Showing papers by "New York University published in 1995"
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TL;DR: The credit channel theory of monetary policy transmission holds that informational frictions in credit markets worsen during tight money periods and the resulting increase in the external finance premium enhances the effects of monetary policies on the real economy as discussed by the authors.
Abstract: The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen during tight- money periods. The resulting increase in the external finance premium--the difference in cost between internal and external funds-- enhances the effects of monetary policy on the real economy. We document the responses of GDP and its components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components of this mechanism, the balance-sheet channel and the bank lending channel. We argue that forecasting exercises using credit aggregates are not valid tests of this theory.
3,853 citations
TL;DR: The cingulate epilepsy syndrome provides important support of experimental animal and human functional imaging studies for the role of anterior cingulates cortex in movement, affect and social behaviours.
Abstract: Assessments of anterior cingulate cortex in experimental animals and humans have led to unifying theories of its structural organization and contributions to mammalian behaviour. The anterior cingulate cortex forms a large region around the rostrum of the corpus callosum that is termed the anterior executive region. This region has numerous projections into motor systems, however, since these projections originate from different parts of anterior cingulate cortex and because functional studies have shown that it does not have a uniform contribution to brain functions, the anterior executive region is further subdivided into ‘affect’ and ‘cognition’ components. The affect division includes areas 25, 33 and rostral area 24, and has extensive connections with the amygdala and periaqueductal grey, and parts of it project to autonomic brainstem motor nuclei. In addition to regulating autonomic and endocrine functions, it is involved in conditioned emotional learning, vocalizations associated with expressing internal states, assessments of motivational content and assigning emotional valence to internal and external stimuli, and maternal—infant interactions. The cognition division includes caudal areas 24' and 32', the cingulate motor areas in the cingulate sulcus and nociceptive cortex. The cingulate motor areas project to the spinal cord and red nucleus and have premotor functions, while the nociceptive area is engaged in both response selection and cognitively demanding information processing. The cingulate epilepsy syndrome provides important support of experimental animal and human functional imaging studies for the role of anterior cingulate cortex in movement, affect and social behaviours. Excessive cingulate activity in cases with seizures confirmed in anterior cingulate cortex with subdural electrode recordings, can impair consciousness, alter affective state and expression, and influence skeletomotor and autonomic activity. Interictally, patients with anterior cingulate cortex epilepsy often display psychopathic or sociopathic behaviours. In other clinical examples of elevated anterior cingulate cortex activity it may contribute to tics, obsessive—compulsive behaviours, and aberrent social behaviour. Conversely, reduced cingulate activity following infarcts or surgery can contribute to behavioural disorders including akinetic mutism, diminished self-awareness and depression, motor neglect and impaired motor initiation, reduced responses to pain, and aberrent social behaviour. The role of anterior cingulate cortex in pain responsiveness is suggested by cingulumotomy results and functional imaging studies during noxious somatic stimulation. The affect division of anterior cingulate cortex modulates autonomic activity and internal emotional responses, while the cognition division is engaged in response selection associated with skeletomotor activity and responses to noxious stimuli. Overall, anterior cingulate cortex appears to play a crucial role in initiation, motivation, and goal-directed behaviours. The anterior cingulate cortex is part of a larger matrix of structures that are engaged in similar functions. These structures form the rostral limbic system and include the amygdala, periaqueductal grey, ventral striatum, orbitofrontal and anterior insular cortices. The system formed by these interconnected areas assesses the motivational content of internal and external stimuli and regulates context-dependent behaviours.
3,245 citations
TL;DR: In this paper, the authors estimate diversification's effect on firm value by imputing stand-alone values for individual business segments and compare the sum of these standalone values to the firm's actual value, and find that overinvestment and cross-subsidization contribute to the value loss.
3,150 citations
TL;DR: The credit channel theory of monetary policy transmission holds that informational frictions in credit markets worsen during tight money periods and the resulting increase in the external finance premium enhances the effects of monetary policies on the real economy as discussed by the authors.
