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Obesity is increasing worldwide, and in many countries, the problem is particularly serious among lower-income groups. Front-of-pack nutritional warning labels are a prominent regulatory tool to fight obesity and have been implemented or are currently being debated in many countries. Existing studies document that warning labels incentivize consumers to substitute away from unhealthy products. However, not much is known about equilibrium price changes in response to consumers’ utility for warning labels. Using household purchase data in the cereal category, this article studies the adjustments of prices after the mandatory introduction of warning labels in Chile. The authors develop a model showing that warning labels lead to higher prices of labeled cereals, as is also observed in data. In contrast, prices of unlabeled products tend to drop or at least increase less, incentivizing price-sensitive consumers to remain in the category. The authors decompose postlabeling market share adjustments into a pure label effect that fixes prices at initial levels after regulation and a total effect that accounts for price reoptimizations. Their findings point to self-enforcing effects of a warning label regulation as the price adjustments amplify policy makers' goal of reducing unhealthy food intake, especially because market forces incentivize low-income segments to choose healthier alternatives.

The field of international business (IB) has been successful in developing a unique body of knowledge on the multinational corporation and on country-level contexts. A recurring debate concerns its claim to uniqueness, and to associated scholarly characteristics that distinguish IB from other fields of research. I discuss what makes IB research unique by looking at what IB theory can explain and predict. To that end, I leverage key theoretical arguments and empirical insights to advance an understanding of IB centered around a firm's ability to create added value in more than one location. I introduce a stylized model of the multi-locational firm embedded in multiple business systems characterized by equifinality. As a result of the qualitative disjunctures that separate one place from another, multi-locational firms are confronted with additional managerial and organizational challenges. These challenges are rooted in the process of "othering". Theorizing on the critical constructs of place, space, and organization, I argue that IB offers the most generalizable approach to understanding firms doing business in more than one location. IB's ultimate uniqueness lies in the potential of advancing a general theory of the firm in space.Le domaine des affaires internationales (International Business - IB) a réussi à développer un corpus unique de connaissances sur l’entreprise multinationale et les contextes au niveau du pays. Un débat récurrent porte sur sa prétention à l'unicité et les caractéristiques scientifiques associées qui distinguent l'IB des autres domaines de recherche. Je discute de ce qui rend la recherche en IB unique en examinant ce que la théorie de l'IB peut expliquer et prévoir. Pour ce faire, je m'appuie sur des évidences empiriques et des arguments théoriques clés afin d’élaborer une meilleure compréhension de l’IB centrée sur la capacité d'une entreprise à créer de la valeur ajoutée dans plus d'une localisation. J'introduis un modèle stylisé de l'entreprise multi-localisée encastrée dans de multiples systèmes commerciaux caractérisés par l'équifinalité. En raison des disjonctions qualitatives qui séparent un lieu d'un autre, les entreprises multi-localisées sont confrontées à des défis organisationnels et managériaux supplémentaires. Ces défis sont ancrés dans le processus d'« altérisation ». M'appuyant sur les construits cardinaux de lieu, d'espace et d'organisation, j’argumente que l'IB apporte l'approche la plus généralisable pour comprendre les entreprises opérant dans plus d'une localisation. L'unicité suprême de l'IB réside dans son potentiel à faire progresser une théorie générale de l'entreprise dans l'espace.El campo de negocios internacionales (IB por sus iniciales en inglés) ha venido desarrollando exitosamente un cuerpo de conocimientos único sobre la empresa multinacional y los contextos nacionales. Un debate recurrente se refiere a su pretensión de ser único y a las características académicas asociadas que distinguen a las empresas internacionales de otros campos de investigación. Discuto lo que hace que la investigación sobre negocios internacionales sea única examinando lo que la teoría de negocios internacionales puede explicar y predecir. Para esa finalidad, me apalanco en los principales argumentos teóricos y las ideas empíricas para avanzar en la comprensión de la IB centrada en la capacidad de una empresa para crear valor agregado en más de un lugar. Introduzco un modelo estilizado de empresa multilocalizada integrada en múltiples sistemas empresariales caracterizados por la equifinalidad. Como resultado de las disyuntivas cualitativas que separan un lugar de otro, las empresas multilocalizadas se enfrentan a retos adicionales de gestión y organización. Estos retos tienen su origen en el proceso de “otredad”. Teorizando sobre los conceptos críticos de lugar, espacio y organización, sostengo que negocios internacionales ofrece el enfoque más generalizable para entender a las empresas que hacen negocios en más de un lugar. La particularidad fundamental de la negocios internacionales radica en el potencial de avance de una teoría general de la empresa en el espacio.A área de negócios internacionais (IB) tem tido sucesso no desenvolvimento de um corpo único de conhecimento sobre a corporação multinacional e contextos em nível de país. Um debate recorrente diz respeito à sua reivindicação de singularidade e características acadêmicas associadas que distinguem IB de outros campos de pesquisa. Discuto o que torna a pesquisa em IB única ao observar o que a teoria em IB pode explicar e prever. Para esse fim, utilizo essenciais argumentos teóricos e insights empíricos para avançar na compreensão de IB centrado na capacidade de uma empresa de criar valor agregado em mais de um local. Apresento um modelo estilizado da empresa multilocalizada incorporada em vários sistemas de negócios caracterizados pela equifinalidade. Como resultado das disjunções qualitativas que separam um lugar do outro, as empresas multilocais são confrontadas com desafios administrativos e organizacionais adicionais. Esses desafios estão enraizados no processo de ostracismo. Teorizando sobre os construtos críticos de lugar, espaço e organização, argumento que IB oferece a abordagem mais generalizável para entender empresas que fazem negócios em mais de um local. A singularidade decisiva de IB está no potencial de avançar uma teoria geral da firma no espaço.国际商务 (IB) 领域成功地开发了关于跨国公司和国家层面情境的独特知识体系。一个反复出现的争论涉及其声称的独特性， 以及将 IB 与其它研究领域区分开来的相关学术特征。我通过审视 IB 理论可解释和预测的内容来讨论是什么让 IB 研究与众不同。为此， 我利用关键的理论论据和实证见解来增进对以公司在多于一个地点创造附加值的能力为中心的IB 的理解， 我提出了一个以等价性为特征的嵌入多业务系统中的多地点公司的程式化模型。由于将一个地方与另一个地方分隔开来的性质脱节， 多地点公司面临额外的管理和组织挑战。这些挑战植根于“他者化”过程。通过对场地、空间和组织的关键概念进行理论化， 我认为 IB 提供了一种最通用的方法来理解在多个地点开展业务的公司。IB 的最终独特性在于在空间发展公司通用理论的潜力。.

