Cultural Meaning,Advertising, and National Culture: A Four-Country Study

Cultural meaning transfer theory and GLOBE dimensions were employed in this comparative study to examine the extent to which cultural meaning presented in advertisements reflected national cultures of the target countries. Content analysis was applied to advertisements from four countries to investigate whether the use of advertising appeals presented in these advertisements mirrored variations in cultures as described by GLOBE Society Values. Results revealed that, in line with the hypotheses, there were similarities and differences in the use of appeals, and only some of them mirrored the cultural variations. GLOBE Society Values were more likely to predict the use of appeals than GLOBE Society Practices, but not for all appeals. Advertisers can draw on national cultures for cultural meanings to be used in advertisements only to a limited extent. It may be that advertisements mold rather than mirror societal values, or that only certain cultural traits are important for advertisers.     

Mid-Cycle Capital Planning Optimization

A typical capital rationing problem takes place at the beginning of a fiscal cycle, where a project portfolio is chosen to maximize expected return subject to a budget constraint. This article examines mid-cycle capital planning, which occurs near the end of a fiscal cycle. Motivated by the “budget-lapsing” rule, the decision-maker embarks on a “year-end spending spree.” We use chance-constrained methodology to address two new constraints: reaching profit target set at the beginning of the year and exhausting the budget completely. Data from Lockheed Martin Space Systems illustrate how the optimal portfolio selection is influenced by these constraints.     

The hidden cost of smoking: Rent premia in the housing market

In this article, we provide novel evidence on the additional costs associated with smoking. While it may not be surprising that smokers pay a rent premium, we are the first to quantify the size of this premium. Our approach is innovative in that we use text mining methods that extract implicit information on landlords’ attitudes to smoking directly from Zoopla UK rental listings. Applying hedonic, matching, and machine-learning methods to the text-mined data, we find a positive smoking rent premium of around 6%. This translates into £14.40 of indirect costs, in addition to £40 of weekly spending on cigarettes estimated for an average smoker in the United Kingdom.     

Perspektiven zur aktuellen Kapazitätsmarktdiskussion in Deutschland

Over the last years, proposals for the implementation of capacity mechanisms in Germany have been published. However, some basic questions have not been answered yet: regarding the need for capacities, the functioning of the energy-only-market and the objective and type of a possible capacity mechanism. The actual need for capacities is an important input factor for capacity mechanisms and crucial to determine whether these are required. Currently, uncertainties prevail due to differing assumptions regarding the capacity credits of renewables and other capacities. Existing studies show highly diverse estimates for capacity needs after 2020. It is also unclear whether the energy-only-market can provide sufficient investment incentives. The current low prices cannot be interpreted as a sign for market failure. They represent overcapacities due to European integration and increasing renewable shares. The mid-term effects of increasing renewable shares on electricity prices still need to be analyzed in detail. At last, the objective of a capacity mechanism is not clear in the German context. This makes the selection of an adequate capacity mechanism and an effective market design more complicated. Furthermore, effects on the energy market need to be considered. Parameterization errors can be expensive. Also, capacity mechanisms do not necessarily guarantee higher investment security. As a consequence, the authors advise against the prompt introduction of a capacity mechanism, especially as the new EnWG guarantees the operation of system-relevant power plants until 2017. Instead, an incremental improvement of the energy-only market and in-depth analysis of the described questions seam necessary.     

The Sustainability of External Imbalances in the European Periphery

Open Economies Review - The issue of external imbalances has become a key concern in the global economy, gaining particular prominence also inside Europe, following the Eurozone crisis....     

