The Impact of the 2008 Crisis on UK Prices: What We Can Learn from the CPI Microdata1

This paper takes the locally collected price quotes used to construct the CPI index in the UK for the period 1996–2013 and explores the impact of the Great Recession (2008‐9) on the pricing behaviour of firms. We develop a time series framework which captures the link between macroeconomic variables and the behaviour of prices in terms of the frequency of price change, the dispersion of price levels and the size, dispersion and kurtosis of price‐growth. We find strong evidence for inflation having an effect, but not output. The change in the behaviour of prices during the Great Recession is largely explained by the changes in inflation and VAT. Nevertheless, the magnitude of the inflation effect is sufficiently small that it need not influence monetary policy.     

What drives support for self-driving car technology in the United States?

Abstract

Recent advances in automotive technology have made fully automated self-driving cars technologically feasible. Despite offering many benefits such as increased safety, improved fuel efficiency, and greater disability access, public support for self-driving cars remains low. While previous studies find that demographic factors such as age and sex influence self-driving car support, limited research has examined variables that are well known to predict public attitudes toward emerging technology. Using self-report data from a quota sample of American adults (N?=?1008), we find that age and sex are not significantly associated with support for self-driving car policies when controlling for these other variables. Instead, significant predictors of support included trust in automotive institutions and regulatory bodies, recognition of self-driving car benefits, positive affect toward self-driving cars, and a greater perception that human-driven cars are riskier than self-driving cars. Importantly, we also find that individualism is negatively associated with support. That is, people who value personal autonomy and limited government regulation may perceive policies encouraging self-driving car use as threatening to their worldviews. Altogether, our results suggest strategies for encouraging greater public support of self-driving vehicles while also forecasting potential barriers as this technology emerges as a fixture in transportation policy.     

Cents of self: How and when self-signals influence consumer value derived from choices of green products

Consumers choosing between green and conventional products often believe such choices imply trade-off decisions, such that green products provide morally-related advantages but embody price or quality-related disadvantages compared to standard products. We study the consequences of such trade-offs for consumer value in the context of privately consumed green products. To develop our theoretical model, we draw from the perspective of self-signaling – consumers' act of signaling information about their internal qualities to their own self through choice. We explore how and when self-signals from such trade-off decisions influence consumer value gained from comparative choices of green versus standard products. Six studies were conducted, using divergent measures of the dependent variable, multiple product categories, and measured as well as manipulated self-concept clarity (SCC). We find a joint effect of self-signals from comparative choices and self-concept clarity on consumer value, such that positive self-signals lead to incrementally higher satisfaction and willingness to pay for consumers with low SCC but not significantly so for those with high SCC. Results show that this joint effect may occur for consumers with low SCC because they gain incremental value from perceived self-concept alignment – a state that is construed from the perception that a self-signal is aligned with the consumer's self-concept. This study contributes to marketing research by proposing and testing a novel mechanism that can underlie self-signaling.     

Estimating the impact of farmer field schools in sub‐Saharan Africa: the case of cocoa

This study measures the economic impact of the first phase of the Cocoa Livelihood Program (CLP‐I), a current World Cocoa Foundation (WCF) project, sponsored by the Bill and Melinda Gates Foundation and aimed at improving the livelihood of over 200,000 small cocoa producers in sub‐Saharan Africa via training, crop diversification, and farmer‐based organizations. Using data collected from 2,048 pre‐ and post‐CLP‐I interviews of cocoa producers in Ghana, Cote d'Ivoire, Nigeria, and Cameroon, the results show that yield enhancements attributable to CLP‐I are 32%, 34%, 50%, and 62% in Ghana, Côte d'Ivoire, Nigeria, and Cameroon, respectively. Using a total program cost of $151–$200 per beneficiary and estimated annual benefits of $109–$322 per beneficiary over 25 years, the benefit‐cost ratios are estimated to range from $18 to $62 for every dollar spent on human capital development. These results suggest the WCF should endeavor to increase the number of farmers who receive all, not some, of the components of the program. This would not only help ensure that each producer obtains as much human capital as possible from each of the training programs but increases the probability of reaching the CLP goal of doubling the income of cocoa‐growing households.     

Contract length heterogeneity and the persistence of monetary shocks in a dynamic generalized Taylor economy

We develop the generalized Taylor economy (GTE) in which there are many sectors with overlapping contracts of different lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils–Klenow distribution of contract lengths, we find that the corresponding GTE tracks the U.S. data well. When we choose a GTE with the same distribution of completed contract lengths as the Calvo, the economies behave in a similar manner.     

On the ‘Steady State’ Properties of Financial Ratios

This paper uses the methods of continuous time stochastic calculus to investigate the ‘steady state’ properties of financial ratios. Basing our analysis on previous work in the area, we show that, if a financial ratio can be characterised as a diffusion process which possesses an asymptotic equilibrium, then the Fokker-Kolmogorov-Planck forward equation may be used to ‘retrieve’ its probability density. The approach is ‘flexible’ enough to incorporate a wide variety of density functions, many of which have not been investigated in the literature. We demonstrate the procedures which may be used to derive both the cross-sectional and time series tests implied by these distributions. The paper also includes a section dealing with the methods which may be used for parameter estimation, once the underlying distribution has been determined.     

Changing HRM systems in two Russian oil companies: Western hegemony or Russian spetsifika?

We contrast attempts to introduce what were seen as sophisticated Western-style human resource management (HRM) systems into two Russian oil companies – a joint venture with a Western multinational corporation (TNK-BP) and a wholly Russian-owned company (Yukos). The drivers for Western hegemony within the joint venture, heavily influenced by expatriates and the established HRM processes introduced by the Western parent, were counteracted to a significant degree by the Russian spetsifika – the peculiarly Russian way of thinking and doing things. In contrast, developments were absorbed faster in the more authoritarian Russian-owned company. The research adds to the theoretical debate about international knowledge transfer and provides detailed empirical data to support our understanding of the effect of both organizational and cultural context on the knowledge-transfer mechanisms of local and multinational companies. As the analysis is based on the perspective of senior local nationals, we also address a relatively under-researched area in the international HRM literature which mostly relies on empirical data collected from expatriates and those based solely in multinational headquarters.