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Pathways towards instability in financial networks

Following the financial crisis of 2007–2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily distress can spread within the system. However, in financial network models, the details of how financial institutions interact typically play a…

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English / 01/01/2017

An agent-based simulation of the stolper–samuelson effect

We demonstrate that agent-based simulations can exhibit results in line with classic macroeconomic theory. In particular, we present an agent-based simulation of an Arrow–Debreu economy that accurately exhibits the Stolper–Samuelson effect as an emergent property. Absent of a Walrasian auctioneer or any other central coordination, we let firm and consumer agents of different types…

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English / 01/01/2017

Heterogeneous returns to education over the wage distribution: Who profits the most?

This study presents evidence of heterogeneous returns to education over the wage distribution. The authors use instrumental variable quantile regression and data from the Swiss Labor Force Survey to identify the causal link between education and wages at different quantiles of the conditional distribution of wages. The results provide evidence that there is no unique causal effect of…

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English / 01/01/2017

Pre-play communication with forgone costly messages: experimental evidence on forward induction

We experimentally study optional costly communication in Stag-Hunt games. Prior research demonstrates that efficient coordination is difficult without a communication option but obtains regularly with mandatory costless pre-play messages. We find that even small communication costs dramatically reduce message use when communication is optional, but efficient coordination can occur…

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English / 01/01/2017

Diversity as polyphony: reconceptualizing diversity management from a communication-centered perspective

In this paper, we propose reconceptualizing diversity management from a communication-centered perspective. We base our proposal on the observation that the literature on diversity management, both in the instrumental and critical traditions, is primarily concerned with fostering the diversity of organizational members in terms of individual-bound criteria (e.g., gender, age, or…

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English / 01/01/2017

Job security as a threatened resource: Reactions to job insecurity in culturally distinct regions

As downsizing and restructuring have become global phenomena, the impact of job insecurity on employee attitudes has received significant attention. However, research examining the role of cultural dimensions has been largely unexplored. Drawing on the conservation of resources theory, we investigated whether the relationships between both quantitative job insecurity (i.e. the…

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English / 01/01/2017

When a door closes, a window opens? Long-term labor market effects of involuntary separations

This study estimates the earning losses of workers experiencing an involuntary job separation. We employ, for the first time in the earning losses literature, a Poisson pseudo-maximum-likelihood estimator with fixed effects that has several advantages with respect to conventional fixed effects models. The Poisson estimator allows considering the full set of involuntary separations,…

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English / 01/01/2017

Integrating QCA and HLM for Multilevel Research on Organizational Configurations

Mixed methods systematically combine multiple research approaches—either in basic parallel, sequential, or conversion designs or in more complex multilevel or integrated designs. Multilevel mixed designs are among the most valuable and dynamic. Yet current multilevel designs, which are rare in the mixed methods literature, do not strongly integrate qualitative and quantitative…

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English / 01/01/2017

Detecting nestedness in graphs

Many real-world networks have a nested structure. Examples range from biological ecosystems (e.g. mutualistic networks), industry systems (e.g. New York garment industry) to inter-bank networks (e.g. Fedwire bank network). A nested network has a graph topology such that a vertex’s neighborhood contains the neighborhood of vertices of lower degree. Thus, the adjacency matrix is…

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English / 01/01/2017

Measurement invariance of personal well-being index (PWI-8) across 26 countries

This report examines the measurement invariance of the Personal Well-being Index with 8 items (PWI-8). University students (N = 5731) from 26 countries completed the measure either through paper and pencil or electronic mode. We examined uni-dimensional structure of PWI and performed a Multi-group CFA to assess the measurement invariance across the 26 countries, using conventional…

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English / 01/01/2017

Measurement of psychological entitlement in 28 countries

This article presents the cross-cultural validation of the Entitlement Attitudes Questionnaire, a tool designed to measure three facets of psychological entitlement: active, passive, and revenge entitlement. Active entitlement was defined as the tendency to protect individual rights based on self-worthiness. Passive entitlement was defined as the belief in obligations to and…

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English / 01/01/2017

Testing for Approximate Measurement Invariance of Human Values in the European Social Survey

Measurement invariance is a necessary precondition for meaningful cross-country comparisons, and three levels have been differentiated: configural, metric, and scalar. Unfortunately, establishing the most stringent form, i.e., scalar measurement invariance, across groups is difficult. Recently, Muthén and Asparouhov proposed testing for approximate rather than exact measurement…

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English / 01/01/2017

Value tradeoffs propel and inhibit behavior: validating the 19 refined values in four countries

We assess the predictive and discriminant validity of the basic values in the refined Schwartz value theory by examining how value tradeoffs predict behavior in Italy, Poland, Russia, and the USA. One thousand eight hundred and fifty-seven respondents reported their values and rated their own and a partner’s behavior. Multigroup confirmatory factor analysis supported the…

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English / 01/01/2017

Nonlinear shrinkage of the covariance matrix for portfolio Selection: Markowitz Meets Goldilocks

Markowitz (1952) portfolio selection requires an estimator of the covariance matrix of returns. To address this problem, we promote a nonlinear shrinkage estimator that is more flexible than previous linear shrinkage estimators and has just the right number of free parameters (i.e., the Goldilocks principle). This number is the same as the number of assets. Our nonlinear shrinkage…

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English / 01/01/2017

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