The international impact of productivity shocks

Even though many studies have confirmed the Feldstein-Horioka (1980) finding that savings and investment rates are highly correlated, there is no consensus on the major reason for this correlation. The purpose of this dissertation is to develop theoretical models and calibrate and simulate these to compare their implications to explain the observed time-series comovement between savings and investment in an attempt to show that this high correlation may stem from technological shocks.^ The dissertation is comprised of three studies. The first two studies construct overlapping-generations, two-economy models of saving and investment under conditions of perfect international capital mobility. The second study differs from the first by endogenizing the labor supply. Employing simulations, the models are used to generate time-series for savings and investment. These are then compared with the actual data for specific economies. The models show that productivity shocks produce a high correlation between savings and investment. Further, while the model with exogenous labor supply displays monotonic adjustment, the economy with endogenous labor supply adjusts cyclically.^ The third model, on the other hand, constructs a general equilibrium model for a small open economy. The study is based on two important elements: adjustment costs in investment and endogenous, recursive time preferences. Again, the simulation results show that the model generates, at least in a significant part of the adjustment path, a positive correlation between domestic savings and investment in response to a supply shock. ^

Ageism in the workplace: Examining the influence of age conceptualization on the advancement opportunities of older workers

This study examined variables that may influence managers' perceptions of the need for and benefits of training and promoting older workers. Age conceptualization, worker gender, tender-mindedness, openness to values, and emotional intelligence were predicted to affect the relationship between worker age and the probability and perceived benefits of training and promoting older workers. Approximately 500 working professionals read one of four training and promotion vignettes and provided training probability ratings, training benefits ratings, promotion probability ratings, and promotion benefits ratings in order to test twenty-four hypotheses. Results provided evidence that both worker age and the way in which age was conceptualized affected the extent to which workers were recommended for training as well as the perceived benefits of training workers. It was also found that worker age and the way in which age was conceptualized affected the extent to which workers were recommended for promotions and the perceived benefits of doing so. Of the individual characteristics studied, openness to values was found to act as a moderator of the relationship between age conceptualization and the extent to which older workers were recommended for a promotion and the relationship between age conceptualization and the perceived benefits of promoting older workers. Findings from this study suggest that organizations that wish to protect older workers from discrimination should make decision-makers aware of the influence of age conceptualizations on the salience of older worker stereotypes. By being cognizant of individual raters' levels of the personality characteristics examined in this study, organizations can create decision-making teams that are not only representative in terms of demographic characteristics (i.e. race, gender, age, etc.) but also diverse in terms of personality composition. Additionally, organizations that wish to decrease discrimination against older workers should take care to create guidelines and procedures for training and promotion decisions that systematically reduce the opportunities for older worker stereotypes to influence outcomes. ^