regulation on environmental quality the constructed comprehensive index revealed that china s environmental quality had an m type trend over time the mean regression results showed that income inequality and environmental regulation improved environmental quality but higher income inequality reduced environmental quality the panel quantile regression model results revealed that the coefficient of income inequality was positively significant at the 10 30 quantiles and negatively significant at the 70 90 quantiles the coefficients of the absolute value of income inequality at the 10 30 quantiles were less than those at the 70 90 quantiles this implied that higher income inequality reduced environmental quality whereas higher environmental regulations improved environmental quality considering the possible impact of environmental quality on income inequality and environmental regulations we designed a simultaneous equation model to overcome the deviation caused by bilateral causality the conclusions of this study provide policymakers with a new perspective on environmental governance and new paths for achieving high quality development

the crossvergence perspective reflections and projections in this retrospective i chronicle the development of the crossvergence theory of values evolution which states it is the dynamic interaction of the sociocultural influences with the business ideology influences that provides the driving force to precipitate the development of new and unique values systems in societies crossvergence theory was introduced in our 1993 jibs paper and was the focus of our 1997 decade award paper as well as of a series of subsequent papers thus i discuss the purpose and findings for six papers that have contributed to our present level of knowledge concerning crossvergence theory i conclude my comments with a discussion of the relevance of longitudinal and multilevel research measures found to be useful and methodologies to consider as well as identifying research topics in need of exploration

a theory of price control price or rent control is but one of many forms of legislative action which interfere with private contracting in the market place to delimit the scope of my analysis i shall use the term price control to refer only to any set of regulations which satisfies the following three conditions first the control must fix the price or income terms of private contracts this categorically excludes any laws which regulate the distribution of income among the contracting parties on a share or percentage basis 2 second the control must involve no appropriation of proceeds to or from the government taxation and subsidization are thus excluded finally the fixing of price must not be associated with direct government sales purchases or manipulation of resources so as to maintain the regulated price 3 by this stipulation price support is also excluded even on such terms legal regulations to control price are still many and varied to evaluate our understanding of the class of phenomena which we seek to explain it is essential that we discover implications refutable by facts by this criterion the available body of economic theory pertaining to price control is deficient indeed the massive literature on the subject offers few such implications 4 an alternative approach to analyzing the observable effects of price control is presented here

income inequality and carbon emissions in the united states a state level analysis 1997 2012 abstract this study investigates the relationship between u s state level co 2 emissions and two measures of income inequality the income share of the top 10 and the gini coefficient each of the inequality measures which focus on unique characteristics of income distributions is used to evaluate the arguments of different analytical approaches results of the longitudinal analysis for the 1997 to 2012 period indicate that state level emissions are positively associated with the income share of the top 10 while the effect of the gini coefficient on emissions is non significant the statistically significant relationship between co 2 emissions and the concentration of income among the top 10 is consistent with analytical approaches that focus on political economy dynamics and veblen effects which highlight the potential political and economic power and emulative influence of the wealthy the null effect of the gini coefficient is generally inconsistent with the marginal propensity to emit approach which posits that when incomes become more equally distributed the poor will increase their consumption of energy and other carbon intensive products as they move into the middle class

measurement issues in cross national research substantive inference from cross national studies have important implications for theory e g because they reveal insights into generalizability and boundary conditions and managerial practice e g because they offer guidelines to mnc managers however few empirical studies attend to measurement issues involved in cross national research and still fewer recognize the risk of inferential errors that are likely to occur by overlooking measurement issues we discuss four measurement issues namely 1 standardized versus unstandardized coefficients 2 the impact of measurement error and unequal reliability 3 the overall error rate and simultaneous analysis and 4 construct equivalence using illustrate examples we demonstrate the nature of each of these problems the likely impact they can have on substantive conclusions and approaches for tackling these problems additionally we reanalyze a recently published three nation study by dubinsky michaels kotabe lim and moon 1992 to clarify these measurement concerns highlight a methodological approach and delineate the extent and severity of inferential errors our reanalysis shows that the interactive effects of these measurement issues are pervasive complex and unpredictable we close with implications for cross national research in general

