Financial-Firm Production of Monetary Services: A Generalized Symmetric Baroett Variable-Profit-Function Approach

An alternative monetary-production model of financial firms is employed to investigate supply-side monetary aggregation. Financial firms are conceived to produce monetary services as outputs through financial intermediation. A new method for testing the existence of consistent monetary-output aggregates in financial firms' production technology is developed in terms of a multiproduct firm's variable profit function, and the method does not require homotheticity of the aggregator function. We use a generalized symmetric Barnett flexible functional form. That specification satisfies global curvature conditions and retains its flexibility under the null hypothesis of weak separability. Neither of those properties is possessed by other flexible functional forms.     

Beyond the CPI: An Augmented Cost-of-Living Index

This note examines an augmented cost-of-living index (ACOLI) for the purpose of accounting for “augmented consumption” in real-income measures. Well-being includes not only conventional consumer purchases but also goods and services provided by employers, by mandated social regulations, and by tax-financed public goods. Because augmented consumption is often provided in ways that raise prices but not market incomes, deflating with conventional price indexes may understate real income growth. An exploratory application of the ACOLI approach to the United States during the 1960–1997 period suggests that the Consumer Price Index has grown about 19% faster than the ACOLI. This correction would reduce the estimated cost-of-living increase by .47% per year over the last 37 years.     

Correlation in a Bayesian framework

The authors consider the correlation between two arbitrary functions of the data and a parameter when the parameter is regarded as a random variable with given prior distribution. They show how to compute such a correlation and use closed form expressions to assess the dependence between parameters and various classical or robust estimators thereof, as well as between p‐values and posterior probabilities of the null hypothesis in the one‐sided testing problem. Other applications involve the Dirichlet process and stationary Gaussian processes. Using this approach, the authors also derive a general nonparametric upper bound on Bayes risks.     

The historical decline of fertility in Eastern Europe

I test the hypothesis that the growth of autonomy was the factor responsible for the decline of marital fertility in eight Eastern European countries. By growth of autonomy I mean increased control over one's political, personal, religious, economic and reproductive life. This increased control was manifested in revolutions, democratic political reforms, nationalist movements and declining marital fertility. The political reforms were the result of the growth of autonomy but they also accelerated the dissemination of these new ideas among the populace contributing to further growth of autonomy. My hypothesis is generally supported by the historical data.     

Environmental regulatory influence and product innovation: the contingency effects of organizational characteristics

This paper examines the relationship between environmental regulatory influence and product innovation in a multi-industry sample of manufacturing organizations. Our theory argues that the influence of environmental regulation on the level of product innovation in a manufacturing organization is at least partially contingent on the organization's internal characteristics—in particular, its structural flexibility and production process flexibility. Hypotheses are derived from our theory and tested, and the results are consistent with the conclusion that structural flexibility and production process flexibility moderate the environmental regulatory influence–product innovation relationship. Whether environmental regulation inhibits or promotes product innovation seems to depend at least in part on certain internal features of an organization. We discuss implications of our results for future organization studies research on environmental regulation, and for research on other types of external constraints on organizational performance.     

Leadership of highly creative people in highly creative fields: A historiometric study of scientific leaders

In recent years there has been a marked increase in the study of the influence of leadership on creativity, and the effects of this relationship on organizational performance. While a number of explanations have been broached with regard to the positive effects of leadership on creativity, many of these studies propose different, and often contradictory, methods for leaders to achieve these positive effects on creativity within their organizations and work groups. Additionally, little work has been done examining the effects of leadership on highly creative people in fields requiring creativity. The purpose of this study is to examine two existing leadership theories with regard to their viability as models to explain creative performance of eminent scientists. Eminent scientists represent a population of leaders of highly creative individuals in a field that values the production of innovative ideas and products as a marker of performance. Ninety-three excerpts from the biographies of scientists were content coded for leader behaviors and performance criteria. The results of this analysis indicate that a model based on strategic planning and product championing may serve to explain the positive effects of leadership on creativity in a highly creative population.     

Signaling to Partially Informed Investors in the Newsvendor Model

We analyze a signaling game between the manager of a firm and an investor in the firm. The manager has private information about the firm's demand and cares about the short‐term stock price assigned by the investor. Previous research has shown that under continuous decision choices and the Intuitive Criterion refinement, the least‐cost separating equilibrium will result, in which a low‐quality firm chooses its optimal capacity and a high‐quality firm over‐invests in order to signal its quality to investors. We build on this research by showing the existence of pooling outcomes in which low‐quality firms over‐invest and high‐quality firms under‐invest so as to provide identical signals to investors. The pooling equilibrium is practically appealing because it yields a Pareto improvement compared to the least‐cost separating equilibrium. Distinguishing features of our analysis are that: (i) we allow the capacity decision to have either discrete or continuous support, and (ii) we allow beliefs to be refined based on either the Undefeated refinement or the Intuitive Criterion refinement. We find that the newsvendor model parameters impact the likelihood of a pooling outcome, and this impact changes in both sign and magnitude depending on which refinement is used.     

Male bisexuality and condom use at last sexual encounter: results from a national survey

Relatively little is known about condom use among bisexual men as separate and distinct from exclusively homosexual and heterosexual men. Most previous research on bisexual men has relied on non-probabilistic, high risk samples with limited generalizability. We examined the relationship between male behavioral bisexuality and condom use in the 2002 cycle of the National Survey of Family Growth (NSFG). Bisexually-active men positively differed from heterosexually- and homosexually-active men on every indicator of confounding risk. However, bisexually-active men did not report using condoms less often than other men during their last sexual encounters with males and females. Indeed, with female partners, bisexually-active men reported higher rates of condom use than other men. These relationships remained when all sociodemographic and confounding risk factors were held constant. Our results suggest that caution must be used when making assumptions about condom use in the general population of bisexual men from non-probabilistic samples.