Reputational Factors Research Articles

Macroeconomic forecasts and microeconomic forecasters

In the presence of principal-agent problems, published macroeconomic forecasts by professional economists may not measure expectations. Forecasters may use their forecasts in order to manipulate beliefs about their ability. I test a cross-sectional implication of models of reputation and information-revelation. I find that as forecasters become older and more established, they produce more radical forecasts. Since these more radical forecasts are in general less accurate, ex post forecast accuracy grows significantly worse as forecasters become older and more established. These findings are consistent with reputational factors at work in professional macroeconomic forecasts.

Teaching quality performance indicators – key influences on the UK universities’ scores

When the first full round of teaching quality assessments (TQAs) was completed by the UK funding councils, the older universities had gained the largest percentage of the higher grades of assessment, while the new universities had the highest share of the lower grades. This pattern repeated itself, with minor variations, during later assessments. Utilising data from the Times Higher Education Supplement league tables for all UK universities (THES, 2000), covering the years 1993‐2000, this paper examines the relationship between TQA results, reputational factors, and resourcing indicators. Concludes that league tables may be instrumental in perpetuating the divide between the old and new university sectors, by failing to acknowledge the diverse missions of the institutions. We suggest that it may be more useful to group universities by set criteria which would allow for more meaningful comparisons.

How Early Stage Entrepreneurs Evaluate Venture Capitalists

This study examines the process and criteria by which entrepreneurs evaluate venture capitalists—the flip side of VCs9 due diligence efforts. The selection process involves such issues as the time invested to gather information, the sources of information, and the number of venture capitalists considered. Selection criteria are divided into four groups: 1) Valuation; 2) Value-Added Services; 3) Reputational Factors; and 4) Venture Capitalist Attributes. The article presents results for all respondents and compares results when the respondents are sorted by geographic region, industry, experience, and age. The article also examines satisfaction, sorting respondents by the factors listed as well as by time devoted to the search and criteria ranking.

How Early Stage Entrepreneurs Evaluate Venture Capitalists

This paper is the first attempt to study the process and criteria used by entrepreneurs in evaluating venture capitalists. Selection process involves issues such as the time invested in gathering information, the sources of information, and the number of venture capitalists considered. Selection criteria are split into four groups: (1) Valuation; (2) Value-Added Services; (3) Reputational Factors; and (4) Venture Capitalist Attributes. The paper presents results for all respondents and compares results when the respondents are sorted by geographic region, industry, experience, and age. The paper also examines satisfaction, sorting respondents by geographic region, industry, experience, age, time devoted to the search, and criteria ranking.

Credibility, Reputation, and the Mexican Peso Crisis

A model emphasizing the tradeoff between the costs of changes of domestic interest rates and exchange rate stability is used to assess the role of credibility and reputational factors in the lead-up to the December 1994 crisis of the Mexican peso. Devaluation expectations are decomposed into the probability that the authorities do not truly put a high weight on exchange rate stability and the probability that an exogenous shock will make a devaluation the preferred policy. Estimates indicate that prior to the peso collapse there was no significant increase in devaluation fears and no perceived shift in the authorities' policy preferences. But the increase in the differential that occurred after the devaluation may have resulted from such a shift.

Medical Malpractice Insurance: The Reputation Effect and Defensive Medicine

Medical malpractice insurance differs from most other types of insurance in that it tends to be community, rather than experience, rated. Also unusual is the lack of deductibles and coinsurance as part of the typical malpractice policy. Rather than focusing on the desirability of experience versus community rating, this paper instead examines the characteristics of this market that allow for community rating, as well as the lack of deductibles and coinsurance. Specifically, we present a theoretical model that includes a reputation factor that can lessen, or in some cases eliminate, the moral hazard problem that is so prevalent in other markets. This model also illustrates the incentive to practice various types of defensive medicine, even when the measures are unobservable to insurers. Using state data, the empirical section examines whether reputation factors do increase the use of defensive medicine. The evidence is mixed, indicating that reputational factors do influence whether family physicians engage in the riskier facets of a family practice, such as obstetrics and surgery. There is, however, little evidence, that physicians prescribe additional laboratory testing as a response to reputation factors.

