THE PERFORMANCE EFFECTS OF WISE AND UNWISE MANAGERIAL DISMISSALS

The decision to dismiss a coach is challenging because poor performance tends to coincide with both bad luck and low coaching ability. We differentiate between dismissals following actual poor performance on the pitch (wise dismissals) and dismissals following seemingly poor performance due to bad luck (unwise dismissals). To categorize dismissals, we use “expected goals,” which are less vulnerable to random variation in match outcomes. Using data from European football, we find that wise dismissals increase subsequent performance compared to a control group of nondismissals with similarly poor performance on the pitch. However, unwise dismissals do not improve subsequent performance compared to a control group with similar strings of bad luck. (JEL D81, J44, L83)     

THE IMPACT OF MANAGERIAL CHANGE ON PERFORMANCE: THE ROLE OF TEAM HETEROGENEITY

When a key responsibility of a manager is to allocate more or less attractive tasks, subordinates have an incentive to work hard and demonstrate their talents. As a new manager is less well informed, management dismissals reinvigorate this tournament competition—but only in sufficiently homogeneous teams. We investigate this hypothesis using a large dataset on dismissals of soccer coaches, whose main task is indeed the selection of players. We find that dismissals enhance performance (only) in homogeneous teams. Moreover, we show that there is typically a negative selection bias when evaluating succession effects, which reconciles previous contradictory findings. (JEL D22, J44, J63)     

COMMERCIAL BANKS AND THE FEDERAL FUNDS MARKET: RECENT DEVELOPMENT AND IMPLICATIONS

Several important aspects of the growth of the Federal funds market and non-bank participation in this market are examined. It is shown that the recent growth and development that has taken place has significantly influenced bank behavior and the process of bank credit determination. Additionally, it is shown that non-banks' use of Federal funds sales as an integral part of their cash management affects money demand. The implications of these recent developments in the Federal funds market for policymakers are examined.     

LABOR MARKET PERFORMANCE EFFECTS OF DISCRIMINATION AND LOSS OF SKILL

We examine the impact of discrimination on labor market performance when workers are subject to a risk of losing skills during an unemployment experience. Within a search and matching framework, we show that both natives and immigrants are affected by discrimination. Discrimination in one sector has positive spillovers, inducing employment to increase in the other sector and the effect on labor market performance therefore depends on whether discrimination is present in only one sector or in both. Discrimination may induce workers to train more or less than natives after having lost their skills, dependent upon in which sector there is discrimination. Net output tends to be most negatively affected by discrimination among high‐skilled workers. (JEL J15, J31, J61, J64, J71)     

CONSUMER SEARCH COSTS AND MARKET PERFORMANCE

We conduct laboratory markets to evaluate the effects of consumer search costs on market performance. The primary research goal is to assess the behavioral relevance of Diamond's [1971] paradoxical conclusion that the injection of a small consumer search cost alters the equilibrium price prediction from competitive to monopoly levels. Although monopoly prices are not consistently observed, we find that search costs do tend to raise prices. Additional experimentation indicates that below-monopoly prices are not explained by buyer avoidance of high-pricing sellers, but that prices increase as search costs are raised.     

ON THE NATURE OF RECIPROCAL MOTIVES

Data from 692 subjects in 11 experimental treatments provide a systematic exploration of the existence and nature of reciprocal behavior in two-person games. The experimental design discriminates between motivations of reciprocity and (nonreciprocal) other-regarding preferences. The existence of positive reciprocity is found to be dependent on the level of social distance but not the level of monetary payoff. The larger context in which a decision is made is found to have a significant effect on negative reciprocity. These findings on payoff levels, social distance, decision context, and reciprocity have implications for both theoretical modeling and experimental design. (JEL C70 , C91 , D63 , D64 )     

BANKS,DEBT AND RISK: ASSESSING THE SPILLOVERS OF CORPORATE TAXES

We find evidence of tax-driven strategic allocation of debt and asset risk across group entities of European banks. We evaluate the effects that establishing tax neutrality between debt and equity finance has on systemic risk, and show that the degree of coordination in implementing the hypothetical tax reform matters. In particular, a coordinated elimination of the tax advantage of debt would significantly reduce systemic losses in the event of a severe banking crisis. By contrast, uncoordinated tax reforms are not equally beneficial precisely because national tax policies generate spillovers through cross-border bank activities. (JEL G21, G28, H25)     

