The validity of quality practices on performance of outsourced professional housing services

AbstractHousing policy, as well as academic research, are increasingly concerned with the role of bias in subjective dwelling valuations as a proximate measure of households’ house price expectations and their relationship with housing demand. This paper contributes to this area of study by exploring the possibility of simultaneous relationships between households’ price expectations and incentive to maximise the size of housing services demanded also accounting for the supply side factors and regional perspective. The empirical estimation takes the form of a system of a two simultaneous equations model applying two stage least squares estimation technique. Cross sectional estimations utilise data extracted from the Israeli Longitudinal Panel Survey (LPS) data. Applying the best available proxy for households’ price expectations, calculated as the ratio between subjective dwelling valuations (LPS) and the estimated market value of the same properties, research has identified the interrelated factors that simultaneously influence householders’ price expectations and housing demand. Results offer conceptual and empirical advantages, highlighting the imperfect nature of the housing market, as reflected by the inseparability of bias in subjective valuations and housing decisions.

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Worker Trust in Management and Delegation in Organizations

The Journal of Law Economics and Organization ◽

10.1093/jleo/ewaa008 ◽

2020 ◽

Author(s):

Kieron J Meagher ◽

Andrew Wait

Keyword(s):

Decision Making ◽

Instrumental Variables ◽

Fixed Effects ◽

Employee Trust ◽

Quality Practices ◽

Decision Authority ◽

Management Quality ◽

Trust In Management ◽

Alternative Measures ◽

Establishment Survey

Abstract Using a unique employee–establishment survey, we find a causal relationship between an individual employee’s trust of management and their decision-making rights (delegation). We utilize both fixed effects (FE) and instrumental variables to control for unobserved factors: establishment-level FE control for management quality, practices, culture, and other characteristics; our instruments of inherited trust in management, and trust of equivalent workers in a different but similar country address the possible endogeneity of employee trust. Across all specifications, we find that delegation to a worker is more likely if that employee trusts management. In our preferred model, which includes establishment FE and accounts for endogeneity, we find a 1 standard deviation (SD) increase in employee trust increases delegation by approximately 0.6 of 1 SD. Our results are robust to the inclusion of worker preferences for individualism (which favors delegation), incentives/bonuses, and alternative measures of decision authority. (JEL D23, L22, L23).

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