NONNESTED PROCEDURES IN ECONOMETRIC TESTS OF ASSET PRICING THEORIES

In this paper nonnested tests are used to contrast the performance of the capital asset pricing (CAPM) and consumption capital asset pricing (CCAPM) theories in describing the U.S. stock market. The procedures employed include the N‐test, the NT‐test, the W‐test, the J‐test, and the Encompassing test. The tests are carried out using data on firms as well as portfolios based on beta, capitalization, and Standard Industrial Classification codes. The findings indicate that although during 1973–82 the CAPM dominates the CCAPM, during 1978–87 the results are mixed, and during 1983–92 the CCAPM dominates. The finding in favor of the CCAPM in 1983–92 conflicts with much of the existing literature, which favors the CAPM.     

Reviews

Social Europe. European Commission 1996: SOCIAL EUROPE: PROGRESS REPORT ON THE IMPLEMENTATION OF THE MEDIUM-SOCIAL ACTION PROGRAMME 1995-97 (Supplement 4/96).

SOCIAL EUROPE: WORK AND CHILDCARE -A GUIDE TO GOOD PRACTICE (Supplement 5/96). Luxembourg: Office for Official Publications of the European Communities.

Spatial planning. Healey, P., Khakee, A., Motte, A. and Needham, B. (eds) 1997: MAKING STRATEGIC SPATIAL PLANS: INNOVATION IN EUROPE. Basingstoke: Taylor and Francis, £14.95 paper.

Competing cities. Jensen-Butler, C., Shachar, A. and Weesep, J. (eds) 1997: EUROPEAN CITIES IN COMPETITION. Aldershot: Avebury, £55.00 cased.

Evaluating the City Challenge. Robinson, F. 1997: THE CITY CHALLENGE EXPERIENCE. Newcastle: Newcastle City Challenge West End Partnership Ltd, £15.00 paper.     

Public Policy,Vested Interest,and Common People in Brazil in the Twenty-First Century

We offer an original institutional approach to analyzing policies meant to regulate the actions of common people in the Brazilian state agenda in recent years. We also address the reactions of vested interests against this agenda. Such vested interests rely on corporations’ ceremonial encapsulation of state policies — policies that were established during the decades when Brazil’s industrialization process took place. Brazilian policies for the common people, however, are a twenty-first-century phenomenon.     

Using eye-tracking to understand the impact of multitasking on memory for banner ads: the role of attention to the ad

Media multitasking is on the rise due to the adoption of new technologies such as smartphones and tablets. In this article, we study how visual attention affects the impact that media multitasking has on brand recognition. We theorize that media multitasking will have a different impact on brand recognition depending on whether consumers pay attention to the ad. We tested our hypothesis by creating a laboratory experiment that simulates consumers’ internet browsing experience. We exposed participants to two conditions – executing one task (no multitasking condition) and executing two simultaneous tasks (multitasking condition) – and identified when participants paid attention to the banner ad using an eye-tracking device. In line with our theory, our results indicate that multitasking decreases brand memory but only when participants do not pay attention to the banner ad. The implications of this finding for researchers and advertisers are discussed.     

Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts

This paper examines the effect of environmental policies on technological innovation in the specific case of renewable energy. The analysis is conducted using patent data on a panel of 25 countries over the period 1978–2003. We find that public policy plays a significant role in determining patent applications. Different types of policy instruments are effective for different renewable energy sources. Broad-based policies, such as tradable energy certificates, are more likely to induce innovation on technologies that are close to competitive with fossil fuels. More targeted subsidies, such as feed-in tariffs, are needed to induce innovation on more costly energy technologies, such as solar power.