R&D,Innovation and Knowledge Spillovers: A Reappraisal of Bottazzi and Peri (2007) in the Presence of Cross‐Sectional Dependence

Bottazzi and Peri (Economic Journal 2007; 117 : 486–511) show the existence of a cointegrating relationship between the domestic stock of knowledge, domestic R&D and the international knowledge stock for a panel of OECD countries and interpret it as evidence supporting the semi‐endogenous versus the endogenous growth theory. We replicate the baseline specification of their study and we show that main results are robust to the use of a different estimation strategy (Bai et al., Journal of Econometrics 2009; 149 : 82–99) that duly takes into account cross‐sectional correlation: interestingly, in this case we also find a larger role for knowledge spillovers. Copyright © 2014 John Wiley & Sons, Ltd.     

In what sequence are information sources consulted by involved consumers? The case of automobile pre-purchase search

This study investigates the relationship between involvement and use of multiple information sources in the case of pre-purchase information search for automobiles. We consider the moderating role played by the sequence in which information sources are consulted. We explore our theoretical framework on a sample of 1261 Dutch consumers using a combination of structural equation modelling and cluster techniques. The results lend support for the claim that more involved consumers search more, and across more, information sources. We also identify clusters of consumers based on their search strategies, as defined by the sequencing of information sources used. Finally, research and managerial implications are discussed.     

Mortgage lending on Native American reservations: Does a guarantee matter?

The Section 184 Indian Home Loan Guarantee Program provides lenders with a 100 percent guarantee for mortgage loans to Native Americans residing on reservations belonging to tribes that have chosen to participate in the program. We find that Native Americans residing on trust land whose tribes have adopted Section 184 have a marginally statistically significantly higher loan approval rate than Native Americans residing on trust land whose tribes have not adopted Section 184. However, the statistical significance disappears once tribe fixed effects are included in the analysis, suggesting that underlying tribe characteristics correlated with the adoption of Section 184 are more important determinants of access to credit than is Section 184 per se.     

The impact of recall periods on reported morbidity and health seeking behavior

Between 2000 and 2002, we followed 1621 individuals in Delhi, India using a combination of weekly and monthly-recall health questionnaires. In 2008, we augmented these data with another 8 weeks of surveys during which households were experimentally allocated to surveys with different recall periods in the second half of the survey. We show that the length of the recall period had a large impact on reported morbidity, doctor visits; time spent sick; whether at least one day of work/school was lost due to sickness and; the reported use of self-medication. The effects are more pronounced among the poor than the rich. In one example, differential recall effects across income groups reverse the sign of the gradient between doctor visits and per-capita expenditures such that the poor use health care providers more than the rich in the weekly recall surveys but less in monthly recall surveys. We hypothesize that illnesses – especially among the poor – are no longer perceived as “extraordinary events” but have become part of “normal” life. We discuss the implications of these results for health survey methodology, and the economic interpretation of sickness in poor populations.     

EURO CORPORATE BOND RISK FACTORS

This paper investigates the determinants of credit spread changes in euro‐denominated bonds. We adopt a factor model framework, inspired by the credit risk structural approach, as credit spread changes can be easily viewed as an excess return on corporate bonds over Treasury bonds. We try to assess the relative importance of market and idiosyncratic factors as an explanation of movements in credit spreads. We adopt a heterogeneous panel with a multifactor error model and propose a two‐step estimation procedure, which yields consistent estimates of unobserved factors. The analysis is carried out with a panel of monthly redemption yields on a set of corporate bonds for a time span of 3 years. Our results suggest that the euro corporate market is driven by observable and unobservable factors. The unobservable factors are identified through a consistent estimation of individual and common observable effects. The empirical results suggest that an unobserved common factor has a significant role in explaining the systematic changes in credit spreads. However, in contrast to evidence regarding US credit spread changes, it cannot be identified as a market factor. Copyright © 2011 John Wiley & Sons, Ltd.     

Employing the business model concept to support the adoption of product–service systems (PSS)

Although the existing literature indicates that the business model concept can be useful to implement product–service systems (PSS), there is still a paucity of guidelines to assist companies in this respect. Therefore, this paper proposes a framework to support the adoption of PSS employing the business model concept. This framework was developed based on literature review and intends to guide the company on the analysis of their business context, on the choice of the appropriate type of PSS and on the definition of their PSS characteristics. A single case study was then performed to illustrate an application of the framework in a machine tool manufacturer and provide research insights. Overall, results indicate that the framework can provide companies with a useful reference to PSS implementation, helping on the investigation of different PSS scenarios as well as the main barriers and challenges to be overcome.     

Asymmetric search and prospect theory: choice experiment on consumer willingness to search in the gasoline retail market

We use an internet survey conducted among a representative random sample of drivers in the State of Ohio consisting of a choice experiment designed to examine the mechanism driving asymmetric search. The internet survey affords us the opportunity to overcome endogeneity difficulties by imposing exogenous price changes on gasoline consumers to examine the decision-making process behind intended search decisions. We randomly assigned participants to one of five price treatments (either 2.5 or 5% above or below their reported expected price, or no change). We provide a simple empirical model to derive testable implications under prospect theory and use the internet survey to test them. Results indicate that among the respondents who faced prices below their expected price, only 12% chose to search, whereas 45% searched when prices were above. Further, we find results consistent with asymmetric search being driven by prospect theory. The change in consumers’ willingness to search is twice as large when prices exceed expectations by 2.5% relative to when prices exceed them by 5% suggesting that consumers derive utility of finding a good deal evaluated relative to a reference price. We show that this result is inconsistent with standard utility theory or consumers using alternative reference prices.     

Assessing gender differences in ‘quick response’ code loyalty promotion acceptance

This study sheds light on quick response (QR) code loyalty promotion in terms of gender. Based on self-construal and gender scheme theories, we posit that the level of both involvement and social anxiety plays a crucial role in the gender effects of loyalty formation for promoted services. A scenario-based study in Japan with 667 consumers is constructed and examines two types of services: bank and supermarket. The findings suggest that, for high involvement (bank), compared with women, males act as competitive gamers who assume greater risk and seek attractive rewards with which to beat corporations, even under high social anxiety conditions. This finding seems consistent with independent self-construal among males. However, there is no significant difference for low involvement (supermarket). The implications are discussed and limitations recognized.     

Analysis of the hysteresis of unemployment in Mexico in the face of macroeconomic shocks

This research presents the behavior of the Mexican unemployment rate and shows the dependence with own history and macro variables. The concept of hysteresis or persistence tries to separate this inertia in the unemployment rate and some macroeconomic and endogenous factors. The results show a high inertia in the Mexican labor market, justified by the monetary levels and the dependence of the investment levels, considering the shocks of exports that affect the unemployment in the long term.