Diaspora Ownership and Homeland Firms' Internationalization

Although the contribution of diaspora to international business is becoming more evident, little is known about the channels used by individual firms to benefit from diaspora. In this paper, we propose equity ownership as a form of connection between the homeland firms and diasporans (i.e. diaspora members). Specifically, we draw on the literature on diaspora combined with an owners-as-resources perspective to theorize about how diaspora owners can affect the homeland firm's internationalization. We suggest that the anticipated entry costs deriving from the liability of foreignness faced by homeland firms explain how the impact of diaspora owners varies depending on entry mode. Finally, we compare diaspora owners to other types of foreign owner which we argue have lower levels of motivation and ability to help homeland firms to internationalize, and contribute relatively less to their internationalization than diaspora owners. We test and confirm our predictions using data on 2608 domestically controlled Indian firms and their internationalization in 2006–2012.     

An experimental investigation of risk sharing and adverse selection

Does adverse selection hamper the effectiveness of voluntary risk sharing? How do differences in risk profiles affect adverse selection? We experimentally investigate individuals’ willingness to share risks with others. Across treatments we vary how risk profiles differ between individuals. We find strong evidence for adverse selection if individuals’ risk profiles can be ranked according to first-order stochastic dominance and only little evidence for adverse selection if risk profiles can only be ranked according to mean-preserving spreads. We observe the same pattern also for anticipated adverse selection. These results suggest that the degree to which adverse selection erodes voluntary risk sharing arrangements crucially depends on the form of risk heterogeneity.     

Giving in the face of risk

Decisions about how to share resources with others often need to be taken under uncertainty regarding its allocational consequences. Although risk preferences are likely important, existing research is silent about how social and risk preferences interact in such situations. In this paper we provide experimental evidence on this question. In a first experiment givers are not exposed to risk while beneficiaries’ final earnings may be larger or smaller than the allocation itself, depending on the realized state of the world. In a second experiment, risk affects the earnings of givers but not of beneficiaries. We find that individuals’ risk preferences are predictive for giving in both experiments. Increased risk exposure of beneficiaries tends to decrease giving whereas increased risk exposure of givers has no effect. We propose a simple non-linear generalization of a model allowing for other-regarding preferences, ex-post and ex-ante fairness, and risk aversion. We find some support for it in our data when risk is on the beneficiaries’ side but less so when risk is on the givers’ side. Our results point to the importance of the further development of models of social preferences that also incorporate risk preferences.     

Two Means Together? Effects of Response Bias and Sensitivity on Communicative Action Detection

Numerous lines of research suggest that communicative dyadic actions elicit preferential processing and more accurate detection compared to similar but individual actions. However, it is unclear whether the presence of the second agent provides additional cues that allow for more accurate discriminability between communicative and individual intentions or whether it lowers the threshold for perceiving third-party encounters as interactive. We performed a series of studies comparing the recognition of communicative actions from single and dyadic displays in healthy individuals. A decreased response threshold for communicative actions was observed for dyadic vs. single-agent animations across all three studies, providing evidence for the dyadic communicative bias. Furthermore, consistent with the facilitated recognition hypothesis, congruent response to a communicative gesture increased the ability to accurately interpret the actions. In line with dual-process theory, we propose that both mechanisms may be perceived as complementary rather than competitive and affect different stages of stimuli processing.

     

The trinity of wage setting in EMU: A policy proposal

Diverging labor cost developments are often considered to be one of the most important factors that led to large current account imbalances in the euro area (EA) in the run-up to the global financial crisis. It has also been shown that wage growth differentials have significantly lowered the co-movement of EA countries’ business cycles – the most widely used meta-criterion for optimum currency areas. Against this background, this paper develops a wage-setting benchmark that aims to keep the economy in internal equilibrium and to maintain price stability, while it also exhibits the capacity to correct for external imbalances. The proposed wage benchmark is very simple and may serve as an anchor for the macroeconomic dialogue in Economic and Monetary Union. In order to demonstrate the potentially beneficial effects of such a wage benchmark we present some simulations showing how current account balances and labor costs would have developed across EA countries if the rule had served as a benchmark already in the run up to the crisis.     

Social policies related to parenthood and capabilities of Slovenian parents

We apply Sen's capability approach to evaluate the capabilities of Slovenian parents to reconcile paid work and family in the context of the transition to a market economy. We examine how different levels of capabilities together affect the work–life balance (WLB) of employed parents. We combine both quantitative and qualitative methodological approaches. The results of our quantitative and qualitative research show that increased precariousness of employment and intensification of work create gaps between the legal and normative possibilities for successful reconciliation strategies and actual use of such arrangements in Slovenia. The existing social policies and the acceptance of gender equality in the sphere of paid work enhance capabilities for reconciliation of paid work and parenthood, whereas the intensification of working lives, the dominance of paid work over other parts of life, and the acceptance of gender inequalities in parental and household responsibilities limit parents’ capabilities to achieve WLB.     

How to Spend Public Money Efficiently: A Cost-Effectiveness Model Illustrated Using the EU’s “Youth”-Program

Since it is crucial for public entities to spend the taxpayer’s money effectively and efficiently, we have analyzed the methods used to check for the two criteria in the European Union’s “Youth”-program. We find that the currently applied method is not theoretically sound and hardly politically justifiable. Therefore, we present a new approach which includes the important aspects that a public organization needs to respect. It is theoretically correct and fulfills economic standards; it is valid in political standards; it is feasible; and it is easily understandable for a large public. We singled out two factors which are readily observable and a good proxy for the decision if a project is worthy to be supported by public funds: the number of people reached and the quality of the program proposed.     

Essentialist Beliefs About Homosexuality Predict Positive and Negative Behavioral Intentions Toward Lesbian Women and Gay Men

This study focuses on essentialist beliefs about homosexuality as determinants of discriminatory intentions against gay men and lesbian women (LG) and the readiness to engage in positive action toward them. A sample of 997 exclusively heterosexual adults participated in an online study set in Croatia, a country with high homophobia undergoing social change that threatens the higher status of the heterosexual majority. Beliefs about immutability and universality of homosexuality were associated with less intention to discriminate and more readiness to engage in positive behavior, while discreteness beliefs were inversely related to both. Furthermore, attitudes toward LGs seem to be the mechanism behind the observed links. Results suggest essentialist beliefs might be fuel for attitudes, which are in turn associated with behavioral intentions. Importantly, essentialist beliefs had both indirect (with attitudes as mediators) and direct effects on behavioral intentions speaking in favor of their robust role in explaining LG-related phenomena.