Modeling the dynamics of inflation compensation

This paper investigates the relationship between short-term and long-term inflation expectations using daily data on inflation compensation derived from the term structure of real and nominal interest rates. We use a flexible econometric model which allows us to uncover this relationship in a data-based manner. We relate our findings to the issue of whether inflation expectations are anchored, unmoored or contained. Our empirical results indicate no support for either unmoored or firmly anchored inflation expectations. Most evidence indicates that inflation expectations are contained.     

Creativity in marketing management—a unified approach

This paper sets out to identify how marketing management can provide the lead in adopting a more creative approach to innovation at the idea generation stage.

Both the proactive and reactive approaches to innovation strategy are discussed in the context of change factors and the sourcing of new ideas for innovation. Four loci of idea initiation are identified, which appear to vary in importance according to industry sector.

Although evidence is presented to suggest that heuristic techniques are being used increasingly to enhance creativity, their use is limited both by the perception of their function and the strategic mode adopted by the organisation. The concept of the marketing‐centred creative circle is introduced to counter these limiting factors. It is argued that the creative circle offers a bridging function in the generation of new ideas for innovation and in extending the existing stock. As well as performing this function, a more creative and entrepreneurial atmosphere will emerge as lateral relationships develop. With the development of successive marketing‐centred creative circles within the organisation, a unified approach to creative innovation will evolve as the traditional proactive and reactive strategies merge.     

Scaling‐up Foreign Aid: Will the ‘Big Push’ Work?

International donors are substantially scaling‐up aid programmes. At the same time, there are widespread reservations over how much aid recipient countries can use effectively. Such concerns are supported by the aid effectiveness literature which finds that there are limits to the amounts of aid recipients can efficiently absorb. This article demonstrates that a ‘big push’ in foreign aid will not lead to diminishing returns as long as donors get the inter‐country allocation of aid right. This is true even if donors provide aid at levels equal to the well‐known target of 0.7 per cent of their gross national income.     

Human Capital, Growth, and Inequality in Russia

Our model captures the fact that Russia has both much human capital and an education system that produces the wrong skills for a market economy. We define a rule for the timing of educational restructuring that is Pareto optimal and that dominates all later times in a Paretian sense while simultaneously reducing inequality. We demonstrate that failure to implement restructuring early in the transition process is likely to produce a very long delay that will significantly reduce Russia's human capital. A retreat from subsidizing public education is likely to be counterproductive. We argue that early educational restructuring should be emphasized in Russia's transition strategy. J. Comp. Econom., December 1999, 27(4), pp. 618–643. Lingnan University, Tuen Mun, N.T., Hong Kong, People's Republic of China; University of Colorado, Denver, Denver, Colorado 88217; and Royal Holloway College, University of London, Egham, Surrey TW20 OEX, United Kingdom.     

Welfare Consequences of Tight Price-Cap Regulation

This paper analyses the welfare effects of price-cap regulation of a multi-product monopolist when the price index has fixed weights. A tight cap can result in welfare below the level associated with an unregulated monopoly. This does not occur if the weights are based on lagged quantities and the level of the cap exceeds the previous period's total cost. In a two-period model the welfare problem is alleviated in the second period but first-period performance can be worse if the firm is not myopic.     

The Personal Development Plan Practice Questionnaire: the development and validation of an instrument to assess the employee's perception of personal development plan practice

Confronted with the speed of technological advancements and increasing global competition, organizations have come to realize that their employees' continuous learning drives business success. A popular tool to support and enhance continuous learning is the personal development plan (PDP). Despite its popularity, empirical evidence of the effectiveness of the PDP is scarce. To date, most of the research on the practice of the PDP is conducted within educational (students) and health (general practitioners) settings and not within business environments. Moreover, research methodology is restricted to qualitative methods and survey research is rare. For that reason, we developed and validated a questionnaire to assess PDP practice. To develop the questionnaire, we relied on literature on portfolio assessment in the educational context and the workplace (health and education); to validate it, we collected data in three independent organizations. To assess the factor structure of the questionnaire, exploratory principal component factor analyses with direct oblimin rotation were conducted on data sets from two organizations. Factor reliability was computed using Cronbach's alpha coefficient. The principal component analysis resulted in a 35‐item questionnaire containing five factors each with high internal validity. Cronbach's alphas ranged between 0.63 and 0.91. Next, a confirmatory factor analysis was conducted on an independent sample of 287 employees, working in a third organization. The results from this analysis were used to further refine the instrument. The present instrument provides a reliable and valid measure of the employee's perception of the PDP practice in the workplace, consisting of four scales and 19 items.     

Judicial interpretation of the will of the state: A Hegelian perspective in the context of taxation

This paper draws upon Hegelian dialectic theory to understand the nature of the interrelationship between state, taxpayer, and the accounting profession. The paper proposes that this has been reconstructed from one founded upon neo-Kantian liberalism towards one in which components of political and civil society are co-opted by the state to minimize tax avoidance. Empirical evidence in the form of general anti-avoidance rules, court decisions, and judicial statements is provided to illuminate a process of fundamental redefinition of the roles of the judiciary and the accounting profession vis a vis the state. One of the principal functions of critical accounting theory is to question the political legitimacy of regimes of accounting; the implications of this redefinition are hypothesized in terms of this function, critiquing the changing relationship between the state and the taxpayer in the context of tax policy. The paper theorizes the consequences of this process for the accounting profession.     

A regime-switching term structure model with observable state variables

The paper proposes in a regime-shift framework, an arbitrage-free term structure model based on the target and Fed Funds Rates. Empirical observations suggest that a three-state regime-shift environment associated with FOMC monetary actions is justified. Then, a closed-form solution for zero-coupon bonds is derived where regime-shift risk is priced. The solution is flexible enough to incorporate additional state variables.