GIFT EXCHANGE AND WORKERS' FAIRNESS CONCERNS: WHEN EQUALITY IS UNFAIR5

We study how different payment modes influence the effectiveness of gift exchange as a contract enforcement device. In particular, we analyze how horizontal fairness concerns affect performance and efficiency in an environment characterized by contractual incompleteness. In our experiment, one principal is matched with two agents. The principal pays equal wages in one treatment and can set individual wages in the other. We find that the use of equal wages elicits substantially lower efforts. This is not caused by monetary incentives per se because under both wage schemes it is profit‐maximizing for agents to exert high efforts. The treatment difference instead seems to be driven by the fact that the norm of equity is violated far more frequently in the equal wage treatment. After having suffered from violations of the equity principle, agents withdraw effort. These findings hold even after controlling for the role of intentions, as we show in a third treatment. Our results suggest that adherence to the norm of equity is a necessary prerequisite for successful establishment of gift‐exchange relations. (JEL: J33, D63, M52, C92, J41)     

DIMENSIONS OF MACROECONOMIC UNCERTAINTY: A COMMON FACTOR ANALYSIS

Uncertainty about the future course of the economy is a potential driver of aggregate fluctuations. To identify the distinct dimensions of uncertainty in the macroeconomy, we construct a large dataset covering all types of economic uncertainty. We then identify two fundamental factors that account for the common dynamics in this dataset. These factors are interpreted as macroeconomic uncertainty. The first factor captures business cycle uncertainty, while the second factor represents oil and commodity price uncertainty. While both types of uncertainty generate a decline in output, time‐varying oil and commodity price uncertainty is more important for fluctuations in real activity. However, nonlinearities seem to amplify the effect of business cycle uncertainty during the global financial crisis. (JEL C32, C38, E32)     

How Accurate are German Work-time Data? A Comparison of Time-diary Reports and Stylized Estimates

This study compares work time data collected by the German Time Use Survey (GTUS) using the diary method with stylized work time estimates from the GTUS, the German Socio-Economic Panel, and the German Microcensus. Although on average the differences between the time-diary data and the interview data is not large, our results show that significant deviations exist between these two techniques for certain types of individuals, especially those with long working hours and flexible work schedules. We also show that stylized work time estimates have insufficient variation to reproduce a true picture of working hours.     

Allais for all: Revisiting the paradox in a large representative sample

We administer the Allais paradox questions to both a representative sample of the Dutch population and to student subjects. Three treatments are implemented: one with the original high hypothetical payoffs, one with low hypothetical payoffs and a third with low real payoffs. Our key findings are: (i) violations in the non-lab sample are systematic and a large bulk of violations is likely to stem from non-familiarity with large payoffs, (ii) we can identify groups of the general population that have much higher than average violation rates; this concerns mainly the lowly educated and unemployed, and (iii) the relative treatment differences in the population at large are accurately predicted by the lab sample, but violation rates in all lab treatments are about 15 percentage points lower than in the corresponding non-lab treatments.     

Payout policy,taxes, and corporate insiders: evidence from the German Tax Reduction Act 2001

Based on a large panel data set of listed German firms we analyze the corporate payout behavior around the German Tax Reduction Act 2001 (GTRA). The GTRA has considerably changed the tax preference of shareholders and consequently affected the attractiveness of different forms of payout. Using the tax reform as an exogenous source of variation we examine whether payout decisions are driven by corporate insiders or by influential shareholders. We find that the GTRA 2001 reduced both the propensity to pay dividends as well as their size. However, we find that in those firms where management board members hold substantial stakes, dividend payout behavior has not changed in the aftermath of the GTRA. This effect does not depend on the existence of other influential shareholders as for instance institutional shareholders. Hence, we conclude that the dividend policy is strongly driven by the interests of corporate insiders.     

Evidence for the need to distinguish between self-initiated and organizationally imposed overload in studies of work stress

This study attempts to enhance our understanding of the inconsistencies reported in the literature concerning the relationship between work overload and work outcomes. We tested the proposition that work overload should be divided into two constructs based on its source: self-initiated overload (SIO), and organization-imposed overload (OIO). Based on the work stress and job crafting literatures, we expected that SIO and OIO would tend to relate differentially to the work outcomes of job satisfaction, emotional exhaustion, work–family conflict, job performance, and helping organizational citizenship behaviours. A study was conducted using three samples, the first consisting of full-time employed students in three countries (N?=?116), the second consisting of the nursing staffs of six private hospitals in Switzerland, and the third consisting of 161 middle manager–supervisor dyads in Switzerland. Two different measures of SIO and OIO were used. SIO was found to have a more beneficial relationship with the work outcomes than OIO, general supporting our hypothesis. Theoretical and practical implications are discussed.     

A Branch and Cut solver for the maximum stable set problem

This paper deals with the cutting-plane approach to the maximum stable set problem. We provide theoretical results regarding the facet-defining property of inequalities obtained by a known project-and-lift-style separation method called edge-projection, and its variants. An implementation of a Branch and Cut algorithm is described, which uses edge-projection and two other separation tools which have been discussed for other problems: local cuts (pioneered by Applegate, Bixby, Chvátal and Cook) and mod-k cuts. We compare the performance of this approach to another one by Rossi and Smiriglio (Oper. Res. Lett. 28:63–74, 2001) and discuss the value of the tools we have tested.     

Whose voice is heard in online deliberation?: A study of participation and representation in political debates on the internet

One of the core elements of the vision of 'electronic democracy' is the hope that the Internet permits free and equal access to political debates. However, experiences with online discourse challenge this view. The digital divide being one obstacle to participation, even more interesting is the fact that online communication is constrained in ways similar to the offline world. This paper attempts to reassess the question of whether the Internet makes political debate more open to voices that are normally not heard in the political field. Based on empirical evidence from a large-scale online deliberation, it analyses who participates in political debates on the Internet and whose views are represented. The results challenge both the optimistic and the sceptical view on electronic democracy. A theoretical model is developed that is able to explain the results. It extends current research by including the cultural practices of technology use and the specific effects of large-scale communication in the analysis. Though preliminary this model can help to inform the designers of online deliberations to make the most of their democratic potential.