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on Heterodox Microeconomics |
| By: | Ceja, Lucia (IESE Business School); Tapies, Josep (IESE Business School) |
| Abstract: | The present research study is intended to provide further insights into the psychological ownership experienced by next-generation members in relation to their family firms. As this is still a very young area of research, explorative research is needed. Therefore, a mixed-methods qualitative investigation, using a sample of 20 next-generation members of family-owned firms of different sizes, generational stages and business sectors, was performed. Through interpretative phenomenological and ethnographic analyses, the origin, transmission and manifestations of psychological ownership towards the family business were studied. The study also explored the factors that foster or undermine the development of a healthy and fulfilling relationship between next-generation members and the family business. Our findings suggest that next-generation members generally experience strong levels of psychological ownership. The development of positive psychological ownership is associated with factors including shared experiences, well-functioning governance bodies, structured and planned entry to the business, psychological empowerment, and share ownership, among others. |
| Keywords: | next generation; psychological ownership; family-owned firms; qualitative research; |
| Date: | 2011–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0929&r=hme |
| By: | Massimiliano Mazzanti; Caterina Cardinali |
| Abstract: | This work aims at analysing the evolution of music industry, since the beginning of music marketed as a product for the masses until the new frontiers of digital music. Our goal is to identify which factors played a key role in the evolution of the demand in the last years and in the largely discussed crisis of the international music market. In order to reach our goal, it is necessary to contextualise the analysis, starting from the definition of the so-called pop music, or popular music, that must not be confused with the expression “musica popolare†that in Italian defines folk traditional music. We analysed diverse sets of data, ranging from economic ones to sociology-related studies, which helped us to understand, through the contribution of several schools of thought, which factors influence music consumption and to what extent demand and supply influence each other. Our work focuses on the conception of the music market as an eclectic sector of cultural industry, halfway between entertainment, leisure and culture. Music can be used in several ways, and during the years the use has been modified by the implementation of new technological means (particularly referring to the phonograph) by the attempt to satisfy needs that change constantly, such as self-accomplishment, social aggregation or escape from the routine. On the basis of these needs the industry periodically tried to control demand through push strategies, trying to impose new musical trends and pull strategies, adapting to the consumption trends registered. It is important to determine to what extent acting on the market influenced the current situation and whether in this context music is the only element to take into account or not. Our idea is that music does not always play a key role in demand dynamics, that is to say music influences consumption to the extent it is able to meet specific requests by the public, that sometimes are not strictly related to the product itself. Because of the uncertainty of the record industry, technology, market situation and demand become extremely interdependent factors. |
| Keywords: | Schumpeterian dynamics; Music industry; Appropriability; Radical innovations |
| JEL: | O3 Z1 |
| Date: | 2011–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:201113&r=hme |
| By: | Kazuya Wada |
| Abstract: | This study investigates the effects of an improvement in female autonomy on children's welfare in the developing world, taking into consideration intra-household resource allocation through decision-making processes within households. Using a female autonomy index constructed from India's 1998/99 National Family Health Survey, the study tries to capture women's bargaining power and examine the effects on children's health and medical condition. The results of the empirical analysis suggest that often, though not always, children's health and medical condition can be enhanced by improving female autonomy. In addition, the results also imply that fostering female autonomy may play a crucial role in achieving economic development from a long-term perspective. |
| Keywords: | Female Autonomy, Intra-household Resource Allocation, Child Health |
| JEL: | D13 I12 J13 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd11-202&r=hme |
| By: | Ahmadu U. Sanda |
| Abstract: | This study examined the relationship between board independence and firm financial performance, using data of varying sample size (ranging from 89 firms for regression to 205 firms for descriptive analysis) obtained from the Nigerian Stock Exchange for the period 1996 through 2004. The key results were that share ownership was highly concentrated inNigeria, and this structure tended to engender board structureswith close family affiliations in which the chief executive officers (CEOs) were activemembers of audit committees.While family affiliation of board members was found to support firm growth, we found evidence that audit committee membership of chief executives hurt firm performance. We also found that foreign chief executives performed better than their local counterparts. These results suggested the need for Nigerian firms to adopt better corporate governance mechanisms in order to make the boards of directors more independent, avoid unnecessary intervention of CEOs in important committees, and in that way aid financial performance. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_213&r=hme |
| By: | Adam Mugume |
