Showing papers by "Stockholm School of Economics published in 1999"
VU University Amsterdam1, University of Pennsylvania2, University of Maryland, Baltimore3, Cornell University4, New Mexico State University5, Qatar Airways6, Louisiana Tech University7, Université du Québec8, Stockholm School of Economics9, University of Buenos Aires10, University of Alberta11, University of Indonesia12, University of Queensland13, Bellevue University14, London Business School15, Western Illinois University16, University of Memphis17, Fudan University18, Boğaziçi University19, University of Reading20, University of South Africa21, Athens University of Economics and Business22, Ludwig Maximilian University of Munich23, University of Calgary24, University of Burgundy25, National Sun Yat-sen University26, Hong Kong Polytechnic University27, Indian Institute of Management Ahmedabad28, City University of Hong Kong29, Lincoln University (New Zealand)30, University of Lethbridge31, Wayne State University32, University College Dublin33, Indiana University34, Kuwait University35, Technion – Israel Institute of Technology36, University of Giessen37, The Chinese University of Hong Kong38, University of Zurich39, Fordham University40, Complutense University of Madrid41, University of Nebraska–Lincoln42, INCAE Business School43, National University of Malaysia44, Opole University45, Hong Kong Baptist University46, Tbilisi State University47, Ohio State University48, University of Wrocław49, Alexandria University50, University of San Francisco51, Melbourne Business School52, Bentley University53, University of Los Andes54, I-Shou University55, Johannes Kepler University of Linz56, International Labour Organization57, Smith College58, Copenhagen Business School59, Chungnam National University60, National University of Singapore61, Tilburg University62, Hong Kong University of Science and Technology63, Thammasat University64, Sewanee: The University of the South65, FernUniversität Hagen66, Soochow University (Suzhou)67, University of St. Gallen68, Kumamoto University69
TL;DR: In this paper, the authors focus on culturally endorsed implicit theories of leadership (CLTs) and show that attributes associated with charismatic/transformational leadership will be universally endorsed as contributing to outstanding leadership.
Abstract: This study focuses on culturally endorsed implicit theories of leadership (CLTs). Although cross-cultural research emphasizes that different cultural groups likely have different conceptions of what leadership should entail, a controversial position is argued here: namely that attributes associated with charismatic/transformational leadership will be universally endorsed as contributing to outstanding leadership. This hypothesis was tested in 62 cultures as part of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Program. Universally endorsed leader attributes, as well as attributes that are universally seen as impediments to outstanding leadership and culturally contingent attributes are presented here. The results support the hypothesis that specific aspects of charismatic/transformational leadership are strongly and universally endorsed across cultures.
1,227 citations
TL;DR: In this paper, a multimethod study of knowledge transfer in international acquisitions is presented, which shows that the transfer of technological know-how is facilitated by communication, visits & meetings, and by time elapsed since acquisition.
Abstract: This paper reports on a multimethod study of knowledge transfer in international acquisitions. Using questionnaire data we show that the transfer of technological know-how is facilitated by communication, visits & meetings, and by time elapsed since acquisition, while the transfer of patents is associated with the articulability of the knowledge, the size of the acquired unit, and the recency of the acquisition. Using case study data, we show that the immediate post-acquisition period is characterized by imposed one-way transfers of knowledge from the acquirer to the acquired, but over time this gives way to high-quality reciprocal knowledge transfer.
1,019 citations
TL;DR: In this paper, the effects on technology transfer and spillovers deriving from ownership sharing of foreign multinational affiliates were examined using unpublished Indonesian micro data, and the results showed that foreign establishments have comparable high levels of labor productivity and that domestic establishments benefit from spillovers.
720 citations
TL;DR: In this article, the interplay between social norms and economic incentives in the context of work decisions in the modern welfare state is analyzed, assuming that to live off one's own work is a social no-no.
Abstract: This paper analyzes the interplay between social norms and economic incentives in the context of work decisions in the modern welfare state. We assume that to live off one's own work is a social no ...
711 citations
TL;DR: In this paper, the authors examined the effect of DFI on productivity in the Indonesian manufacturing sector and found that the larger the technology gap between domestic and foreign establishments, the higher the spillovers.
