Differentiated leader–member exchange,justice climate,and performance: Main and interactive effects

Leaders form different quality leader–member exchange (LMX) relationships with their subordinates. This variable treatment termed LMX differentiation can have negative effects on individuals' behavior and attitudes. In this study, we examined the cross-level main effect of justice climate on task performance and the moderating role of justice climate on the relationship between LMX differentiation and task performance. We tested these two hypotheses using a field study of 90 subordinates nested under 27 supervisors. Procedural justice climate, not distributive justice climate, was found to positively influence subordinate task performance. Further, distributive justice climate, not procedural justice climate, was found to moderate the LMX differentiation–task performance relationship; such that the relationship was positive when distributive justice climate was high and negative when distributive justice climate was low. Findings and future directions are discussed.     

Treatment Choice With Trial Data: Statistical Decision Theory Should Supplant Hypothesis Testing

Abstract

A central objective of empirical research on treatment response is to inform treatment choice. Unfortunately, researchers commonly use concepts of statistical inference whose foundations are distant from the problem of treatment choice. It has been particularly common to use hypothesis tests to compare treatments. Wald’s development of statistical decision theory provides a coherent frequentist framework for use of sample data on treatment response to make treatment decisions. A body of recent research applies statistical decision theory to characterize uniformly satisfactory treatment choices, in the sense of maximum loss relative to optimal decisions (also known as maximum regret). This article describes the basic ideas and findings, which provide an appealing practical alternative to use of hypothesis tests. For simplicity, the article focuses on medical treatment with evidence from classical randomized clinical trials. The ideas apply generally, encompassing use of observational data and treatment choice in nonmedical contexts.     

Bayesian Classifiers Applied to the Tennessee Eastman Process

Fault diagnosis includes the main task of classification. Bayesian networks (BNs) present several advantages in the classification task, and previous works have suggested their use as classifiers. Because a classifier is often only one part of a larger decision process, this article proposes, for industrial process diagnosis, the use of a Bayesian method called dynamic Markov blanket classifier that has as its main goal the induction of accurate Bayesian classifiers having dependable probability estimates and revealing actual relationships among the most relevant variables. In addition, a new method, named variable ordering multiple offspring sampling capable of inducing a BN to be used as a classifier, is presented. The performance of these methods is assessed on the data of a benchmark problem known as the Tennessee Eastman process. The obtained results are compared with naive Bayes and tree augmented network classifiers, and confirm that both proposed algorithms can provide good classification accuracies as well as knowledge about relevant variables.     

Debt‐Relief Effectiveness and Institution‐Building

This article provides new evidence on the effects of recent debt‐relief programmes on different macroeconomic indicators in developing countries, focusing on the Heavily Indebted Poor Countries (HIPCs). The relationship between debt relief and institutional change is also investigated to assess whether donors are moving towards ex‐post governance conditionality. Results show that debt relief is only weakly associated with subsequent improvements in economic performance but is correlated with increasing domestic debt which undermines the positive achievements in reducing external debt service. There is also evidence that donors are moving towards a more sensible allocation of debt forgiveness, rewarding countries which have better policies and institutions.     

Die Bedeutung der Zinsschranke

The German Corporate Tax Reform Act of 2008 requires an adjustment of classic valuation concepts because it limits interest deduction from taxable income depending on the operating performance of the company. By using time- and state-contingent discount rates in a risk-neutral valuation with predetermined debt levels, a theoretically sound valuation result is obtained. However, a modified APV-concept which assumes deterministic debt over the planning horizon and constant leverage in the terminal value phase also yields consistent valuation results when two types of tax shields with different levels of risk are distinguished.     

Nonparametric Estimation of the Number of Drug Users in Hong Kong Using Repeated Multiple Lists

We update a previous approach to the estimation of the size of an open population when there are multiple lists at each time point. Our motivation is 35 years of longitudinal data on the detection of drug users by the Central Registry of Drug Abuse in Hong Kong. We develop a two‐stage smoothing spline approach. This gives a flexible and easily implemented alternative to the previous method which was based on kernel smoothing. The new method retains the property of reducing the variability of the individual estimates at each time point. We evaluate the new method by means of a simulation study that includes an examination of the effects of variable selection. The new method is then applied to data collected by the Central Registry of Drug Abuse. The parameter estimates obtained are compared with the well known Jolly–Seber estimates based on single capture methods.     

Comparison of hazard rates for dependent random variables

In this paper, we define and study a new notion for the comparison of the hazard rates of two random variables taking into account their mutual dependence. Properties, applications and the comparison for a data set are given.