| Abstract: | By using the non-structural models of competitive behaviour—the Panzar-Rosse model—the study measures competition and emphasizes the competitive conduct of banks without using explicit information about the structure of the market. Estimations indicate monopolistic competition, competition being weaker in 1995–1999 compared with 2000–2005. Moreover, the relationship between competition, measuring conduct, and concentration measuring the market structure, is negative and statistically significant; which could suggest that a few large banks can restrict competition. Overall, the results suggest that while competition in the Ugandan banking sector falls within a range of estimates for comparator markets, it tends to be on the weaker side. The structural approach to model competition includes the structure-conductperformance(SCP) paradigm and the efficiency hypothesis. Using the SCP framework, we investigate whether a highly concentrated market causes collusive behaviour among larger banks resulting in superior market performance; whereas under the efficiency hypothesis we test whether it is the efficiency of larger banks that makes for enhanced performance. Using Granger causation test, we establish that the efficiency Granger causes concentration and using instrumental variable approach, the study establishes that market power and concentration as measured by market share and Herfindahl index, respectively, positively affect bank profitability. In addition, bank efficiency also affects bank profitability. Other factors that affect bank profitability include operational costs, taxation and core capital requirement. A major policy implication derived from this analysis is that the Ugandan banking system has been subject to deep structural transformation since the early 1990s. Advances in information technology, liberalization of international capital movement, consolidation and privatization have permitted economies of scale in the production and distribution of services and increased risk diversification. These forces have led to lower costs and, undoubtedly, higher efficiency. However, to ensure that lower costs are passed through to households and firms, greater efficiency must be accompanied by a similar strengthening in the competitive environment in the banking sector. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_203&r=hme |
| By: | Sosthène Ulrich Gnansounou |
| Abstract: | Investment is one of the mainsprings of economic growth. In order to analyse the factors explaining the weakness of investment by private firms in Benin, this paper used a capital demand function. This function was estimated using data from a panel of 123 firms in Benin and covering the 19972003 period. The findings showed that demand uncertainty and, more importantly, the fluctuations in the imports of manufactured goods from Nigeria have a negative effect on investment by private firms in Benin. The investment behaviour of these firms strongly hinges on the cost of capital utilization: When this cost is high, it weighs negatively on the purchase and installation of new production infrastructure. The magnitude of the effect of this cost of capital utilization and of the demand uncertainty which investment firms face depends on the nature of their activities. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:aer:rpaper:rp_209&r=hme |
| By: | Robert Hofmeister (Department of Economics, University of Konstanz, Germany); Matthias Krapf (Chair for International Personnel Management, University Wien, Austria) |
| Abstract: | Using data on the B.E. Journals that rank articles into four quality tiers, this paper examines the accuracy of the research evaluation process in economics. We find that submissions by authors with strong publication records and authors affiliated with highly-ranked institutions are significantly more likely to be published in higher tiers. Citation success as measured by RePEc statistics also depends heavily on the overall research records of the authors. Finally and most importantly, we measure how successful the B.E. Journals’ editors and their reviewers have been at assigning articles to quality tiers. While, on average, they are able to distinguish more influential from less influential manuscripts, we also observe many assignments that are not compatible with the belief that research quality is reflected by the number of citations. |
| Keywords: | Peer Review, Research Evaluation, Citations, Journal Quality |
| JEL: | A10 A14 |
| Date: | 2011–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:knz:dpteco:1137&r=hme |
| By: | Kiryukov, Sergey I. |
| Abstract: | In this paper the problems of formation and development of marketing channel management theory are considered. The definition and components of marketing channels are presented. Marketing channel management process and key management decisions are described. The major stages of marketing channel management theory evolution are provided. Perspectives of marketing channel management theory development and issues of demand chain management concept are considered. Executive summary is available at p. 42. |
| Keywords: | Marketing Channels, Distribution Channels, Marketing Channel Management Theory, Strategic Marketing Channel Management, Demand Chain Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sps:wpaper:297&r=hme |
| By: | Yann Giraud (THEMA, Universite de Cergy-Pontoise) |