HOLDING FAST: THE PERSISTENCE AND DOMINANCE OF GENDER STEREOTYPES

This paper investigates the persistence of gender stereotyping in the forecasting of risk attitudes. Subjects predict the gamble choice of target subjects in one of two treatments. First, based only on visual clues and then based on visual clues plus two responses by the target from a risk‐preference survey. Second in reverse order: first, based only on the two responses, then on the two responses plus visual clues. In isolation the gender stereotype and survey responses both inform predictions about others' risk attitudes. In conjunction with one another, however, the stereotype persists and dominates the survey response information. (JEL C91, D8, J16)     

ENGLISH PROFICIENCY AND LABOR MARKET PERFORMANCE: EVIDENCE FROM THE ECONOMICS PROFESSION

This article investigates whether the global spread of the English language provides an inherent advantage to native English speakers. This question is studied within the context of the economics profession, where the impact of being a native English speaker on future publishing success is examined. English speakers may have an advantage because they are writing in their native language, the quality of writing is a crucial determinant of publishing success, and all the top economics journals are published in English. Using a ranking of the world's top 2.5% of economists, this article confirms that native English speakers are ranked 100 spots higher (better) than similar non‐native English speakers. A variety of extensions examine and dispel many other potential explanations. (JEL A11, J44, F66)     

CAREER AND PERSONAL CHARACTERISTICS OF THE MANAGERIAL TECHNOSTRUCTURE IN CANADIAN BUSINESS

Cette étude est basée sur un sondage de 483 directeurs du rang le plus élevé dans 17 compagnies canadiennes de taille grande et moyenne. L‘étude, qui fait parti d'un ouvrage plus grand avec des objets différents, avait recherché des renseignments sur plusiers charactéristiques de fond de ces membres de la “technostructure,” et aussi sur le développement récent de leurs carrières. Les résultats ont indiqué qu'en général les directeurs canadiens sur les échelons les plus élevés sont pour la plupart masculins, et britanniques en nombres disproportionnés. Leur âge varie beaucoup. Leur scolarité varie en fonction de la taille des compagnies. Leur taux de mobilité sont plus bas que durant les années 60 et le début des années 70 et leur carrières se situent surtout dans les fonctions de ligne d'affaires dans les compagnies de taille moyenne. Les déviations de ces résultats étaient reliées à plusieurs variables économiques et technologiques. Les implications de ces résultats sur la mobilité future aux rangs supérieurs de la gestion sont discutées. This study is based on a survey of 483 upper level managers in 17 large and middle sized Canadian companies. The survey, made as a part of a larger study with different objectives, sought information on several background characteristics of these members of the “technostructure” as well as a history of their recent career development. Results indicated that in general Canadian upper managers are predominantly male, disproportionately British, widely varying in age and differentiated on the basis of company size as to their education. Their mobility rate is slowing down compared to the 1960s and early 1970s and their careers have been primarily in the main line functions of business especially in middle-sized companies. Variations in these general results were also found to be related to several economic and technological variables. The implications of these results for future mobility into upper management ranks are discussed.     

DIFFICULTIES IN HOLDING THE ROLE OF THE OBSERVER

This is the second of two linked papers on learning from infant and child observation in social work qualifying training (linked with Linnet McMahon & Steve Farnfield ‘Too Close In Or Too Far Out’). A former student reflects on her own observation experience. She considers the anxieties aroused and their containment, which became possible initially through reflection in the seminar group and ultimately through her internalisation of the reflective process. She discusses the value of her learning in subsequent practice in palliative care.     

PRODUCT QUALITY, MARKET SIGNALING AND THE DEVELOPMENT OF EAST WEST TRADE

Countertrade, a contractual form in which there is a two-way flow of goods, occupies a position of significance in East-West trade. In this paper, it is shown that countertrade can solve problems which arise when the quality of Eastern European products is unknown. Using the market signaling literature, a theory is formulated in order to make predictions concerning the use of countertrade. Countertrade will be particularly useful when quality information is important but cannot be obtained directly and when a country has a poor quality reputation. These predictions are supported by empirical tests.     

FOREIGN BANKS AND THE BANK LENDING CHANNEL

We provide new evidence on bank ownership and transmission of monetary policy using bank‐level data on 453 banks in Central and Eastern European economies between 1998 and 2012. Only domestic banks adjust loans to changes in monetary policy, while foreign banks do not. Conventional wisdom says that this is because foreign banks can rely on parent banks' funding to insulate against monetary policy shocks. In this paper we document an alternative explanation. Deposits in foreign banks do not react to monetary policy, hence the bank lending channel is only triggered in domestic banks. (JEL E50, F36, G21)