Inequality Assessment by Probabilistic Development Indices

Social Indicators Research - This paper analyses the Human Development Index (HDI) time series from 2010 to 2017. An alternative index is studied, which combines the same components of the HDI by...     

Does Formal Education for Older Workers Increase Earnings? — Evidence Based on Rich Data and Long‐term Follow‐up

Governments in Europe, Canada and the USA have expressed an ambition to stimulate education of older. In this paper, we analyse if there are effects on annual earnings of formal education for participants aged 42–55 at the time of enrolment in 1994–95. The analysis explores longitudinal population register data stretching from 1982 to 2007. The method used is difference‐in‐differences propensity score matching based on a rich set of covariates, including indicators of health and labor market marginalization. Our findings underline the importance of long follow up periods and imply positive effects for women, especially so for women with children, and no significant average earnings effects for men. These results differ from earlier studies but are stable to several alternative assumptions regarding unobservable characteristics. Data further indicate that the gender gap in our estimates may stem from differences in underlying reasons for enrolment.     

A Portfolio Approach to Procurement Contracts

The purpose of this paper is to develop a general framework for supply contracts in which portfolios of contracts can be analyzed and optimized. We focus on a multi‐period environment with convex contract, spot market, and inventory holding costs. We specialize the model to the case of a portfolio consisting of option contracts. We characterize the optimal replenishment policy and show that it has a simple structure. Namely, the use of every different option contract and the spot market is dictated by a modified base‐stock policy. In addition, we derive conditions to determine when an option is relatively attractive compared to other options or the spot market. Finally, we present our computational study, where we report the sensitivity of the results to the parameters of the model. Our experiments indicate that portfolio contracts not only increase the manufacturer's expected profit, but can also reduce its financial risk.     

Flood Catastrophe Model for Designing Optimal Flood Insurance Program: Estimating Location‐Specific Premiums in the Netherlands

As flood risks grow worldwide, a well‐designed insurance program engaging various stakeholders becomes a vital instrument in flood risk management. The main challenge concerns the applicability of standard approaches for calculating insurance premiums of rare catastrophic losses. This article focuses on the design of a flood‐loss‐sharing program involving private insurance based on location‐specific exposures. The analysis is guided by a developed integrated catastrophe risk management (ICRM) model consisting of a GIS‐based flood model and a stochastic optimization procedure with respect to location‐specific risk exposures. To achieve the stability and robustness of the program towards floods with various recurrences, the ICRM uses stochastic optimization procedure, which relies on quantile‐related risk functions of a systemic insolvency involving overpayments and underpayments of the stakeholders. Two alternative ways of calculating insurance premiums are compared: the robust derived with the ICRM and the traditional average annual loss approach. The applicability of the proposed model is illustrated in a case study of a Rotterdam area outside the main flood protection system in the Netherlands. Our numerical experiments demonstrate essential advantages of the robust premiums, namely, that they: (1) guarantee the program's solvency under all relevant flood scenarios rather than one average event; (2) establish a tradeoff between the security of the program and the welfare of locations; and (3) decrease the need for other risk transfer and risk reduction measures.     

A Stochastic Model to Assess the Effect of Meat Inspection Practices on the Contamination of the Pig Carcasses

The objective of meat inspection is to promote animal and public health by preventing, detecting, and controlling hazards originating from animals. With the improvements of sanitary level in pig herds, the hazards profile has shifted and the inspection procedures no longer target major foodborne pathogens (i.e., not risk based). Additionally, carcass manipulations performed when searching for macroscopic lesions can lead to cross‐contamination. We therefore developed a stochastic model to quantitatively describe cross‐contamination when consecutive carcasses are submitted to classic inspection procedures. The microbial hazard used to illustrate the model was Salmonella, the data set was obtained from Brazilian slaughterhouses, and some simplifying assumptions were made. The model predicted that due to cross‐contamination during inspection, the prevalence of contaminated carcass surfaces increased from 1.2% to 95.7%, whereas the mean contamination on contaminated surfaces decreased from 1 logCFU/cm² to ?0.87 logCFU/cm², and the standard deviations decreased from 0.65 to 0.19. These results are explained by the fact that, due to carcass manipulations with hands, knives, and hooks, including the cutting of contaminated lymph nodes, Salmonella is transferred to previously uncontaminated carcasses, but in small quantities. These small quantities can easily go undetected during sampling. Sensitivity analyses gave insight into the model performance and showed that the touching and cutting of lymph nodes during inspection can be an important source of carcass contamination. The model can serve as a tool to support discussions on the modernization of pig carcass inspection.     