| Abstract: | Over the past two decades, numerous contributions to the history of economics have tried to assess Paul Samuelson’s political positioning by tracing it in the subsequent editions of his famous textbook Economics. This literature, however, has provided no consensus about the location of Samuelson’s political ideas. While some authors believe that Samuelson has always had inclinations toward interventionism, others conclude that he more often acted as a pro-business advocate. The purpose of this paper is not to argue for one of these two interpretations but to depict the making of Economics itself as a political process. By ‘political’ it is not meant the conduct of party politics but the many political elements that a textbook author has to take into account if he wants to be published and favorably received. I argue that the “middle of the road” stance that Samuelson adopted in the book was consciously constructed by the MIT economist, with the help of his home institution and his publishing company, McGraw-Hill, to ensure both academic freedom and the success of the book. The reason for which the stance developed is related to pre-McCarthyist right-wing criticisms of the textbook and how Samuelson and the MIT department had to endure the pressures from members of the Corporation (MIT’s Board of Trustees), who tried to prevent the publication of the textbook and threatened Samuelson’s tenure at MIT as soon as 1947 – when early manuscripts were circulated. As a result, it was decided in accordance with both the Corporation and McGraw-Hill that the Readings volume would be published to balance conflicting ideas about state intervention. Following these early criticisms, the making of the subsequent editions relied on a network of instructors and referees all over the US in order to make it as successful and consensual as possible. This seemed to work quite well in the 1950s and for a good portion of the 1960s, until Economics became victim of its own success and was seen, in an ironical twist of fate, as a right wing text by younger, radical economists. From now on, Samuelson will try to have his book sent as often as possible to the radicals for referring process, with mixed results. Eventually, the book became criticized from both its left and its right. |
| Keywords: | Paul Samuelson, Economics, Textbook, Politics, Economic Education |
| JEL: | A14 B20 B31 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2011-18&r=hme |
| By: | Susana Santos |
| Abstract: | A SAM (Social Accounting Matrix) approach can be an important aid for the modelling of economic policy and a valuable support in the decision-making process, since it provides a description of the measurable part of a society’s activity. Richard Stone made the first and most fundamental contribution to the System of National Accounts (SNA), implemented by the United Nations. Benefiting from successive improved versions since 1953, this system has defined the rules for using the above-mentioned measurement tool. In turn, statistical offices have considered these rules and adapted them to their specific realities, thus defining their own systems, which they have then used as guidelines for measuring the activity of their countries or groups of countries. With these successive improvements, as embodied in the SNA’s latest version from 2008, the description of the activity of a society, its specific characteristics and the problems that it faces have become more realistic. Therefore, the use of the SNA in a SAM-based approach will certainly contribute towards a better modelling of economic policy. Numerical and algebraic versions of the SAM will be examined, with special attention being paid to the former and to the method of its construction from the SNA. Its basic structure and its consistency within the whole system will be studied, as well as any possible disaggregations, extensions, aggregates, indicators, and balances that can be calculated. Other aspects beyond that basic structure will also be examined. An application will be made to Portugal. |
| Keywords: | Social Accounting Matrix; National Accounts; Economic Modelling; Socio-Economic Modelling Classification-C82; E01; E61 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp182011&r=hme |
| By: | Rita Almeida; Pedro Carneiro (Institute for Fiscal Studies and University College London) |
| Abstract: | <p>Enforcement of labor regulations in the formal sector may drive workers to informality because they increase the costs of formal labor. But better compliance with mandated benefits makes it attractive to be a formal employee. We show that, in locations with frequent inspections workers pay for mandated benefits by receiving lower wages. Wage rigidity prevents downward adjustment at the bottom of the wage distribution. As a result, lower paid formal sector jobs become attractive to some informal workers, inducing them to want to move to the formal sector.</p> |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:29/11&r=hme |
| By: | Salma Ahmed; Pushkar Maitra |
| Abstract: | This paper decomposes the gender wage gap along the entire wage distribution into an endowment effect and a discrimination effect, taking into account possible selection into full-time employment. Applying a new decomposition approach to the Bangladesh Labour Force Survey (LFS) data we find that women are paid less than men every where on the wage distribution and the gap is higher at the lower end of the distribution. Discrimination against women is the primary determinant of the wage gap. We also find that the gap has widened over the period 1999 - 2005. Our results intensify the call for better enforcement of gender based affirmative action policies. |
| Keywords: | Gender wage Gap, Discrimination Effect, Selection, Unconditional Quantile Regression, Bangladesh |
| JEL: | C21 J16 J24 J31 J71 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2011-20&r=hme |
| By: | Jakob B Madsen; Sarah J Carrington |
| Abstract: | Microeconomic studies have found cash flow to be important for the investment decision and this result is often interpreted as is evidence of adverse selection in credit markets. Using direct survey evidence on banks’ willingness to lend, this research examines the role of credit in the investment decision while allowing for cash-flow, Tobin’s q, income, uncertainty and default risks. Regression analysis reveals that banks’ willingness to lend, income and uncertainty are the key drivers of cyclical fluctuations in corporate investment. These results have important implications for the conduct of monetary policy as well as research on business cycles. |
| Keywords: | credit constraints, corporate investment, Tobin’s q |
| JEL: | E22 E5 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2011-18&r=hme |