Africa's rural population continues to expand rapidly, and labor productivity in agriculture and many rural-off farm activities remains low. This review uses the lens of a dual economy and the associated patterns of agricultural, rural, and structural transformation to review the evolution of Africa's rural employment and its inclusiveness. Many African countries still find themselves in an early stage of the agricultural and rural transformation. Given smaller sectoral productivity gaps than commonly assumed, greater size effects, and larger spillovers, investment in agriculture and the rural off-farm economy remains warranted to broker the transition to more and more productive rural employment. The key policy questions thus become how best to invest in the agri-food system (on and increasingly also off the farm) and how best to generate demand for nonagricultural goods and services that rural households can competitively produce. Informing these choices continues to present a major research agenda, with digital technologies, the imperative of greening, and intra-African liberalization raising many unarticulated and undocumented opportunities and challenges.

ispartof: FEMINIST ECONOMICS vol:29 issue:1 pages:266-297 status: published

We analyse the question of whether the use of forward-looking data in monetary policy is to be preferred over the use of current data. We use a behavioural macroeconomic model that generates periods of tranquillity alternating with crisis periods characterized by fat tails in the distribution of output gap. We find that in a strict inflation targeting (SIT) regime, the use of forward-looking data leads to a lower quality of monetary policymaking than in a dual mandate monetary policy regime, because the first regime creates more extreme movements in output and inflation than the second one. We also find that nowcasting tends to improve the quality of monetary policy, especially in a SIT regime. Finally, we provide a case study of monetary policies in the USA and the eurozone during 2000–20.

We study redistribution in a setting where individual responsibility and circumstance characteristics determine pre-tax income. We distinguish between ex ante and ex post versions of the key principles of compensation and reward. Furthermore, we distinguish between absolute and relative versions of reward. On the basis of these axioms, we provide characterizations of five familiar and two new redistribution mechanisms.

