Economic convergence and life satisfaction in the European Union

The issue of convergence or divergence in the European Union (EU) is usually viewed from a macroeconomic perspective, using indicators such as the income per head, the unemployment rate and the inflation rate. Little attention has been paid to the possibility of an associated convergence in ‘well-being’ across countries. Since recent literature has shown that subjective well-being (life satisfaction, ‘happiness’) is significantly affected by macroeconomic variables, it is natural to ask not only whether or not subjective well-being converges, but also, whether, how and to what extent this process is linked to macroeconomic convergence. In this paper we use self-rated life satisfaction elicited in large scale surveys to address these questions. We find evidence of convergence of life satisfaction across the member states of the EU, which can be attributed to a considerable extent to the convergence in macroeconomic conditions. Among the various macroeconomic indicators, the convergence in inflation rates has played a major role for the convergence in life satisfaction.     

Antwort auf die Erwiderung zu den Anmerkungen zur Diskussion zur Haftung des Wirtschaftsprüfers am Primär-und Sekundärmarkt

Ohne Zusammenfassung Forschungsschwerpunkte: Investition, Finanzierung, interne und externe Rechnungslegung.     

Social capital or strong culture?

Organization scientists have recently introduced the concept of social capital to explain how the fabric of social connections among organization members leads to superior organizational performance. In this paper, I argue that the typical formulations of social capital sound remarkably similar to familiar conceptions of organizational culture, especially those features that indicate tightly coupled and deeply embedded social relations. I identify the common strands in the concepts of social capital and organizational culture. I propose that, without further efforts of conceptual clarification and empirical verification, the wholesale adoption by human resource development practitioners of the most popular features of the social capital concept is risky and likely to lead to disillusionment.     

Shapiro,A.C.: Multinational Financial Management

RJB Review of Journals and Books

Shapiro, A.C.: Multinational Financial Management     

Elderly African Americans as intragenerational caregivers

A growing number of older Americans serve as caregiving resources for their elderly spouses, partners, relatives, and/or friends. Yet, little research has addressed the impact and implications of this trend among African Americans. This article describes the results of a qualitative study examining the intragenerational caregiving experiences and perspectives of two cohorts of African Americans (urban and rural, N = 129) between the ages of 58 and 89. Its findings reveal important differences and commonalities associated with elderly African American caregivers and their care giving in urban and rural settings. Additionally, the study suggests that volunteer caregivers can often fill the void left by partners and relatives who predecease or fail to assume responsibility for the care of their elderly relatives. Their efforts do not displace those of friends and family members, but rather address unmet needs in available care. The discussion focuses on the implications of the study findings for public policy and practice.     

Progressive type II censored order statistics from exponential distributions

In the model of progressive type II censoring, point and interval estimation as well as relations for single and product moments are considered. Based on two-parameter exponential distributions, maximum likelihood estimators (MLEs), uniformly minimum variance unbiased estimators (UMVUEs) and best linear unbiased estimators (BLUEs) are derived for both location and scale parameters. Some properties of these estimators are shown. Moreover, results for single and product moments of progressive type II censored order statistics are presented to obtain recurrence relations from exponential and truncated exponential distributions. These relations may then be used to compute all the means, variances and covariances of progressive type II censored order statistics based on exponential distributions for arbitrary censoring schemes. The presented recurrence relations simplify those given by Aggarwala and Balakrishnan (1996)     

Dominance criteria for welfare comparisons: using equivalent income to describe differences in needs

The article demonstrates that the dominance approach—often used for the measurement of welfare in a population in which there are different household types (see e.g., Atkinson and Bourguignon, Arrow and the foundations of the theory of economic policy, 350–370, 1987)—can be based on explicit value judgments on the households’ living standard. We define living standard by equivalent income (functions) and consider classes of inequality averse social welfare functions: Welfare increases if the inequality of living standard is decreased. In this framework, we suggest three new dominance criteria and obtain characterizations of second degree stochastic dominance and of two criteria proposed by Bourguignon (Journal of Econometrics 42:67–80, 1989).     

The relationship between individual and household measures of WTP and WTA

The article defines measures of individual and household willingness to pay (and to accept) in a general and flexible framework. It completely clarifies the relationship between the household measures and the sum of the individual welfare measures (the aggregate measures) which are in general different. The aggregate measures form only an upper bound for the corresponding household measures. The bounds (based on the information about individual measures) can be tightened by introducing additional assumptions about the decision process within the household. The results derived prove helpful for the theoretical analysis of household behavior, for the evaluation of nonmarket goods in environmental and public economics and for contingent valuation.     

Rawls and Bentham reconciled

The paper deals with the characterization of a class of social welfare orderings. The social evaluation functions which represent these orderings are separable in the components of the ordered utility vector. The characterization is based on the Strong Pareto Property, Co-cardinality, Continuity and a new Independence Property. Since this class encompasses the utilitarian rule and since there are members of this family which almost coincide with the rules of rank dictatorship this family bridges the gap between pure utilitarianism and rank dictatorship.