Inequality and negative income

Summary This note deals with some problems in the measurement of inequality when negative incomes are allowed. A new axiom is defined, called the Greatest Gets More axiom. Using this axiom it can be shown that the properties of some inequality measures depend on whether there are negative incomes or not. In this paper, for the intermediate measures of Eichhorn and the centrist inequality measures of Kolm a threshold value is given above which the Greatest Gets More axiom holds. I am indebted to two anonymous referees for their helpful comments.     

A simplified algorithm for the depot location problem

This paper describes a simplified optimization algorithm used for the solution of a classical depot location problem as presented in a Greek Manufacturing Company. Algorithms in the literature for this type of problem are based on the assumption of predetermined fixed costs which are independent of the final size of the depots. This assumption is usually far from reality; the size of each depot does not remain constant during the optimization process and so does the associated fixed cost which is variable with the size of the depot. This assumption is relaxed in the proposed algorithm; the associated fixed cost is modified each time a new customer is allocated to a depot thus changing the required depot size.     

Local policy networks in the programme Social City—a case in point for new forms of governance in the field of local social work and urban planning1 Lokale Politiknetzwerke im Programm Soziale Stadt—ein Beispielfall für neue Formen von governance im Bereich lokaler Sozialer Arbeit und Stadtplanung

The federal programme Social City represents a concept that is different from traditional urban planning, social work and local economic development as well as planning concepts in various ways. The developmental processes to be set into motion on the level of city districts:

• should make cooperation between various sectors and actors a key issue;

• should encourage them to invest into this cooperation and use the resources to be brought about by their participation and

• furthermore, the participation of various groups of the local population is foreseen.

Building up the respective institutional premises for this kind of networking and participation is part of the programme. Thereby urban planning and policies in social work and social services are to be brought into cooperation. The paper is based on an evaluative study of such local policy networks as they take place in one of the Länder, Hessen. Central results of the analysis will be presented, and suggestions for the programme's further development as a new concept of governance at the local level include some reflections on its potential for legitimising social work in community building.     

Investorenreaktionen auf die Fair Value-Bilanzierung von Verbindlichkeiten nach IFRS – eine experimentelle Untersuchung

The fair value-option in IAS 39 allows fair value measurement for liabilities. It is often criticized that a change in a company’s own credit risk affects the value of its liabilities. Therefore it is doubtful whether the fair value-option is in fact useful for investors’ decision making process. Due to a lack of empirical studies concerning the understandability and the decision usefulness of the fair value-option, this paper contains the results of an experimental investigation. We find that investors are misled by fair values for liabilities, though under some circumstances they learn to interpret the financial data correctly. We compare fair value measurement of liabilities with an accounting treatment based on German GAAP.     

Marginal Changes in Random Parameters Ordered Response Models with Interaction Terms

Marginal changes of interacted variables and interaction terms in random parameters ordered response models are calculated incorrectly in econometric softwares. We derive the correct formulas for calculating these marginal changes. In our empirical example, we observe significant changes not only in the magnitude of the marginal effects but also in their standard errors, suggesting that the incorrect estimation of the marginal effects of these variables as is commonly practiced can render biased inferences on the findings.     

Reflections on grounding firm innovation and viability

Entrepreneurial activity unfolds in a dynamic environment that challenges business viability. We utilize grounded theory as a novel type of reflection to explain and interpret whether and how innovation can afford survival benefits to firms. The premise is the application of a methodological approach with reflexive properties to advance scientific rigor in “reflections.” The idea underlying our reflection was to use innovation as the point of departure, review the literature, conceptualize ideas, and finally link the concepts that emerged as components of a framework. Our view of the firm resembles a viable entity that changes, constantly striving to meet and balance internal potentials and external complexities, while innovation per se involves change that is made possible by entrepreneurship. We bring together our personal and professional backgrounds and implement the European scholarly tradition on innovation and Viable Systems approach to scrutinize innovation’s interactions and relations. We linked boundary conditions, opportunities, and complementary assets to innovation. Effectively, our analysis conceptualizes innovation as autopoiesis in entrepreneurship and demonstrates its central role as the vehicle to exploit changes that ensure firm viability.     

Testing the gender similarities hypothesis: differences in subjective task value and motivation to transfer training

ABSTRACT

Are female and male trainees similar or different in their reaction to training programmes, specifically regarding their subjective task value and motivation to transfer? According to the gender similarities hypothesis, women and men are alike on most psychological variables. However, according to research in organizational behaviour, female and male employees differ on certain aspects, such as their job satisfaction and work identity. To test these two views on gender similarities and differences in the context of human resource development and training evaluation, the present study examined the extent to which gender moderated reactions to training. Based on the expectancy-value theory of motivation and self-determination theory, a web-based questionnaire was used to measure six training reactions: intrinsic value, attainment value, utility value, perceived relative cost, autonomous motivation to transfer, and controlled motivation to transfer. The results indicated that women and men differed in their ratings of attainment value but were similar for the remaining five reaction measures. These outcomes support the gender similarities hypothesis. The findings are discussed in terms of their theoretical implications for modelling gender effects in HRD research and their practical significance for promoting training effectiveness and transfer of training.     

When Does the Board Blame the CEO for Poor Firm Performance? Extreme Resource Reallocation and the Board's Industry and CEO Experience

This study sheds light on our understanding of when boards dismiss the CEO by considering the inherent conflict created by the board's advisory role when the firm underperforms. Using a sample of US firms listed in Standard & Poor's ExecuComp for the period 2000–2012 we find that, when a firm underperforms, extreme resource reallocation increases the likelihood of CEO dismissal. This relationship is positively moderated by the board's industry and CEO experience. The study contributes to the literature on corporate governance by identifying the conditions that trigger dismissal of the CEO in light of boards’ motive to protect their reputation.     

‘It's not acceptable for the husband to stay at home': Taking a discourse analytical approach to capture the gendering of work

This article illustrates some of the ways in which the notion of (paid) work is actively being gendered, and how these gendering processes take place not only through organizational practices but also in discourses that circulate outside an organization in the private domain. Drawing on 15 in‐depth interviews with women who opted out of their own professional career in order to accompany their husbands on their overseas work assignment to Hong Kong, we demonstrate some of the benefits of using a discourse analytical approach to capturing and identifying the processes through which these women actively (although not necessarily consciously) gender the notion of work, thereby reinforcing the gender order and its male bias. We argue that identifying and making visible these gendered and gendering practices is an important component of, and a potential trigger for, change both in organizations as well as private contexts.