Abstract: Direct foreign investment (DFI) has been argued to be an important channel for international technology diffusion. This has led to extensive liberalisation of DFI regimes in many developing countries, including in Indonesia. Using detailed micro‐data from the Indonesian manufacturing sector, we examine the effect on productivity from DFI. The results show DFI to benefit locally‐owned establishments, but the effect differs between groups of industries. Spillovers from DFI are found in sectors with a high degree of competition. Moreover, it seems that the larger the technology gap between domestic and foreign establishments, the larger the spillovers.
471 citations
University of Sussex1, Erasmus University Rotterdam2, University of Barcelona3, Odense University4, Sapienza University of Rome5, Stockholm School of Economics6, University of Bern7, Clark University8, Economic and Social Research Institute9, University of Lisbon10, University of Bristol11, Paris Dauphine University12, Uppsala University13
TL;DR: This paper presents further international comparisons of progressivity of health care financing systems, modifying the methodology used there and achieving a higher degree of cross-country comparability in variable definitions, and updating and extending the cross-section of countries.
461 citations
TL;DR: In this article, the authors summarize a few useful methods and show how they can be combined with a Kalman filter to estimate the deep model parameters with maximum likelihood, and simulate a macro model with staggered price setting, interest rate elastic output, and optimal monetary policy.
348 citations
TL;DR: In this article, the authors analyzed the Swedish banking crisis in the early 1990s, which resulted from a highly leveraged private sector being simultaneously hit by three major exogenous events: a shift in monetary policy with an increase in pre-tax interest rates, a tax reform, and the ERM crisis.
Abstract: The article analyses the Swedish banking crisis in the early 1990s. Newly deregulated credit markets after 1985 stimulated a competitive process between financial institutions where expansion was given priority. Combined with an expansive macro policy, this contributed to an asset price boom. The subsequent crisis resulted from a highly leveraged private sector being simultaneously hit by three major exogenous events: a shift in monetary policy with an increase in pre-tax interest rates, a tax reform that increased after tax interest rates, and the ERM crisis. Combined with some overinvestment in commercial property, high real interest rates contributed to breaking the boom in real estate prices and triggering a downward price spiral resulting in bankruptcies and massive credit losses. The government rescued the banking system by issuing a general guarantee of bank obligations. The total direct cost to the taxpayer of the salvage has been estimated at around 2 per cent of GDP. Copyright 1999 by Oxford University Press.
312 citations
TL;DR: In this paper, the authors concluded that most available evidence has to do with multinationals' entry into host countries' industries rather than with their presence, and that the dynamic aspects of multinational's relationship to their competition in host country markets.
Abstract: Foreign direct investment may promote economic development by helping to improve productivity growth and exports in the multinationals' host countries, the authors conclude, after reviewing the empirical evidence. But the exact relationship between foreign multinational corporations and their host economies seems to vary between industries and countries. Multinational corporations mainly enter industries where barriers to entry and concentration are relatively high, and at first they increase the number of firms in the host country market. In the long run, they may contribute to a more concentrated market, although efficiency may improve, especially if protection does not guarantee an easy life for the multinational affiliate. However, most available evidence has to do with multinationals' entry into host countries' industries rather than with their presence -the dynamic aspects of multinationals' relationship to their competition in host country markets. Most evidence on multinationals' effects has to do with effects in industrial countries, and it is impossible to disregard the risk that the multinationals' entry into developing countries may replace local production and force local firms out of business, rather than force them to become more efficient.
287 citations
TL;DR: In this article, the moments of a family of first-order GARCH processes are considered and a general condition for the existence of any integer moment of the absolute values of the observations is given.
284 citations
TL;DR: In this paper, the authors report the results of a survey conducted to explore issues surrounding mass customization and in particular its implications for operations management, including the positive and negative effects of customization, and difficulties of implementation.
Abstract: This paper reports the results of a survey conducted to explore issues surrounding mass customization and in particular its implications for operations management. The findings cover the market changes driving customization, the methods used to provide customized goods, the positive and negative effects of customization, and the difficulties of implementation. There are shown to be important implications for operations management in a strategy of mass customization, and thus substantial scope for further research by operations management academics.
