REAL EXCHANGE RATE,MERCANTILISM AND THE LEARNING BY DOING EXTERNALITY

This paper examines the degree to which the learning by doing (LBD) externality calls for an undervalued exchange rate. We obtain mixed results. For an economy where the LBD externality operates in the traded sector, real exchange rate undervaluation may be used to internalize this externality, if the LBD calls for subsidizing employment in the traded sector. If the LBD externality is embodied in aggregate investment, the optimal policy calls for subsidizing the cost of capital in the traded sector, and there is no room for undervalued exchange rate policy.     

The Evolutionary Theory of Time Preferences and Intergenerational Transfers

At each age an organism produces energy by foraging and allocates this energy among reproduction, survival, growth, and intergenerational transfers. We characterize the optimal set of allocation decisions that maximizes fitness. Time preference (the discount rate) is derived from the marginal rate of substitution between energy obtained at two different times or ages, holding fitness constant. Time preference varies with age in different ways depending on whether an individual is immature or mature, and during the transition between these stages. We conclude that time preference and discount rates are likely to be U-shaped across age.     

The asymmetric behavior and procyclical impact of asset correlations

This paper examines the behavior of asset correlations with the market returns in the asymptotic single risk factor (ASRF) approach of the Basel II accord on regulatory capital requirement. Over a sample period from 1988 to 2007, we find that asset correlations are positively related to firm size, but negatively related to firm default probability. Asset correlations are also industry specific, as firms in media, transportation, pharmaceutical, and semiconductor industries exhibit higher asset correlations than those in retail and consumer staples. Most importantly, asset correlations are asymmetric and have a procyclical impact on the real economy after controlling for these effects. They tend to rise during economic downturns, but decline during economic upturns. The average magnitude of the rise is larger than that of the decline. These findings suggest that asset correlations may be underestimated during economic downturns, and may provide policy implications for the capital requirement framework.     

The effect of environmentally friendly perceptions on festival visitors’ decision-making process using an extended model of goal-directed behavior

This study examined the effect of environmentally friendly perceptions on the behavioral intention of visitors at the Boryeong Mud Festival in South Korea. The results of the on-site survey (N = 400) reveal that three environmentally friendly perceptions formed positive and significant causal relationships with the constructs in the extended model of goal-directed behavior (EMGB). Attitude, subjective norm, and positive anticipated emotion affected desire, which, in turn, influenced the behavioral intention. Three elements, volitional, non-volitional, and emotional aspects, were proven to be crucial in comprehending the perceptions and behaviors of the nature-based festival attendees. The findings of this study will shed light on a better understanding of the decision-making processes of festival visitors when environmental issues are incorporated.     

Transportation Improvements and Land Values in the Antebellum United States: A Hedonic Approach

We offer county-level estimates of the effect of water and rail access on the value of antebellum farms. Employing a hedonic model, we find that in 1850 average farm values in counties with access to a canal or navigable river were $2.68 per acre greater than counties without such access and $1.80 greater with rail access. In 1860 the figures were $3.75 for a canal or river access and $1.35 for rail. With average farm size around 200 acres and per capita national income roughly $150 during the decade, we conclude that on average transportation access yielded substantial economic gains.     

Professors on the Board: Do They Contribute to Society Outside the Classroom?

According to our data, 38.5 % of S&P 1500 firms have at least one professor on their boards. Given the lack of research examining the roles and effects of academic faculty as members of boards of directors (professor–directors) on corporate outcomes, this study investigates whether firms with professor–directors are more likely to exhibit higher corporate social responsibility (CSR) performance ratings. Results indicate that firms with professor–directors do exhibit higher CSR performance ratings than those without. However, the influence of professor–directors on firm CSR performance ratings depends on their academic background—the positive association between the presence of professor–directors and firm CSR performance ratings is significant only when their academic background is specialized (e.g., science, engineering, and medicine). Finally, this positive association weakens when professor–directors hold an administrative position at their universities.     

Assessing Google Cardboard virtual reality as a content delivery system in business classrooms

In the past, researchers have explored virtual reality (VR) as an educational tool primarily for training or therapeutic purposes. In this research, the authors examine the potential for using Google Cardboard VR in business classrooms as a content delivery platform. They specifically investigate how VR (viewing a 3-dimensional, 360° video) differs from the traditional flat-screen (FS) format (viewing a 2-dimensional video [e.g., iPod (Apple, Cupertino, CA)]) as a teaching tool to deliver video-based content. The results demonstrate that participants in the VR condition (vs. the FS condition) rated their enjoyment and interest to be higher. However, the Google Cardboard VR platform was not superior to the iPod FS format in its content delivery with respect to novelty, reliability, and understandability.