Towards a New Euro Crisis?

Intereconomics - There is thus a fundamental credibility issue about the willingness of the ECB to be a lender of last resort in the government bond markets. This will continue to make the eurozone...     

Doing Good While Behaving Badly: Checkout Charity Process Mechanisms

Journal of Business Ethics - Companies are increasingly using cause-related marketing campaigns to engage consumers during the purchase process and highlight their own corporate social...     

From Fiduciary Duty to Impact Fidelity: Managerial Compensation in Impact Investing

Journal of Business Ethics - Investors with standard monetary preferences will give a fund manager incentives to increase firm profits, which can be achieved through a share in profits via carried...     

Entrepreneurial orientation and innovation in family SMEs: Unveiling the (actual) impact of the Board of Directors

Drawing on stewardship and resource dependence theories, we examine how the board of directors (BoD) influences the link between entrepreneurial orientation (EO) and ambidextrous innovation in small and medium sized family firms (family SMEs). Our analysis of 230 Spanish family SMEs shows that family involvement in the BoD has a negative effect on their ability to turn EO into innovation. Moreover, we show that the BoD's strategic involvement in service and control tasks and the provision of knowledge and skills have positive effects, whereas the intensity of BoD activity has a surprisingly negative effect. These findings underscore that the effects of the BoD on the entrepreneurship-innovation link are more complex than previously thought, pointing to the important role of both BoD composition and BoD functioning for enabling innovation in family SMEs.     

Inequality in turbulent times: income distribution in Germany and Britain, 1900–50

Using social tables, this article provides new data on inequality in Germany and Britain on an annual basis for the first half of the twentieth century. Inequality trends in these two countries tended to follow opposite patterns. The decline in inequality in Germany was interrupted during the First World War and the Nazi period, while in Britain the reversal took place between the end of the First World War and the Great Depression. Results show that the drop in inequality during the twentieth century in Europe did not follow secular trends, thus supporting the notion of inequality cycles.     

Investigating Treatment Effects of Participating Jointly in SNAP and WIC when the Treatment Is Validated Only for SNAP

The U.S. Department of Agriculture operates several food assistance programs aimed at alleviating food insecurity. We study whether participation in both participation in both SNAP and WIC alleviates food insecurity compared with participation in SNAP alone. We bound underlying causal effects by applying nonparametric treatment effect methods that allow for endogenous selection and underreported program participation when validation data are available for one program (treatment) but not the other. We estimate average treatment effects using data from the National Household Food Acquisition and Purchase Survey (FoodAPS). FoodAPS includes administrative data to validate SNAP participation. Information on local food prices allows us to construct a food expenditure‐based monotone instrumental variable that does not require a typical instrumental variable exclusion restriction. Under relatively weak monotonicity assumptions, we identify that the impact of participating in both programs relative to SNAP alone is strictly positive, suggesting that the programs are nonredundant. This evidence can support improved design and targeting of food programs.     

Analyzing online reviews in hospitality: data-driven opportunities for predicting the sharing of negative emotional content

Hospitality is one of the sectors that are nowadays most heavily characterized by consumers’ tendency to share online reviews on dedicated digital platforms. While most past work has focused on understanding the effect of online reviews and ratings on consumers’ evaluation and purchase decisions, this research tackles the issue of what drives the sharing of certain types of online content. Specifically, we investigate the sharing of user-generated content characterized by negative emotional valence, and study the effect of two factors on the extent to which user-generated content contains negative emotions. One such factor is reviewer's expertise, while the other is hotel quality. Our analysis of 1200 TripAdvisor reviews on Italian hotels located in three major Italian cities confirm our hypothesis that expert reviewers might share reviews containing less intense negative emotional content compared to less expert reviewers especially when the hotel is of high quality. To support our hypothesis, we build on the research on psychological antecedents of word-of-mouth behaviour suggesting that expert consumers are particularly reluctant to share negative word-of-mouth to avoid projecting a negative image of themselves in social contexts, thus possibly damaging their reputation.     

Sensitive Survey Questions: Measuring Attitudes Regarding Female Genital Cutting Through a List Experiment

Potential bias in survey responses is higher if sensitive outcomes are measured. This study analyses attitudes towards female genital cutting (FGC) in Ethiopia. A list experiment is designed to elicit truthful answers about FGC support and compares these outcomes with the answers given to a direct question. Our results confirm that the average bias is substantial as answers to direct questions underestimate the FGC support by about 10 percentage points. Moreover, our results provide suggestive but not statistically significant evidence that this bias is more pronounced among uneducated women and women targeted by an NGO intervention (not randomly assigned).     

Spillovers among sovereign debt markets: Identification through absolute magnitude restrictions∗

This paper studies spillovers among US and European sovereign yields. We employ absolute magnitude restrictions on the impact matrix to identify the countries that were the main sources of spillovers. Despite the large size of shocks from euro area stressed countries, connectedness among sovereign yields declined between 2008 and 2012 due to financial fragmentation, particularly between countries with more divergent business and fiscal cycles. We show that none of the sovereign yields were insulated from foreign shocks and that shocks to the Greek bond market in 2010 explained 20–30% of the variance of sovereign yields in stressed countries, while in 2011–2012 Italy (not Spain) was the source of systemic risk.