Issues in the estimation and application of latent structure models of choice

Our paper provides a brief review and summary of issues and advances in the use of latent structure and other finite mixture models in the analysis of choice data. Focus is directed to three primary areas: (1) estimation and computational issues, (2) specification and interpretation issues, and (3) future research issues. We comment on what latent structure models have promised, what has been, to date, delivered, and what we should look forward to in the future.     

Overeducation, regional labor markets, and spatial flexibility

For most workers, access to suitable employment is severely restricted by the fact that they look for jobs in the regional labor market rather than the global one. In this paper we analyze how macrolevel opportunities (regional market characteristics) and microlevel restrictions (the extent to which job searchers are restricted to the regional market) can help to explain the phenomenon of overeducation. We use a two-step procedure to control selective access to employment. The results show that the size of the labor market is an important factor in avoiding overeducation.     

Do economic statistics contain information to predict stock indexes futures prices and returns? Evidence from Asian equity futures markets

This research examines the impact of local and international market factors on the pricing of stock indexes futures in East Asian countries. The purpose of this paper is to present a study of the significant factors that determine the major stock indexes futures’ prices of Hong Kong, Malaysia, Singapore, South Korea and Taiwan. This study first investigates the relationships between Hang Seng Index Futures, KLCI Futures, SiMSCI Futures, KOSPI Futures, Taiwan Exchange Index Futures and local interest rates, dividend yields, local exchange rates, overnight S&P500 index and a newly constructed index, Asian Tigers Malaysia Index (ATMI). 11 years historical data of stock indexes futures and the economic statistics are studied; 10 years in-sample data are used for testing and developing the pricing models, and 1 year out-of-sample data is used for the purpose of verifying the predicted values of the stock indexes futures. Using simple linear regressions, local interest rates, dividend yields, exchange rates, overnight S&P500 and ATMI are found to have significant impact on these futures contracts. In this research, the next period close is predicted using simple linear regression and non-linear artificial neural network (ANN). An examination of the prediction results using nonlinear autoregressive ANN with exogenous inputs (NARX) shows significant abnormal returns above the passive threshold buy and hold market returns and also above the profits of simple linear regression (SLR). The empirical evidence of this research suggests that economic statistics contain information which can be extracted using a hybrid SLR and NARX trading model to predict futures prices with some degree of confidence for a year forward. This justifies further research and development of pricing models using fundamentally significant economic determinants to predict futures prices.

     

Passengers’ perceptions of airline lounges: Importance of attributes that determine usage and service quality measurement

The current exploratory study investigates passengers’ perceptions of airline lounges by measuring the importance of attributes that determine usage and service quality in those facilities. Data collection was the result of a survey of airline lounge users at the Incheon International Airport, South Korea. The attributes that determine airline lounge usage categorize as: image and accessibility, atmosphere, food and beverage (F&B) service, and facility’s dimensions. Atmosphere and F&B service prove to be the most important dimensions affecting passengers’ use of the airline lounge. Service quality variables determining passengers’ perceptions of the airline lounge categorize as: atmosphere, F&B service, employee service, and facility’s dimensions. Among the service quality dimensions, F&B service was the strongest predictor of overall satisfaction and lounge revisit intention. Furthermore, the study considers the relationship of overall satisfaction and lounge revisit intention according to airline selection.     

The role of cognitive ability and personality traits for men and women in gift exchange outcomes

We examine the role of cognitive ability and personality traits in a gift exchange experiment. Controlling for cognitive ability and personality characteristics, men offer higher wages than women, and men and women with greater cognitive ability and greater agreeableness on the Big Five personality scale offer higher wages as well. Men provide greater effort than women do, and respond to higher wage rates with greater increases in effort. For both genders, one standard deviation increases in agreeableness and in wages generate similar increases in effort. Serious biases arise from omitting cognitive ability and pooling men and women.     

Women's unemployment during transition Evidence from Czech and Slovak micro-data

We analyse women’s weekly probabilities of leaving unemployment in the Czech and Slovak Republics (CR and SR) in order to investigate three questions: 1) Why are unemployment rates much lower in the CR than the SR?; 2) Does the unemployment compensation scheme (UCS) substantially lengthen unemploy-mentspells?; and 3) Why are women’s unemployment rates higher than men’s? We find that differences in the behaviour of the individuals, employers and institutions in the SR and CR (as measured by differences in coefficients) play a larger role in determining the CR’s shorter female unemployment spells than do differences in measured demand and demographic variables. The UCS has only a moderate effect on duration and its impact is greater in the CR. The differences between men’s and women’s spells (in each republic) are explained more by differences in coefficients than by differences in observed characteristics. JEL classification: C41, H53, J23, J64, O15, P2.     

A cross-cultural comparison of fast food restaurant selection criteria between Korean and Filipino college students

Despite the globalization of the hospitality and tourism industry, present cross-cultural research is limited to examining consumer behaviors or perceptions on the products and services the industry provides. The current exploratory study between Korea and the Philippines investigates college students’ perceptions on the fast food restaurant selection criteria with respect to the attributes they feel are important. A conjoint analysis, proven as a statistical marketing research tool with strong predictive power of consumer choices among multi-attribute product alternatives, was utilized for the analysis of the data for the study, and the analysis revealed that both Koreans and Filipinos viewed Menu Price as the most important attribute. Next important attributes, in Korea, were followed by brand, food-related factors and service- and hygiene-related factors, while in the Philippines, they were food-related factors, service- and hygiene-related factors and brand. This type of study is requisite for globalization of the food service industry in developing effective marketing strategies and establishing operational strategies, by understanding the different components of the Asian food service industry relative to the US market.