National information and euro area monetary policy: a generalized ordered choice approach

We empirically analyze the influence of inflationary pressure originating from persistent national misalignments on the ECB’s interest rate decisions between 2000 and mid-2010. To do so, we introduce an indicator that summarizes the threat to euro area price stability originating from self-reinforcing expected inflation differentials. The indicator is computed based on persistent deviations of national expected inflation and GDP growth rates from the corresponding euro area aggregate. It thereby captures area-wide excess demand pressure on the euro area inflation rate. In order to determine the information content of this indicator, we add it to an empirical monetary policy reaction function. We then analyze this reaction function in the framework of a generalized ordered choice model that fits the data a lot better than its commonly used, more restricted counterpart. Within this empirical framework, we find that after controlling for several area-wide aggregates, national information does not provide additional information that is indicative of the ECB’s policy rate decision.     

The U-shaped relationship between happiness and age: evidence using world values survey data

The paper retests the U-shaped relationship between happiness and age using the cross-classified multilevel regression procedure and the World Values Survey data. The analysis accounts for period and cohort effects. The results reconfirm the pattern that happiness is U-shaped in the life course. That is, happiness decreases from a high-point in young adulthood, reaches a low-point in midlife, and thereafter increases to arrive at another high-point in old age. The results show that the high-point of happiness in old age is lower than the high-point of happiness in young adulthood. That happiness does not return to its initial high-point after it drops to a low-point in midlife is perhaps another stylized fact in the relationship between happiness and age.     

Net foreign asset positions and appreciation expectations on the Swiss franc and the Japanese Yen

The paper shows that currencies of countries with persistent current account surpluses and high foreign-currency denominated assets, such as the Swiss franc and the Japanese yen, are under persistent appreciation pressure, particularly when the centres of the world monetary system follow expansionary monetary policies. This limits the choice of exchange rate regime. Given flexible exchange rates, a negative risk premium on the domestic interest rate can emerge. Empirical estimations provide mixed evidence for a negative impact of net foreign asset positions and exchange rate uncertainty on interest rates of international creditor countries at the periphery of the world monetary system.     

On the implied market price of risk under the stochastic numéraire

This papers addresses the stock option pricing problem in a continuous time market model where there are two stochastic tradable assets, and one of them is selected as a numéraire. An equivalent martingale measure is not unique for this market, and there are non-replicable claims. Some rational choices of the equivalent martingale measures are suggested and discussed, including implied measures calculated from bond prices constructed as a risk-free investment with deterministic payoff at the terminal time. This leads to possibility to infer a implied market price of risk process from observed historical bond prices.     

Systemic Cooperative Actions among Competitors: the Case of a Furniture Cluster in Brazil

The purpose of this article is to describe cooperation practices observed in competitors companies in a furniture cluster in Brazil. The literature refers to it as coopetition. The research method was the multiple case study. The main research technique was the semi-structured interviews with practitioners of the cluster. The study created a theoretical framework for cooperative practices in industrial clusters formed by four types of practices: logistics, marketing and sales, formation of the workforce, and innovation and technology. The study investigates these four types of cooperation in five large companies that compete in the same market, the anchor companies of the cluster. The only entirely complied type of collaboration is the formation of the workforce of the cluster. In the other practices, cooperation involving competitors is lower than reported in the literature. The main reason for this low cooperation is excessive rivalry and mutual distrust in the cluster, and competition by differentiation, which partially prevent the gain of scale provided by cooperative actions.     

A study of the relationships among sensory experience,emotion, and buying behavior in coffeehouse chains

Studies that simultaneously explore the effects of sensory experience on consumer emotions and behavior are rare. This paper builds a model of buying behavior based on sensory experience, 570 valid questionnaires were obtained from coffeehouse customers. Using structural equation modeling and multiple regression analysis, this paper validates the concept model and verifies that sensory experience is a significant antecedent to buying behavior. This study indicates that certain sensory experiences significantly influence emotion. Emotion also plays a mediating role in the relationship between sensory experience and behavioral intentions. The findings are theoretically and practically profound as they address the relationships among sensory experience, consumer emotions, behavioral intentions, and buying behavior, as well as explore how the five senses affect emotions and buying behavior. This paper concludes by indicating managerial implications and research limitations.     

STEM education in the twenty-first century: learning at work—an exploration of design and technology teacher perceptions and practices

Teachers’ knowledge of STEM education, their understanding, and pedagogical application of that knowledge is intrinsically linked to the subsequent effectiveness of STEM delivery within their own practice; where a teacher’s knowledge and understanding is deficient, the potential for pupil learning is ineffective and limited. Set within the context of secondary age phase education in England and Wales (11–16 years old), this paper explores how teachers working within the field of design and technology education acquire new knowledge in STEM; how understanding is developed and subsequently embedded within their practice to support the creation of a diverse STEM-literate society. The purpose being to determine mechanisms by which knowledge acquisition occurs, to reconnoitre potential implications for education and learning at work, including consideration of the role which new technologies play in the development of STEM knowledge within and across contributory STEM subject disciplines. Underpinned by an interpretivist ontology, work presented here builds upon the premise that design and technology is an interdisciplinary educational construct and not viewed as being of equal status to other STEM disciplines including maths and science. Drawing upon the philosophical field of symbolic interactionism and constructivist grounded theory, work embraces an abductive methodology where participants are encouraged to relate design and technology within the context of STEM education. Emergent findings are discussed in relation to their potential to support teachers’ educational development for the advancement of STEM literacy, and help secure design and technology’s place as a subject of value within a twenty-first Century curriculum.     

Competitive moment matching of a New-Keynesian and an Old-Keynesian model

The paper considers two rival models referring to the new macroeconomic consensus: a standard three-equation model of the New-Keynesian variety versus dynamic adjustments of a business and an inflation climate in an ‘Old-Keynesian’ tradition. Over the two subperiods of the Great Inflation and Great Moderation, both of them are estimated by the method of simulated moments. An innovative feature is here that the moments do not only include the autocovariances up to eight lags of quarterly output, inflation and the interest rate, but optionally also a measure of the raggedness of the three variables. In short, the performance of the Old-Keynesian model is very satisfactory and similar to the New-Keynesian model, or even better. In particular, the Old-Keynesian model is better suited to match the new moments without deteriorating the original second moments too much.     

Pedagogical and technological replanning: a successful case study on integration and transversal skills for engineering freshmen

Replanning is often used to optimize results of an activity in an ever changing world. To address the challenge of preparing future engineers for success, a special course was created for all engineering freshmen of the Faculty of Engineering of the University of Porto, in Portugal. Presented as a case study, this special course underwent a careful replanning as a result of several years of experience in teaching practice alongside with a theoretical deepening in pedagogical and technological issues, under the aegis of the action-research methodology. Within the context of the case study course, the mentioned replanning was also based on a theoretical approach that clearly identifies teaching–learning-assessment methodologies that promote regulation from those that foster emancipation, using a specific instrument: a taxonomy of educational processes. The replanning was designed to globally boost results regarding the educational aims of the course such as furthering freshmen’s integration into work environment and preparing them for success by fostering transversal skills (needed for study and work). Technology is seen as a mean of education enrichment as well as a productivity tool. The introduced innovations include fun-but-educational activities, several types of assessment over time and specific technological tools which were critical for the educational impact/achievement of this course. Success is demonstrated by encouraging feedback from the stakeholders, high students’ classifications and a steady reduction in retention. It is advocated that large portions of the reasoning behind the replanning can be extrapolated to other courses.