Dual class shares,board of directors’ effectiveness and firm’s market value: an empirical study

This study aims to identify whether a relationship exists between the controlling shareholders’ voting power and outside directors’ effectiveness in maximizing firms’ financial performance. We analyze a panel data with 3057 observations for the 2000–2012 period using a random effects model, logit and probit regressions, and the two-stage model of Heckman in the Brazilian stock market. Our findings show that firms whose controlling shareholders use dual class shares to leverage their voting power have less independence from the board and worse financial performance and market value. Further, the percentage of outside directors tends to be ineffective in increasing the firm’s value, and in changing the firm’s chief executive officer (CEO) when (1) the controlling shareholder’s voting power is leveraged, or (2) when the CEO assumes a position on the board of directors simultaneously. We interpreted that these results are in line with the arguments in favor of the existence of a new agency cost, which is related to the undue obedience of board members to authority, such as the largest controlling shareholder or the CEO in Brazilian listed firms.     

Institutional Fleecing: The Slow Death of Dutch Provinces

Many theories on organizational change depart from the assumption of change for the better, that is, change in order to gain a stronger position in relation to its competitors, to become more effective or efficient, or at least to improve the organization. It is our idea that the theories developed on this basis are biased. Contrasting to this dominant approach, this article gives a longitudinal analysis of the development in an organization in decline. It is directed at explaining the downfall of a Dutch province. In the medieval empire of Charlemagne it was one of the most powerful duchies of Europe. Later it became one of the seven provinces in the powerful Dutch Republic, and nowadays it has lost nearly all its tasks and functions. Departing from neo-institutional theory this paper seeks the major causes for this downfall and specifies some of the relations in the theoretical model of punctuated equilibrium. It concludes that the historical institutional dynamics can be seen as a self-enforcing process in which punctuations can be explained by the increasing distance between individual preferences within the organization, and the pressures originating from developments in the environment.Dr. M.S. de Vries is professor in Public Administration at the Radboud University Nijmegen. Address: Thomas van Aquinostraat 5 (room 5.1.56). P.O. Box 9108, 6500 HK Nijmegen, The Netherlands, tel;++31 24 3615691.     

Philosophie als Einübung des Perspektivenwechsels am Beispiel von Platon und Nietzsche

Philosophy as exercising the shift of perspectives, exemplified with Plato and NietzscheIn professional counselling a shift of perspectives is useful to develop new options of thinking and of action in the case of seemingly hopeless situations. Philosophy presents a great variety of concepts and also of models of change processes, which may offer a resource to counsellors. With regard to Plato’s “cave metaphor” and to Nietzsche’s “transvaluation of all values” the author presents a structure of change in three stages. Concerning the practice of counsellors some relevant aspects are derived from these discussions.     

Erfolgsfaktoren beim Einzel-Coaching

Success factors of executive coaching. A screening of the coaching scenery from the client’s point of viewThis survey, based on questionnaires, examines the success factors of one-to-one coaching from the client point of view. Firstly, ten success factors in coaching were established by means of factor analysis. Secondly, more extensive analysis shows that, contrary to previous research in this field, the “professional system” is not necessarily a determining success factor in coaching. As an exclusive instrument of staff development, coaching seems to be effective even without support from the professional system. The analysis also indicates that the clients perceive their coach as an advisor and confidant as regards role expectations. Furthermore, multiple regression analysis discloses the predictive effects of the two success factors “the coach’s qualification” and “the coach’s involvement” for the overall success of coaching from the client’s point of view. The overall success of coaching itself is established through three items: the clients’ attitudes towards coaching, their attitude concerning further coaching, and the extent to which their objectives were met in coaching.     

Charisma,Macht und Narzissmus

Charisma, power and narcissism. On the diagnostics of an ambivalent leading qualityManagers are often obviously narcissistic personalities with “charismatic qualities”. The author discusses the background of these qualities and their ambivalence, because behind the brilliance of a successful manager may be a hidden narcissistic problem as the actual motive power. Nevertheless a constructive narcissism is to be distinguished from a destructive one. Charismatic constellations as well as narcissistic dynamics are to be understood not only as an individual problem but as an interactional phenomenon, involving both sides of a relationship. In order to explain these dynamics, the author presents the concepts of “narcissistic collusion” and “expanded self”. It is of great importance to the coach, to be able to analyse and to deal with these relational patterns — and also to preserve oneself from being involved in such narcissistic dynamics.