We examine stock index futures and Treasury futures around the release time of 30 U.S. macroeconomic announcements. Nine of the 20 announcements that move markets show evidence of substantial informed trading before the official release time. Prices begin to move in the “correct” direction approximately 30 minutes before the release time. The preannouncement price drift accounts on average for approximately 40% of the total price adjustment. This implies that some traders have private information about macroeconomic fundamentals. Preannouncement drift might originate from a combination of information leakage and superior forecasting that incorporates proprietary data.

Although federal regulation of vehicle fuel economy is often seen as environmental policy, over 70% of the estimated benefits of the 2017–2025 federal standards are savings in consumer expenditures on gasoline. Rational-choice economists question the counting of these benefits since studies show that the fuel efficiency of a car is reflected in its price at sale and resale. We contribute to this debate by exploring why most consumers in the United States do not purchase a proven fuel-saving innovation: the hybrid-electric vehicle (HEV). A database of 110 vehicle pairs is assembled where a consumer can choose a hybrid or gasoline version of virtually the same vehicle. Few choose the HEV. A total cost of ownership model is used to estimate payback periods for the price premiums associated with the HEV choice. In a majority of cases, a rational-choice explanation is sufficient to understand consumer disinterest in the HEV. However, in a significant minority of cases, a rational-choice explanation is not readily apparent, even when non-pecuniary attributes (e.g., performance and cargo space) are considered. Future research should examine, from a behavioral economics perspective, why consumers do not choose HEVs when pricing and payback periods appear to be favorable.

Valuing changes in time use is often a critical element of economic analyses of development projects. In this paper we review the literature on the monetary value of time in low- and middle-income countries and find support for a commonly used benchmark of 50% of after-tax wages for time changes in activities in the informal sector, such as collecting water or traveling to health clinics. We offer recommendations to analysts who are conducting benefit-cost analyses in these settings about what methods they can use to estimate the value of time. These include a benefits transfer approach and also a relatively simple stated preference approach that might be deployed in a specific context if the project recommendation is sensitive to the assumption of the value of time or if the distribution of the benefits of time savings is especially important.

This article contributes to literature on the role of “firms” in the early modern English economy by exploring contracts for works between the Crown, the City of London, and large construction firms that built the Greenwich Hospital, City churches, and St. Paul’s Cathedral from 1670 to 1712. Primary sources show varying arrangements to pricing, mitigating risk, and securing finance occurred without the costs of intermediaries. Clients pushed financial and operating risks onto contractors through complex contracting systems that enabled and supported a number of coordination mechanisms in the market. The article argues that contracts rather than firms should be the unit of analysis for those wishing to examine productivity and changes in early modern business.

This paper compares the U.S. Environmental Protection Agency’s (EPA) ex ante compliance cost estimates for the 2004 Automobile and Light-Duty Truck Surface Coating National Emission Standards for Hazardous Air Pollutants to ex post evidence on the actual costs of compliance based on ex post cost data gathered from a subset of the industry via pilot survey and follow-up interviews. Unlike many prior retrospective studies on the cost of regulatory compliance, we use this newly gathered information to identify the key drivers of any differences between the ex ante and ex post estimates. We find that the U.S. EPA overestimated the cost of compliance for the plants in our sample and that overestimation was driven primarily by differences in the method of compliance rather than differences in the per-unit cost associated with a given compliance approach. In particular, the U.S. EPA expected facilities to install pollution abatement control technologies in their paint shops to reduce emissions of hazardous air pollutants, but instead these plants complied by reformulating coatings.

This paper extends the resource-capability-based view in strategic management and discusses the capabilities for the firms to stay competitive in emerging economies. Faced with low levels of efficiency, technology, and skills, firms in emerging economies need to implement best management practices to overcome operational inefficiency while engage in innovation processes to address new opportunities. They have to develop the capabilities to enhance efficiency, the capabilities to undertake innovation, and the synthesis capabilities to combine the two to keep rivals at bay. The paper tests hypotheses against a data set of more than 20,000 firms from 36 emerging economies provided by the World Bank in 2012–2015 and finds strong evidence to support the arguments. The paper finds that the three sets of capabilities are positively related to productivity and, through it, financial performance.

Drawing on the stress literature (transactional theory of stress, job demands-resources model and conservation of resources theory), this study aims to provide new insights into the antecedents of abusive supervision. We collected data from 95 supervisors with matched responses from 358 subordinates working across various industries in China using a time-lagged survey. We tested our moderated mediation model using path analyses. Results revealed that perceived workplace competitiveness triggered supervisors’ felt stress and psychological strain, resulting in abusive supervision. Two workplace constraints (climate of error aversion and organisational sanctions against aggression) were examined as moderators: a high climate of error aversion intensified the positive relationship between supervisors’ perceived competition and supervisors’ felt stress; while high organisational sanctions against aggression mitigated the positive relationship between supervisors’ psychological strain and abusive supervision. Together, these findings highlight the importance of workplace constraints and explicate how they influence resource-drained supervisors to displace their aggression onto subordinates.

Numerous papers have shown that developing economies are more volatile. We show that, despite greater aggregate and industry stability, performance and size of individual firms in developed countries are more volatile. In developing countries, market imperfections insulate incumbent firms from competition. Consistent with this, firms in developing countries have higher profit, higher market concentration, and less capital raising. Cross-country differences in operating risk and competition intensity are greater in industries that are dependent on external finance, where we expect higher impacts of capital-market imperfections. We show the inverse relation between aggregate and firm-level volatilities has important implications for international studies of cash holding.

