A game theoretical analysis of an extended manager-auditor-conflict

Horst Albach has dealt in his research very often with problems of the quality of balance auditing (Albach 1992, 2003). Sometimes his considerations show close relations to the current crisis of the financial market and its consequences. Some of his contributions were already made in times, when it was not yet expected that the dependency of auditors from clients could once become a serious deficit of auditing. Those aspects also become relevant now in connection with the crisis of the financial market.The misgivings that arise continuously in this context with regard to the correctness of submitted balance sheets have sparked off intense discussions in two directions in the Federal Republic of Germany. Whereas the USA has already realised a prohibition of this nature to a great extent through statutory provisions, a broad spectrum of additional consultancy services is still permissible in the Federal Republic of Germany in spite of similar initiatives on the part of legislators.The present paper analyses methodically in the framework of an extended manager–auditor game how the Nash equilibrium is altered in a non-cooperative two-person game through the behaviour of the players, if the supervisory board, as an exogenous party, detects with a specific probability the incorrect certification of a substantively incorrectly prepared balance sheet. At the same time, payoffs from consultancy services for both players are included in the analysis here. However, with a greater probability of detection of an incorrectly certified incorrect balance sheet, and through the reductions of consultancy payoffs, the supervisory board can work towards the product of audit and publication quality being increased.     

A time-varying measurement error model for age of onset of a psychiatric diagnosis: applied to first depressive episode diagnosed by the Composite International Diagnostic Interview (CIDI)

A substantial degree of uncertainty exists surrounding the reconstruction of events based on memory recall. This form of measurement error affects the performance of structured interviews such as the Composite International Diagnostic Interview (CIDI), an important tool to assess mental health in the community. Measurement error probably explains the discrepancy in estimates between longitudinal studies with repeated assessments (the gold-standard), yielding approximately constant rates of depression, versus cross-sectional studies which often find increasing rates closer in time to the interview. Repeated assessments of current status (or recent history) are more reliable than reconstruction of a person's psychiatric history based on a single interview. In this paper, we demonstrate a method of estimating a time-varying measurement error distribution in the age of onset of an initial depressive episode, as diagnosed by the CIDI, based on an assumption regarding age-specific incidence rates. High-dimensional non-parametric estimation is achieved by the EM-algorithm with smoothing. The method is applied to data from a Norwegian mental health survey in 2000. The measurement error distribution changes dramatically from 1980 to 2000, with increasing variance and greater bias further away in time from the interview. Some influence of the measurement error on already published results is found.     

AGE,TIME, VINTAGE,AND PRICE INDEXES: MEASURING THE DEPRECIATION PATTERN OF HOUSES

Age, time, and vintage are key determinants of house prices, yet they cannot be included together linearly or as dichotomous variables in hedonic regressions as construction time + age of house = sale time. We introduce a method where the estimates of the age, time, and vintage effects on prices are obtained in a flexible manner, without requiring us to specify a pre‐determined functional form for any of these variables. Applying our method to Dutch data, we find that the estimated depreciation pattern over the life of houses does not follow the functional forms typically specified for the age of houses in hedonic regressions. (JEL C43, E01, E31, R31)     

Implemented as intended? Recording family worker activities in a Families First program

In evaluating family preservation services, it is important not only to study the service outcomes and the family characteristics, but also what actually happens during the treatment. This requires a program model. This article describes how a program model works, prescribes how workers should carry it out, and describes how researchers should measure the program's characteristics. The authors use data from Families First in The Netherlands to test the model. Results show that the method of the program meets the specified characteristics. The results are important for treatment, policy, education, and evaluation research.     

Können Organisationen nicht lernen? Facetten organisationaler Lernkulturen

Recently, the concept of ‘learning culture’ has entered the discussion on learning organizations and organizational learning, especially in the German speaking countries. Most of the academics, but also practitioners seem to use the term ‘learning culture’ in a particular sense as nurturing a self-directed, on-the-job learning of all employees. An implicit, often neglected assumption of this conception is that organizations can be divided into those who have a learning culture and those who do not. Although this idea of a dichotomy is also found in the discussion on learning organizations, it can be called into question. Past research has shown that (organizational) learning is a multifaceted phenomenon. Different organizations engage in very diverse kinds of learning due to the fact that they are facing varying environmental conditions. This brings us to doubt the idea of a ?one-best-way“ learning culture. Following the basic question, who learns what, how, when and why, the article presents a set of distinguishing attributes to distinguish between different types of learning cultures. Finally, yet unanswered questions and paths for future research are discussed.