Reference-dependent preferences in the public and private sectors: A nonlinear perspective

Although existing studies in the strategic management literature examine the importance of reference points in the context of managerial decisions vis-à-vis organizational performance, there is surprisingly little evidence on how reference earnings affect employees' wellbeing and behavior. The present study closes this gap by investigating adaptation dynamics towards reference earnings in the context of employees’ behavioral responses to social comparisons. We argue that a wedge between actual and aspiration-level earnings causes discontent that spurs employees into action to materialize their aspirations. The robustness of such action depends on the size of the wedge in a nonlinear fashion, a hypothesis supported by our findings. Nevertheless, heterogeneity in behavioral responses is evident across the public and private sectors and across gender and educational attainment. Such heterogeneity could be partially attributed to differences in public service motivation among public and private sector employees, to the different weights that employees place on pecuniary vs. non-pecuniary rewards, and whether reference earnings are likely to trigger behavioral responses through a 'jealousy' or through an 'ambition' channel. These findings have implications for the design of strategic human resource management policies to establish reward structures encouraging employees to adopt risk attitudes that are consistent with an overall business strategic plan

Education as a Complex System: Conceptual and Methodological Implications

Education is a complex system, which has conceptual and methodological implications for education research and policy. In this article, an overview is first provided of the Complex Systems Conceptual Framework for Learning (CSCFL), which consists of a set of conceptual perspectives that are generally shared by educational complex systems, organized into two focus areas: collective behaviors of a system, and behaviors of individual agents in a system. Complexity and research methodologies for education are then considered, and it is observed that commonly used quantitative and qualitative techniques are generally appropriate for studying linear dynamics of educational systems. However, it is proposed that computational modeling approaches, being extensively used for studying nonlinear characteristics of complex systems in other fields, can provide a methodological complement to quantitative and qualitative education research approaches. Two research case studies of this approach are discussed. We conclude with a consideration of how viewing education as a complex system using complex systems’ conceptual and methodological tools can help advance education research and also inform policy

Does Economic Uncertainty Affect the Decision to Bear Children? Evidence from East and West Germany

Although economic agents routinely face various types of economic uncertainty, their effects are often unclear and hard to assess, in part due to the absence of suitable measures of uncertainty. Because of the numerous and very substantial institutional changes that people in the transition economies of Central and Eastern Europe experienced during the last two decades, these countries are excellent candidates for examining the effects of uncertainties on various kinds of behavior. During their periods of uncertainty, moreover, these countries have experienced sharply falling fertility rates. Some have argued that these two phenomena are linked but others have remained skeptical in view of the fact that the evidence is largely confined to the macro level. This paper demonstrates the existence of such a link at the micro level using two different types of uncertainty measures based on GSOEP data from Eastern (and for comparison purposes also Western) Germany for the years 1992-2002. The results suggest that employment uncertainty (but not financial uncertainty) was considerably greater in Eastern Germany during its transition than in Western Germany and had a highly nonlinear effect on the probability of a birth in any period. The result is rather robust to differences in specification and suggests that the higher employment uncertainty in East Germany in the transition could have contributed significantly to the sharp fall and unusually low level of its fertility. In view of the results, we argue that an options based theory is perhaps a richer analytical paradigm for a discussion of fertility decisions in a rapidly changing environment than the traditional Beckerian theory.http://deepblue.lib.umich.edu/bitstream/2027.42/40174/3/wp788.pd

A Comparison of Machine-Learning Methods to Select Socioeconomic Indicators in Cultural Landscapes

Cultural landscapes are regarded to be complex socioecological systems that originated as a result of the interaction between humanity and nature across time. Cultural landscapes present complex-system properties, including nonlinear dynamics among their components. There is a close relationship between socioeconomy and landscape in cultural landscapes, so that changes in the socioeconomic dynamic have an effect on the structure and functionality of the landscape. Several numerical analyses have been carried out to study this relationship, with linear regression models being widely used. However, cultural landscapes comprise a considerable amount of elements and processes, whose interactions might not be properly captured by a linear model. In recent years, machine-learning techniques have increasingly been applied to the field of ecology to solve regression tasks. These techniques provide sound methods and algorithms for dealing with complex systems under uncertainty. The term ‘machine learning’ includes a wide variety of methods to learn models from data. In this paper, we study the relationship between socioeconomy and cultural landscape (in Andalusia, Spain) at two different spatial scales aiming at comparing different regression models from a predictive-accuracy point of view, including model trees and neural or Bayesian networks

Implications of nonlinearity for spherically symmetric accretion

We subject the steady solutions of a spherically symmetric accretion flow to a time-dependent radial perturbation. The equation of the perturbation includes nonlinearity up to any arbitrary order, and bears a form that is very similar to the metric equation of an analogue acoustic black hole. Casting the perturbation as a standing wave on subsonic solutions, and maintaining nonlinearity in it up to the second order, we get the time-dependence of the perturbation in the form of a Li\'enard system. A dynamical systems analysis of the Li\'enard system reveals a saddle point in real time, with the implication that instabilities will develop in the accreting system when the perturbation is extended into the nonlinear regime. The instability of initial subsonic states also adversely affects the temporal evolution of the flow towards a final and stable transonic state.Comment: 14 pages, ReVTeX. Substantially revised with respect to the previous version. Three figures and a new section (Sec. VI) adde

Reference-dependent preferences in the public and private sectors: A nonlinear perspective

