The effect of framing on the choice of co-payment policies, reducing moral hazard and post-choice-evaluation

This study analyses the impact of two financially equivalent frames of a co-payment policy on the choice between a co-payment policy and one with full cost recovery. It also examines the incentive effect of the co-payment and the post-choice evaluation on the pay-offs in case of unexpected losses, using the example of health insurance. Two experimental studies form the context for an empirical investigation of the theoretical considerations. We examine the framing-related effects of a rebate compared to a premium reduction frame of a co-payment policy. The results confirm that a rebate frame has a positive effect on the intention to choose a co-payment policy. The intention to avoid claims in the premium reduction frame is greater than in the rebate frame. In case of unexpected losses because of high insurance claims, the rebate frame results in less dissatisfaction and causes fewer regret effects. The results support the theoretical considerations that insurance companies should account for these differences and design their co-payment policies according their priorities, either with a rebate or a premium reduction frame.     

The state of the German social insurance state: Reform and resilience

At the core of the German system of welfare provision stand social insurance schemes whose central role contributes to Germany being labelled a social insurance state. In recent decades, Germany has been experiencing major social policy reforms that are often evaluated as paradigm changes. These changes have been reflected in analyses that sometimes even questioned common classifications of the German welfare state. The article sheds light on recent developments that have affected the German system of social insurance. It focuses on four aspects of social insurance: benefits, financing, governance, and coverage. Although confirming many earlier analyses of reforms in detail and sharing assessments of changes such as retrenchment and marketization, the article nevertheless stresses that social insurance remains structurally intact and that the work–welfare nexus underlying welfare provision has been reinterpreted but not surrendered.     

Heteroskedasticity Robust Panel Unit Root Testing Under Variance Breaks in Pooled Regressions

Noting that many economic variables display occasional shifts in their second order moments, we investigate the performance of homogenous panel unit root tests in the presence of permanent volatility shifts. It is shown that in this case the test statistic proposed by Herwartz and Siedenburg (2008 Herwartz, H., Siedenburg, F. (2008). Homogenous panel unit root tests under cross-sectional dependence: Finite sample modifications and the wild bootstrap. Computational Statistics and Data Analysis 53(1):137–150.[Crossref], [Web of Science ®] , [Google Scholar]) is asymptotically standard Gaussian. By means of a simulation study we illustrate the performance of first and second generation panel unit root tests and undertake a more detailed comparison of the test in Herwartz and Siedenburg (2008 Herwartz, H., Siedenburg, F. (2008). Homogenous panel unit root tests under cross-sectional dependence: Finite sample modifications and the wild bootstrap. Computational Statistics and Data Analysis 53(1):137–150.[Crossref], [Web of Science ®] , [Google Scholar]) and its heteroskedasticity consistent Cauchy counterpart introduced in Demetrescu and Hanck (2012a Demetrescu, M., Hanck, C. (2012a). A simple nonstationary-volatility robust panel unit root test. Economics Letters 117(2):10–13.[Crossref], [Web of Science ®] , [Google Scholar]). As an empirical illustration, we reassess evidence on the Fisher hypothesis with data from nine countries over the period 1961Q2–2011Q2. Empirical evidence supports panel stationarity of the real interest rate for the entire subperiod. With regard to the most recent two decades, the test results cast doubts on market integration, since the real interest rate is diagnosed nonstationary.     

Assessment of dispersal and population structure of Norway rats (Rattus norvegicus) in a seaport setting

Seaports are introduction hotspots for invasive alien species (IAS). This is especially true for rodents, which have accompanied humans around the globe since the earliest days of ocean-going voyages. The rapid spread of IAS soon after arrival in a new environment is facilitated by further human-mediated transport or landscape features, like roads. By measuring genetic diversity and structure to investigate dispersal pathways, we gained insight into the transport, spread and establishment stages of a biological invasion, leveraging the most common rodent species (R. norvegicus) in this setting. We characterized the genetic structure of three Norway rat populations along a busy industrial road used by trucks to access the Port area in Paranaguá city (Brazil). A total of 71 rats were genotyped using 11 microsatellite markers. The results revealed a pattern of gene flow contrary to the expected stepping-stone model along the linear transect, with the two furthest apart populations being clustered together. We hypothesize that the observed outcome is explained by natural dispersal along the corridor being lower than human-mediated transport. The sampled area furthest from the port is a gas station frequented by trucks which are considered the most likely mode of transportation. In terms of management strategies, we suggest more emphasis should be put on cargo surveillance to lower the risk of Norway rat dispersal, not only for biosecurity, but also for sanitary reasons, as this port is a major grain trading point.

