THE HAYEK HYPOTHESIS IN EXPERIMENTAL AUCTIONS: INSTITUTIONAL EFFECTS AND MARKET POWER

We report twelve market experiments utilizing a "seller market power" supply and demand structure where two of five sellers can unilaterally increase their profit by withholding supply. The data indicate that both the double auction and posted offer institutions result in traders extracting the bulk of the potential gains from exchange in the market; however, prices generally occur above the competitive equilibrium prediction. Market power in the form of strategic supply withholding does not appear to be responsible for the supra-competitive prices.     

Thou shalt not steal: Taking aversion with legal property claims

Do people have an innate respect for property? In the literature, there is controversy about whether human subjects are taking averse. We implemented a dictator game with a symmetric action space to address potential misconceptions and framing and demand effects that may be responsible for the contradictory findings. Misconceptions can occur as a result of unclear property rights, while framing and demand effects can occur if anonymity is not preserved. Our paper is the first to implement both a strict double-blind anonymity protocol and clear property rights. We established clear property claims by asking subjects in our legal treatment to bring their own property to the experiment. In the effort treatment, the experimenter transferred the property publicly to subjects after they completed a real effort task. Our data suggest that without social enforcement, respect for property is low. Yet, the taking rate significantly differs from the theoretically predicted maximum. Consistent with the Lockean theory of property, respect for property grows when the entitlement is legitimized by the labor the owner had to invest to acquire it.     

Regulated freedoms: the market and the state,agriculture and the environment

We argue that a “free” market — that is, a market in which the state does not intervene — is a theoretical impossibility in a state society. In place of the natural economy view of a market apart from the state, we offer a social economy view of the inescapable social structuring of markets through state regulation. Even when states institute policies which prevent “interference” in a market, the enforcement power of the state is no less required. We thus distinguish between two forms of regulation: negative regulation — regulation which prevents interference — and positive regulation — regulation which enables interference. These two forms of regulation make possible two different conceptions of freedom, what Isaiah Berlin once termed “negative freedom” from agency and “positive freedom” to have agency. We argue that positive and negative freedom and positive and negative regulation are inseparable; freedom is always contextual. Through a discussion of the debate between industrial agriculture and environmentalists, we show that both supporters and critics of the “free” market are alike in their advocacy, often unacknowledged, of both negative and positive forms of regulation. Rather then a lessening of regulation, this debate represents the institution of a new regulatory regime out of the contest of interests. We conclude by considering the implications for democracy of the contextual character of freedom.     

Ready or not: The influence of readiness on healthy marriage and relationship education training outcomes

This exploratory study utilizes a sample of human service providers and administrators to examine personal, agency, and collaborative readiness as predictors of training outcomes (utility reaction, gains in knowledge, and transfer of learning). The study is informed by the child welfare training evaluation model to address the effect of participants' (n = 58) readiness indicators and learning impact in relation to the transfer of learning that takes place following a one-day training. Participants' personal and agency readiness predicted their utility reaction, while personal readiness predicted gains in knowledge. The association between agency readiness and transfer of learning was partially mediated by utility reaction. Implications are drawn for both human service providers and researchers.     

THE BEHAVIOR OF REGULATORY ACTIVITY OVER THE BUSINESS CYCLE: AN EMPIRICAL TEST

This paper tests a prediction of the interest-group theory of regulation which suggests that regulators generally will not force any one group to bear the full adjustment costs associated with variations in the business cycle. That is, the interest-group model predicts that regulatory agencies will redistribute cyclical gains and losses by supplying more "producer protection" regulation during contractions and more "consumer protection" regulation during expansions; i.e., regulatory activity which reduces consumer welfare will tend to be countercyclical, intensifying when aggregate demand falls and abating as demand increases.
The empirical results show a countercyclical and statistically significant ceteris paribus relationship between Federal Trade Commission enforcement efforts under the Robinson-Patman Act and several alternative measures of general business conditions. Since the Robinson-Patman Act is viewed widely as anti-consumer, the findings suggest that in cyclical downturns the Commission moves to protect producers against losses by bringing more cases which limit the tendency for prices to fall. This result may be rationalized under the view that during recessions, the Federal Trade Commission is in the business of transferring wealth from consumers either to protect small business or to bolster cartels. On the other hand, during business expansions the Commission reduces its Robinson-Patman case load, and such a change in enforcement may serve to mitigate producer gains, transferring wealth to consumers at the margin. In any case the paper offers empirical support for the interest-group model by providing evidence that the business cycle plays an important part in explaining the level and pattern of regulatory activity.     