The expectation of a mass movement out of cities due to the rise of remote work associated with the Covid-19 pandemic, is counter to longstanding theories of the benefits of agglomeration economies. It suggests centrifugal shifts of economic activity which could boost neighbourhood economies at the expense of the downtown core. Using mobile phone data from SafeGraph, we track migration and daily mobility patterns throughout the New York metropolitan area between July 2019 and June 2021. We find that diverse suburban centres and exurban areas have bounced back more quickly than the dense specialised commercial districts in and around Manhattan.

ispartof: TIJDSCHRIFT VOOR ECONOMISCHE EN SOCIALE GEOGRAFIE vol:113 issue:3 pages:250-256 status: published

Entrepreneurship can be fulfilling and enhance wellbeing, but also highly stressful and diminish wellbeing. This meta-analytical review synthesizes 319 effect sizes from 94 studies and 82 countries to establish whether individuals derive greater wellbeing from working for themselves or for someone else. The answer is partly positive in favor of entrepreneurship but depends on the components of wellbeing under investigation (positive wellbeing or negative wellbeing/mental illbeing) and the institutional context (especially the rule of law). We contribute by developing the component view of wellbeing as an organizing framework and by advancing an institutional perspective to guide research on entrepreneurs’ wellbeing.

Households in developing countries are exposed to various shocks and risks, which leaves them vulnerable as they typically have limited resources to cope with them. Even though a large body of development literature has focused on the role of risk in rural livelihoods, the focus is often on single sources of risk and taking a unidimensional view on risk preference. This paper explores the diversity in risk perception and risk preferences of Ethiopian households by combining incentivized field experiments with detailed primary household survey data. We disentangle the relationship between risk perception and risk preferences using an innovative combination of time framing and instrumental variable estimation approaches. We find that our respondents are exposed to multiple past shocks and perceive multiple sources of future threats across different agricultural risk domains. Our respondents can be characterized as relatively risk-averse and loss-averse, and they also overweight unlikely extreme outcomes. We find a statistically significant association between the prospect theory risk preferences parameters—risk aversion, loss aversion, and probability weighting—and overall risk perception, domain-specific risk perceptions (except for the personal domain) and the impact dimension of future risk. Our findings make an important contribution to our understanding of farm households’ risk behavior, and can guide prioritizing development efforts to stimulate better informed and well-targeted risk management policy interventions.

Appropriately considering adjustment costs, this paper develops a robust nonparametric framework to analyse profits, prices and productivity in a dynamic context. Dynamic profit change is decomposed into a dynamic Bennet price indicator and a dynamic Bennet quantity indicator. The latter is decomposed into explanatory factors. It is shown to be a superlative indicator for the dynamic Luenberger indicator. The application focuses on 1,638 observations of French meat-processing firms for the years 2012–2019. Using m-out-of-n bootstrapped data envelopment analysis, we obtain robust estimates and confidence intervals. The components of dynamic productivity growth fluctuate substantially. However, these fluctuations are often statistically insignificant.

We develop Generational Wealth Accounts (GWA): the first set of balance sheets, broken down by generations, to include all human capital, tangible wealth, financial wealth, and transfer wealth, and the uses to which these resources are put. We then use them to measure the size, nature (public or private; capital or current) and direction of inter-generational transfers and assess the sustainability of public and private consumption plans. We confirm that public sector consumption in the UK is unsustainable but show that the private sector is close to balance. Aggregate consumption plans are therefore unsustainable. Although public sector finances worsened significantly over the crisis, the private sector balance improved and capital transfers to the young increased, more than fully offsetting this deterioration. We find that increases in house prices redistributed resources away from the young and towards the old but had little effect on overall sustainability.

Contains fulltext : 235981.pdf (Publisher’s version ) (Open Access) In this study, we expand on the existing work on job crafting by focusing on (1) within-person fluctuation in affective experiences in relation to job crafting and person-job fit and (2) between-person fluctuations in personal growth initiative (PGI) as an important boundary condition of these relationships. Using multilevel data from 116 employees (341 observations), our results showed that fluctuations in positive active emotions (PAE) and negative active emotions (NAE) related positively to daily job crafting; this relationship was moderated by overall PGI levels. Next, we found a positive association between daily job crafting and daily person-job fit. Finally, we found indirect effects from NAE and PGI to daily fluctuations in person-job fit via daily fluctuations in job crafting; NAE and PGI energized employees to engage in daily job crafting, which contributed to their daily person-job alignment. We discuss implications for theory and practice. 20 p.

This article demonstrates that low bank capital carries a negative externality because it amplifies local shock spillovers. We exploit a natural disaster that is transmitted to firms in nondisaster areas via their banks. Firms connected to a strongly disaster-exposed bank with lowest-quartile capitalization significantly reduce their total borrowing by 6.6% and tangible assets by 6.9% compared to similar firms connected to a well-capitalized bank. These findings translate to negative regional effects on GDP and unemployment. Additionally, following a disaster event, banks reduce their exposure to currently unaffected but generally disaster-prone areas.

