Disregarding the Shoulders of Giants: Inferences from Innovation Research

2021 ◽  
Author(s):  
David M Reeb ◽  
Wanli Zhao
Keyword(s):  
Fixed Effects ◽  
Ad Hoc ◽  
Empirical Studies ◽  
Control Variables ◽  
Innovation Research ◽  
Econometric Methods ◽  
Corporate Innovation ◽  
Independent Information ◽  
Sparse Set

Abstract Studies proposing new determinants of corporate innovation include previously identified factors in an ad hoc manner. We find that only a sparse set of recently proposed innovation determinants provide material, independent information about patents and citations. We document that inferences in recent empirical studies often change when we include previously discovered innovation determinants. Commonly used econometric methods, including fixed effects and plausible shocks, do not always mitigate the need to condition on previously identified innovation determinants. Rather than randomly selecting a subset of control variables from prior studies, our analysis offers researchers a framework to consider previously proposed variables.

scholarly journals Satisfaction as an outcome, as a means and as a cause

2020 ◽  
Author(s):  
◽  
Susanne Elsas
Keyword(s):  
Life Satisfaction ◽  
Household Income ◽  
Instrumental Variable ◽  
Fixed Effects ◽  
Large Scale ◽  
Empirical Studies ◽  
Econometric Methods ◽  
Variable Approach ◽  
Panel Fixed Effects ◽  
Instrumental Variable Approach

This dissertation analyzes large-scale panel data on individual satisfaction in three self-contained empirical studies, each taking a different perspective on individual satisfaction and using appropriate econometric methods accordingly. In its first empirical analysis, the thesis addresses the obvious question of satisfaction as an outcome, here if life satisfaction is an outcome of education. Results of the instrumental variable estimation, using German NEPS data, show that education has no effect on life satisfaction, yet on some of its determinants. Based on the idea that income is a fundamental of financial satisfaction, the second analysis concludes from satisfaction to its cause: Intra-household satisfaction differences are used as a means to approach the intra-household income distribution. Panel fixed effects estimations on German SOEP data show that couples share their income according to their individual financial contribution to the household‘s income. Finally, the last analysis, which also uses SOEP data, explores the question whether satisfaction could also be the cause of a typical determinant of itself, i.e. of income. This analysis also uses SOEP data and an recent synthetic instrumental variable approach. Results suggest that satisfaction causes income, while income tends not to cause satisfaction.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

scholarly journals A meta-analysis of the literature on climate change and migration

2021 ◽  
pp. 1-52
Author(s):  
Michel Beine ◽  
Lionel Jeusette
Keyword(s):  
Climate Change ◽  
Climatic Factors ◽  
Human Mobility ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Displacement Effect ◽  
Methodological Choices ◽  
Econometric Methods ◽  
And Migration

Abstract Recent surveys of the literature on climate change and migration emphasize the important diversity of outcomes and approaches of the empirical studies. In this paper, we conduct a meta-analysis in order to investigate the role of the methodological choices of these empirical studies in finding some particular results concerning the role of climatic factors as drivers of human mobility. We code 51 papers representative of the literature in terms of methodological approaches. This results in the coding of more than 85 variables capturing the methodology of the main dimensions of the analysis at the regression level. These dimensions include authors' reputation, type of mobility, measures of mobility, type of data, context of the study, econometric methods, and last but not least measures of the climatic factors. We look at the influence of these characteristics on the probability of finding any effect of climate change, a displacement effect, an increase in immobility, and evidence in favor of a direct vs. an indirect effect. Our results highlight the role of some important methodological choices, such as the frequency of the data on mobility, the level of development, the measures of human mobility and of the climatic factors as well as the econometric methodology.

scholarly journals Profitability Determinants of Big European Banks

2021 ◽  
Vol 10 (2) ◽  
pp. 39-56
Author(s):  
Vesna Karadžić ◽  
Nikola Đalović
Keyword(s):  
Fixed Effects ◽  
Negative Impact ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Panel Models ◽  
Econometric Methods ◽  
Gdp Growth Rate ◽  
The Impact

Abstract The subject of research in this paper is the profitability of the biggest banks in the European financial market, some of which operate in Montenegro. The profitability of banks is influenced by a large number of factors, including internal banking and external macroeconomic factors. The aim of this paper is to use statistical and econometric methods to examine which factors and with what intensity affect the profitability of large banks in Europe. The empirical analysis used highly balanced panel models with annual data on 47 large banks from 14 European countries over the period 2013-2018. Three static panel models were estimated and evaluated (pooled ordinary least squares, model with fixed effects and model with random effects), as well as dynamic model utilizing general methods of moments. The POLS model was chosen as the best, confirming that all macroeconomic factors have a statistically significant impact on the profitability of big banks, while the impact of internal factors, which are controlled by the bank’s management, is not significant. GDP growth rate, inflation rate and market concentration have a positive effect on profitability, while the membership of the European Union has a negative impact on profit, meaning that banks with headquarters outside the EU are more profitable.