government manipulation of constitutional level transaction costs a general theory of transaction cost augmentation and the growth of government transaction costs are pivotal to the ongoing political choice of where to draw the line between the private sector and the public sector contrary to the dominant paradigm politically important transaction costs are actively manipulated in the public sector by those who perceive potential personal gain from such action over time transaction cost changes so created by government decision makers may fundamentally redefine the role and scope of government to analyze the role of transaction costs in the growth or decline of government it is essential to distinguish transaction costs that are unavoidable realworld constraints from those that are contrived in the sense that they are created by government officials use or extension of their existing authority once discretionary power is vested in the government its officials have both the capacity and the incentive to restructure the transaction costs constraining the revision ofgovernrnental authority this restructuring of transaction costs may take two forms 1 altering people s perceptions of the costs and benefits of governmental authority in a given sphere an information cost problem 1 2 altering the cost of acting upon one s perceptions of the costs and benefits of collectivization in order to procure revision of the scope of governmental authority 2

cultural differences convergence and crossvergence as explanations of knowledge transfer in international acquisitions in spite of the proliferation of research on cultural differences in international mergers and acquisitions we lack systematic analyses of the impact of cultural factors on knowledge transfer in this paper we argue that both national and organizational cultural differences and cultural integration in the form of cultural convergence and crossvergence affect knowledge transfer in acquisitions we develop specific hypotheses concerning the nature of these effects and test our hypotheses with data on international acquisitions carried out by finnish corporations the analyses performed show that national cultural differences provide great potential for knowledge transfer in international acquisitions furthermore organizational cultural convergence and crossvergence have a significant positive impact on knowledge transfer in particular convergence and crossvergence moderate the impact of national cultural differences on knowledge transfer

quantifying the global and distributional aspects of american household carbon footprint abstract analysis of household consumption and its environmental impact remains one of the most important topics in sustainability research nevertheless much past and recent work has focused on domestic national averages neglecting both the growing importance of international trade on household carbon footprint and the variation between households of different income levels and demographics using consumer expenditure surveys and multi country life cycle assessment techniques this paper analyzes the global and distributional aspects of american household carbon footprint we find that due to recently increased international trade 30 of total us household co 2 impact in 2004 occurred outside the us further households vary considerably in their co 2 responsibilities at least a factor of ten difference exists between low and high impact households with total household income and expenditure being the best predictors of both domestic and international portions of the total co 2 impact the global location of emissions which cannot be calculated using standard input output analysis and the variation of household impacts with income have important ramifications for polices designed to lower consumer impacts on climate change such as carbon taxes the effectiveness and fairness of such policies hinges on a proper understanding of how income distributions rebound effects and international trade affect them

economic ethics and institutional change our economic system the market economy is a part of a broader system or society we frequently study the operation of the market economy as if it were autonomous even though there are many complex and mutual relationships between society the economic system and the other systems political cultural religious legal etc that form part of society in a market economy we may identify several components a frame or background in which the economic activity takes place a set of ideas and theories the values shared by this society the set of institutions norms and rules that control the economic behavior of people and the incentives or motivations of the economic agents the play of these elements defines the operation of a market economy is ethics an institution or does it belong to the set of values and ideas in this paper i will discuss the role of institutions norms and rules in society with special reference to the economic system in order to gain insight into the relationship between institutions and ethics i study first the concept and features of social institutions and norms second institutional change and third the relationship between ethics and institutions

lottery or waiting line auction abstract this paper studies the efficiencies of the two most widely used non price allocation mechanisms lotteries and waiting line auctions as our analysis suggests in addition to the fairness of the mechanism the use of lotteries in lieu of waiting line auctions can be also justified from an efficiency point of view in particular we show that the less dispersed consumers time valuations are the more efficient is a lottery relative to a waiting line auction in addition we identify four conditions under which a lottery dominates a waiting line auction in expected social surplus preserving furthermore the numerical simulations we conduct indicate that over a predominantly wide range of circumstances a lottery is more socially efficient than a waiting line auction as an allocative mechanism in the absence of a conventional price system

the nexus between income inequality and co2 emissions in turkey abstract environmental degradation and income inequality are two of the most important international debates that await immediate resolution despite that their interaction in the environmental economics literature has been very little analysis the aim of this study is to examine the impact of income distribution on the co2 emissions in turkey during 1984 2014 an autoregressive distributed lag model ardl test is employed to determine possible long term and short term nexus among the series the ardl test results show that the series are cointegrated and that income inequality has a positive effect on co2 emissions we also find that the environmental kuznets curve ekc is valid in turkey the toda yamamoto causality test denotes that gini coefficient is the granger cause of co2 emission the results show that deterioration in income distribution will reduce environmental quality in turkey which validates that political economy approach is valid in turkey study results can be an important guide for policymakers reducing income inequality for a new strategy in the fight against environmental problems may lead to a win win situation for turkey and the international community