Many firms use forced rating systems in which supervisors must evaluate employees according to a predefined distribution. We develop new theory suggesting that forced ratings are less likely to enhance performance when supervisors assess subjective dimensions of employee performance (e.g., creativity), but can have some harmful side effects. In a laboratory experiment, employees work on a creative task, and supervisors rate their performance. We do not find any difference in the employees’ performance or effort in a creative task setting between forced and free ratings. We do, however, find that forced ratings create higher stress for employees (ex post stress scales and biomarkers). Higher stress in turn mitigates the positive effect of effort on creativity. Furthermore, we find that actual creativity explains less of supervisors’ ratings of employees’ performance under forced ratings. Instead, factors that are unrelated to actual creativity, such as eloquent writing and strategic gaming behavior, matter more. Results of an additional online experiment confirm that forced ratings work differently in tasks where performance needs to be evaluated subjectively compared to tasks where objective measures are available.

We study whether carbon emissions affect the cross-section of US stock returns. We find that stocks of firms with higher total carbon dioxide emissions (and changes in emissions) earn higher returns, controlling for size, book-to-market, and other return predictors. We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. We also find that institutional investors implement exclusionary screening based on direct emission intensity (the ratio of total emissions to sales) in a few salient industries. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk.

We find dealer-level evidence that recent regulation on the leverage ratio requirement causes deviations from covered interest parity. Our analysis uses a unique data set of currency derivatives with disclosed counterparty identities together with exogenous variation introduced by the U.K. leverage ratio framework. Dealers who are affected by the regulatory shock charge an additional premium of about 20 basis points per annum for synthetic dollar funding relative to unaffected dealers. This finding holds even after controlling for changes in clients' demand. Also, some clients increase their trading activity with unaffected dealers with whom they already had a preexisting relationship.

Globalization transforms not just the economics of production and exchange in the world, but also the political economy of public policies. We analyze how wine regulations, and more specifically planting rights restrictions, have been affected by globalization, in particular colonial expansions of wine producing empires. We study several historic cases and find that (a) planting right restrictions and compulsory uprooting of vineyards are introduced to deal with falling wine prices as colonial wine production takes off and expands; (b) that enforcement of the restrictions and uprooting was difficult and often imperfect; and (c) that there was a strong persistence of the policies: after their introduction the restrictions remain in place for a long time (often centuries) and they are only removed after major shocks to the political economy equilibrium.

On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. The resulting short squeeze in Volkswagen’s stock briefly made it the most valuable listed company in the world. We argue that this was a manipulation designed to save Porsche from insolvency and the German laws against this kind of abuse were not effectively enforced. Using hand-collected data we provide the first rigorous academic study of the Porsche-VW squeeze and show that it significantly impeded market efficiency. Preventing manipulation is important because without efficient securities markets, the EU’s major project of the Capital Markets Union cannot be successful.

ispartof: AGRICULTURAL ECONOMICS vol:53 issue:6 pages:968-975 status: published

We show that lenders charge higher interest rates for mortgages on properties exposed to a greater risk of sea level rise (SLR). This SLR premium is not evident in short-term loans and is not related to borrowers’ short-term realized default or creditworthiness. Further, the SLR premium is smaller when the consequences of climate change are less salient and in areas with more climate change deniers. Overall, our results suggest that mortgage lenders view the risk of SLR as a long-term risk and that attention and beliefs are potential barriers through which SLR risk is priced in residential mortgage markets.

ispartof: EUROPE-ASIA STUDIES status: Published online

Healthier people contribute more to the development of the economy. Besides, in a better economy, people have a better quality and healthier life. At this stage, one has to ask which one precedes the other: health or wealth? To find the answer, this study aims to investigate the causality relationship between health and inclusive wealth in the European countries for the period of 1990–2015. The causality between health and inclusive wealth scores, which are estimated by cluster and discriminant analyses, is investigated by the panel causality test. The research results indicate bidirectional causality between health and inclusive wealth. A one-way causality is detected in 11 cases as being from inclusive wealth to health and in 8 the other way. Furthermore, a two-way causality is found in 2 countries. Among the results, it is noteworthy that 91% of the countries with causality from inclusive wealth to health are among the healthy countries.

Household financial decisions are complex, interdependent, and heterogeneous, and central to the functioning of the financial system. We present an overview of the rapidly expanding literature on household finance (with some important exceptions) and suggest directions for future research. We begin with the theory and empirics of asset market participation and asset allocation over the life cycle. We then discuss household choices in insurance markets, trading behavior, decisions on retirement saving, and financial choices by retirees. We survey research on liabilities, including mortgage choice, refinancing, and default, and household behavior in unsecured credit markets, including credit cards and payday lending. We then connect the household to its social environment, including peer effects, cultural and hereditary factors, intra-household financial decision-making, financial literacy, cognition, and educational interventions. We also discuss literature on the provision and consumption of financial advice. (JEL D15, G41, G50, J26, Z13)

Almost two decades ago, Prahalad and Hammond [Harv Bus Rev, 80(9):48–59, 2002] introduced the base/bottom of the pyramid (BOP) approach to profitably serving the poor with business models adapted from developed markets while alleviating poverty. In response to disappointing results and ethical criticism, the BOP approach evolved from a just-for-profit approach with a passive role of the poor to an inclusive development approach that integrates the principles of the triple bottom line. A recent review of the BOP literature [Dembek et al., J Bus Ethics 165(3):365–382, 2020], however, reveals a lack of empirical evidence to support the sustainable BOP approach. In this paper, we specify the assumptions underlying the sustainable BOP approach and test them using structural equation modeling with clustered robust standard errors on a unique dataset of 212 firms. Our findings show that BOP business model involvement and adaptive capacity are significant drivers of the triple bottom line at the BOP; however, business model adaptive capacity does not guarantee an ecologically sustainable performance at the BOP. We find that there is a need for further extension of the ethical foundations of the sustainable BOP approach.

ispartof: JOURNAL OF MONETARY ECONOMICS vol:121 pages:15-18 status: published

This paper explores the impact of the COVID-19 lockdown on aggregate employment in Belgium. To this end, we use microdata of all Belgian firms and apply a machine learning-based approach to simulate the impact of the lockdown on employment growth under various economic scenarios. In doing so, we distinguish between start-ups and incumbent firms with both short and long-term effects. In the short term, we expect to see significant losses of employment coming mainly from mature incumbent firms. In the long term, the missing generation of start-ups formed during the lockdown will have a significant and growing effect of slowing down the employment growth even a decade after the lockdown.

We assess the cleansing effects of the recent banking crisis. In U.S. regions with higher levels of supervisory forbearance on distressed banks during the crisis, there is less restructuring in the real sector and the banking sector remains less healthy for several years after the crisis. Regions with less supervisory forbearance experience higher productivity growth after the crisis with more firm entries, job creation, and employment, wages, patents, and output growth. Supervisory forbearance is greater for state-chartered banks and in regions with weaker banking competition and more independent banks, while recapitalisation of distressed banks through TARP does not facilitate cleansing.

Critics claim that patent screening is ineffective, granting low-quality patents that impose unnecessary social costs. We develop an integrated framework, involving patent office examination, fees, and endogenous validity challenges in the courts, to study patent screening both theoretically and quantitatively. In our model, some inventions require the patent incentive while others do not, and asymmetric information creates a need for screening. We show that the endogeneity of challenges implies that courts, even if perfect, cannot solve the screening problem. Simulations of the model, calibrated on U.S. data, indicate that screening is highly imperfect, with almost half of all patents issued on inventions that do not require the patent incentive. While we find that the current patent system generates positive social value, intensifying examination would yield large welfare gains. The social value of the patent system would also be larger if complemented by antitrust limits on licensing.

First published online: 19 June 2021 The past decade has profoundly reshaped the fiscal governance system of the Eurozone. Supranational prerogatives vis-à-vis State budgets have been significantly expanded, thereby redefining the nature of Union action in the field of fiscal policy and transforming the dynamics between the Union and its Member States. In spite of its overhaul and the practical effects that Eurozone fiscal governance now produces on the ground, the paper shows that overall, this regulatory system still formally qualifies as soft law. This results in a deep disconnect between the form and substance of Eurozone fiscal surveillance in the Eurozone, which raises a number of constitutional challenges. The paper shows that the source of this disconnect is to be found in the strict apprehension of the hard law/soft law divide and the narrow understanding of bindingness attached to it, which currently prevails in the legal discipline, but no longer corresponds to the realities of the EU’s regulatory practice. From there on, the paper offers an alternative approach towards the distinction between hard and soft law, based on a renewed, more open and contextual, understanding of the concepts of bindingness and legal effects, which might reconcile the form and the reality of Eurozone fiscal governance nowadays. This article was published Open Access with the support from the EUI Library through the CRUI - Springer Transformative Agreement (2020-2024)

