Intergenerational cooperation within the household: a Public Good game with three generations

We analyze cooperation of individuals in a family context, using a Public Good game. In a lab experiment, 165 individuals from 55 three-generation families (youth, parent, and grandparent) play a repeated Public Good game in three different treatments: one in which three members of the same family play each other (family), a second with the youth and two non-family members, while preserving the previous generational structure (inter-generational), and a third in which three randomly-selected players play each other (random). We find that all the age groups cooperate more when playing with relatives, indicating that family ties may have a positive relationship to contributions to the Public Good. We also find that this trend is more evident for the youths and the parents than for the grandparents. Furthermore, young individuals tend to cooperate less than older generations, especially in non-family treatments. Our results serve as evidence of the relationship between family ties and inter-generational cooperative behaviors.

     

Placement characteristics and stability: a longitudinal analysis of Norwegian children in foster homes

This paper investigates how enhanced support for foster parents, such as covering fees and providing consultants and relief, may reduce the number of replacements experienced by children in foster care. It also investigates the extent to which replacements are associated with family (kin) vs. non‐family foster parents, or with legal characteristics of the placement (i.e. forced administrative decisions vs. relief measures agreed upon by the parents). Statistical analyses of administrative data from Norway investigated the longitudinal relationships between these characteristics and the number of replacements at two levels – children (N = 16 109) and municipalities (N = 418) – over 5 years (2007–2011). The results reveal modest associations between enhanced support and fewer replacements; for example, replacement rates are lower for children placed in homes of kin than in non‐family homes. Replacements also tend to be fewer when the placement is forced rather than consensual.     

Dual class shares,board of directors’ effectiveness and firm’s market value: an empirical study

This study aims to identify whether a relationship exists between the controlling shareholders’ voting power and outside directors’ effectiveness in maximizing firms’ financial performance. We analyze a panel data with 3057 observations for the 2000–2012 period using a random effects model, logit and probit regressions, and the two-stage model of Heckman in the Brazilian stock market. Our findings show that firms whose controlling shareholders use dual class shares to leverage their voting power have less independence from the board and worse financial performance and market value. Further, the percentage of outside directors tends to be ineffective in increasing the firm’s value, and in changing the firm’s chief executive officer (CEO) when (1) the controlling shareholder’s voting power is leveraged, or (2) when the CEO assumes a position on the board of directors simultaneously. We interpreted that these results are in line with the arguments in favor of the existence of a new agency cost, which is related to the undue obedience of board members to authority, such as the largest controlling shareholder or the CEO in Brazilian listed firms.     

Nativity and Self‐Assessed Health among Pre‐Retirement Age Hispanics and Non‐Hispanic Whites1

Economic, social and familial resources are known to influence subjective health assessments. We examine the salience of nativity in determining how these resources influence self‐assessed health using a large, nationwide sample of Hispanic and non‐Hispanic white adults. The results indicate that while education, accumulated assets and marital status benefit the physical and emotional health of the native and foreign‐born, family resources and income are significant only for the native‐born. English language proficiency is a significant protective factor for both groups and is especially protective for immigrants. These surprising findings call into question previous studies stressing the positive role of the family in maintaining immigrant health.     

An application of catastrophe theory to management science process

Practicing management scientists often complain of the alleged irrational behavior on the part of the managers they are trying to serve, particularly when a manager suddenly and unexpectedly shifts behavior from one of support to one of resistance. The authors feel such behavior is only believed to be irrational because the management scientist is using the wrong mental model when projecting past behavioral patterns into the future. This paper attempts to solve this problem by using the newly developed catastrophe theory to develop a different model where sudden shifts in behavior are considered perfectly rational and explainable. The basic implication that is drawn from this new model is that successful implementation of management science depends on a sequence of interactions with the ultimate model user and that care in the structuring of these interactions can greatly enhance the probability of eventual user acceptance.     

Econometric analysis and managerial decision making

Econometric analysis is concerned with the quantitative relationships between economic variables and it can provide an important input into the decision making process of managers. Typically econometrics differs from other apsects of management science in that it considers problems primarily, though not exclusively, from a background of economics rather than of other disciplines and behaviour is usually dealt with at higher levels of data aggregation than the individual firm.This paper considers some applications of typical econometrics to the general area of managerial decision making, where primarily the techniques have a role to play in assisting the general process of data analysis. Initially discussion is pointed towards the use of the analysis for predictive purposes and the contrast with time series methods. Subsequently examples are presented where the objective is to obtain a better understanding of individual economic relationships that aim to be important inputs into the decision making process, for example cost and revenue analysis. Finally, an example is given of how these ideas contribute more generally to the activity of model building for the firm as a whole both for the purpose of forecasting and policy simulation.