Organizations & Markets

This article complements the structural New Keynesian macro framework with a no-arbitrage affine term structure model. Whereas our methodology is general, we focus on an extended macro model with unobservable processes for the inflation target and the natural rate of output that are filtered from macro and term structure data. We find that term structure information helps generate large and significant parameters governing the monetary policy transmission mechanism. Our model also delivers strong contemporaneous responses of the entire term structure to various macroeconomic shocks.

It is now widely accepted that the institutional interventions of states are a foundational influence on the dynamics of organizational forms. But why do states act? In this paper, we apply the behavioral theory of the firm to develop an explanation of state actions based on the fact that they are boundedly rational rivals. The instrument of state competition we examine is the founding of business incubators, a primary tool in the entrepreneurial strategy of economic development.

The present study examined how biculturals (Asian-Americans) adjust to differing cultural settings in performance appraisal. Biculturals vary in the degree to which their two cultural identities are compatible or oppositional — Bicultural Identity Integration (BII). The authors found that individual differences in BII interacted with the manipulation of the cultural setting (American or Asian) in determining whether employee outcomes were evaluated as matching or mismatching cultural norms.

We prove generic existence of recursive equilibrium for overlapping generations economies with uncertainty. "Generic" here means in a residual set of utilities and endowments. The result holds provided there is sufficient intragenerational household heterogeneity.

Telecommunications infrastructure goes through technology-induced phases, and the regulatory regime follows. Telecom 1.0, based on copper wires, was monopolistic in market structure and led to a Regulation 1.0 with government ownership or control. Wireless long-distance and then mobile technologies enabled the opening of that system to one of multi-carrier provision, with Regulation 2.0 stressing privatization, entry, liberalization, and competition. But now, fiber and high-capacity wireless are raising scale economies and network effects, leading to a more concentrated market.

Identity movements rely on a shared "we-feeling" amongst a community of participants. In turn, such shared identities are possible when movement participants can self-categorize themselves as belonging to one group. We address a debate as to whether community diversity enhances or impedes such protests, and investigate the role of racial diversity since it is a simple, accessible, and visible basis of community diversity and social categorization.

Financial crises appear to be a common and fairly constant feature of the economic cycle. Banking crises, a distinct subset of financial crises, consist either of panics, moments of temporary confusion about the unobservable incidence across the financial system of observable aggregate shocks, or severe waves of bank failures which result in aggregate negative net worth of failed banks in excess of one percent of GDP.

We argue that differences between the landscapes of influence situations in Indian and American societies induce Indians to accommodate to others more often than Americans. To investigate cultural differences in situation-scapes, we sampled interpersonal influence situations occurring in India and the United States from both the influencee's (Study 1) and the influencer's (Study 2) perspectives. We found that Indian influence situations were dramatically more likely than U.S. situations to feature other-serving motives and to result in positive consequences for the relationship.