DYNASTIC MANAGEMENT

The most striking difference in corporate‐governance arrangements between rich and poor countries is that the latter rely much more heavily on the dynastic family firm, where ownership and control are passed on from one generation to the other. We argue that if the heir to the family firm has no talent for managerial decision making, dynastic management is a failure of meritocracy that reduces a firm's total factor productivity (TFP). We present a simple model that studies the macroeconomic causes and consequences of dynastic management. In our model, the incidence of dynastic management depends, among other factors, on the imperfections of contractual enforcement. A plausible calibration suggests that, via dynastic management, poor contract enforcement may be a substantial contributor to observed cross‐country differences in aggregate TFP. (JEL O43, O47, G32)     

Gypsy Justice versus Gorgio Law: Interrelations of Difference

Resonating with Frankenberg, this article explores the role of the individual stranger/outsider. The non‐Gypsy (gorgio) individual or system is often used to settle internal disputes among Traveller‐Gypsies, although rarely in the relatively benign role, as in Frankenberg's study. The outsider's system, while representing centuries of sedentarist and racist persecution, may also be open to manipulation. While popular discourse represents the Gypsies’ non‐literate system as an isolate in some potential evolution, the few studies of Gypsies’ resolution of conflict have attracted attention in other disciplines because they raise questions about alternative controls and local cooperation in post‐industrialist societies. Rather than any classical contrast and comparison, the article demonstrates inter relations of differences with emphasis on agency and institutions of law enforcement as a resource. My ethnographic material emerges not from former colonies but the once centre of the British Empire. The Traveller‐Gypsies also have relatively independent, appropriate means of settling conflicts. Hitherto, this detailed material from localized fieldwork rather than from afar, has been withheld for a safe passage of time. It may have become even more relevant.     

Organizational change: The role of climate and job satisfaction in child welfare workers' perception of readiness for change

BackgroundWhen organizations embark on deliberate efforts to increase effectiveness through organizational-level changes, those that demonstrate greater readiness for change tend to have better outcomes. In contrast, when the organization is not ready, a change effort may result in resistance, conflict and, eventually, failure. However, studies addressing how agency climate and job satisfaction influence workers' perception of the organization's readiness for change in child welfare or human service organizations are scarce.MethodsData for this study was obtained from a sample of 356 direct care and clinical child welfare workers employed at eight not-for-profit child welfare agencies under contract to provide a variety of services in a large northeastern state. Workers were surveyed on their agency's readiness for change, organizational climate, and job satisfaction. The Spector Job Satisfaction Survey measured nine subscales and Parker Organizational Climate survey measured four primary domains: role, job, supervision, and organizational dimensions. A confirmatory factor analysis was conducted on nine questions derived from the Organizational Readiness for Change survey that measured workers' perceptions of organizational readiness for change. Structural Equation Modeling (SEM) was utilized to determine climate and satisfaction influences on voluntary child welfare workers' readiness for change.ResultsThe results of SEM confirmed that the exogenous independent indicators of role ambiguity, supervisor goal emphasis, organizational innovation, satisfaction with communication, and the number of years in current position were predictive of workers' perception of readiness for change with significant positive coefficients.ImplicationsThis study highlights the importance of certain organizational climate and job satisfaction factors that child welfare workers' identify for the success of agency change efforts. Workers perceive that organizations may have a higher level of readiness to implement successful change initiatives when: (1) workers feel their role is clear, supervisors articulate change goals, and job performance is held to a high standard and is measurable; (2) agency leaders establish organizational communication that is explicate, and they encourage workers to develop ideas and try new ways of doing the job; and (3) the greater the number of years workers are in their current position, the more likely change initiatives are perceived to be successful. Most importantly, this study suggests that not all organizational climate or job satisfaction factors are recognized by workers as supporting change equally.     