We study the impact of permanent open market operations (POMOs) by the Federal Reserve on U.S. Treasury market liquidity. Using a parsimonious model of speculative trading, we conjecture that i) this form of government intervention improves market liquidity, contrary to conclusions drawn by existing literature; and ii) the extent of this improvement depends on the market’s information environment. Evidence from a novel sample of Federal Reserve POMOs during the 2000s indicates that bid–ask spreads of on-the-run Treasury securities decline when POMOs are executed, by an amount increasing in proxies for information heterogeneity among speculators, fundamental volatility, and POMO policy uncertainty, consistent with our model.

Following its positive outcomes in a state-wide survey, co-managers of the Queensland Cancer Control Analysis Team commissioned discovery interviews to explore these results. Eleven interviews were analysed by positive organisational scholars who drew on depreciating and appreciating organisational dynamics to make sense of Queensland Cancer Control Analysis Team’s high performance. An initial framework was devised, including appreciative, depreciative, and hybrid dynamics, with the latter representing an extension to an existing taxonomy. Findings revealed mainly appreciative and hybrid dynamics. To further understand these, the framework was expanded by reframing the dynamics as positive institutional work. This extension offers an experiential understanding of positive institutional patterns by incorporating the troika of experiential surfacing, agency as inquiry, and inclusion. The value of this framework is threefold, for it can be used as an analytic, a diagnostic, and an intervention tool to enable scholars and practitioners to operationalise positive organisational scholarship to examine, understand, and promote positive organisational experiences.

Walk tall: The story of REX Bionics is about the key decisions faced by the founders Richard Little and Robert (Robbie) Irving to commercialise a ‘walking skeleton’ for people who are wheelchair-bound for extended periods. The changing role of the founders in a technology-based business and the interplay between the founders’ vision and the reality of growing technology-based businesses is the focus. The history of REX Bionics lies in the founders’ first-hand experiences with people diagnosed with multiple sclerosis. Over 15 years the company evolved from a ‘workshop idea’ in a garage to public listing on the London AIM Stock Exchange. Facing multiple institutional hurdles, rapidly moving technology and high start-up costs, REX Bionics successfully commercialised the walking robotic exoskeleton inspirited by the ‘Power Load’ in the movie Aliens. Little and Irving faced some tough choices about which commercialisation pathways to pursue in the light of diverse perspectives from the board of directors, an advisory board, various investors to their personal mission.

We investigate the relationship between traders’ expectations and market outcomes with experimental asset market data. The data show that those who have high price expectations buy more frequently and submit higher bids, and those who hold low price expectations sell more frequently and submit lower bids. Traders who have more accurate expectations achieve greater earnings. Simulations using only belief data reproduce the pricing patterns observed in the market well, indicating that the heterogeneity of expectations is a key to explaining market activity.

We study whether it is better to enforce the zero lower bound (ZLB) in models of U.S. Treasury yields using a shadow rate model or a quadratic term structure model. We show that the models achieve a similar in-sample fit and perform comparably in matching conditional expectations of future yields. However, when the recent ZLB period is included in the sample, the models’ ability to match conditional expectations away from the ZLB deteriorates because the time-series dynamics of the pricing factors change. In addition, neither model provides a reasonable description of conditional volatilities when yields are away from the ZLB.

Historical institutionalist research has long struggled to come to terms with agency. Yet injecting agency into historical-institutionalist accounts is no easy task. If institutions are structuring agents’ actions, while they are simultaneously being structured by these very agents’ behavior, the ontological status of institutions remains unclear. Hence, most historical-institutional accounts, at the conceptual level, tend to downplay the role of agency. However, in this way, they also remain incomplete. Following the “coalitional turn” in historical institutionalism, we develop a new account of institutional change and stability that awards a central role to agency. At the heart of our approach is the notion that both stability and change in institutions presuppose constant coalition building by organized entrepreneurial actors. However, for several reasons, such coalition building is complicated, which ultimately leads to institutional stability. In addition, we argue that relevant state agencies actively shape whether the incumbent coalition or the challenger coalition prevails. We illustrate the potential of our actor-centered approach to institutional change by analyzing the reform of commercial training in Switzerland, tracing developments from the beginning of the 1980s until today.

We identify a positive causal effect of healthy working environments on corporate innovation, using the staggered passage of U.S. state-level laws that ban smoking in workplaces. We find a significant increase in patents and patent citations for firms headquartered in states that have adopted such laws relative to firms headquartered in states without such laws. The increase is more pronounced for firms in states with stronger enforcement of such laws and in states with weaker preexisting tobacco controls. We present suggestive evidence that smoke-free laws affect innovation by improving inventor health and productivity and by attracting more productive inventors.

Businesses have increasingly recognized their responsibility to respect human rights in their operations. This has been in part guided by international initiatives, such as the United Nations Guiding Principles on Business and Human Rights, as well as guidance and regulations from states. Although these measures recognize risks associated with conflict-affected areas, contexts of occupation present unique concerns. These issues become even more complex when states send mixed messages to businesses. This is most evident when examining the discourse on and regulation of business operations linked to Israel’s prolonged occupation of Palestinian territory, especially those with operations and relationships related to ‘security’. This article seeks to highlight the frequent disregard of human rights responsibilities and obligations by states and businesses related to the occupied Palestinian territory and population, which has created a gap in accountability that civil society has attempted to address.