Abstract: The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen during tight- money periods. The resulting increase in the external finance premium--the difference in cost between internal and external funds-- enhances the effects of monetary policy on the real economy. We document the responses of GDP and its components to monetary policy shocks and describe how the credit channel helps explain the facts. We discuss two main components of this mechanism, the balance-sheet channel and the bank lending channel. We argue that forecasting exercises using credit aggregates are not valid tests of this theory.
2,977 citations
TL;DR: In this paper, a typology of deviant workplace behaviors using multidimensional scaling techniques was developed, and it was found that employee deviance appears to fall into four distinct categories: production deviance, property deviances, political deviance and personal aggression.
Abstract: In this study, we developed a typology of deviant workplace behaviors using multidimensional scaling techniques. Results suggest that deviant workplace behaviors vary along two dimensions: minor versus serious, and interpersonal versus organizational. On the basis of these two dimensions, employee deviance appears to fall into four distinct categories: production deviance, property deviance, political deviance, and personal aggression. Theoretical and empirical implications are discussed.
2,918 citations
TL;DR: A more fruitful integrative paradigm of "sustaincentrism" is then articulated, and implications for organizational science are generated as if sustainability, extended community, and our Academy mattered as discussed by the authors.
Abstract: Modern management theory is constricted by a fractured epistemology. which separates humanity from nature and truth from morality. Reintegration is necessary if organizational science is to support ecologically and socially sustainable development. This article posits requisites of such development and rejects the paradigms of conventional technocentrism and antithetical ecocentrism on grounds of incongruence. A more fruitful integrative paradigm of “sustaincentrism” is then articulated, and implications for organizational science are generated as if sustainability, extended community, and our Academy mattered.
1,993 citations
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TL;DR: In this paper, the authors examine leverage levels and year-to-year changes for several hundred firms between 1984 and 1991 and find that leverage levels are positively related to CEO stock ownership and CEO stock option holdings, and negatively related toCEO tenure and board of directors size.
Abstract: We test the prediction that leverage is inversely associated with managerial entrenchment. We examine leverage levels and year-to-year changes for several hundred firms between 1984 and 1991. We find that leverage levels are positively related to CEO stock ownership and CEO stock option holdings, and negatively related to CEO tenure and board of directors size. While generally consistent with less entrenched CEOs pursuing more leverage, these results are subject to alternative interpretations. We therefore analyze year-to-year changes in leverage around exogenous shocks to corporate governance variables. We find that leverage increases after unsuccessful tender offers and â¬Sforcedâ¬? CEO replacements, and under certain conditions after the arrival of major stockholders. These relations have greater magnitude when the sample is restricted to low-leverage firms, even when 80% of firms are defined as low-leverage. The results are consistent with decreases in entrenchment leading to increases in leverage, and with the majority of firms having less debt than optimal.
1,451 citations
TL;DR: PYK2 activation may provide a mechanism for a variety of short- and long-term calcium-dependent signalling events in the nervous system.
Abstract: The protein tyrosine kinase PYK2, which is highly expressed in the central nervous system, is rapidly phosphorylated on tyrosine residues in response to various stimuli that elevate the intracellular calcium concentration, as well as by protein kinase C activation. Activation of PYK2 leads to modulation of ion channel function and activation of the MAP kinase signalling pathway. PYK2 activation may provide a mechanism for a variety of short- and long-term calcium-dependent signalling events in the nervous system.
1,382 citations
TL;DR: A framework for studying personality in the stress process was used to analyze the links among neuroticism, daily interpersonal conflicts, coping with conflicts, and distress and showed that high-neuroticism participants had greater exposure and reactivity to conflicts.
Abstract: This article presents a framework for studying personality in the stress process. The framework specifies that personality may affect both exposure and reactivity to stressful events and that both processes may explain how personality affects health and psychological outcomes. The framework also specifies that personality differences in reactivity may be due to differential choice of coping efforts and differential effectiveness of those efforts. In a 14-day daily study of 94 students, this framework was used to analyze the links among neuroticism, daily interpersonal conflicts, coping with conflicts, and distress. Results showed that high-neuroticism participants had greater exposure and reactivity to conflicts. Furthermore, high- and low-neuroticism participants differed both in their choice of coping efforts and in the effectiveness of those efforts, a possibility not considered in previous models of personality in the stress process.