Addressing the Metadata Gap

2011 ◽  
pp. 52-77 ◽  
Author(s):  
Lisa D. Murphy
Keyword(s):  
Ad Hoc ◽  
Empirical Studies ◽  
Document Management ◽  
Dublin Core ◽  
Metadata Standard ◽  
Text Databases ◽  
Work Settings ◽  
Digital Documents ◽  
Organizational Work

Digital documents are crucial for day-to-day organizational work, but as yet their management is personalized, erratic, unsystematic; both the research on text databases and the practice of document management can benefit from an improved understanding of this complex context and the roles of metadata in it. We will review empirical studies of document work in organizations and consider both traditional and emerging roles for metadata in ad hoc document work settings. After identifying these roles, we will analyze a metadata standard implemented in HTML (the Dublin Core) for its suitability for supporting metadata use in this context. Directions for practice and research are offered prior to the concluding remarks.

Blame Avoidance and Crisis Inquiries

2020 ◽  
Author(s):  
Raanan Sulitzeanu-Kenan
Keyword(s):  
Media Coverage ◽  
Ad Hoc ◽  
Empirical Studies ◽  
Executive Branch ◽  
Policy Learning ◽  
Integrated Analysis ◽  
The Political ◽  
The Public ◽  
Political Role ◽  
Blame Avoidance

Public inquiries are ad hoc institutions, formally external to the executive branch, established by governments or a minister for the task of investigating crises, policy failures, or disasters. Inquiries play an important role in the aftermath of crisis by serving as instruments of accountability and policy learning. Yet the very existence and function of public inquiries are shaped by post crisis politics, in which public and politically independent inquiries create risks to potentially implicated players, who seek to avoid and mitigate potential blame. The blame-avoidance literature indeed provides a useful theoretical framework for the study of public inquiries. Empirical studies suggest that blame-attribution patterns are predictive of the political decision of whether to appoint an inquiry into a crisis. Studies of the effects of inquiries on public opinion show that, at the investigation stage, the institutional attributes of inquiries foster their legitimacy as a procedure for policy learning and accountability. However, after an inquiry reports its findings, members of the public can evaluate the report, rendering institutional attributes negligible in evaluating the inquiry. As for the effects of inquiries on the public agenda, existing evidence provides no support for a quantitative effect of inquiry appointment on the level of media coverage of a crisis. An integrated analysis of these findings offers an up-to-date theory of the political role of post crisis inquiries and points to some current gaps in our understanding of them.

scholarly journals Does development reduce damage risk from climate extremes? Empirical evidence for floods in India

Water Policy ◽  
2020 ◽  
Vol 22 (5) ◽  
pp. 748-767
Author(s):  
Chandra Sekhar Bahinipati ◽  
Unmesh Patnaik
Keyword(s):  
Human Development ◽  
Fixed Effects ◽  
Negative Binomial ◽  
Empirical Studies ◽  
National Level ◽  
Policy Implications ◽  
Adaptation Measures ◽  
Indian States ◽  
Loss And Damage ◽  
Damage Indicators

Abstract Using a dataset on reported loss and damage (L&D) from flood-affected Indian states between 1953 and 2011, this paper inquires whether development makes states become flood resilient. Although the disaster-specific and the generic adaptation measures have been largely researched, there are limited empirical studies, particularly those that conducted an analysis at the sub-national level and used a dataset of more than 50 years. Considering human development and different loss and damage indicators is another advantage. Employing zero-inflated negative binomial and fixed effects models, this study produces three major findings. First, an increasing trend is observed for the reported loss and damage indicators across the states. Second, both human development and income are mostly found as statistically insignificant, indicating that the states are not becoming flood-resilient with respect to the present development. Third, there is a lack of evidence of learning effect, however, disaster risk management programme mitigates risk. Therefore, the paper suggests that the ongoing development strategies must take into account climate risk and address the persistent adaptation deficit. These findings could have larger policy implications since Indian states are likely to encounter such events frequently, and they also provide inputs to several states' action plans on climate change.