INTERNATIONAL NARCOTICS TRADE,FOREIGN AID,AND ENFORCEMENT

Using a general equilibrium model of a developing narcotics‐producing and ‐exporting economy, we analyze the economic effects of policies designed to restrict the production and trade of narcotics: foreign aid tied to anti‐narcotics law enforcement activities, demand reduction policies, and alternative development policies. We characterize the problem as one of serious factor market distortions introduced by illicit production and enforcement. While aid to enforcement generally reduces the production and export of narcotics, it is less effective for economies with market power, and under plausible conditions may raise narcotics output and have negative welfare implications for the recipient. (JEL F1)     

A social capital approach to improving public relations’ efficacy: Diagnosing internal constraints on external communication

This article extends Heath's (2006) concept of fully functioning society theory (FFS) and argues that public relations can be used as a force to enhance collective social capital in communities. To serve this purpose, however, the effectiveness of an organization to serve its external publics is often dependent on the status and relationships the public relations function has developed within the organization. This paper provides a network analysis of a government agency in Jordan that illustrates the relationship between internal organizational social capital and the potential problems for establishing external relationships with publics. Implications for public relations research methods and theory are also discussed.     

AN ECONOMIC THEORY OF WORKAHOLICS AND ALCOHOLICS

This paper considers the role of alcohol in agency problems in order to provide an economic rationale for alcoholics and workaholics. In our model, alcohol reduces productivity, but also can make imbibers blurt private information. We show that in the optimal contract, low‐productivity workers are compelled to over‐indulge in alcohol, while high‐productivity workers overproduce output. Thus, workers are made into “alcoholics” and “workaholics” depending on their productivity. We conclude that excessive drinking (working) may be the result, not the cause, of low (high) productivity of workers. (JEL D82, VSOP)     

CYCLICAL TAX ENFORCEMENT

We wonder whether tax enforcement varies along the economic cycle and aim at answering that question from a positive perspective by means of survey data for the Spanish case (1994–2015). According to a fiscal capacity argument, tax enforcement might be stronger in times of crisis (counter-cyclical), but if the tax administration prioritizes taxpayers' welfare over public revenue, enforcement might be slacker (procyclical). We find tax enforcement is not immune to the state of the economy. In particular, it presents a prevailing counter-cyclical trend, but in presence of a severe economic crisis it turns out to be procyclical. (JEL D78, H12, H26, H83)     

Examining Missing Person Police Reports to Identify the Service Needs of Runaway Youth and Their Families

Abstract

This study examined situational and demographic characteristics in a sample of 47 children missing person police reports obtained from a law enforcement agency to identify the service needs of runaway youth and their families. Results show that runaways represented the only category of missing children contained in the data. The present findings are consistent with national data which suggest that: a typical runaway youth is most likely engaging in acting out rebellious behavior; more girls than boys ran away; most were 14 or 15 years old and most had a prior history of running away. These results support the need for a comprehensive integration between social work research and practice and are used to provide recommendations for the service needs of runaway children and their families. Social work practice recommendations include: (1) community campaigns, (2) training, and (3) increased collaboration between law enforcement and child welfare agencies.     

Examining concepts of power and agency in research with young people

Concepts of power and agency have become increasingly prominent in the youth studies literatures and related research. A focus of the research to date has been an examination of how a better understanding of young people's lived experiences can reveal possibilities for young people's agency to emerge. Despite increased interest in the term agency, much less has been said about how the concept is defined and recognized in research with young people, including what the concept may entail but crucially, how the term is linked to and underpinned by the related concept of power. This paper seeks to contribute to our understanding of power and agency as utilized in research with young people. The discussion that follows identifies the possible ways in which different theoretical positions shape our understanding of how power and agency are investigated and how these understandings inform the ways we interpret young people's perspectives and actions as holding potential for ‘agency’. Drawing on recent empirical examples, we consider how varying interpretations of power and/or agency shape not only the ways in which young people's agentic experiences are theorized (and the related ontological and epistemological assumptions these positions imply) but also the presumed effects of that agency.     