Toward a continuum of measurement scales in Just-in-Time (JIT) research – an examination of the predictive validity of single-item and multiple-item measures

We compare the predictive validity of single-item and multiple-item measures utilized in Just-in-Time (JIT) research. The study examines if single-item measures could be used for some of the JIT practices, especially if the object of inquiry is concrete singular and if the attribute to be researched is concrete. Arguments are developed for the concrete nature of the JIT practice of “set-up time reduction” and we examine the ability of a single-item measure of this variable to predict the criterion variable (delivery performance). In addition, the study also examines the efficacy of using multiple-item measures for variables that are abstract in nature, and thereby attempts to develop a continuum of JIT constructs ranging from concrete to abstract. The results obtained by analyzing two sets of survey data show that multiple-item measures are not necessarily more valid than single-item measures for all constructs. The findings provide evidence that multiple-item measures and single-item measures for scale development should be contingent upon the nature of constructs. For concrete constructs, single-item measures are as valid as multi-item measures. Meanwhile, for abstract constructs it is important to ensure that multiple items are considered to capture the multi-dimensional nature of these constructs. Results also reveal that JIT practices display significant differences in terms of abstract/concrete perceptions. The paper presents theoretical and practical implications of the findings, and offers directions for future research.     

Risk aversion in Entrepreneurship Panels: Measurement Problems and Alternative Explanations

In this study, we investigate the pitfalls associated with measuring risk aversion within studies of entrepreneurial behavior. First, we raise substantial concerns as to whether standard questions employed can be used to infer risk aversion among nascent entrepreneurs. In our work we show that the US, Canadian and Swedish panel study datasets do not offer evidence that entrepreneurs are more risk averse than non‐entrepreneurs. In fact, we show that the measurements used for risk aversion in these studies are not compatible with classic expected utility theory. Furthermore, our analysis reveals that probability weighting may even counteract the respondent's risk attitude. Therefore, inferring the respondent's risk attitude from choices in the panel study datasets can be misleading in the presence of probability weighting. We therefore suggest that alternative theories of decision making under risk, like prospect theory, are relevant and should be taken into account in future studies on entrepreneurship. Copyright © 2017 John Wiley & Sons, Ltd.     

CASE STUDY: BUS FLEET REPLACEMENT

Parallel replacement analysis is concerned with determining minimum cost replacement schedules for a group of assets that are economically interdependent and operate in parallel. That is, keep and replace decisions are required for each asset among a group of assets over a specified horizon. The assets are economically linked through economies of scale or budgeting constraints. One application of parallel replacement analysis is fleet replacement. We recently studied the operations, including fleet replacement policies, for a city transit bus operator in Europe. Key factors in their replacement decisions included the ability to choose from multiple manufacturers, purchase price, and government regulations. We explore these and other factors, by solving a heterogeneous replacement problem with fixed costs, budgeting constraints, and demand constraints. Through extensive sensitivity analysis we analyze the impact of various parameters on decisions, in terms of the choice of replacement assets, as well as the optimal time to retain assets. Additionally, we provide motivation for future research in this application area, which is important for many cities.     

Infrastructure investment for a transition to hydrogen automobiles

This paper describes work undertaken in the MATISSE project to explore the potential for a sustainable hydrogen transition within Europe and the implications for infrastructure investment. Stakeholder engagement work conducted within MATISSE identified unsustainable aspects of current transport and desirable characteristics of sustainable hydrogen road transport. Key criteria were: emissions reduction, security of energy supply, affordability and economic competitiveness.Results from the ASTRA model show that a transition to hydrogen transport fuels would have an increase in GDP, employment and investment; and growth in a number of sectors (electronic, chemical, mechanical and automotive) associated with hydrogen fuel cell technology. A hydrogen diffusion model shows that in a few years after 2040 all cars in Germany could be hydrogen driven cars. Fast build-up of a network of at least 500 filling stations (in urban areas and at highways) is very important for the market acceptance of hydrogen vehicles and compared with subsidies for vehicles and fuel the necessary investments are very small. For fuel infrastructure:

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Only a total amount of approx. 200 million Euros are necessary for infrastructure build-up in urban areas.

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Additional support is needed for installation of hydrogen filing stations on highways (approx. 100 million Euros).