Social Exchange and the Effects of Employee Stock Options

ILR Review ◽  
2019 ◽  
Vol 73 (1) ◽  
pp. 124-152 ◽  
Author(s):  
Peter Cappelli ◽  
Martin Conyon ◽  
David Almeda
Keyword(s):  
Job Performance ◽  
Social Exchange ◽  
Financial Incentives ◽  
Stock Options ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Exchange Relationship ◽  
Current Period ◽  
Incentive Effects ◽  
Exchange Effects

The authors assert that broad-based stock options create a social exchange relationship between the employer and employees, leading to higher individual job performance in the next period. They compare this social exchange hypothesis to the more typical incentive-based explanation for stock options, which is that holding options generates financial incentives for better individual job performance in the current period. Findings show that significant and meaningful relationships are associated with social exchange effects and that these are both independent of incentive effects and arguably greater than those for the incentive effects. The authors use non-parametric and parametric fixed effects models, other controls for sample heterogeneity, and alternative specifications to address possible concerns about identification and endogeneity. These results extend empirical studies of social exchange relationships to common workplace practices. They also raise the possibility that some of the performance effects attributed to incentives in other studies may actually be attributable to social exchange effects.

scholarly journals Mastering Panel Metrics: Causal Impact of Democracy on Growth

2019 ◽  
Vol 109 ◽  
pp. 77-82 ◽  
Author(s):  
Shuowen Chen ◽  
Victor Chernozhukov ◽  
Iván Fernández-Val
Keyword(s):  
Panel Data ◽  
Statistical Inference ◽  
Fixed Effects ◽  
State Of The Art ◽  
Panel Data Analysis ◽  
High Dimensional ◽  
Econometric Methods ◽  
Long Run ◽  
Causal Impact ◽  
The Relationship

We revisit the panel data analysis of Acemoglu et al. (forthcoming) on the relationship between democracy and economic growth using state-of-the-art econometric methods. We argue that panel data settings are high-dimensional, resulting in estimators to be biased to a degree that invalidates statistical inference. We remove these biases by using simple analytical and sample-splitting methods, and thereby restore valid statistical inference. We find that debiased fixed effects and Arellano-Bond estimators produce higher estimates of the long-run effect of democracy on growth, providing even stronger support for the key hypothesis of Acemoglu et al.

Does investor sentiment affect price-earnings ratios?

2017 ◽  
Vol 34 (2) ◽  
pp. 183-193 ◽  
Author(s):  
Boonlert Jitmaneeroj
Keyword(s):  
Measurement Errors ◽  
Latent Variable ◽  
Empirical Studies ◽  
Investor Sentiment ◽  
Price Volatility ◽  
Latent Variable Models ◽  
Current Paper ◽  
Annual Data ◽  
Control Variables ◽  
Content Type

Purpose A large number of empirical studies investigate the determinants of price-earnings (P/E) ratio by focusing on fundamental factors. However, there has been an increasing concern that stock valuation is also driven by investor sentiment. This paper aims to extend the existing literature by exploring whether investor sentiment impacts the P/E ratio. Design/methodology/approach The paper examines the determinants of P/E ratio by applying latent variable models with investor sentiment as a latent variable and several fundamental factors as control variables. Investor sentiment is proxied by trading volume, advance-decline ratio and price volatility. Findings Using annual data of the US industries over the period of 1998-2014, the current paper produces new empirical evidence that investor sentiment significantly affects the P/E ratio. This result is robust to the inclusion of several control variables that have been documented to explain the P/E ratio. Practical implications The findings have important implications for investors, as downplaying sentiment can lead to significant errors in making equity investment choices based on the P/E ratio. Originality/value The analytical framework of the current paper is differentiated from the conventional analysis in which the P/E ratio is regressed against control variables and proxies for sentiment, thus falling into the trap of implicitly presupposing that proxies are perfect measures of investor sentiment. As all proxies may have measurement errors to the true but unobservable investor sentiment, the current paper uses latent variable models to shed new light on the influence of investor sentiment on the P/E ratio.

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