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Full-Text Articles in Business
Unobserved Ability, Efficiency Wages, And Interindustry Wage Differentials, Mckinley L. Blackburn, David Neumark
Unobserved Ability, Efficiency Wages, And Interindustry Wage Differentials, Mckinley L. Blackburn, David Neumark
Faculty Publications
One competitive-market explanation of interindustry wage differentials that is not challenged by the persistence of these differentials is that they are due to differences across workers in unobserved ability or quality. In contrast, this paper explores the unobserved ability hypothesis by using test scores as error-ridden indicators of ability, and family background variables as instruments.This approach avoids two potential problems with using first-difference methods to remove omitted-ability bias from wage equation estimates of industry effects the exacerbation of measurement error from misclassification of industry, and selectivity with respect to industry changes. However, this approach may introduce other problems, for two …
Some Evidence On The Empirical Significance Of Credit Rationing, Allen N. Berger, Gregory F. Udell
Some Evidence On The Empirical Significance Of Credit Rationing, Allen N. Berger, Gregory F. Udell
Faculty Publications
This paper examines the credit rationing debate using detailed contract information on over one million commercial bank loans from 1977 to 1988. While commercial loan rates are "Sticky," consistent with rationing, this stickiness varies with loan contract terms in ways that are not predicted by equilibrium credit rationing theory. In addition, the proportion of new loans issued under commitment does not increase significantly when credit markets are tight, despite the fact that borrowers without commitments can be rationed whereas commitment borrowers are contractually insulated from rationing. Overall, the data suggest that equilibrium rationing is not a significant macroeconomic phenomenon.
Liquidity Costs And Stock Price Response To Convertible Security Calls, Michael A. Mazzeo, William T. Moore
Liquidity Costs And Stock Price Response To Convertible Security Calls, Michael A. Mazzeo, William T. Moore
Faculty Publications
Firms' announcements to call in-the-money convertible securities for redemption essentially force their conversion into common stock, and such announcements are generally met with significant reductions in the calling firms' equity values. An explanation based on liquidity costs is advanced and tested. The explanation implies that investors who choose to sell their shares early in the conversion period bear liquidity costs by selling at reduced prices. Consistent with the explanation, the average share price decline is short-lived, lasting most of the conversion period. Thus, a component of the call announcement effect appears to be due to liquidity costs.
An Attributional Analysis Of Resistance To Group Pressure Regarding Illicit Drug And Alcohol Consumption, Randall L. Rose, William O. Bearden, Jesse E. Teel
An Attributional Analysis Of Resistance To Group Pressure Regarding Illicit Drug And Alcohol Consumption, Randall L. Rose, William O. Bearden, Jesse E. Teel
Faculty Publications
This article investigates the role of attributional thinking in generating resistance to pressures toward conformity in the illicit consumption of drugs and alcohol. The results of four studies regarding how conformity influences illicit drug and alcohol consumption among high school and college students are reported. In study 1 more than two-thirds of the respondents reported concern for the implications of their own dissent or compliance regarding the reactions of their peers. Study 2 demonstrated a significant relationship between high school students' attributional thinking concerning a peer group's illicit beer consumption and conformity, expressed as intentions to drink the beer. In …