Health shocks and consumption smoothing in rural households: Does microcredit have a role to play?

This paper estimates, using a large panel data set from rural Bangladesh, the effects of health shocks on household consumption and how access to microcredit affects households’ response to such shocks. Households appear to be fairly well insured against health shocks. Our results suggest that households sell livestock in response to health shocks and short term insurance is therefore attained at a significant long term cost. However microcredit has a significant mitigating effect. Households that have access to microcredit do not need to sell livestock in order to insure consumption. Microcredit organizations and microcredit therefore have an insurance role to play, an aspect that has not been analyzed previously.     

From a commodity to an experience: The moderating role of thematic positioning on congruity‐based product judgment

Research in positioning strategy suggests that a product schema, when presented in a moderately incongruent fashion, can evoke a greater degree of positive evaluation than if presented congruently with consumer expectations. This phenomenon has been coined the schema congruity effect. To date, one of the limitations of the phenomenon is that it has been applied almost exclusively to taxonomic stimuli, with little reference to thematic, eventlike stimuli. Two experiments verified that taxonomic and thematic product categories differ with respect to their unique characteristics. Consequently, despite successful replication of the schema congruity effect during taxonomic interpretation, when pushed thematically, the schema congruity effect failed to manifest. Furthermore, both experiments confirmed that, unlike taxonomic product categories that benefit from abstract and moderately incongruent positioning, thematic product categories benefit from concrete and congruent positioning. Implications for understanding the moderating role of thematic positioning on congruity‐based product evaluation as well as the differences between taxonomic and thematic stimuli are discussed. © 2010 Wiley Periodicals, Inc.     

Detecting the impact of market factors on sales takeoff times of analog cellular telephones

We use two approaches to model the hazard probability of the time-to-sales takeoff for cellular analog telephony to determine the impact of three market factors: price, number of competitors, and number of competing standards. We compare a fully parametric hazard model with discrete-time survival mixture analysis (DTSMA) in our study of data drawn from 70 countries from different economic sectors and geographic regions. Both approaches use control variables to capture observed heterogeneity. The possible relative advantage of DTSMA is its ability to recognize unobserved heterogeneity using latent classes. Failure to account for unobserved heterogeneity can cause underestimation of hazard probabilities; we investigate the change in inferences such an omission may cause. Applying DTSMA to this data set, we find that model parameters have appropriate signs and offer support for all three hypotheses: Relatively falling prices, relatively greater number of competitors, and relatively fewer competing standards are each associated with relatively higher hazard probabilities. In contrast, in the estimation of the fully parametric hazard model, we find that some parameters are wrongly signed, and only one hypothesis, the effect of competing standards, is supported.     

The Great Recession of 2008: Impact on the Bangladeshi economy and international business implications

This article examines the current global financial crisis (GFC) and its impact on Bangladesh's economy and discusses international business implications for the country within an institution‐based analytical framework. The article finds that the macroeconomy of Bangladesh has shown remarkable resilience in the face of this massive global crisis, and the impact has been minimal and limited to a moderate slowdown of the economy The country thus could be poised for taking advantage of international business opportunities as the global economy begins to recover. Further, JPMorgan's Frontier Five and Goldman Sachs's Next Eleven classification of Bangladesh indicates enormous potential for growth and development. The article suggests that the Bangladeshi diaspora could serve as a connecting hub so that “brain gain” could be achieved through labor migration and remittances. Strategic alliances among home and foreign firms are also important to the future capacity building of the country. However, strategic management in the form of further institutional, structural, and policy reforms are critical in enabling the country to develop an international‐business‐friendly environment conducive to taking advantage of evolving global opportunities and realizing its full potential. © 2011 Wiley Periodicals, Inc.     