Although existing studies in the strategic management literature examine the importance of reference points in the context of managerial decisions vis-à-vis organizational performance, there is surprisingly little evidence on how reference earnings affect employees' wellbeing and behavior. The present study closes this gap by investigating adaptation dynamics towards reference earnings in the context of employees’ behavioral responses to social comparisons. We argue that a wedge between actual and aspiration-level earnings causes discontent that spurs employees into action to materialize their aspirations. The robustness of such action depends on the size of the wedge in a nonlinear fashion, a hypothesis supported by our findings. Nevertheless, heterogeneity in behavioral responses is evident across the public and private sectors and across gender and educational attainment. Such heterogeneity could be partially attributed to differences in public service motivation among public and private sector employees, to the different weights that employees place on pecuniary vs. non-pecuniary rewards, and whether reference earnings are likely to trigger behavioral responses through a 'jealousy' or through an 'ambition' channel. These findings have implications for the design of strategic human resource management policies to establish reward structures encouraging employees to adopt risk attitudes that are consistent with an overall business strategic plan.adaptation; reference earnings; comparison income; reference-dependent preferences; ESTAR models

Evaluating linear-nonlinear thinking style for knowledge management education

The purpose of this paper is to present a new perspective of the linear-nonlinear thinking style and its critical role in knowledge management education. Previous works in this field identified linear thinking as being rational, logic and analytic, and nonlinear thinking as being based on intuition, insight and creativity. In this perspective, linear thinking is related mostly with cognitive intelligence, while nonlinear thinking is related mostly with emotional intelligence. These interpretations have a slight connection with the generic concepts of linearity and linear spaces developed in science. Our research changed the cognitiveemotional perspective into a new one based on the fundamental properties of linear spaces, as they are defined in Mathematics. Basically, a linear model is characterized from operational point of view by a linear equation. That means that outputs of this model should be proportional with inputs. For instance, the temperature level indicated by a familiar thermometer is proportional with the mercury dilation. If the operational model is based on a nonlinear equation, then the model is nonlinear. Thus, cognitive thinking can be linear or nonlinear, while emotional thinking is by its nature nonlinear. Based on this new theoretical construct we developed an investigation instrument to measure the linear-nonlinear thinking style, and applied it to our students in master programs of business administration where there is an important module of knowledge management and learning organizations. The initial sample consisted of 500 graduate students in attending courses in master programs at the Faculty of Business Administration, Academy of Economic Studies from Bucharest, the most important and best considered university for economics and business in Romania. The questionnaire contains 50 items, with answers evaluated on a Likert-type scale. Using the STATA program we performed various analyses, and interpreted the final results in connection with the educational curricula at the Bachelor and Master levels. Conclusions show a dominant role of the linear thinking style, which might constitute o severe limitation in knowledge management and business decision making process.Education, knowledge management, linear, mental models, nonlinear, thinking style.

Detection of risk factors for obesity in early childhood with quantile regression methods for longitudinal data

This article compares and discusses three different statistical methods for investigating risk factors for overweight and obesity in early childhood by means of the LISA study, a recent German birth cohort study with 3097 children. Since the definition of overweight and obesity is typically based on upper quantiles (90% and 97%) of the age specific body mass index (BMI) distribution, our aim was to model the influence of risk factors and age on these quantiles while as far as possible taking the longitudinal data structure into account. The following statistical regression models were chosen: additive mixed models, generalized additive models for location, scale and shape (GAMLSS), and distribution free quantile regression models. The methods were compared empirically by cross-validation and for the data at hand no model could be rated superior. Motivated by previous studies we explored whether there is an age-specific skewness of the BMI distribution. The investigated data does not suggest such an effect, even after adjusting for risk factors. Concerning risk factors, our results mainly confirm results obtained in previous studies. From a methodological point of view, we conclude that GAMLSS and distribution free quantile regression are promising approaches for longitudinal quantile regression, requiring, however, further extensions to fully account for longitudinal data structures

Nonlinear variations in axisymmetric accretion

We subject the stationary solutions of inviscid and axially symmetric rotational accretion to a time-dependent radial perturbation, which includes nonlinearity to any arbitrary order. Regardless of the order of nonlinearity, the equation of the perturbation bears a form that is similar to the metric equation of an analogue acoustic black hole. We bring out the time dependence of the perturbation in the form of a Li\'enard system, by requiring the perturbation to be a standing wave under the second order of nonlinearity. We perform a dynamical systems analysis of the Li\'enard system to reveal a saddle point in real time, whose implication is that instabilities will develop in the accreting system when the perturbation is extended into the nonlinear regime. We also model the perturbation as a high-frequency travelling wave, and carry out a Wentzel-Kramers-Brillouin analysis, treating nonlinearity iteratively as a very feeble effect. Under this approach both the amplitude and the energy flux of the perturbation exhibit growth, with the acoustic horizon segregating the regions of stability and instability.Comment: 15 pages, ReVTeX. Substantially revised with respect to the previous version. One figure and a new section on travelling waves (Sec. VI) have been added. The bibliography has been revised. arXiv admin note: substantial text overlap with arXiv:1207.107

Environmental concern in tourism from a cross-national perspective

This paper analyzes how tourist from European countries consider environmental issues when making decisions about their their holiday plans. Modelling these decisions is a challenge because environmental concerns depends on both individiual characteristics and contextul factors related to the country or residence, such as cultural, social and economic condictions. For that reason, environmental support by households exhibit a particular type of grouped structure, where individual, firs level, are nested into countries, second level. This hierarchical structure of date are dealed with a multilevel aproach. The estimates from a Two-Level Random Intercept Logistic Model and the post-estimation analysis demonstrate that the effects of country vary randomly, and that there is significant variance in the level of tourists´ environmental support within and between countries.Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech