A note on a Bayesian order determination procedure for vectorautoregressive processes

This paper describes the posterior distribution of the order of a vectorautoregressive model and demonstrates its practical utility via some simulations.     

GEE estimation of the covariance structure of a bivariate panel data model with an application to wage dynamics and the incidence of profit-sharing in West Germany

We propose a generalized estimating equations (GEE) approach to the estimation of the mean and covariance structure of bivariate time series processes of panel data. The one-step approach allows for mixed continuous and discrete dependent variables. A Monte Carlo Study is presented to compare our particular GEE estimator with more standard GEE-estimators. In the empirical illustration, we apply our estimator to the analysis of individual wage dynamics and the incidence of profit-sharing in West Germany. Our findings show that time-invariant unobserved individual ability jointly influences individual wages and participation in profit sharing schemes.     

The role of cognitive load in effective strategic issue management

Firms have different ways of addressing issues emerging from outside their regular calendar-driven strategy processes. These practices tend to be unstructured, organization specific, and highly dependent on the characteristics of the strategic issues themselves. Building on three dimensions of cognitive load—intrinsic, germane, and extraneous cognitive load—we extend existing research on strategic issue management by showing how different team-level choices in strategic issue processing and organizational congestion interact in their effects on a firm's strategic issue management performance. Based on an in-depth analysis of all 92 strategic issue decisions in a large multinational firm during a three-year period, we find that organizational disturbances influence strategic issue initiation by top management, which in turn influences the quality of strategic issue management practices and subsequent performance outcomes. We conclude by providing recommendations for managers on how they can decrease the sensitivity of their companies' strategic issue systems to external disturbances.     

Wage Dynamics and Unemployment in Germany: Evidence from Regional Panel Data

A stylized fact of empirical work on the relationship of wages and unemployment using macro data for European countries is a combination of strong autocorrelation of wages and a significant negative long‐run relationship of wages and unemployment. However, this view is challenged by empirical work relying on regional or micro data providing evidence for an instantaneous adjustment of wages to variations in the level of unemployment. Exploiting regional panel data for West Germany, we show that, at least for the years 1990–94, regional and macro data mirror the same phenomenon. Our results are broadly consistent with the observed increase in the natural rate of unemployment in Germany.