TL;DR: This paper demonstrates that there is a strategic reason why software firms have followed consumers' desire to drop software protection, and shows that when network effects are strong, unprotecting is an equilibrium for a noncooperative industry.
Abstract: This paper demonstrates that there is a strategic reason why software firms have followed consumers' desire to drop software protection. We analyze software protection policies in a price-setting duopoly software industry selling differentiated software packages, where consumers' preference for particular software is affected by the number of other consumers who (legally or illegally) use the same software. Increasing network effects make software more attractive to consumers, thereby enabling firms to raise prices. However, it also generates a competitive effect resulting from feircer competition for market shares. We show that when network effects are strong, unprotecting is an equilibrium for a noncooperative industry.
TL;DR: The authors examines subsidiary initiatives, which are entrepreneurial activities carried out by foreign owned subsidiaries in multinational corporations; and the forces that resist them that we refer to as the ''corporate immune system''.
TL;DR: In this article, the authors consider the question of whether a parametrized family of forward rate curves is consistent with the dynamics of an arbitrage-free interest rate model, in the sense that M actually will produce forward rate curve belonging to G. They give necessary and sufficient conditions for consistency.
Abstract: We consider as given an arbitrage-free interest rate model M, and a parametrized family of forward rate curves G. We study the question as to when the given family G is consistent with the dynamics of the interest rate model M, in the sense that M actually will produce forward rate curves belonging to G. We allow the interest rate model to be driven by a multidimensional Wiener process, as well as by a marked point process, and we give necessary and sufficient conditions for consistency. As test cases, we study some popular models, obtaining both positive and negative results about consistency. We also introduce a natural exponential-polynomial family of forward rate curves, and for this family we give necessary and sufficient conditions for the existence of consistent interest rate models with deterministic volatility functions.
TL;DR: In this paper, the authors build a taxonomy of innovation networks in the multinational corporation, differentiating between international duplication and international diversification of advanced technological capabilities, implying different approaches to the upgrading of competitive advantage and unequal pre-conditions for becoming engaged in internationally integrated research efforts.
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TL;DR: In this paper, the authors demonstrate that panel unit root tests can have high power when a small fraction of the series are stationary and may lack power if a large fraction is stationary, and that acceptance or rejection of the null is not sufficient evidence to conclude that all series have a unit root or that all are stationary.
Abstract: We demonstrate that panel unit root tests can have high power when a small fraction of the series are stationary and may lack power when a large fraction is stationary. The acceptance or rejection of the null is thus not sufficient evidence to conclude that all series have a unit root or that all are stationary.
TL;DR: In this article, the authors give an example of a first-order nonlinear autoregressive time series model with short memory such that autocorrelations estimated from data generated by the model point at a long-memory model.
TL;DR: In this article, the effects of social relations on cooperation or collusion in organizations or communities are modeled as separate repeated strategic interactions, and the effect of such relationships on cooperation in production is discussed.
Abstract: This paper addresses the effects of social relations on cooperation (or collusion) in organizations (or communities). Social and production relations are modeled as separate repeated strategic interactions. “Linking” them – by employing members of the same community or encouraging social interaction between employees – facilitates cooperation in production: (a) because of available “social capital,” the slack of enforcement power present in social relations which may discipline behavior in the workplace; (b) because payoffs from the two relations are substitutes, therefore the linkage endogenously generates social capital; (c) because the linkage generates transfers of “trust”; and (d) it discloses information about agents' situation.
Erasmus University Rotterdam1, University of Sussex2, Odense University3, Sapienza University of Rome4, Stockholm School of Economics5, University of Bern6, Clark University7, Economic and Social Research Institute8, University of Lisbon9, University of Bristol10, Paris Dauphine University11, Uppsala University12
TL;DR: The general finding of this study is that the vertical effect is much more important than horizontal inequity and reranking in determining the overall redistributive effect but that their relative importance varies by source of payment.
TL;DR: In this paper, the authors measured the health-state utilities on a scale between 0 (dead) and 1 (full health) of patients with psoriasis and atopic eczema, and to measure the willingness to pay for a cure for patients with these conditions.
