Entry and Exit in OTC Derivatives Markets

We develop a parsimonious model to study the equilibrium and socially optimal decisions of banks to enter, trade in, and possibly exit, an OTC market. Although we endow all banks with the same trading technology, banks' optimal entry and trading decisions endogenously lead to a realistic market structure composed of dealers and customers with distinct trading patterns. We decompose banks' entry incentives into incentives to hedge risk and incentives to make intermediation profits. We show that dealer banks enter more than is socially optimal. In the face of large negative shocks, they may also exit more than is socially optimal when markets are not perfectly resilient.     

Estimation of Nonparametric Models With Simultaneity

We introduce methods for estimating nonparametric, nonadditive models with simultaneity. The methods are developed by directly connecting the elements of the structural system to be estimated with features of the density of the observable variables, such as ratios of derivatives or averages of products of derivatives of this density. The estimators are therefore easily computed functionals of a nonparametric estimator of the density of the observable variables. We consider in detail a model where to each structural equation there corresponds an exclusive regressor and a model with one equation of interest and one instrument that is included in a second equation. For both models, we provide new characterizations of observational equivalence on a set, in terms of the density of the observable variables and derivatives of the structural functions. Based on those characterizations, we develop two estimation methods. In the first method, the estimators of the structural derivatives are calculated by a simple matrix inversion and matrix multiplication, analogous to a standard least squares estimator, but with the elements of the matrices being averages of products of derivatives of nonparametric density estimators. In the second method, the estimators of the structural derivatives are calculated in two steps. In a first step, values of the instrument are found at which the density of the observable variables satisfies some properties. In the second step, the estimators are calculated directly from the values of derivatives of the density of the observable variables evaluated at the found values of the instrument. We show that both pointwise estimators are consistent and asymptotically normal.     

Scientization Under Pressure—The Problematic Role of Expert Bodies During the Handling of the COVID-19 Pandemic

Public Organization Review - This article focuses on the role of experts in the Norwegian decision-making process in central government during the crisis management of the COVID-19 pandemic. It is...     

Special Issue on The Scientization of Public Decision-Making Processes – the Relevance for the Handling of the COVID-19 Pandemic

Public Organization Review -     

Perceptions of Ecological Risk Associated with Mountain Pine Beetle (Dendroctonus ponderosae) Infestations in Banff and Kootenay National Parks of Canada

Western Canada is experiencing an unprecedented outbreak of the mountain pine beetle (MPB). The MPB has the potential to impact some of Canada's national parks by affecting park ecosystems and the visitor experience. Controls have been initiated in some parks to lessen the impacts and to prevent the beetle from spreading beyond park boundaries. We examine the perception of ecological risk associated with MPB in two of Canada's national parks, the factors affecting perceptions of risk, and the influence of risk judgments on support for controlling MPB outbreaks in national parks. Data were collected using two studies of park visitors: a mail survey in 2003 and an onsite survey in 2005. The MPB was rated as posing a greater risk to the health and productivity of park ecosystems than anthropogenic hazards and other natural disturbance agents. Visitors who were familiar with MPB rated the ecological and visitor experience impacts as negative, unacceptable, and eliciting negative emotion. Knowledge and residency were the most consistent predictors of risk judgments. Of knowledge, risk, and demographic variables, only sex and risk to ecosystem domains influenced support for controlling the MPB in national parks. Implications for managing MPB in national parks, visitor education, and ecological integrity are discussed.     

Quo Vadis? Suggestions for future corporate governance research

In this paper I first review the basic tenets of agency theory and theory of managerial capitalism as well as some of the major research in these areas then suggest for areas for future research that go beyond the extant empirical work. First, I suggest that it would be useful to reconsider the basic nature of the agency relationship, taking into account that while equity holders can be considered the principal, the board of directors may be more realistically in need of agent-like controls. Second, the complementary or supplementary nature of the monitoring/incentive alignment relationship has been shown theoretically but the empirical evidence is equivocal and needs future investigation. Third, there has been very limited research on the construct validity of archival measures of the sort used in agency theory. This requires the use of methodologies outside those of the more conventional type used in agency theory (i.e., from economics and finance). Finally, agency theory development would profit greatly by more extensive use of research methods such as laboratory studies and survey methodology and the integration of concepts such as personality and control processes.

Implementing a triangulation protocol in bereavement research: a methodological discussion

Triangulation is a comparative strategy for examining data that strengthens qualitative and multi-method research. Despite the benefits of triangulation noted in the research methods literature, few concrete models for operationalization of protocols exist. Lack of documentation of explicit triangulation procedures is especially true in the area of bereavement research. This article describes how an interdisciplinary research team implemented a triangulation protocol in a study of the needs of bereaved parents. Triangulation enabled the integration of diverse data sources, methods, and disciplinary perspectives. These processes yielded a more meaningful typology of bereaved parents' needs than would have otherwise been possible. Extending the use of triangulation will enhance multi-faceted understandings of bereavement.     

The influence of organizational identification on organizational knowledge management (KM)

Information technology (IT) outsourcing vendor organizations contain isolated business units whose creation and sustenance greatly facilitate business operations. But they also introduce important challenges for organizational knowledge management (KM). In this paper, based on 7 months of intensive field-work at India Inc., a leading Indian IT firm, we looked at how members’ identification with two organizations, their own and their client organization, influences their compliance with an organizational KM initiative. The findings show that members have difficulties in complying with the expectations of the organizational KM initiative owing to a stronger identification with their client organizations. At the same time, they comply readily with KM initiatives at the business unit level. The findings show that KM managers at India Inc. use the help of middle level managers in the business units in their efforts to improve members’ compliance with organizational KM. Theoretical and managerial implications of the study are discussed.