The per-capita-income criterion and natality policies in poor countries

Discussions of birth rates in less developed countries (LDC’s) are almost always couched in terms of income per-capita or per-consumer-equivalent. A decrease in population growth rate is said to lead to a higher per-capita income (PCI) than would occur with a higher birth rate, and therefore a lower birth rate is advocated. This runs the danger of choosing a course of action that people really do not want. A static analysis of a PCI criterion leads to an optimum which is quite unacceptable. One can raise the PCI of any given group by getting rid of all small sub-groups that have a lower PCI. Static analysis is not directly relevant to those problems of LDC’s, because the relevant control variable is the birth rate. This paper explores some of the ramifications of different birth rates. The general conclusion is that per-capita income alone cannot be a satisfactory criterion for a rational national natality policy. At best it can be but one factor to be taken into consideration in such a policy decision.     

The effect of income on fertility

Abstract Cross-sectional data and long-period time series data have generally shown an inverse relationship between income and fertility. But short-period time series data over the business cycle have shown a direct relationship. The first part of this paper resolves this apparent paradox by showing that it arises from a statistical illusion-specification bias due to omitted lagged variables. The second part of the paper then considers the likely unconditional effect of income on fertility in several sorts of situations: (a) secular income increase in less developed countries; (b) cyclical income change in industrialized countries; (c) secular income increase in industrialized countries; and (d) incentive payments for higher and lower fertility.     

New perspectives on the governance of executive compensation: an examination of the role and effect of compensation consultants

We develop a multi-theoretic approach, drawing on economic, institutional, managerial power and social comparison literatures to explain the role of the external compensation consultant in the top management pay setting institutional field. Taking advantage of recent disclosure requirements in the UK, we collect data on compensation consultant use in 232 large companies. We show that consultants are a prevalent part of the CEO pay setting scene, and document evidence of all advisor use. Our econometric results show that consultant use is associated with firm size and the equity pay mix. We also show that CEO pay is positively associated with peer firms that share consultants, with higher board and consultant interlocks, and some evidence that where firms supply other business services to the firm, CEO pay is greater.     

Racial Identity–Related Differential Attributions of Inadequate Responses to Hurricane Katrina: A Social Identity Perspective

This study examines the attribution of responsibility for the problematic response to Hurricane Katrina in the fall of 2005. Based on social identity theory, the study compared the attribution with racism and non-racism factors (situational vs. dispositional attributions) between African American and European American students (n = 505). As hypothesized, African American identity was related to greater racism attribution, even after controlling for demographics, faith factors, and cognitive-emotional reactions to the hurricanes. European American identity was associated with more executive-responsibility attributions, but the effect vanished after adjusting other factors. The study underscores the importance of acknowledging group identity rather than an overarching American identity in exploring the race effect after a national collective trauma. The consequential implications for disaster planning, future research investigation, and social service delivery are discussed.     

How do actors shape social networks during the process of new product development?

Recent studies on new-idea generation and development have highlighted the role played by network structure in the genesis of new combinations or the process of selecting ideas. However, less attention has been paid to the factors that entice actors to shape social networks during the process of the development of new ideas.This research was conducted in an R&D facility of a semi-conductor company. We analysed the generation of five creative projects and their development over a four-year period. We used a longitudinal approach and collected data through interviews and observations to identify the creative contributions and the actors who were involved at different time periods for each project. We mapped the relationships between actors who contributed to the development of each idea through creative thinking and/or helped it to become accepted both internally and externally over three-year windows. This method generated data on network evolution.We also carried out a qualitative analysis and identified four main factors explaining why actors turn to others during the idea-development process: (1) to gain access to information; (2) to enhance credibility; (3) to exercise one’s influence; and (4) to gain access to knowledge through people or objects. We demonstrate that different types of ties or network structures are relied upon to reap different kinds of benefits. This may partially explain network evolution as an idea progresses through different development stages.     

Psychometric analysis of the UK Health and Safety Executive's Management Standards work-related stress Indicator Tool

Abstract

Numerous tools have been developed that attempt to measure work-related stress and working conditions, but few practical instruments in the literature have been found to have a reliable psychometric factor structure. In the UK, the Health and Safety Executive (HSE) Management Standards (MS) Indicator Tool is increasingly used by organizations to monitor working conditions that can lead to stress. In Health and Safety Executive (2004), a factor analysis was conducted demonstrating the reliability of the scales. However, the authors acknowledged that direct reassessment of the same factor structure was impossible as the questionnaire was split into two separate modules for data collection. Furthermore, the tool is designed to enable comparisons between as well as within organizations to take place, yet reliability has only previously been tested at the individual level. The current study is the first to examine the factor structure of the HSE MS Indicator Tool using organizational-level data. Data collected from 39 UK organizations (N=26,382) was used to perform a first-order Confirmatory Factor Analysis (CFA) on the original 35-item seven-factor measurement scale. The results showed an acceptable fit to the data for the instrument. A second-order CFA was also performed to test if the Indicator Tool contains a higher order uni-dimensional measure of work-related stress. These findings also revealed an acceptable fit to the data, suggesting that it may be possible to derive a single measure of work-related stress. Normative data comprising tables of percentiles from the organizational data are provided to enable employers to compare their organizational averages against national benchmarks.     

Corporate valuation using imprecise cost of capital

If the estimated cost of capital bears a standard error, the estimation remains imprecise and firm values are biased on average, even though the estimator of the cost of capital is unbiased. Literature contributes approaches using adjusted discount factors to correct for such biases. This paper examines the theoretical and practical problems arising from the use of these approaches which are most likely to occur in the context of terminal value estimation. The adjusted discount factors imply time-dependent discount rates. Therefore, the commonly used valuation formula for perpetuities (Gordon formula) is no longer suitable to estimate unbiased terminal values. To continue application of this formula, this paper derives a new formula to directly adjust the cost of capital for estimation errors which yields unbiased terminal values.     

An alternate version of the conceptual predictive statistic based on a symmetrized discrepancy measure

The conceptual predictive statistic, C_p, is a widely used criterion for model selection in linear regression. C_p serves as an estimator of a discrepancy, a measure that reflects the disparity between the generating model and a fitted candidate model. This discrepancy, based on scaled squared error loss, is asymmetric: an alternate measure is obtained by reversing the roles of the two models in the definition of the measure. We propose a variant of the C_p statistic based on estimating a symmetrized version of the discrepancy targeted by C_p. We claim that the resulting criterion provides better protection against overfitting than C_p, since the symmetric discrepancy is more sensitive towards detecting overspecification than its asymmetric counterpart. We illustrate our claim by presenting simulation results. Finally, we demonstrate the practical utility of the new criterion by discussing a modeling application based on data collected in a cardiac rehabilitation program at University of Iowa Hospitals and Clinics.     

Women and crime the world over

This article examines female crime rates in twenty-seven countries over the past thirtyfive years. The results show that there has been an overall increase in total crime rates for all of the countries, and that the more economically advanced and industrialized countries have higher crime rates than the less developed nations. All countries also experienced an increase in the percent of all crimes committed by women. The percentages of violent crimes committed by women—specifically homicide and robbery—were consistently low across countries and increased only slightly over time. The percentages of property and financial crimes committed by women—specifically theft and fraud—were consistently higher than the percentages for violent crimes, and have increased more substantially over time. In addition, an analysis of the most recent data revealed a positive and significant relationship between women's overall crime rates and the countries' economic development. In those countries in which women occupy a higher status, as measured by formal years of schooling and representation in the labor force, we found some positive and significant correlations with the arrest rates for theft and fraud. There were also some strong negative relationships between female arrest rates for homicide and their status in society.