Abstract: Skin diseases have been shown to have a significant adverse impact on the health-related quality of life of patients that may be underestimated by objective assessments of clinical severity. The main aim of this study was to measure the health-state utilities on a scale between 0 (dead) and 1 (full health) of patients with psoriasis and atopic eczema, and to measure the willingness to pay for a cure for psoriasis and atopic eczema. A second aim was to analyse how these measures are related to different dimensions of health-related quality of life, as measured by general and disease-specific quality of life instruments and a subjective measure of disability activity. This study was based on data from a questionnaire administered to, and interviews conducted with, 366 patients with psoriasis and atopic eczema aged 17-73 years, attending the dermatology outpatient clinic in Uppsala, Sweden from November 1996 to December 1997. The survey included: a rating scale question, a time trade-off question, a standard gamble question, a dichotomous choice willingness to pay question, a bidding-game willingness to pay question, a generic quality of life instrument (SF-36), a disease-specific quality of life instrument (the Dermatology Life Quality Index) and a subjective measure of disease activity (on a visual analogue scale). The mean health-state utility was 0.69 (rating scale), 0.88 (time trade-off) and 0.97 (standard gamble) for patients with psoriasis. The corresponding health-state utilities for patients with atopic eczema were 0.73, 0.93 and 0.98. On average, patients were willing to pay between 1253 and 1956 Swedish crowns (SEK) per month for a psoriasis cure and between SEK 960 and 1083 per month for an atopic eczema cure ($1 = SEK 8.25 and pound1 = SEK 13.23). The health-state utilities were related to SF-36, the Dermatology Life Quality Index and disease activity in the expected direction and the correlations were strongest for rating scale and weakest for standard gamble. The willingness to pay was correlated with the Dermatology Life Quality Index and disease activity, but not with SF-36. The study indicates that it is feasible to measure health-state utilities and willingness to pay in this patient population, and the sizeable willingness to pay suggests that skin diseases are associated with substantial reductions in quality of life.
TL;DR: The Markov model was able to assess disease progression and costs in RA and can be a useful tool in calculating the cost-effectiveness of different interventions aimed at changing the progression of the disease.
Abstract: Objective
To develop a simulation model for analysis of the cost-effectiveness of treatments that affect the progression of rheumatoid arthritis (RA).
Methods
The Markov model was developed on the basis of a Swedish cohort of 116 patients with early RA who were followed up for 5 years. The majority of patients had American College of Rheumatology (ACR) functional class II disease, and Markov states indicating disease severity were defined based on Health Assessment Questionnaire (HAQ) scores. Costs were calculated from data on resource utilization and patients' work capacity. Utilities (preference weights for health states) were assessed using the EQ-5D (EuroQol) questionnaire. Hypothetical treatment interventions were simulated to illustrate the model.
Results
The cohort distribution among the 6 Markov states clearly showed the progression of the disease over 5 years of followup. Costs increased with increasing severity of the Markov states, and total costs over 5 years were higher for patients who were in more severe Markov states at diagnosis. Utilities correlated well with the Markov states, and the EQ-5D was able to discriminate between patients with different HAQ scores within ACR functional class II.
Conclusion
The Markov model was able to assess disease progression and costs in RA. The model can therefore be a useful tool in calculating the cost-effectiveness of different interventions aimed at changing the progression of the disease.
01 Jan 1999
TL;DR: The authors argue that the counterfactual implications of simple models of monetary policy are due to model restrictions and a failure to account for multiplicative parameter uncertainty, rather than to policymakers being too cautious in their implementation of policy.
Abstract: Simple models of monetary policy often imply optimal policy behavior that is considerably more aggressive than what is commonly observed. This chapter argues that such counterfactual implications are due to model restrictions and a failure to account for multiplicative parameter uncertainty, rather than to policymakers being too cautious in their implementation of policy. Comparing a restricted and an unrestricted version of the same empirical model, the unrestricted version leads to less volatility in optimal policy, and, taking parameter uncertainty into account, to policy paths very close to actual Federal Reserve policy.
TL;DR: In this article, a necessary and sufficient condition for the existence of the unconditional fourth moment of the GARCH(p,q) process is given and also an expression for the moment itself.