Fundamental accrued capital gains and the measurement of top incomes: an application to Chile

Most previous studies of income inequality have either ignored capital gains or have used taxable realized capital gains to estimate top incomes. Neither of these approaches is fully satisfactory. We apply for the first time a new methodology that allows us to account for fundamental accrued capital gains as part of the top incomes in a theoretically consistent manner. We estimate the shares of the super-rich in Chile showing that accrued capital gains have a large impact on these estimates. Also, the top income shares estimated using fundamental capital gains appear to exhibit a more stable and presumably more plausible time profile than estimates based on capital gains derived from asset market variations.     

Drivers of soil carbon in residential ‘pure lawns’ in Auburn,Alabama

Urban land area is expanding worldwide and may contribute to long-term carbon (C) storage; however, little is known about potential drivers of soil C in urban areas. Residential areas are one of the largest urban land use zones and lawns can provide stable chronosequences for studying soil C dynamics. In residential lawns containing no trees (n?=?23), the relationships between soil C and four potential drivers [home age (1–51 years), yard maintenance practices (fertilization, irrigation, and bagging or mulching lawn clippings), soil nitrogen (N) and soil texture] were investigated. Soil C increased with home age at 0–15 cm depth by 0.026 kg C m^?2?yr^?1, declined by ?0.011 kg C m^?2?yr^?1 at 15–30 cm depth, and was stable at 30–50 cm depth. Soil C had a positive relationship with soil N (R ²?=?0.55) at the 0–15 cm depth. Soil C and N were not related to yard maintenance practices or soil texture. The low soil C sequestration rate and limited relationships between soil C and home age, yard maintenance, soil N and soil texture may have resulted from the positive influence of Auburn’s humid, subtropical climate on residue decomposition.     

AFFIRMATIVE ACTION AND THE UTILIZATION OF MINORITY‐ AND WOMEN‐OWNED BUSINESSES IN HIGHWAY PROCUREMENT

The Federal Highway Administration (FHWA) mandates states' use of affirmative action when awarding federally funded road construction projects. Here I document the effectiveness of this program in increasing purchases from disadvantaged business enterprises (DBEs). Higher goals for the utilization of DBEs, both across states over time and across projects within California, is associated with a greater share of contract dollars awarded to DBEs. This effect is concentrated among minority‐owned firms and is stronger when goals are more likely to be binding and in states with an apparently stricter enforcement regime. (JEL J15, H57)     

ECONOMIC ACTIVITY IN THE SHADOW OF CONFLICT

Appropriation possibilities significantly alter economic fundamentals in a production and exchange economy. This is the primary lesson of our model, which combines Ricardian trade and the potential for predator/prey behavior. The model shows how conflict can be subdued by mutual gains from trade, but at a resource cost that modifies the exchange itself. On the other hand, it identifies conditions wherein appropriation incentives are so strong that specialized production and trade are precluded altogether. The model also reveals a new way to think about and measure the gains from trade. ( JEL C72, D51, D74, F10)     

Spontaneous evolution of social exchange—An experimental study

Each of several exchange partners owns a specific commodity which she can share with others. Unlike in other social dilemma scenarios like prisoners’ dilemma, public goods games, etc., voluntary cooperation relies on bilateral exchanges whose profitabilities are interdependent. How will mutual sharing evolve? Will it include all group members or will smaller groups be more efficient? Our experimental data shed partly new light on older topics: cooperation is now relation specific, allowing for discrimination; group size effects are explored dynamically rather than in one-shot interaction; and, finally, we have weakened demand effects for voluntary cooperation by realistic efficiency gains.