OUTSOURCING WHEN INVESTMENTS ARE SPECIFIC AND INTERRELATED

Using the universe of large Canadian manufacturing firms in 1988 and 1996, we investigate to what extent outsourcing patterns concord with the predictions of a simple property rights model. The unique availability of disaggregate information on outputs as well as inputs permits the construction of a detailed measure of vertical integration. We rely on five measures of technological intensity to proxy for investments that are likely to be specific to a buyer–seller relationship. A theoretical model that allows for varying degrees of investment specificity and interrelatedness—externalities between buyer and supplier investments—guides the analysis. Property rights predictions on the link between investment intensities and optimal ownership are strongly supported, but only for transactions with low interrelatedness. High specificity and low risk of appropriation strengthen the predictions in the model and in the data.     

Income Satisfaction Inequality and its Causes

In this paper, the concept of Income Satisfaction Inequality is operationalized on the basis of individual responses to an Income Satisfaction question posed in the German Socio-Economic Panel (GSOEP). Income satisfaction is the subjective analogue of the objective income concept. The paper introduces a method to decompose Income Satisfaction Inequality according to the contributions from variables such as income, education, and the number of children. Given the panel structure of the data, inequality may be attributed partly to permanent individual circumstances and partly to transitory changes. The paper shows that by far the largest part of the satisfaction inequality has to be ascribed to unobserved heterogeneity. Distinguishing between a structural and an unexplained part of inequality we find that income explains the largest part of structural Income Satisfaction Inequality together with household membership; for non-working individuals, the age distribution is very relevant as well.     

Venture philanthropy and social entrepreneurship in community redevelopment

This article provides a case study of Tom Cousins, a social entrepreneur who used his own venture philanthropic investments and leveraged additional resources through extensive public‐private partnerships for the sole intent of redeveloping an area of disinvestment and poverty. In the process, Cousins also provided the visionary, strategic, and operational leadership often associated with the actions and responsibilities of a social entrepreneur. The limited research to date has investigated social entrepreneurship and venture philanthropy as separate and often unrelated concepts. In this study, we analyze the sustained and intensive involvement by Cousins and his foundations and the continued leadership provided in the creation of public‐private partnerships focused on the redevelopment of the East Lake area in Atlanta.     

Empirical likelihood tests for two‐sample problems via nonparametric density estimation

The authors study the problem of testing whether two populations have the same law by comparing kernel estimators of the two density functions. The proposed test statistic is based on a local empirical likelihood approach. They obtain the asymptotic distribution of the test statistic and propose a bootstrap approximation to calibrate the test. A simulation study is carried out in which the proposed method is compared with two competitors, and a procedure to select the bandwidth parameter is studied. The proposed test can be extended to more than two samples and to multivariate distributions.     

‘Wallbanking’, innovativeness and computer attitudes: 25–40-year-old ATM-users on the spot

Attitudes towards ‘wallbanking’ (making use of banking services through an Automated Teller Machine (ATM)) and self-reported frequency of wallbanking have been related to attitudes towards innovations and towards computers. The investigation also included the perception of advantages as well as disadvantages of wallbanking, factors that determine one's choice of a bank, man-machine problems related to the use of an ATM, and demographic factors. Using a sample of 201 respondents in the age range of 25 to 40 years, structural equation modeling revealed that wallbanking attitudes have a major influence on the frequency of using ATMs. The innovativeness attitude ‘New is wasteful’ also showed a clear negative link with the frequency of wallbanking. On the other hand, the relationship between computer attitudes and the frequency of using ATMs had to be rejected. Income and education proved to have an indirect link with the frequency of wallbanking, which refines other research findings. These results may reflect specific financial management characteristics of the age group under investigation.     

The foundations of the organizational culture literature: An integrative framework

A great deal has been written in recent years regarding aspects of corporate-cultural phenomena. This literature, however, should not be viewed as spontaneously emerging in the late 1970s. While increased international competition and, relatedly, the example of Japanese management appear to have prompted the discovery of culture in Western economic organizations, there is a large body of literature that preceded and has greatly influenced this recent corporate culture phenomenon. The purpose of this paper is to take stock of this literature, to present a framework for integrating these earlier works, and to discuss its implications.     

Debt management in a small open economy: A theoretical and an empirical study for Belgium

This article analyzes the effects of debt management and its consequence for the control of base money in a small open economy (Belgium). The study compares the effects obtained from a small theoretical model with the results of a larger empirical model.The theoretical model focuses on the financing of government by money operation, on the bond rate, and on the international reserve of the Central Bank.The empirical model is a medium-term one, including the demand and the supply sectors of the economy and permitting simultaneous analysis of real and financial variables.The effects of an endogeneous or exogenous debt management have been studied by numerical simulation of modification in the public expenditure, the world trade, and the discount rate.