Mismatch between Material Deprivation and Income Poverty: The Case of Turkey

By employing cross-sectional data obtained from Survey of Income and Living Conditions for the years from 2007 to 2011, we analyze the identification problem of the poor by using both monetary and non-monetary measures. We classify the poor into the following categories: (i) poor in monetary and nonmonetary measures, (ii) poor in monetary measure only, (iii) poor in non-monetary measure only, and (iv) non-poor in both categories. We examine the determinants of each category by utilizing the probit model and find that the share of workers in adults — or the share of informal or agricultural workers — creates some disparities between poverty at a country and regional level.     

Price discrimination through multi-level loyalty programs

Loyalty programs often feature multiple rewards with different requirements; for instance, an airline offering a free domestic ticket for 10 K miles, and an international ticket for 20 K miles. This research focuses on the role of multi-level rewards as a segmentation and price discrimination mechanism: Multi-level rewards can increase firm profits when buyers differ in purchase frequency and/or time discount factor. We propose that a program with two rewards can be designed in such a way that (i) it is more profitable than a one-reward program, and (ii) buyers self-select. Light users prefer to receive the smaller reward two times over receiving the larger reward one time, even though the smaller reward is less than half of the larger reward. We show that the smaller reward helps the firm enlarge its base in the light user segment. We also compare multi-level programs with quantity discounts.     

Testing spatial regression models under nonregular conditions

In time series context, estimation and testing issues with autoregressive and moving average (ARMA) models are well understood. Similar issues in the context of spatial ARMA models for the disturbance of the regression, however, remain largely unexplored. In this paper, we discuss the problems of testing no spatial dependence in the disturbances against the alternative of spatial ARMA process incorporating the possible presence of spatial dependence in the dependent variable. The problems of conducting such a test are twofold. First, under the null hypothesis, the nuisance parameter is not identified, resulting in a singular information matrix (IM), which is a nonregular case in statistical inference. To take account of singular IM, we follow Davies (Biometrika 64(2):247–254, 1977; Biometrika 74(1):33–43, 1987) and propose a test procedure based on the supremum of the Rao score test statistic. Second, the possible presence of spatial lag dependence will have adverse effect on the performance of the test. Using the general test procedure of Bera and Yoon (Econom Theory 9:649–658, 1993) under local misspecification, we avoid the explicit estimation of the spatial autoregressive parameter. Thus our suggested tests are entirely based on ordinary least squares estimation. Tests suggested here can be viewed as a generalization of Anselin et al. (Reg Sci Urban Econ 26:77–104, 1996). We conduct Monte Carlo simulations to investigate the finite sample properties of the proposed tests. Simulation results show that our tests have good finite sample properties both in terms of size and power, compared to other tests in the literature. We also illustrate the applications of our tests through several data sets.     

Spatial interaction modeling of interregional commodity flows

Drawing from both the spatial price equilibrium theoretical framework and the empirical literature on spatial interaction modeling, this paper expands models of interregional commodity flows (CFs) by incorporating new variables and using a flexible Box-Cox functional form. The 1993 US commodity flows survey provides the empirical basis for estimating state-to-state flow models for 16 commodity groups over the 48 continental US states. The optimized Box-Cox specification proves to be superior to the multiplicative one in all cases, while selected variables provide new insights into the determinants of state-to-state CFs.     

An adjustment procedure for predicting systematic risk

This paper looks at the currently available beta adjustment techniques and suggests a multiple root-linear model to adjust for the regression tendency of betas. Our empirical investigate on indicates that cross-sectional betas are not normally distributed, but their distribution tends to normal after a square-root transformation. The evidence from the Box-Cox regression model and the multivariate normality observed among betas after the transformation, make the functional form of our model correct. Also, we observe that the disturbance term of the multiple root-linear model is well behaved. These findings make the ordinary least squares estimates unbiased and efficient. Finally, the mean square and extreme errors are found to be lower when our adjustment procedure is used vis-à-vis the existing procedures.     

Antecedents of cognitive age: A replication and extension

Cognitive age has been an important construct in studies of older consumers. The present study builds upon previous research by providing theory‐based antecedents of cognitive age. The results suggest that differences in cognitive age do not merely reflect differences in chronological age, and that a person's cognitive age is influenced by his or her experiences of life events that serve as markers of transitions into social roles people are expected to enact at different stages in life. In addition, the experiences of health‐related events, such as chronic conditions, make people aware of their aging, affecting their cognitive age. The influence of cognitive age on consumer‐behavior variables is also examined, and directions for future research are suggested. © 2005 Wiley Periodicals, Inc.     

Linking learning and effective process implementation to mass customization capability

This study investigates the role of learning and effective process implementation in the development of mass customization capability. Building upon the knowledge-based view of the firm, we argue that internal and external learning are two knowledge-generation routines that contribute to effective process implementation. Effective process implementation, in turn, is a knowledge-based manufacturing capability, which, as a function of internal and external learning, leads to mass customization capability. We employ structural equation modeling to empirically test the effects of learning on mass customization capability, mediated by effective process implementation, using survey data collected from 100 manufacturing plants in 3 industries and 6 countries. Our results provide empirical evidence supporting the proposed model of the effect of internal and external learning on mass customization capability, fully mediated by effective process implementation. This research is one of the first studies to integrate insights from the knowledge-based view of the firm and mass customization. It complements the OM view of mass customization, which to date has largely focused on the technical side, by demonstrating the role of managerial practices and learning in cultivating mass customization capability in a manufacturing environment.     

Are supply chain management theories culturally constrained? An empirical assessment

Culture plays an increasingly important role in supply chain management as many manufacturing firms have linkages to suppliers and customers from various countries. In this paper we propose treating culture as an explanatory variable to test the assumption that existing theories are universally applicable. The primary research question was: Do purchasing theories built on samples from mainly North American companies with Anglo-Saxon cultures apply in other cultural contexts? We developed and tested a model where top management??s view of the purchasing function affects purchasing practices and manufacturing performance. The statistical results provide evidence that the engagement and efficacy of purchasing practices is highly dependent on culture. This finding has significant implications from the perspective of decision making in international supply chain management. Specifically, top managers across multiple cultures could decide to structure and evaluate the purchasing function similarly, but these decisions could lead to different practices and different outcomes depending on the culture.