1,319 citations
TL;DR: Theoretical Perspectives Relevant to Understanding HRM in Context and Theory-Driven Research and Methodological Issues are reviewed.
Abstract: INTRODUCTION ......... 238 The Need jor Understanding Hwnan Resource Management (HRM) in Context ... 238 Theoretical Perspectives Relevant to Understanding HRM in Context 238 REVIEW OF EMPIRICAL RESEARCH 244 HRM and the Internal Contexts of Organizations .... . . . . . . . . . . . . . . . . . . . . 244 HRM and the External Contexts oj Organizations 248 AN INTEGRATIVE PERSPECTIVE FOR RESEARCH ON HRM IN CONTEXT . . . . . . . . . . . . . . 253 Theory-Driven Research 255 Methodological Issues 256
1,232 citations
TL;DR: Based on limited data, there was a suggestion that spreading dose over time (from a few days to > 1 year) may lower risk, possibly due to the opportunity for cellular repair mechanisms to operate.
Abstract: The thyroid gland of children is especially vulnerable to the carcinogenic action of ionizing radiation. To provide insights into various modifying influences on risk, seven major studies with organ doses to individual subjects were evaluated. Five cohort studies (atomic bomb survivors, children treated for tinea capitis, two studies of children irradiated for enlarged tonsils, and infants irradiated for an enlarged thymus gland) and two case-control studies (patients with cervical cancer and childhood cancer) were studied. The combined studies include almost 120,000 people (approximately 58,000 exposed to a wide range of doses and 61,000 nonexposed subjects), nearly 700 thyroid cancers and 3,000,000 person years of follow-up. For persons exposed to radiation before age 15 years, linearity best described the dose response, even down to 0.10 Gy. At the highest doses (> 10 Gy), associated with cancer therapy, there appeared to be a decrease or leveling of risk. For childhood exposures, the pooled excess relative risk per Gy (ERR/Gy) was 7.7 (95% CI = 2.1, 28.7) and the excess absolute risk per 10(4) PY Gy (EAR/10(4) PY Gy) was 4.4 (95% CI = 1.9, 10.1). The attributable risk percent (AR%) at 1 Gy was 88%. However, these summary estimates were affected strongly by age at exposure even within this limited age range. The ERR was greater (P = 0.07) for females than males, but the findings from the individual studies were not consistent. The EAR was higher among women, reflecting their higher rate of naturally occurring thyroid cancer. The distribution of ERR over time followed neither a simple multiplicative nor an additive pattern in relation to background occurrence. Only two cases were seen within 5 years of exposure. The ERR began to decline about 30 years after exposure but was still elevated at 40 years. Risk also decreased significantly with increasing age at exposure, with little risk apparent after age 20 years. Based on limited data, there was a suggestion that spreading dose over time (from a few days to > 1 year) may lower risk, possibly due to the opportunity for cellular repair mechanisms to operate. The thyroid gland in children has one of the highest risk coefficients of any organ and is the only tissue with convincing evidence for risk about 1.10 Gy.
TL;DR: Li et al. as discussed by the authors proposed a special type of institutionalized decentralization that the authors call "federalism, Chinese style" which fosters competition, not only in product markets, but also among local governments for labor and foreign capital.
Abstract: China's remarkable economic success rests on a foundation of political reform providing a considerable degree of credible commitment to markets. This reform reflects a special type of institutionalized decentralization that the authors call “federalism, Chinese style.” This form of decentralization has three consequences. First, it fosters competition, not only in product markets, but also among local governments for labor and foreign capital. This competition, in turn, encourages local government experimentation and learning with new forms of enterprises, regulation, and economic relationships. Second, it provides incentives for local governments to promote local economic prosperity. Finally, it provides a significant amount of protection to local governments and their enterprises from political intrusion by the central government.
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TL;DR: In this paper, a negative relation between leverage and future growth at the firm level and, for diversified firms, at the segment level was shown for firms with low Tobin's q, but not for high q firms or firms in high-q industries.
