Rhetorics of saving–investment correlations and the international mobility of capital: A survey

This study surveys the literature on saving–investment (SI) correlations and international mobility of capital (IMC) generated over more than three decades since the 1980s. Several studies have shown the presence of paradoxically high SI correlations for the developed countries with observed high IMC, and low SI correlations for the developing countries with observed low IMC. The studies accounting for structural breaks in model parameters provide dominant support for the decrease in SI correlations and increase in IMC after the switch from fixed to flexible exchange rate regime and the removal of policy restrictions on capital flows. The intertemporal optimisation approach to current account and the open-economy growth and dynamic stochastic general equilibrium models mainly provide theoretical predictions and suggest that it is possible to find high SI correlations in the wake of high IMC. The increases in international capital flows have been the natural corollary of the growth of international trade in goods and services and increases in foreign direct investment flows. It is these factors, rather than international trade in capital market securities (bonds and equities) driven by the diversification benefits of financial portfolios per se, that have been the key levers of international financial flows.     

Devising an electronically supported heritage conservation method for the Valley of Flowers in the Indian Himalayas

The Valley of Flowers is a national park in the Himalayan state of Uttarakhand in India that was classified as a world natural heritage site in 1988. Around 1982, its maximum carrying capacity was fixed at 60 persons per day, which has been called excessive by experts and observers, given the extremely fragile and immensely valuable nature of the Valley's heritage. This, in monetary terms, can be put at millions of dollars, and is considerably more viewed in terms of knowledge of breeding medicinal plants in cold climates that are being affected by climate change, which its microclimate and ecology present. Given the state's poor resources and the fact that tourism is one of the most important industries for development and conservation, this research assesses the heritage value of the Valley and develops a programme for conservation, including a computerised program for permits, whose value can easily be raised from the current paltry Rs 150 per person. Accompanied by fallow periods and marketing through the Internet to aim for educated tourists, the program ensures that the maximum carrying capacity of the Valley is never exceeded, thus spreading out the number of tourists over its 3.5-month season, while allowing flexibility in booking for chance groups and small families that can pay more.     

Examining bank SEOs: Are offers made by undercapitalized banks different?

Despite extensive monitoring, banking operations are often considered opaque, and despite explicit capital adequacy regulation, banks may have substantial discretion in their financing. Both monitoring and capital regulation have changed substantially over time, with the adoption of FDICIA being one important breakpoint. This article empirically studies seasoned equity offerings (SEOs) by banks to understand how opacity and capital regulation interact to determine the timing of bank SEOs and their market valuation. SEOs both by banks that are undercapitalized relative to regulatory standards and also well-capitalized banks are fully discretionary when it comes to SEOs, even before FDICIA. Both undercapitalized and well-capitalized banks experience similar and significantly negative stock price reactions to SEO announcements, and also have similar prior patterns of insider trading and similar economic drivers of the issuance decision. Moreover, post-SEO abnormal stock returns are similar to benchmark returns for both types of issuers in the long run, suggesting that, contrary to the well-documented evidence for industrial SEOs, investors understand the value implications of bank SEOs upon announcement. The evidence implies that undercapitalized banks' SEOs are more discretionary and that all bank SEOs are less opaque than implied by earlier studies.     

A true simulation study of three estimators at equal protection of respondents in randomized response sampling

In this study, three different estimators for estimating the proportion of a sensitive attribute in survey sampling are compared at equal protection of the respondents. The three estimators considered are due to Odumade and Singh (2009, Comm. Statist. Theory Methods) , Singh and Sedory (2011, Sociological Methods and Research) and a new estimator obtained by minimizing a chi‐squared distance. A SAS Macro is developed to compare these three estimators using a simulation study at equal protection of the respondents. A set of data from a real face‐to‐face interview was collected using two decks of cards and has been analyzed. The results are discussed.     

Farmers' Preference for Farming: Evidence From a Nationally Representative Farm Survey in India

Using data from a nationally representative farm survey in India, we have analyzed Indian farmers' stated preference for farming as a profession. Findings show that more than 40% of farmers dislike farming as a profession because of low profits, high risk, and lack of social status, yet they continue with it owing to a lack of opportunities outside agriculture. Farmers who express a preference for moving out of agriculture are mostly those with small landholdings, poor irrigation facilities, fewer productive assets including livestock, and follow a cereal‐centric cropping pattern. They also have relatively lower access to credit, insurance, and information, and are weakly integrated with social networks such as self‐help groups and farmers' organizations. Importantly, the disinclination for farming, conditional on other covariates, is not significantly differentiated by caste, an important indicator of social status in rural India. Yet, within a caste group, the dislike for farming moderates with larger landholdings.     

Local competition, entry, and agglomeration

This paper analyzes competition between two spatially differentiated multi-product retailers who encounter entry from a low-cost discounter. We assess how entry affects the pricing of the incumbent stores and the role played by the location of the entrant. Our primary objective is to identify how traditional retailers respond to new forms of low-cost retailing. Results show that post entry, the prices for some products are higher than the pre entry. However, which product prices increase depends on the incumbent’s location. Contrary to conventional wisdom, we find that the store closer to the entrant is better off compared to the incumbent located further away. We empirically demonstrate the main workings of our theory using sales data from several grocery stores that saw entry by discount stores in their trading areas.     

Disrupting the consultants: Could the advisers use some advice?

Management consulting is a relatively new profession. Such consulting firms have become revered as thought‐leading think tanks and cutting‐edge research organizations. Yet, as they teach their clients to grow, thrive, and innovate, is it possible that top management consulting firms are being disrupted themselves? Even the most seemingly unassailable businesses fall victim to disruption, while others benefit from it to enjoy tremendous growth. Top consultancies are keenly aware of rising competition from emerging‐market information technology firms. Therefore, many have taken countermeasures such as expanding their operations in emerging markets and designing outsourcing strategies to mitigate cost gaps. Time will tell if these efforts prove successful. This article attempts to illustrate how the business of consulting is—after all—a business itself that is subject to the forces and perils therein. Top consultants would be well advised to confront disruption head on, rather than robotically focusing up‐market or silently hoping themselves immune. © 2010 Wiley Periodicals, Inc.     

Ethics in Food Advertising to Children in India—A Parental Perspective

Marketers are seen to bombard children with advertisements for unhealthy foods using sophisticated promotion techniques that have serious negative effects on health and overall well-being of children. So parents try to mediate children’s exposure to media content and call for governmental regulations in an attempt to shield them. The extent to which they mediate further determines whether they contemplate food advertisements as being ethical or unethical. Therefore, the present study tries to uncover the antecedents to ethical versus unethical perceptions of Indian parents about food advertisements directed at children. No study, to the best of the researchers’ knowledge, has been conducted so far in India in this regard. Using binary logistic regression with mothers, it is found that the mothers who view food advertisements as unethical report their children to watch fewer hours of TV during weekdays and hold negative attitudes toward advertising to children. These mothers, however, do not feel that the government needs to impose restrictions on food advertisements aired on TV since they themselves indulge in mediation of TV advertising as a general parenting responsibility. The implications of the article are finally discussed.