The Political Economy of Intergenerational Income Mobility

The intergenerational elasticity of income is considered one of the best measures of the degree to which a society gives equal opportunity to its members. While much research has been devoted to measuring this reduced-form parameter, less is known about its underlying structural determinants. Using a model with exogenous talent endowments, endogenous parental investment in children and endogenous redistributive institutions, we identify the structural parameters that govern the intergenerational elasticity of income. The model clarifies how the interaction between private and collective decisions determines the equilibrium level of social mobility. Two societies with similar economic and biological fundamentals may have vastly different degrees of intergenerational mobility depending on their political institutions. We offer empirical evidence in line with the predictions of the model. We conclude that international comparisons of intergenerational elasticity of income are not particularly informative about fairness without taking into account differences in politico-economic institutions.public education, intergenerational mobility, political institutions

Top research productivity and its persistence. A survival time analysis for a panel of Belgian scientists.

The paper contributes to the debate on cumulative advantage effects in academic research by examining top performance in research and its persistence over time, using a panel dataset comprising the publications of biomedical and exact scientists at the KU Leuven in the period 1992-2001. We study the selection of researchers into productivity categories and analyze how they switch between these categories over time. About 25% achieves top performance at least once, while 5% is persistently top. Analyzing the hazard to first and subsequent top performance shows strong support for an accumulative process. Rank, gender, hierarchical position and past performance are highly significant explanatory factors.Economics of science; Effects; Factors; Hazard models; Performance; Persistence; Processes; Productivity; Research; Research productivity; Researchers; Scientists; Selection; Studies; Time;

Transcending Equality Versus Adequacy

A debate about whether all children are entitled to an “equal” or an “adequate” education has been waged at the forefront of school finance policy for decades. In an era of budget deficits and harsh cuts in public education, I submit that it is time to move on. Equality of educational opportunity has been thought to require equal spending per pupil or spending adjusted to the needs of differently situated children. Adequacy has been understood as a level of spending sufficient to satisfy some absolute, rather than relative, educational threshold. In practice, however, many courts interpreting their state’s constitutional obligations have fused the equality and adequacy theories. Certain federal laws express principles of both doctrines. And gradually, more advocates and scholars have come to endorse hybrid equality-adequacy approaches. Still, the debate persists over seemingly intractable conceptual precepts and their political and legal ramifications. Tracking the philosophical origins and evolution of equality and adequacy as legal doctrines, I explain the significance of their points of convergence and argue that the few points of divergence are untenable in practice. Equality of educational opportunity should not be interpret-ed as pursuing equal chances for educational achievement for all children, because that ideal is infeasible. Nor should educational adequacy be interpreted as completely indifferent to objectionable inequalities that can be feasibly curtailed. Properly conceived, equality and adequacy are not merely congruent but reciprocal. That is, children are owed an education that is adequately equal and equally adequate

Simulation in Sport Finance

Simulations have long been used in business schools to give students experience making real-world decisions in a relatively low-risk environment. The OAKLAND A’S BASEBALL BUSINESS SIMULATOR takes a traditional business simulation and applies it to the sport industry where sales of tangible products are replaced by sales of an experience provided to fans. The simulator asks students to make decisions about prices for concessions, parking, and merchandise, player payroll expenses, funding for a new stadium, and more. Based on these inputs, the program provides detailed information about the state of the franchise after each simulated year, including attendance, winning percentage, revenues vs. expenses, revenue sharing, and stadium financing. The use of simulations such as this one enhances students’ organizational skills and students’ ability to think critically and imaginatively about the data while applying relevant knowledge and an appropriate strategy to achieve the best possible results. This is particularly important in the field of sport management where few, if any, other simulators exist that are specific to the field.baseball business; computer-based learning; simulation/gaming; stadium/facility financing; sport finance; sport management

In Defense of Merit to Overcome Merit

: Bibliometric indicators such as the number of published articles and citations received are subject to a strong ambiguity. A high numerical value of bibliometric indicators may not measure the quality of scientific production, but only a high level of activity of a researcher. There may be cases of good researchers who do not produce a high number of articles, but have few research products of high quality. The sociology of science relies on the so-called "Matthew effect," which is inspired by Matthew's Gospel on Talents. "Those that have more will have more" seems to support the idea that those that publish more, merit to have higher bibliometric indicators, and to be recognized for their major results. But is this really the case? Can bibliometric indicators be considered a measure of the merit of scholars or they come from luck and chance? The answer is of fundamental importance to identify best practices in research assessment. In this work, using philosophical argumentation, we show how Christian theology, in particular St. Thomas Aquinas, can help us to clarify the concept of merit, overcoming the conceptual ambiguities and problems highlighted by the existing literature. By doing this, Christian theology, will allow us to introduce the evaluation framework in a broader perspective better suited to the interpretation of the complexity of research evaluation

Foundations for measuring equality: A discussion paper for the Equalities Review

The Equalities Review is an independent panel set up by the UK government in 2005 to investigate the persistence of social inequalities and to make recommendations for the development of a unified Commission for Equality and Human Rights. This paper was originally written for the Review. It canvasses possible responses to the questions, 'equality between whom?' and 'equality of what?'. It argues that equality of outcome is intuitively appealing but risks ignoring variations in need, differences in values and preferences, and the importance of individual agency. A broad interpretation of equality of opportunity, such as is provided by the capability approach, can address these limitations, by focusing on the substantive freedom enjoyed by individuals. Substantive freedom may be limited by a lack of personal resources, or by the economic, social, political, cultural, and environmental conditions context in which the individual is operating. The paper concludes by identifying, and indicating solutions to, a number of measurement issues that arise in operationalising the capability approach.Equality, opportunity, capability approach

Embodied Knowledge Transfer Comparing inter-firm labor mobility in the music industry and manufacturing industries

This paper adds new knowledge to the phenomenon of transferring embodied knowledge through labor mobility by means of a comparative study of the entertainment and manufacturing industries. Explorative in nature, the paper takes advantage of unique data on the Danish labor market (i.e. IDA) to investigate labor mobility patterns for the two selected industries and to detect internal differences within industry segments and regarding creative intensive and invention activities in particular. We use the music industry as a proxy for the entertainment industries.Embodied knowledge transfers, labor market dynamics, inter-firm mobility, creative intensive and invention activities, entertainment industries, manufacturing industries

Do Sophisticated Investors Believe in the Law of Small Numbers?

Believers in the law of small numbers tend to overinfer the outcome of a random process after a small series of observations. They believe that small samples replicate the probability distribution properties of the population. We provide empirical evidence indicating that investors are mistakenly driven by this psychological bias when hiring or firing a fund manager after a successful (or losing) performance streak. Using quarterly data between 1994 and 2000 of 752 hedge funds, we analyze actual money flows into and out of hedge funds and their relationship with the length of the streak. We first show that persistence patterns have a predictive ability of future relative performance of a manager: the longer the winner streak, the larger the probability for a fund to remain a winner. Investors, in turn, appear to be aware of quality dispersion across managers and respond by following a momentum strategy: the longer the winning (losing) streak, the more likely they will invest in (divest from) that fund. Yet, we find that investors place excessive weight in the managers’ track record as a criterion for decision. Our model shows that the length of the streak has an economically and statistically significant impact on money flows beyond rationally expected performance, which confirms a “hot-hand†bias driving to a large extent momentum investing. Apparently, even sophisticated investors exhibit psychological biases that may have adverse effects on their wealth.Performance Persistence;Overreaction;Hedge Fund Investors;Hot-Hand Bias;Law of Small Numbers