Abstract: We show that there is a negative relation between leverage and future growth at the firm level and, for diversified firms, at the segment level. Further, this negative relation between leverage and growth holds for firms with low Tobin's q, but not for high-q firms or firms in high-q industries. Therefore, leverage does not reduce growth for firms known to have good investment opportunities, but is negatively related to growth for firms whose growth opportunities are either not recognized by the capital markets or are not sufficiently valuable to overcome the effects of their debt overhang.
TL;DR: In this article, the authors analyze the salient features of networks and point out the similarities between the economic structure of network and the structure of vertically related industries, focusing on positive consumption and production externalities, commonly called network externalities.
Abstract: We analyze the salient features of networks and point out the similarities between the economic structure of networks and the structure of vertically related industries. The analysis focuses on positive consumption and production externalities, commonly called network externalities. We discuss their sources and their effects on pricing and market structure. We distinguish between results that do not depend on the underlying industry microstructure (the macro approach) and those that do (the micro approach). We analyze the issues of compatibility, coordination to technical standards, interconnection and interoperability, and their effects on pricing and quality of services and on the value of network links in various ownership structures. We also briefly discuss the issue of interconnection fees for bottleneck.
TL;DR: Subjects who remain asymptomatic for many years despite HIV-1 infection have low levels of HIV- 1 and a combination of strong virus-specific immune responses with some degree of attenuation of the virus.
Abstract: Background In most subjects infected with human immunodeficiency virus type 1 (HIV-1), clinical or laboratory evidence of immunodeficiency develops within 10 years of seroconversion, but a few infected people remain healthy and immunologically normal for more than a decade. Studies of these subjects, termed long-term survivors, may yield important clues for the development of prophylactic and therapeutic interventions against the acquired immunodeficiency syndrome. Methods and Results We studied 10 seropositive subjects who remained asymptomatic with normal and stable CD4+ lymphocyte counts despite 12 to 15 years of HIV-1 infection. Plasma cultures were uniformly negative for infectious virus. However, particle-associated HIV-1 RNA was detected in four subjects with a sensitive branched-DNA signal-amplification assay, whereas in five others the levels of HIV-1 RNA were too low to detect. Infectious HIV-1 was detected in peripheral-blood mononuclear cells (PBMC) of three subjects by standard limiting-dilut...
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TL;DR: Bruno and Easterly as mentioned in this paper found no evidence of a consistent relationship between growth and inflation, at any frequency, and showed that growth does tend to fall sharply during discrete crises of high inflation and to recover surprisingly strongly after inflation falls.
Abstract: After excluding countries with high-inflation crises - periods when annual inflation is above 40 percent - the data reveal no evidence of a consistent relationship between growth and inflation, at any frequency. But growth does tend to fall sharply during discrete crises of high inflation and to recover surprisingly strongly after inflation falls. Perhaps inflation crises are purely cyclical, or perhaps in the long run they have a favorable purgative effect. Recent literature suggests that long-run averages of growth and inflation are only weakly correlated and that such correlation is not robust to the exclusion of observations of extreme inflation. Including time series panel data has improved matters, but an aggregate parametric approach remains inconclusive. Bruno and Easterly propose a nonparametric definition of high-inflation crises as periods when annual inflation is above 40 percent. Excluding countries with high-inflation crises, they find no evidence of a consistent relationship between growth and inflation, at any frequency. They do find that growth falls sharply during discrete crises of high inflation, then recovers surprisingly strongly after inflation falls. The fall in growth during a crisis and the recovery of growth after the crisis tend to average out to nearly zero (even slightly above zero); hence no robust cross-section correlation. Their findings could be consistent either with trend stationarity of output (in which inflation crises are purely cyclical phenomena) or with models in which crises have a favorable long-run purgative effect. Their findings do not support the view that reducing high inflation carries heavy output costs in the short to medium run. This paper - a joint product of the Office of the Vice President, Development Economics, and the Macroeconomics and Growth Division, Policy Research Department - is part of a larger effort in the Bank to examine the determinants of economic growth.
TL;DR: In this paper, the authors examined the relationship between violation of an employee's psychological contract and civic virtue behavior and found that when employees felt that their employers had failed to fulfil employment obligations at T2, they were less likely to engage in civic virtue behaviour at T3.