Background Non-pharmaceutical interventions (NPIs) are the cornerstone of infectious disease outbreak response in the absence of effective pharmaceutical interventions. Outbreak strategies often involve combinations of NPIs that may change according to disease prevalence and population response. Little is known with regard to how costly each NPI is to implement. This information is essential to inform policy decisions for outbreak response. Objective To address this gap in existing literature, we conducted a systematic review on outbreak costings and simulation studies related to a number of NPI strategies, including isolating infected individuals, contact tracing and quarantine, and school closures. Methods Our search covered the MEDLINE and EMBASE databases, studies published between 1990 and 24 March 2020 were included. We included studies containing cost data for our NPIs of interest in pandemic, epidemic, and outbreak response scenarios. Results We identified 61 relevant studies. There was substantial heterogeneity in the cost components recorded for NPIs in outbreak costing studies. The direct costs of NPIs for which costing studies existed also ranged widely: isolating infected individuals per case: US$141.18 to US$1042.68 (2020 values), tracing and quarantine of contacts per contact: US$40.73 to US$93.59, social distancing: US$33.76 to US$167.92, personal protection and hygiene: US$0.15 to US$895.60. Conclusion While there are gaps and heterogeneity in available cost data, the findings of this review and the collated cost database serve as an important resource for evidence-based decision-making for estimating costs pertaining to NPI implementation in future outbreak response policies. Supplementary Information The online version contains supplementary material available at 10.1007/s40258-021-00659-z.

Economic theories posit conflicting hypotheses on how wealth inequality affects entrepre-neurial dynamism. We investigate the impact of wealth inequality on business dynamics by constructing local measures of household wealth inequality based on financial rents, home equity, and 1880 farmland. We then identify the effect of wealth inequality on entrepre-neurship by instrumenting it with land distribution under the 1862 Homestead Act. Wealth inequality decreases firm entry and exit, and the proportion of high-tech businesses across metropolitan statistical areas. Wealth inequality also lowers the supply of public goods, such as education. Growth in income per capita consequently lags.

Entrepreneurship is uniquely stressful. Entrepreneurs often cannot avoid entrepreneurial stressors (e.g., uncertainty, workload, resource constraints) and these stressors can deter natural recovery activities (e.g., detachment and sleep). Yet, entrepreneurs may be able to lessen the negative impact of stress on their well-being, health, and productivity by engaging in recovery. In this editorial, we outline how scholars can employ recovery interventions to ameliorate some of entrepreneurship’s ill effects and support entrepreneurs’ health, well-being, and productivity. We aim to move the focus of scholarly inquiry from documenting the health and well-being challenges of entrepreneurs, toward identifying and implementing solutions to support entrepreneurs.

This paper analyzes the effect of a discrete treatment Z on a duration T. The treatment is not randomly assigned. The confounding issue is treated using a discrete instrumental variable explaining the treatment and independent of the error term of the model. Our framework is nonparametric and allows for random right censoring. This specification generates a nonlinear inverse problem and the average treatment effect is derived from its solution. We provide local and global identification properties that rely on a nonlinear system of equations. We propose an estimation procedure to solve this system and derive rates of convergence and conditions under which the estimator is asymptotically normal. When censoring makes identification fail, we develop partial identification results. Our estimators exhibit good finite sample properties in simulations. We also apply our methodology to the Illinois Reemployment Bonus Experiment.

How can entrepreneurs protect their wellbeing during a crisis? Does engaging agility (namely, opportunity agility and planning agility) in response to adversity help entrepreneurs safeguard their wellbeing? Activated by adversity, agility may function as a specific resilience mechanism enabling positive adaption to crisis. We studied 3162 entrepreneurs from 20 countries during the COVID-19 pandemic and found that more severe national lockdowns enhanced firm-level adversity for entrepreneurs and diminished their wellbeing. Moreover, entrepreneurs who combined opportunity agility with planning agility experienced higher wellbeing but planning agility alone lowered wellbeing. Entrepreneur agility offers a new agentic perspective to research on entrepreneur wellbeing.

We test the hypothesis that security analysts discipline credit rating agencies. After all, analyst reports about a firm’s equity would no doubt be informative about its debt default probability and calibrate its credit ratings. We follow Hong and Kacperczyk (2010) in using brokerage house mergers, which eliminate redundant analysts, to shock analyst following so as to identify the causal effect of coverage on credit ratings. We find that a drop in one analyst covering increases the subsequent ratings of a company by around a significant halfrating notch. This effect is coming largely from firms with low initial analyst coverage and hence where the loss of one analyst is a sizeable percentage drop in market discipline. Our effect is stronger for firms close to default and hence where firm debt trades more like equity. The higher ratings due to fewer analysts following also result in lower bond yields.