| By: | Tittenbrun, Jacek S. |
| Abstract: | The paper is devoted to a critical analysis of a number of key theories by Gary S. Becker. It is commonly believed that his main accomplishment lies in the extension of the scope of an economic analysis to include numerous traditionally considered as non-economic phenomena. This extension, however, is only feasible at the expense of another extension – this time of the scope of the concepts used. This over-inclusiveness , in turn, makes his theories impossible to falsify, thus calling into question their scientific quality. In the process of considering particular Becker’s conceptions, i.e. human and social capital, the family, marriage and household and the polity a host of other specific drawbacks of Becker’s economic approach to social processes, often related to his ideological bias are indicated. |
| Keywords: | Becker; human capital; social capital; marriage; altruism; self-interest family |
| JEL: | A12 |
| Date: | 2011–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33708&r=hme |
| By: | Avdasheva, Svetlana; Goreyko, Nadezhda; Pittman, Russell |
| Abstract: | In 2006, Russia amended its competition law and added the concepts of “collective dominance” and its abuse. This was seen as an attempt to address the common problem of “conscious parallelism” among firms in concentrated industries. Critics feared that the enforcement of this provision would become tantamount to government regulation of prices. In this paper we examine the enforcement experience to date, looking especially closely at sanctions imposed on firms in the oil industry. Some difficulties and complications experienced in enforcement are analyzed, and some alternative strategies for addressing anticompetitive behavior in concentrated industries discussed. |
| Keywords: | competition law; collective dominance; abuse of dominance; Russian Federation |
| JEL: | L13 L41 K21 D43 |
| Date: | 2011–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33742&r=hme |
| By: | Roychowdhury, Punarjit; Dutta, Mousumi |
| Abstract: | The Informal Economy provides employment to more than 60 per cent of the labour population in the developing world despite being a site unfettered by regulations and social norms of fairness governing pay and work conditions. In assessing the factors behind an informal agent’s decision to formalize, it is asserted that rigidity in regulatory mechanism is the primary cause that impedes the process of formalization. However whether flexible regulations can encourage formalization by making gains of formalization more accessible and certain remains a question. In this paper we argue that flexible regulations does not necessarily manifest into the incentives that are essential for formalization. Reducing rigidities in regulation has a significant pay off only in the ambit of good governance. More specifically we hypothesise that degree of intensity of regulation will hardly matter in containing informality; rather what matters is the quality of governance and capability of the institutions to put the regulations into effect. Using secondary data for 46 countries over the period between 1980 and 2008, we empirically investigate into the linkages between governance, regulation and informal employment by developing static and dynamic panel data models and establish that in curbing informality what turns out to be crucial is the interaction between quality of governance and regulation. |
| Keywords: | Formalization; Governance; Informal Economy; Panel data; Regulation |
| JEL: | O17 O10 O43 C23 C01 |
| Date: | 2011–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33775&r=hme |
| By: | Elina De Simone; Alessandro Sapio (-) |
| Abstract: | This paper explores some reasons why the alignment between governance and technology in infrastructures may be unstable or not easy to achieve. Focusing on the electricity industry, we claim that the decentralization of governance – an essential step towards a decentralized technical coordination - may be hampered by if deregulation magnifies behavioural uncertainties and asset specificities; and that in a technically decentralized system, political demand for centralized coordination may arise if the players are able to collude and lobby, and if such practices lead to higher electricity rates and lower efficiency. Our claims are supported by insights coming from approaches as diverse as transaction cost economics, the competence-based view of the firm, and political economy. |
| Keywords: | Governance; Technology; Coherence; Competence; Transaction costs; Regulation. |
| JEL: | D23 L43 L94 M20 O31 |
| Date: | 2011–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:prt:dpaper:6_2011&r=hme |
| By: | Heli Koski |
| Abstract: | The firm-level data concerning re-users of geographical information (GI) active in architectural and engineering activities and related technical consultancy sector from 15 countries during the year 2000-2007 suggests that the pricing of public sector GI strongly relates to the firms’ sales growth. Firms functioning in the countries in which public sector agencies provide fundamental geographical information either freely or at maximum marginal costs have grown, on average, about 15 percent more per annum than the firms in the countries in which public sector GI is priced according to the cost-recovery principle. The difference-in-difference estimations further show that positive growth impact materializes already one year after switching to the marginal cost pricing scheme but a stronger boost to the firm growth takes place with a two year lag. Interestingly, marginal cost pricing has not generated notable growth among the large firms; it has been SMEs benefiting most from cheaper geographical information. It seems credible that switching to marginal cost pricing of public sector information (PSI) substantially lowers SMEs’ barriers to enter new market areas in the provision of GI-based products and services. |
| JEL: | L25 L84 O38 |
| Date: | 2011–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1260&r=hme |