Abstract: This study examines the relationship between violation of an employee's psychological contract and civic virtue behavior. A psychological contract is a set of beliefs regarding mutual obligations between employee and employer. One hundred twenty-six MBA alumni were surveyed at the time of hire (T1), and after 18 months (T2) and 30 months (T3) on the job. When employees felt that their employers had failed to fulfil employment obligations at T2, they were less likely to engage in civic virtue behavior at T3. There was evidence that this relationship was partly mediated by trust. These findings have implications for research on OCB and for managers seeking to maintain employee citizenship behavior.
TL;DR: This paper argues that the MWF model is consistent with previous experimental results and is a parsimonious summary of these results, and describes experimental methods, analogous to perturbation analysis, that permit us to analyze depth cue combination in novel ways.
TL;DR: A degenerate peptide library is used to show that each of nine tyrosine kinases investigated has a unique optimal peptide substrate, and indicates that a point mutation in the RET receptor-type tyosine kinase, which causes multiple endocrine neoplasia type 2B, results in a shift in peptide substrates specificity.
Abstract: HOW do distinct protein-tyrosine kinases activate specific downstream events? Src-homology-2 (SH2) domains on tyrosine kinases or targets of tyrosine kinases recognize phosphotyrosine in a specific sequence context and thereby provide some specificity1–3. The role of the catalytic site of tyrosine kinases in determining target specificity has not been fully investigated. Here we use a degenerate peptide library to show that each of nine tyrosine kinases investigated has a unique optimal peptide substrate. We find that the cytosolic tyrosine kinases preferentially phosphorylate peptides recognized by their own SH2 domains or closely related SH2 domains (group I; ref. 3), whereas receptor tyrosine kinases preferentially phosphorylate peptides recognized by subsets of group III SH2 domains3. The importance of these findings for human disease is underscored by our observation that a point mutation in the RET receptor-type tyrosine kinase, which causes multiple endocrine neoplasia type 2B, results in a shift in peptide substrate specificity.
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TL;DR: In this article, the dates of 591 stock option awards to CEOs of Fortune 500 companies in 1992 and 1993 were analyzed, and the timing of awards coincides with favorable movements in companies stock prices even though the awards remain secret for many months.
Abstract: This paper proposes and implements a new method for investigating whether CEOs influence the terms of their own compensation. I analyze the dates of 591 stock option awards to CEOs of Fortune 500 companies in 1992 and 1993, finding that the timing of awards coincides with favorable movements in companies stock prices even though the awards remain secret for many months. Patterns of corporate earnings and dividend announcements suggest strongly that CEOs receive stock option awards shortly before favorable corporate news and that awards are delayed until after the release of adverse news. Analysis of abnormal volume data does not support the possibility that insider trading based on knowledge of the option awards can explain the stock price gains. The findings imply that top mangers can affect their companies processes for awarding stock options and exploit this influence in order to increase compensation.
TL;DR: In this paper, the authors describe an approach to generate moment conditions for GMM estimation of the parameters of a structural model by using the score of a density that has an analytic expression to define the GMM criterion.
Abstract: We describe an intuitive, simple, and systematic approach to generating moment conditions for GMM estimation of the parameters of a structural model. The idea is to use the score of a density that has an analytic expression to define the GMM criterion. The auxiliary model that generates the score should closely approximate the distribution of the observed data but is not required to nest it. If the auxiliary model nests the structural model then the estimator is as efficient as maximum likelihood. The estimator is advantageous when expectations under a structural model can be computed by simulation, by quadrature, or by analytic expressions but the likelihood cannot be computed easily.
TL;DR: In economics, the most commonly used tool has been the strategic equilibrium of Nash (Ann Math 54:286-295, 1951) or one or another of its so-called refinements as discussed by the authors.
Abstract: Game theoretic reasoning has been widely applied in economics in recent years. Undoubtedly, the most commonly used tool has been the strategic equilibrium of Nash (Ann Math 54:286–295, 1951), or one or another of its so-called “refinements.” Though much effort has gone into developing these refinements, relatively little attention has been paid to a more basic question: Why consider Nash equilibrium in the first place?
