Dwight W. Adamson and Scott W. Fausti
An extensive literature review considers the union voice effect on firm performance. A theoretical model of labor demand under uncertainty is developed that hypothesizes a linkage between firm performance and the union voice effect. The model generates a positive union effect on wages and hours worked without union monopoly power. The model provides a more detailed conceptual framework for explaining why the union voice effect may improve efficiency within the firm than that currently found in the literature (J30, J50).
Brian K. Jackson
Recent papers have demonstrated that Average-Revenue-Lagged regulation (ARL) as applied to the single-product / multi-market firm is susceptible to strategic manipulation even leading to global profit maximum pricing. This paper illustrates that myopic behavior within ARL under appropriate conditions on product demands and production costs can also produce profit maximum prices thus undermining obvious regulatory intent. The possibility of this outcome is another significant criticism that may be leveled against this particular regulatory approach. (L43, L51)
Mark Jelavich
Different studies have arrived at different conclusions as to whether foreign direct investors in the United States prefer urban or rural locations. Location in "exurban" areas may explain this inconsistency. Using employment per square mile as a measure of urbanization, this study uses 2002 data to investigate how employment in foreign-owned facilities varies across the states. Using OLS estimates, it is concluded that foreign investors prefer more urbanized states, possibly reflecting exurban preferences. However, the estimates also suggest that foreign investors prefer less-skilled labor (R12, F21, J23).
Susanne Rassouli-Currier
The purpose of this paper is to extend the empirical literature on efficiency measurement in public education. Two estimation methods often used in determining efficiency in the production of public education are used to determine if the results from the methods are similar. The Oklahoma public schools are of interest because Oklahoma has a large number of districts with very different characteristics. The methods of estimation are Stochastic Frontier Regression (SFR) and Data Envelopment Analysis (DEA). SFR estimates the inefficiency model simultaneously with the production or cost function. In the DEA model, the first stage estimates the efficiency scores and the second stage uses a Tobit regression model to determine causes of inefficiency. In this study, the empirical results of the SFR and DEA efficiency scores for the majority of Oklahoma school districts are not identical, suggesting that the method of estimation affects the efficiency scores. In general, SFR generated a more favorable score than that of DEA. The results from the two estimation methods in the inefficiency model are also different. However, both methods suggest that the most important determinants of inefficiency are socioeconomic factors associated with each district. (I21, C13)