     

Reference compensation: a transfer of reference price theory to human resource management

The topics of compensation in human resource management and pricing in marketing theory both involve a monetary component that is important for companies to manage. While the role that price perceptions play for consumers is the subject of the well-established reference price theory, human resource management theory lacks any related concept for the compensation perceptions held by employees. This paper transfers reference price theory to HR management in the form of reference compensation, conceptualized as an individual’s compensation norm, including normative and predictive compensation expectations. Possible measures to influence employees’ reference compensation are suggested and avenues for further establishing the concepts in research and practice are developed. As a first empirical attempt to support the relevance of the concept, we present results of an exploratory study among 88 part-time students. We show that employees apply references when judging compensation, and that the applied references vary with different employment situations.     

The village in the mind: Applying Q-methodology to re-constructing constructions of rurality

In recent years rural studies have focused on the analysis of different notions of ‘the rural’ and how they are constructed in expert discourses as well as in everyday life. Dealing empirically with such patterns of meaning, poses special challenges to social science. In this article I want to explore Q-methodology that approaches subjectivity in a particular way. Instead of beginning with the individual – as it is done in case study approaches – or with socio-demographic categories – as surveys usually do – Q-methodology attempts to put the focus of inquiry on the content of subjectivity itself, i.e. the integral views and their internal frame of reference. Q-methodology can be conceived as a hybrid of qualitative and quantitative methodology since it combines mathematical procedures like factor analysis with a genuine constructivist and interpretative approach to ‘reality’. An example of a study in which Q-methodology was applied is presented. The aim of this analysis was to explore the different views of village development and community life that existed in a municipality of the exurban hinterland of Hamburg. As a result of this study three distinct perceptions of rurality are identified: an idyllic, a reform-oriented and an anti-conservationist view. Based on a structured comparison of these three views it is shown how Q-methodology can contribute new perspectives and insights to the debate about social representations of rurality.     

Measuring social trust and trusting the measure

Decades of rigorous quantitative scholarship have generated a wealth of knowledge regarding the causes and consequences of crossnational variations in social trust. However, while some social science disciplines have made significant contributions to this conversation, others have largely failed to do so. The field of international relations, for example, has lagged behind in producing aggregate-level scholarship on social trust. This is surprising given that (1) trust influences public opinion and thereby the incentive structure for political leaders and (2) many peacebuilding efforts directly target the levels of trust in post-conflict settings. Country-level trust scholarship in international relations and the social sciences more generally is hampered by data scarcity. The main purpose of this article is to present a new publicly available data set on aggregate levels of social trust. Relying on a set of 19 widely accepted correlates, we construct a new cross-sectional measure of the concept that covers all countries from 1946 to 2010. We then perform a series of empirical tests establishing the validity of our measure. Finally, we offer a number of bivariate analyses to demonstrate the broad utility of our new variable for scholars in the social sciences.     

The influence of psychopathic traits on the acceptance of white-collar crime: do corporate psychopaths cook the books and misuse the news?

Due to several empirical shortcomings in the research of personality characteristics in ethical decision making, we address in this paper the concept of corporate psychopathy in the organizational context. Corporate psychopaths are individuals successfully working in organizations, but are selfish, manipulative, and exhibit a lack of empathy, remorse, and conscience; therefore, they may be viewed as risk factors for organizations. While there is abundant literature on the connection between clinical psychopathy and criminal behavior, such research is scarce in the business context where successful psychopaths operate. Thus, we examine if the malevolent traits of corporate psychopaths predict the acceptance of different forms of white-collar crime. In doing so, we conduct two survey studies in which we first measure participants’ psychopathic tendencies and then assess their acceptance of either an accounting fraud or an insider-trading situation. Consistent with our hypotheses and across both studies, we find a highly significant relationship between personality traits that are associated with corporate psychopathy and the acceptance of white-collar crime. This paper discusses the implications of these findings and identifies some potentially useful approaches for excluding corporate psychopaths from organizations.     

Jakarta: Environmental problems and sustainability

Jakarta is on the way to become a “world city”, but to classify in this regard, it needs to be more than the size of the metropolis but it should be enlightened management, the kind of services the city offers to ensure a balanced economic, social, political and environmental development; thus, criteria which would indicate its social, economic and environmental “sustainability” and quality of life. The recent years have shown Jakarta's current management to evolve as promoter of centennial projects like the modernization of the center, the establishment of an integrated public transport system, the redevelopment of the waterfront and a new harbor, the conservation of the Old City, and creation of a few gentrified public parks. While these grand projects are still in the making, many infrastructure and environmental problems still continue to prevail, and there is substantial concern about the pro-rich and anti-poor policies which are being pursued, while Jakarta pretends to make the quantum jump to a modern city.