There is increasing recognition among scholars that entrepreneurs use framing to legitimize their ventures and the broader fields within which they operate. Yet, there is no unifying framework to bring together existing theoretical perspectives on entrepreneurial framing and to make sense of their underlying mechanisms. Based on an integrative review of prior studies, we propose a conceptual framework for organizing this important literature. Our review also suggests directions for future research on entrepreneurial framing.

Do credit ratings help enforce market discipline on banks? Analyzing a uniquely comprehensive data set consisting of 1,081 rating change announcements for 154 international financial institutions between January 2004 and December 2015, we find that rating downgrades for internal reasons, such as adverse changes in the operating performance or capital structure of banks, are associated with a significant credit default swap spread widening. However, this widening only occurs for banks that are not perceived as to be Too-Big-to-Fail (TBTF). Our findings question the reliability of credit ratings as a tool to discipline TBTF banks and suggest that regulatory monitoring should remain the main mechanism for disciplining these banks.

Small and micro-enterprises are usually majority-owned by entrepreneurs. Using a unique sample of loan applications from such firms, we study the role of owners’ gender in bank credit decisions and post-credit-decision firm outcomes. We find that, ceteris paribus, female entrepreneurs are more prudent loan applicants than are males because they are less likely to apply for credit or to default after loan origination. The relatively more aggressive behavior of male applicants pays off, however, in terms of higher average firm performance after loan origination.

The promise of contingent convertible capital securities (CoCos) as a ”bail-in” solution has been the subject of considerable theoretical analysis and debate, but little is known about their effects in practice. We undertake the first comprehensive empirical analysis of bank CoCo issues, a market segment that comprises over 730 instruments totaling $521 billion. Four main findings emerge: (1) the propensity to issue a CoCo is higher for larger and better capitalized banks; (2) CoCo issues result in a statistically significant decline in issuers’ CDS spread, indicating that they generate risk-reduction benefits and lower costs of debt (this is especially true for CoCos that convert into equity, have mechanical triggers, and are classified as Additional Tier 1 instruments); (3) CoCos with only discretionary triggers do not have a significant impact on CDS spreads; and (4) CoCo issues have no statistically significant impact on stock prices, except for principal write-down CoCos with a high trigger level, which have a positive effect.

We study a symmetric private value auction with signaling, in which the auction outcome is used by an outside observer to infer the bidders' types. We elicit conditions under which an essentially unique D1 equilibrium bidding function exists in the second-price and the English auctions. We establish there is no equivalence between these two auction designs, neither in bidding strategies nor in expected revenue. This is because the presence or the absence of an increasing price clock affects signaling incentives differently in both auction formats, and thereby also the bidders' incentives to overbid their types. This leads to a strictly higher expected revenue in the second-price auction than in the English auction. Our analysis is completed by a comparison with other disclosure policies. Applications include art auctions and charity auctions.

ispartof: TIJDSCHRIFT VOOR ECONOMISCHE EN SOCIALE GEOGRAFIE vol:112 issue:2 pages:101-106 status: published

We build an empirical model to attribute delays in mortgage refinancing to psychological costs inhibiting refinancing until incentives are sufficiently strong; and behavior, potentially attributable to information-gathering costs, lowering the probability of household refinancing per unit time at any incentive. We estimate the model on administrative panel data from Denmark, where mortgage refinancing without cash-out is unconstrained. Middle-aged and wealthy households act as if they have high psychological refinancing costs; but older, poorer, and less-educated households refinance with lower probability irrespective of incentives, thereby achieving lower savings. We use the model to understand frictions in the mortgage channel of monetary policy transmission. (JEL E52, G21, G51, R31)