The Mexican Peso Crisis: Overview and Analysis of Credibility Factors

This paper examines credibility and reputational factors in explaining the December 1994 crisis of the Mexican peso. After reviewing events leading to the crisis, a model emphasizing the inflation-competitiveness trade-off is presented to explain the formation of devaluation expectations. Estimation results indicate that investors appear to have seriously underestimated the risk of devaluation, despite early warning signals. The collapse of confidence that followed the December 20 devaluation may have been the result of a shift in the perceived commitment of the authorities to exchange rate stability.

The Mexican Peso Crisis: Overview and Analysis of Credibility Factors

This paper examines credibility and reputational factors in explaining the December 1994 crisis of the Mexican peso. After reviewing events leading to the crisis, a model emphasizing the inflation-competitiveness trade-off is presented to explain the formation of devaluation expectations. Estimation results indicate that investors appear to have seriously underestimated the risk of devaluation, despite early warning signals. The collapse of confidence that followed the December 20 devaluation may have been the result of a shift in the perceived commitment of the authorities to exchange rate stability.

Reasons for school choice in Scotland

Abstract This study examines the reasons a sample of Scottish parents gave for rejecting their designated secondary school and choosing a different one. A consistent theme in the findings is the importance of parental socio‐economic status (SES). It was related to the reasons for rejecting the local school and for selecting a different school, and to the degree of importance accorded different sources of information. Reasons pertaining to social and reputational factors and to disciplinary climate were the dominant themes for both rejection and selection of secondary schools. The academic quality of the school was of lesser importance. The results suggest that an educational marketplace that parallels the free‐market model works only for a limited subgroup of the population that is already advantaged in the present educational system.

Credibility and exchange rate management in developing countries

The paper discusses the role of credibility factors in the conduct of exchange rate policy in developing countries. The analysis is based on a simple framework in which policymakers are concerned about inflation and external competitiveness. Price setters in the nontradable sector of the economy engage in a strategic game against the authorities. The model generates a ‘devaluation bias’ which undermines the credibility of a fixed exchange rate. The role of reputational factors, signaling considerations, and joining a currency union as possible solutions to this bias is examined.

Credibility and Exchange Rate Management in Developing Countries

The paper examines the role of credibility in the conduct of exchange rate policy in developing countries, The analysis is based on a model in which policymakers are concerned about inflation and external competitiveness. Price setters in the nontraded goods sector of the economy adjust prices in reaction to anticipated fluctuations in the domestic price of tradable goods. This type of model is showm to generate a “devaluation bias” which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a currency union as possible solutions to this bias is examined.

Credibility and Exchange Rate Management in Developing Countries

The paper examines the role of credibility in the conduct of exchange rate policy in developing countries. The analysis is based on a model in which policymakers are concerned about inflation and external competitiveness. Price setters in the nontraded goods sector of the economy adjust prices in reaction to anticipated fluctuations in the domestic price of tradable goods. This type of model is shown to generate a devaluation which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a currency union as possible solutions to this bias is examined.

The peer relations of mildly delayed and nonhandicapped preschool children in mainstreamed playgroups.

Previously unacquainted groups of normally developing and mildly developmentally delayed preschool-age boys (N = 64) were brought together to form a series of 8 mainstreamed playgroups. Each playgroup consisted of 3 normally developing 3-year-olds, 3 normally developing 4-year-olds, and 2 mildly developmentally delayed 4-year-olds. The delayed children were matched with the normally developing older group for chronological age and with the normally developing younger group for developmental level. Each playgroup operated 5 days per week for 2 hours per day for a 4-week period. During that time, the peer-related social and play interactions of each child were videotaped, and peer sociometric ratings were obtained at the completion of each playgroup. Analyses of social participation and individual social behavior measures revealed that the analogue playgroup setting was appropriate for evaluating peer interactions, as expected developmental patterns emerged despite the presence of children heterogeneous with respect to chronological age and developmental status. The existence of a deficit in peer-related social interactions for mildly delayed children was supported in this investigation--a deficit that could not be attributed to reputational factors, the unavailability of responsive peers, inadequate matching procedures, unusual sample characteristics, or similar factors. Selected observational measures, peer preference patterns during free play, and peer sociometric ratings also indicated that the delayed children were perceived to be less competent and of lower social status. However, despite their relative isolation, important developmental opportunities were available for mildly delayed children in the mainstreamed playgroups. Possible processes responsible for these outcomes were discussed.