TL;DR: This paper analyzed stock option awards to CEOs of 792 U.S. public corporations between 1984 and 1991 and found that stock options' performance incentives have significant associations with explanatory variables related to agency cost reduction.
TL;DR: The Relationship Management Data model (RMDM) and the Relationship Management (RMM) methodology are presented and design activities are addressed within the first three steps of the methodology.
Abstract: Hypermedia application design di ers from other software design in that it involves navigation as well as user-interface and information processing issues. We present the Relationship Management Data model (RMDM) and the Relationship Management (RMM) methodology for the design and development of hypermedia applications. The seven steps of the methodology lend themselves to computer support, paving the way for a computerized environment to support the design and development of hypermedia applications. This article focuses on design activities, which are addressed within the rst three steps of the methodology.
TL;DR: This paper found that 3-year-olds' poor performance on card sorting occurred across different pairs of dimensions (color-size, shape-number, size number, color-shape) just as it does across different perspectives in the theory-of-mind tasks (self-other, looks like-is, before-after), and that sorting performance was related to theory of mind with age partialled.
TL;DR: FGF-4 is identified as the first known embryonic target gene for Oct-3 and for any of the Sox factors, and insights into the mechanisms of selective gene activation by Sox and octamer-binding proteins during embryogenesis are offered.
Abstract: Fibroblast growth factor 4 (FGF-4) has been shown to be a signaling molecule whose expression is essential for postimplantation mouse development and, at later embryonic stages, for limb patterning and growth. The FGF-4 gene is expressed in the blastocyst inner cell mass and later in distinct embryonic tissues but is transcriptionally silent in the adult. In tissue culture FGF-4 expression is restricted to undifferentia ted embryonic stem (ES) cells and embryonal carcinoma (EC) cell lines. Previously, we determined that EC cell-specific transcriptional activation of the FGF-4 gene depends on a synergistic interaction between octamer-binding proteins and an EC-specific factor, Fx, that bind adjacent sites on the FGF-4 enhancer. Through the cloning and characterization of an F9 cell cDNA we now show that the latter activity is Sox2, a member of the Sry-related Sox factors family. Sox2 can form a ternary complex with either the ubiquitous Oct-1 or the embryonic-specific Oct-3 protein on FGF-4 enhancer DNA sequences. However, only the Sox2/Oct-3 complex is able to promote transcriptional activation. These findings identify FGF-4 as the first known embryonic target gene for Oct-3 and for any of the Sox factors, and offer insights into the mechanisms of selective gene activation by Sox and octamer-binding proteins during embryogenesis.
TL;DR: In this article, the authors examined the sequential entry process of Japanese electronic manufacturing firms into the United States during the period 1976-1989 and found that the firms first entered their core businesses and then developed their core business.
Abstract: This study examined the sequential entry process of Japanese electronic manufacturing firms into the United States during the period 1976–1989. The firms first entered their core businesses and tho...
TL;DR: In this paper, the authors find that asset sales lead to an improvement in the operating performance of the seller's remaining assets in each of the three years following the asset sale, and that the improvement in performance occurs primarily in firms that increase their focus.
TL;DR: In normal mice, elevated VEGF mRNA levels during the period when granulation tissue formation occurs are found, suggesting that a defect in V EGF regulation might be associated with wound healing disorders.
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TL;DR: In this article, the authors show that, post expenses, mutual fund managers on average underperform a combination of passive portfolios of similar risk, and the question is, why select an actively managed fund?
Abstract: There is overwhelming evidence that, post expenses, mutual fund managers on average underperform a combination of passive portfolios of similar risk. The recent increase in the number and types of index funds that are available to individual investors makes this a matter of practical as well as theoretical significance. Numerous index funds, which track the S&P 500 index or various small-stock, bond, value, growth, or international indexes, are now widely available to individual investors. These same choices have been available to institutional investors for some time. Given that there are sufficient index funds to span most investors risk choices, that the index funds are available at low cost, and that the low cost of index funds means that a combination of index funds is likely to outperform an active fund of similar risk, the question is, why select an actively managed fund?