Abstract: In this paper, a necessary and sufficient condition for the existence of the unconditional
fourth moment of the GARCH(p,q) process is given and also an expression for the moment itself. Furthermore ...
TL;DR: A Data Envelopment Analysis (DEA) network model that allows inclusion of customer satisfaction in efficiency and productivity measures is presented and estimation results indicate that the technical efficiency is lower under the network model.
TL;DR: In this article, the authors compared hypothetical and real dichotomous choice responses for two different goods to estimate a statistical bias function to calibrate the hypothetical yes responses, and found that the probability that a hypothetical yes response would be a real yes response was estimated as a function of the individual's self-assessed certainty.
Abstract: Experimental data comparing hypothetical and real dichotomous choice responses for two different goods were used to estimate a statistical bias function to calibrate the hypothetical yes responses. The probability that a hypothetical yes response would be a real yes response was estimated as a function of . the individual's self-assessed certainty of the hypothetical yes response assessed on a 0)10 scale and a variable representing the price level. Without calibration the hypothetical yes responses significantly exceeded the proportion of real yes responses, but after calibration the null hypothesis of no difference between hypothetical and real responses could not be rejected in any of the experiments.
TL;DR: In this paper, the empirical results reveal that there is a positive relationship between changes in economic freedom and equality: the more a country increased its economic freedom between 1975 and 1985, the higher the level of equality around 1985.
Abstract: How does economic freedom, mainly how property rights are designed and protected, relate to income equality? Whilst this is argued to be theoretically ambiguous, the empirical results reveal that there is a positive relationship between changes in economic freedom and equality: the more a country increased its economic freedom between 1975 and 1985, the higher the level of equality around 1985. Most important in this regard is trade liberalization and financial deregulation. Also, there are signs that the level of economic freedom in 1985 is negatively related to the level of equality around that year, plausibly because of less redistribution.
TL;DR: In this article, the effect of temporal aggregation on estimates of housing prices and their volatilities is analyzed using an unusually rich data set, covering essentially all arm's length housing sales in Sweden for a dozen years, and the results indicate that much of the difference between estimates of price movements can be attributed to the data limitations inherent in the repeat sales approach.
Abstract: Housing transactions are executed and recorded daily, but are routinely pooled into longer time periods for the measurement and analysis of housing price trends. We utilize an unusually rich data set, covering essentially all arm’s length housing sales in Sweden for a dozen years, in an attempt to understand the effect of temporal aggregation upon estimates of housing prices and their volatilities. This rich data set also provides a unique opportunity to compare the results using the conventional weighted repeat sales model (WRS) to those based on a research strategy which incorporates all available information on house sales. The results indicate the clear importance of temporal disaggregation in the estimation of housing prices and volatilities—regardless of the model employed. The appropriately disaggregated model is then used as a benchmark to compare estimates of the course of housing prices produced by the two models during the twelve year period 1981‐1993. These results indicate that much of the difference between estimates of price movements can be attributed to the data limitations which are inherent in the repeat sales approach. The results, thus, suggest caution in the interpretation of governmentproduced price indices or those produced by private firms based on the repeated sales model.
TL;DR: The authors examined the evolution of Swedish price level targeting in the 1930s and brought out similarities and differences between price stabilization in the 30s and in the 1990s, as well as the differences between the two approaches.
TL;DR: In this paper, the authors examined whether participation in international trade affects establishments' productivity and found that establishments engaged in exports or imports have relatively high levels of productivity, while establishments engaged only in exports have shown comparable high productivity growth.
TL;DR: In this article, the stability and linearity of a German M1 money demand function were investigated using smooth transition regression techniques, and it was found that the money demand equation considered is both linear and stable.
Abstract: Starting from a linear error correction model (ECM) the stability and linearity of a German M1 money demand function are investigated, applying smooth transition regression techniques. Using seasonally unadjusted quarterly data from 1961(1) to 1990(2) it is found that the money demand equation considered is both linear and stable. After extending the sampling period until 1995(4) a clear structural instability due to the monetary unification on 1 July 1990 is found and subsequently modelled. A non-linear specification for the extended period is presented and discussed. Copyright © 1999 John Wiley & Sons, Ltd.