Mediterranean territories have co-evolved and been shaped by fire throughout history. However, global environmental change conditions are increasing the size, intensity and severity of wildfires, which have gone from a regular natural disturbance to a serious threat for civil protection, surpassing firefighting capacities. Therefore, building resilience in fire-prone territories is an increasingly relevant policy and management objective. However, the notion of resilience has been criticized for paying insufficient attention to key social issues such as socio-political dynamics, power imbalances and societal change. At the same time, social science contributions to wildfire research are still rather limited. In this paper, we bridge social innovation theory to resilience theory in order to create a territorially embedded and socially sensitive framework for assessing socio-ecological resilience. From this perspective, we then examine how Forest Defence Groups (ADFs, by their Catalan acronym) have evolved from grassroots, bottom-up initiatives to well-established bottom-linked institutions and we evaluate their contributions to socio-ecological resilience in the territories where they operate. Our results show that ADFs contribute in several aspects to socio-ecological resilience and that the pave the way for opening up spaces of dialogue and collaboration through which local communities can engage with the issues that directly affect them, such as wildfires. This research received funding from the SIMRA project, funded by European Union’s Horizon 2020 research and innovation programme under grant agreement No 677622. During the writing phase it also received funding from the Pyrolife project, funded by the European Union’s Horizon 2020 research and innovation programme MSCA-ITN2019 – Innovative Training Networks, under grant agreement No 860787.

We outline a simple and robust methodology to align portfolios with a science-based, carbon budget consistent with maintaining a temperature rise below 1.5 °C with 83% probability. We show how to keep the tracking error at a negligible level. This approach works for both passive and active managers. It also establishes an exit roadmap for carbon-intensive corporates, thereby generating a form of competition to decarbonize within each sector. We also discuss four sources of risks: uncertainty around a rapidly shrinking carbon budget, time impacts on decarbonization rates, implementation risk due to market-wide selling pressure, and uncertainty about taxes on polluting companies.

Supplemental material file: online appendix We show that negative interest rate policy (NIRP) has expansionary effects on credit supply through a portfolio rebalancing channel. By shifting down and flattening the yield curve, NIRP differs from rate cuts just above the zero-lower-bound and has effects similar to QE. For identification, we exploit ECB’s NIRP and the Italian credit register and, for external validity, European and U.S. datasets. NIRP affects more banks with higher ex-ante liquid assets, including net interbank positions. More exposed banks reduce liquid assets, expand credit supply, especially to financially-constrained firms, and cut loan rates, inducing firms to increase investment and the wage bill. This project received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No 648398). Peydró also acknowledges financial support from the ECO2015-68182-P (MINECO/FEDER, UE) grant and the Spanish Ministry of Economy and Competitiveness, through the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2015-0563).

ispartof: JCMS-JOURNAL OF COMMON MARKET STUDIES vol:60 issue:1 pages:204-223 status: published

We analyse the nature of contemporary societal conflict in Europe, conceptualizing conflict in terms of oppositional identities, represented by the archetypal extreme corner positions between which contestation takes place. By analysing key characteristics of 28,565 Europeans from seven countries in four distinct time periods, we find three archetypal corner positions. Each archetype represents an ideal-typical configuration of values, attitudes and socio-demographic characteristics which people identify more or less with. The first archetype (which we label Postmodern Cosmopolitan) represents an urban, higher-educated person with cosmopolitan values and attitudes. The other two archetypes (Rural traditionalist and Urban Precariat) present images of Europe that are more nationalistic and differ in their political-economic ideological position. Western and Eastern European countries differ markedly in the distribution of these archetypes over time. The novelty of this paper is our conceptualization and operationalization of the changing nature of societal conflict as changes in oppositional identities.

Research on behavioral ethics is thriving and intends to offer advice that can be used by practitioners to improve the practice of ethics management. However, three barriers prevent this research from generating genuinely useful advice. It does not suffciently focus on interventions that can be directly designed by management. The typical research designs used in behavioral ethics research require such a reduction of complexity that the resulting fndings are not very useful for practitioners. Worse still, attempts to make behavioral ethics research more useful by formulating simple recommendations are potentially very damaging. In response to these limitations, this article proposes to complement the current behavioral ethics research agenda that takes an ‘explanatory science’ approach with a research agenda that uses a ‘design science’ approach. Proposed by Joan van Aken and building on earlier work by Herbert Simon, this approach aims to develop field-tested ‘design propositions’ that present often complex but useful recommendations for practitioners. Using a ‘CIMO-logic’, these propositions specify how an ‘intervention’ can generate very different ‘outcomes’ through various ‘mechanisms’, depending on the ‘context’. An illustration and a discussion of the contours of this new research agenda for ethics management demonstrate its advantages as well as its feasibility. The article concludes with a refection on the feasibility of embracing complexity without drowning in a sea of complicated contingencies and without being paralyzed by the awareness that all interventions can have both desirable and undesirable effects. ispartof: Journal Of Business Ethics vol:181 issue:181 pages:933-944 status: published

ispartof: SMALL BUSINESS ECONOMICS vol:59 issue:4 pages:1427-1447 status: published