AN OPERATIONAL APPROACH TO THE EVALUATION OF LEASES BY HOSPITALS*

The evaluation of the lease versus purchase alternative by not-for-profit hospitals presents a problem that stems from the interaction between investment and financial decisions. This paper provides an analytical framework that resolves this issue by neutralizing the impact of the lease contract on the hospital's financial structure and debt capacity. The formulation incorporates the special operating characteristics of not-for-profit hospitals: namely, they are not subject to federal income tax, and part of their revenue is generated through cost-based reimbursement.     

Mobility of ‘the defeated’: internal migration and social advancement in a post-civil war society

The article examines the relationship between the movement across space and social mobility by analyzing the conditions for internal migration in Spain during the years of the Franco regime. Specifically it reflects on the ways in which migration from the countryside into self-constructed shantytowns in the greater Madrid area was perceived by migrants themselves, and on the strategies that enabled migration to be carried through. By focusing on the challenges that internal migration posed to the spatial practices and mobility regimes of the dictatorship, the article also explores the relationship between spatial movement, social mobility and political repression within the context of a nationalist dictatorship.     

Do people think about absolute or relative price differences when choosing between substitute goods?

The article presents experimental evidence that shows that people often consider relative price differences in addition to absolute differences when choosing between substitute goods. Because the choice between substitute goods is a very common one, this is an important finding. The experiment uses scenarios in various consumption categories: hotel rooms, flights, and books. Subjects were either students or participants in an economics conference. The data allow to reject the hypothesis that people think only about relative price differences in favor of the hypothesis that people think about both relative and absolute price differences. Whether the price given to the subjects is that of the high-quality good or of the low-quality good makes a large difference, a result that is related to the endowment effect and the status quo bias. Implications of the results for business strategy and other areas are also discussed.     

Project Success: A Multidimensional Strategic Concept

This article presents projects as powerful strategic weapons, initiated to create economic value and competitive advantage. It suggests that project managers are the new strategic leaders, who must take on total responsibility for project business results. Defining and assessing project success is therefore a strategic management concept, which should help align project efforts with the short- and long-term goals of the organization. While this concept seems simple and intuitive, there is very little agreement in previous studies as to what really constitutes project success. Traditionally, projects were perceived as successful when they met time, budget, and performance goals. However, many would agree that there is more to project success than meeting time and budget. The object of this study was to develop a multidimensional framework for assessing project success, showing how different dimensions mean different things to different stakeholders at different times and for different projects. Given the complexity of this question, a combination of qualitative and quantitative methods and two data sets were used. The analysis identified four major distinct success dimensions: (1) project efficiency, (2) impact on the customer, (3) direct business and organizational success, and (4) preparing for the future. The importance of the dimensions varies according to time and the level of technological uncertainty involved in the project. The article demonstrates how these dimensions should be addressed during the project’s definition, planning, and execution phases, and provides a set of guidelines for project managers and senior managers, as well as suggestions for further research.     

The Effectiveness of Risk Management: An Analysis of Project Risk Planning Across Industries and Countries

This article examines the effectiveness of current risk management practices to reduce project risk using a multinational, multi‐industry study across different scenarios and cultures. A survey was administered to 701 project managers, and their supervisors, in seven industries and three diverse countries (New Zealand, Israel, and Japan), in multiple languages during the 2002–2007 period. Results of this study show that project context—industry and country where a project is executed—significantly impacts perceived levels of project risk, and the intensity of risk management processes. Our findings also suggest that risk management moderates the relationship between risk level and project success. Specifically, we found that even moderate levels of risk management planning are sufficient to reduce the negative effect risk levels have on project success.     

The estimation of R 2 and adjusted R 2 in incomplete data sets using multiple imputation

The coefficient of determination, known also as the R ², is a common measure in regression analysis. Many scientists use the R ² and the adjusted R ² on a regular basis. In most cases, the researchers treat the coefficient of determination as an index of ‘usefulness’ or ‘goodness of fit,’ and in some cases, they even treat it as a model selection tool. In cases in which the data is incomplete, most researchers and common statistical software will use complete case analysis in order to estimate the R ², a procedure that might lead to biased results. In this paper, I introduce the use of multiple imputation for the estimation of R ² and adjusted R ² in incomplete data sets. I illustrate my methodology using a biomedical example.     

Business strategy and the social norm of tipping

Tipping is an important economic phenomenon, involving about $47 billion a year in the US food industry alone, and trillions of dollars across different occupations and countries over the years. Moreover, tipping is a major source of income for millions of workers. This article discusses the implications of tipping for business strategy in the relevant industries. For example, firms can choose to impose a compulsory service charge in lieu of tipping - what are the advantages and disadvantages of doing so? How does tipping change the profit-maximizing level of investing in screening job applicants, training workers, monitoring them, and providing performance-based incentives by the firm? Can industries such as the music industry use tips (i.e., prices being voluntary and determined by the customers) as an alternative business model?     

Inferences on missing information under multiple imputation and two-stage multiple imputation

In the presence of missing values, researchers may be interested in the rates of missing information. The rates of missing information are (a) important for assessing how the missing information contributes to inferential uncertainty about, Q, the population quantity of interest, (b) are an important component in the decision of the number of imputations, and (c) can be used to test model uncertainty and model fitting. In this article I will derive the asymptotic distribution of the rates of missing information in two scenarios: the conventional multiple imputation (MI), and the two-stage MI. Numerically I will show that the proposed asymptotic distribution agrees with the simulated one. I will also suggest the number of imputations needed to obtain reliable missing information rate estimates for each method, based on the asymptotic distribution.     

The history of tipping—from sixteenth-century England to United States in the 1910s

Tipping is a multi-billion-dollar phenomenon that challenges the traditional assumption of selfish economic agents who have no feelings and do not care about social norms. This article reviews the early history of tipping and offers an economic analysis of different aspects of tipping. Using the historical evidence, it then addresses two major questions about tipping: why do people tip? And does tipping improve service quality? The reasons for tipping changed over the years, but conforming to social norms and avoiding embarrassment were generally the main reasons. Tipping seems to improve service quality; the extent of the improvement varies across occupations.