Tests of Weak‐Form Efficiency of the Dhaka Stock Exchange

Abstract:   Conflicting evidence on weak form efficiency of the Dhaka Stock Market appears to stem from the use of monthly versus daily data, structural changes after the 1996 market crash, and the use of tests with or without heteroscedasticity adjustment. Heteroscedasticity‐robust tests indicate short‐term predictability of share prices prior to the crash, but not afterwards. Although a heteroscedasticity‐robust Box‐Pierce test was used by Lo and MacKinlay (1989) in their simulations, our study appears to be the first to apply this test to stock prices. Typical rejection of weak‐form market efficiency by the usual autocorrelation tests may be reversed by a heteroscedasticity‐robust test.     

REGIONAL AGRICULTURAL PRODUCTION SYSTEMS: ESTIMATES FOR WESTERN AUSTRALIA

A regional model, be it computable general equilibrium or partial equilibrium in construct, which is based on the national parameters would certainly provide misleading results if the regional economy or sector is significantly different from its national counterpart. For a credible and useful quantitative analysis of the regional impacts of changes in, say, government policies or international events, one thus needs an empirically based economic model that reflects the key features of the regional economy or sector concerned. This is the motivation for this paper, which estimates a disaggregated agricultural production system for Western Australia (WA): a key farming State of Australia. The paper uses a profit function approach that explicitly recognizes jointness in agricultural production and various climatic zones in WA, and an estimation procedure that involves the Diewert–Wales decomposition technique. It presents estimates of elasticities of supply responses and input demands in WA agriculture, and compares these with the national estimates.     

Mexican integration into the North American free trade zone

Mexican integration into the North American free trade zone is modeled as removing the tariff on Mexican imports of manufacturing goods. Using a theoretical model, it is shown that this increases welfare through production, consumption and employment gains. The results are derived by nesting the theory of customs unions, and the Harris-Todaro type intersectoral labor migration model into a unified framework.     

Serving Time: Volunteer Work,Liminality and the Uses of Meaningfulness at Music Festivals

Drawing from a participant‐observer study of volunteering in the context of UK music festivals, we examine how the sense of meaningfulness and community relate to instrumental goals of consumption and efficiency. We argue that the liminal nature of the festival setting supports an ambivalence in which meaningfulness is established through constructions of community, while the commodification of community feelings leads to heterogeneous understandings of the work setting. Our findings reveal heterogeneous ways in which work was rendered meaningful by festival volunteers, ranging from (1) A commodity frame, characterizing work as drudgery seeking ‘fun’ through consumption (2) A ‘communitas’ frame, emphasizing a transcendental sense of collective immediacy and (3) A cynical frame, where communitas discourse is used instrumentally by both managers and workers. We discuss meaningful work as caught between creative community and ideological mystification, and how alternative workspaces vacillate between emancipatory principles of solidarity and neo‐normative forms of ideological control.     

Financing constraints and investment efficiency: evidence from a panel of Canadian forest firms

This article examines the financial constraint of 18 listed Canadian forest firms between 2000 and 2014 following the stochastic frontier approach. Empirical results support the observation that Canadian forest firms have a strong dependence of using both equity financing and debt financing as the coefficients of both equity and debt financing mean functions are significant at 1% level. The distribution of investment efficiency index (IEI) of all 18 firms demonstrates a loss of around 40% of the rate of investment due to financing constraints. Regional analysis demonstrates that the time-varying patters of IEI of three provinces are significantly different.     

Linking Customer Engagement to Trust and Word-of-Mouth on Facebook Brand Communities: An Empirical Study

Given the rise of social networking sites, particularly Facebook, companies have started engaging with customers in this newly emerged digital space. This study explores the role of customer engagement in enhancing trust and word-of-mouth on brand communities over Facebook. The effect of customer involvement on customer engagement is also checked. This study also investigates the direct relationship of customer involvement with trust and word-of-mouth. A pen-and-paper questionnaire survey of 450 Facebook account holder students was used. Data were analyzed using structural equation modeling. The results reveal that a higher level of involvement with the brand community leads to a higher level of customer engagement. Customer engagement leads to customer trust and word-of-mouth activities. The results further suggest a direct positive relationship of customer involvement with trust and word-of-mouth, but the mediation of customer engagement strengthens the mentioned effect.