Abstract Parole was eliminated for many US offenders by Truth-in-Sentencing (TIS) laws in the 1990s. I exploit the introduction of TIS in Arizona to explore its impact on offenders before, during, and after incarceration. TIS Offenders were assigned significantly shorter sentences, largely eliminating the intended increase in punishment. These offenders reduced their rehabilitative effort while incarcerated, with rule infractions increasing by 22% and education enrollment falling by 24%. Finally, TIS offenders became 23% more likely to return to prison for a new conviction. I argue these effects were driven by TIS removing parole incentives, given that time served remained largely unchanged.

This paper offers a market-compatible perspective of the emancipatory entrepreneurship of marginalized groups. We identify two dimensions of market-emancipation compatibility that derive from tensions inherent in the emancipatory entrepreneurship of marginalized groups. Ends-compatibility reflects the misalignment of emancipatory outcomes with market outcomes. Means-compatibility reflects the constraint entrepreneurs from marginalized groups encounter in market structures. We engage with these tensions in the context of the businesses, processes, and products that emerge from the entrepreneurship of marginalized groups. We use these tensions to derive propositions that speak to the likelihood emancipatory opportunities develop and that these opportunities are exploited by marginalized groups. With these propositions, we contribute to debates about entrepreneurship's overall emancipatory capacity. Specifically, we contribute a conceptual space in which the market forces that structure entrepreneurial activity and the material realities of venturing from marginalized social positions are incorporated into theorizing and testing entrepreneurship's capacity to enable marginalized groups with respect to structural disadvantage.

Abstract Basel I introduced capital requirements for undrawn commitments, but only for revolvers with an original maturity greater than one year. We use this regulatory discontinuity to estimate the impact of capital regulation on the cost and composition of credit. Following Basel I, short-term commitment fees declined relative to long-term commitments and issuance of short-term facilities increased. Our results highlight the sensitivity of credit provision to capital regulation, particularly for banks with less capital. We are able to infer that low-capital banks are willing to forego twice as much income from fees to reduce required regulatory capital by a dollar.

We estimate the longer-run effects of attending an effective high school (one that improves a combination of test scores, survey measures of socioemotional development, and behaviors in ninth grade) for students who are more versus less educationally advantaged. All students benefit from attending effective schools, but the least advantaged students experience larger improvements in high school graduation, college going, and school-based arrests. Test score value-added understates the long-run importance of effective schools, particularly for less advantaged populations. Patterns suggest that this may, in part, reflect less advantaged students being relatively more responsive to non-test-score dimensions of school quality.

Abstract Living up to the expectations of the JIBS Decade Award, Goerzen, Asmussen, and Nielsen’s 2013 paper not only introduced the literature on global cities to the international business (IB) community but continues to be generative. In their “Retrospective and a Looking Forward” paper 10 years later, the authors highlight megatrends about people, places and things, and new contexts and alternative perspectives, and they encourage further new ways of thinking about global cities and IB. This commentary expands upon their framework of three overlapping circles of global issues, global organizations, and global locations, by drawing especially from recent experiences in the U.S. and research in economic geography and allied fields. Facing global issues of climate change, human rights, health, housing, and the impacts of digital technologies on work, cities offer prospects of responding to these challenges, a context for multinational enterprises (MNEs) to consider. Against the backdrop of large-scale global migrations of unskilled, mostly contract, workers to global cities in developed economies, recruitment agencies and advocacy groups for migrants are global organizations as important as MNEs. Finally, the fluidity of physical boundaries, as illustrated by city-regions, world regions beyond traditional Western-centric perspectives, and intra-national variations, is key to analyzing global locations.

The metaphor of an organization as a garbage can is often invoked as a playful insult. However, as was recognized early on by management theorists studying garbage can ideas, the unpredictability arising from garbage can decision making has the potential to be adaptively rational for organizations facing complex task environments. The chaos produced by preference conflict and fluid participation in collective decision making can aid in search by enabling organizations to escape local performance peaks or competency traps. The decades-old hypothesis that conflict and chaos could promote adaptively rational search, however, has largely been overlooked in research on organizational design. This paper uses an agent-based model to evaluate these competing views and, in the process, identify conditions under which garbage can decision making is adaptively rational for executives searching for high-quality strategies. I show that the biased and chaotic outcomes that emerge as a result of garbage can decision making—the very features of garbage cans that lead them to be perceived to be dysfunctional—can facilitate short-term exploitation and long-term exploration of uncertain technical landscapes when organizations engage in serial judgment of local alternatives if internal conflict over desired outcomes is not too extreme. I conclude that decision-making routines that encourage chaotic conflict are robust to bounded rationality and complex task uncertainty and thus should be included in the organizational designer’s portfolio. Supplemental Material: The online supplement is available at https://doi.org/10.1287/orsc.2023.1662 .

We study a global panel of green and conventional corporate bonds to assess the borrowing cost advantage at issuance for green bond issuers. We find that, on average, green corporate bonds have a yield spread that is between 3 and 8 basis points lower relative to conventional bonds, depending on the regression specification. We link this borrowing cost advantage, or “greenium,” to demand pressure at issuance, highlighting a key mechanism through which the greenium is allocated. We find that a significant greenium emerges only as of 2019, coinciding with the growth of the sustainable asset management industry following EU regulation. While green bond governance and external review appear to matter for the greenium, the credibility of the underlying projects has little impact. Instead, the greenium is unevenly distributed to large, investment-grade issuers, primarily within the banking sector and developed economies. These findings have implications for the role of green bonds in incentivizing meaningful green investments throughout the global economy.

This paper employs a dynamic factor model with endogenous regional clustering and extreme value adjustment properties to construct a world interest rate, as well as regional factors, based on country-specific short-run real interest rates from 43 markets. We find that global and regional factors play crucial roles in determining local rates among advanced countries, while local factors are more important among emerging markets. Further, convenience yields essentially affect both global and regional rates, especially in the longer run. Moreover, the relationship between global and local rates depends crucially on capital account openness, while the choice of exchange rate regime is a critical determinant of the transmission of regional factors. Lastly, we show that a U.S. nominal rate shock would raise the global real rate a quarter later, with a stronger impact observed before the U.S. rate hits the zero lower bound in 2008.