Interest differentials and extreme support for uncovered interest rate parity

This paper addresses two findings from the empirical literature testing uncovered interest parity (UIP): (i) more favorable results when interest differentials (IDs) are large and (ii) instability across samples. Simulations demonstrate that explanations of the results using large IDs based on the hypothesis of a “zone of speculative inactivity” are inconsistent with empirical evidence. Furthermore, it is shown that, if agents forecast IDs based on long-run values, coefficient estimates will be unstable if rates of decay in IDs vary significantly and, for ex post UIP to hold, IDs must decay in absolute value. This is consistent with OECD country data.     

Strategic planning of complex economic systems ∗

A major drawback of conventional models of the behavior of economic systems (and derived tools for policy intervention) is that the desire for tractability leads generally to a high degree of abstraction from reality. This article suggests an alternative, and arguably complementary, approach which engages specifically with economic complexity. The technique used is one of interactive spatial modelling over long time periods where the principle economic agents base decisions on incomplete heuristic information. For illustrative purposes the model has been calibrated on the basis of Senegalese data for 1981–91 and broad generic equations presented. The article argues that such a methodological approach holds out considerable advantages for strategic planning of sustainable economic systems. In particular it permits the direct engagement of noneconomic disciplines and client stakeholders in the planning process.     

Physician behavioural responses to variation in marginal income tax rates: longitudinal evidence

The longitudinal component of the Young Physicians Surveys (1987, 1991) is used to examine the impact of changes in marginal tax rates on key indicators of physician behaviour. Following the federal Tax Reform Act of 1986, many states' marginal income tax rates changed. This variation is used to estimate the responsiveness of work hours, HMO contracting and practice size to changes in taxes.     

Marketing and Professional Services: the Case of Consultancy Engineering

Professional services suffer from a dearth of literature on marketing, especially in New Zealand. Like other professioal services, consulting engineers have expressed particular concern on how to adapt to the present competitive environment. A survey of New Zealand consulting engineers indicated that the use of marketing techniques within consulting engineering practices is uncoordinated in nature and there is disagreement as to the most efective method of attracting clientele. The lack of coordination of marketing techniques is best illustrated by the majority of consulting engineering practices competing on price, while actually perceiving service quality as the most important method for success. Within consulting engineering practices, marketing is becoming a legitimate management function. However, evidence can be seen to illustrate that the ‘trappings' of marketing prevail rather than the ‘substance’ which is needed to have the customer-driven orientation fundamental to the implementation of the marketing concept.     

Examining the efficacy of self-classification approach in segmenting special-interest tourists: food tourism case

Self-classification is used as an a priori approach to tourist typology and market segmentation. However, skepticism still surrounds its ability to incorporate the multidimensionality of tourist behavior. This study seeks to empirically verify the efficacy of a single-item self-classification approach. The robustness of this self-classification measure is examined by comparing it to a data-driven multidimensional psychographic approach in terms of its ability to predict the behaviors of tourists toward food-related destination consumption. Results suggest that the single-item self-classification approach performs equally well as the psychographic approach in segmenting food-related consumption behaviors. The implications and limitations of this study are also discussed.     

Values,value types and moral reasoning of MBA students

This study uses the Schwartz Values Questionnaire and version 2 of the Defining Issues Test to investigate the values, value types (clusters of related values) and level of moral reasoning of a sample of 108 MBA students in a Canadian university. There are no statistically significant differences in the levels of moral reasoning attributed to gender. Male and female MBA students rank ‘family security’ and ‘healthy’ as their two most important values. For males, hedonism, achievement and self‐direction are the three most important value types, while for females they are benevolence, hedonism and security, respectively. There are statistically significant gender differences for the value types hedonism, achievement, stimulation and power. Overall, however, there are more similarities than differences between the male and the female students. Regression analysis indicates a statistically significant positive association between the postconventional level of moral reasoning as measured by P‐scores and the value‐type universalism. The findings provide further evidence that value types affect the postconventional level of moral reasoning.