The long-run relationship between stock prices and goods prices: New evidence from panel cointegration

We examine the long-run relationship between stock prices and goods prices to gauge whether stock market investment can hedge against inflation. Data from 16 OECD countries over the period 1970–2006 are used. We account for different inflation regimes with the use of sub-sample regressions, while maintaining the power of tests in small sample sizes by combining time-series data across our sample countries in a panel unit root and panel cointegration econometric framework. The evidence supports a positive long-run relationship between goods prices and stock prices with the estimated goods price coefficient being in line with the generalized Fisher hypothesis.     

The argument against a reductionist approach for measuring sustainable development performance and the need for methodological pluralism

Both sustainability and sustainable development continue to remain elusive concepts even now, 20 years after the Brundtland Commission report that brought them into prominence. This situation most likely stems from the fact that sustainability science encompasses the need to address a wide set of issues over different time and spatial scales and thus inevitably accommodates opinions from diverse branches of knowledge and expertise. However, despite this multitude of perspectives, progress towards sustainability is usually assessed through the development and utilisation of single sustainability metrics such as monetary tools, composite sustainability indices and biophysical metrics including emergy, exergy and the ecological footprint. But is it really justifiable to assess the progress towards sustainability by using single metrics? This paper argues that such a choice seems increasingly unjustifiable not least due to these metrics’ methodological imperfections and limits. Additionally, our recent awareness of economies, societies and ecosystems as complex adaptive systems that cannot be fully captured through a single perspective further adds to the argument. Failure to describe these systems in a holistic manner through the synthesis of their different non-reducible and perfectly legitimate perspectives amounts to reductionism. An implication of the above is the fact that not a single sustainability metric at the moment can claim to comprehensively assess sustainability. In the light of these findings this paper proposes that the further elaboration and refinement of current metrics is unlikely to produce a framework for assessing the progress towards sustainability with a single metric. Adoption of a diverse set of metrics seems more likely to be the key for more robust sustainability assessments. This methodological pluralism coupled with stakeholder involvement seems to offer a better chance of improving the outcome of the decision making process.     

Social learning and sustainable tourism development; local quality conventions in tourism: a Greek case study

This paper presents the trajectory of an innovative organisational scheme, the Local Quality Convention (LQC), concerning sustainable tourism development in the Lake Plastiras area, a less favoured area in Central Greece. It outlines the development issues of the area, the main actors, their views and practices and describes the creation, progress and emerging problems of the LQC scheme. Research reveals contradicting approaches to sustainable tourism development which, in turn, influenced the LQC's evolution. The findings are critically discussed in the light of the Social Learning (SL) approach to social change and sustainable development. According to SL it is only through interactive (participative), concerted action that stakeholders are able to co-construct an issue and its solutions. Given the dominance of “conventional” tourism in Greece as well as the top-down formation and implementation of policies, the importance of the long term facilitation of local stakeholders to achieve sustainable tourism development is demonstrated, along with other related lessons for planners and managers.     

Exploring TQM awareness in the Greek national business context: between conservatism and reformism cultural determinants of TQM

This paper develops the theoretical understanding of the application of Total Quality Management (TQM) in business environments that differ from those from where it emerged. Business systems that are less developed tend to adopt more ‘sophisticated’ and formal strategic initiatives. The adoption of TQM by Greek organizations is a prime example. However, less has been said about the understanding of TQM or its cultural determinants in such environments. This paper, based on the results of 73 semi-structured interviews conducted with managers working in Greek public and private organizations, argues that there are two antithetical business-cultural ‘forces’ – conservatism and reformism – that seem to substantially affect the awareness and application of total quality concepts. Both features create pressures in the system, either restraining or promoting TQM implementation. In this context, the tension between traditional business culture and a modernization logic is the key to understanding the development of TQM.     

Dynamics of communication protocol diffusion: the case of multipath TCP

During the last decade the Internet has faced an architectural stagnation due to lack of wide scale adoption of new communication protocols. A significant reason for non-adoption is that the conflicting interests of networked stakeholders involved in the diffusion process are not understood or taken into account during the protocol development. This paper increases understanding of the dynamics of communication protocol diffusion and provides feedback to protocol development by studying the case of Multipath TCP (MPTCP). Firstly, we introduce a protocol development process which builds on the existing diffusion of innovation theories. Secondly, a quantitative analysis using system dynamics is provided to evaluate the criticality of the factors affecting the MPTCP diffusion. The diffusion of communication protocols is found to follow three adoption models differentiated by the basis of adoption decision. The key finding is that unintentional adoption, alongside device acquisitions or operating system updates, adds a new dimension to the diffusion of innovations theory and may have a significant impact on protocol diffusion. The cross-side network effects between different adopter groups play also an important role and may lead to either market pull or technology push type of diffusion depending on which stakeholder starts to adopt first. Although MPTCP is used as an example protocol, the findings can be also applied to the diffusion studies of other communication protocols.     

Testing for persistence in mutual fund performance and the ex-post verification problem: evidence from the Greek market

The present study examines a series of performance measures with the aim of solving the ex-post verification problem. These measures are employed to test the performance persistence hypothesis of domestic equity funds in Greece, during the period 1998–2004. Correctly adjusting for risk factors and documented portfolio strategies explains a significant part of the reported persistence. The intercept of the augmented Carhart regression is proposed as the most appropriate performance measure. Using this measure, weak evidence for persistence, only before 2001, is documented. The growth of the fund industry, the direction of flows to past winners and the integration in the international financial system are suggested to be the reasons for the absence of performance persistence.     

Unemployment,Labor Market Flexibility,and Absenteeism: A Pan‐European Study

Using micro‐data from the European Union's Labour Force Survey for 28 countries this study investigates the incidence and intensity of individuals' sickness‐absence behavior, and assesses the importance of labor market characteristics like unemployment and the extent of atypical contracts and second job‐holding on individuals' sickness absence. The results identify that unemployment affects sickness absence through different pathways, exerting a negative effect on the probability of being absent and a positive effect on the duration of absence. In addition, the degree of second job‐holding and part‐time contracts in the labor market is found to be negatively related to individuals' sickness absence.     

Assessing the Vulnerability to Price Spikes in Agricultural Commodity Markets

We examine empirically the predictability of conditions associated with a higher probability of a price spike in agricultural commodity markets. We find that the forward spread is the most significant indicator of probable price jumps in maize, wheat and soybeans futures markets, a result which is in line with the ‘Theory of Storage’. We additionally show that some option-implied variables add significant predictive power when added to the more standard information variable set. Overall, the estimated probabilities of large price increases from our probit models exhibit significant correlations with historical sudden market upheavals in agricultural markets.     

Contract Choice: Efficiency and Fairness in Revenue‐Sharing Contracts

We present a simple principal–agent experiment in which the principals are allowed to choose between a revenue‐sharing, a bonus, and a trust contract, to offer to an agent. Our findings suggest that a large majority of experimental subjects choose the revenue‐sharing contract. This choice turns out to be not only the most efficient but also, at the same time, fair. Overall, the distribution of earnings is only mildly skewed towards the principal. We conclude that, under revenue‐sharing contracts, concerns for fairness can be closely associated with the use of monetary incentives.