On the commutativity of expansion and substitution effects

The reversibility of sequential economic choices concerning production and consumption is addressed. A geometric approach to substitution effects and output/income effects is set forth in terms of vector fields on bundle space. By means of suitable fixing relations the 0-homogeneity of such problems can be circumvented, so as to define global parametrizations of effects, for which Lie brackets measure the departure from commutativity. A couple of propositions are established, assessing the benchmark relevance of homothetic models. Application to Farrell decompositions, as tailored by Bogetoft et al. (Eur J Oper Res 168:450–462, 2006), results in complete agreement with the results found by such Authors. The theoretical relevance of the approach is thoroughly discussed.     

Innovation in knowledge-based professional service firms. An integrated conceptual model*

ABSTRACT

The current paper offers a new conceptual model to understanding innovation processes in professional service firms, to make hidden relationships more explicit and to find out what are the issues still unexplored. The paper employs a systematic literature review, and draws upon original categorizations of extant literature, to identify main processes for each category of PSFs. It unveils connections among a wide range of factors setting a conceptual model for innovation pathways and highlighting neglected questions relevant from both the theoretical and the practical perspectives.     

Online communication of Corporate Environmental Citizenship: A study of New Zealand's electricity and gas retailers

This paper presents a study of how companies in New Zealand's electricity and gas retail sector communicate their Corporate Environmental Citizenship (CEC) on the World Wide Web. The natural environment is the focal issue for analyzing the way these companies present their commitment to the community and society in general, for two reasons. First, concern for and management of the natural environment is one of the most important social issues facing corporations. Second, prior empirical studies of corporate communication of social responsibility initiatives have investigated the extent and content of these messages without focusing on a particular issue. A content analysis of the web pages of 18 companies in an environmentally sensitive industry was chosen to investigate which environmental issues and stakeholder groups are given priority and how companies' attitudes to stakeholders and relationships with them are described. The results demonstrate an instrumental reformist moral position underlying their online communications. This philosophy was present in the environmental issues most frequently mentioned and in the principles motivating their Corporate Environmental Citizenship activities. While the majority of companies presented their environmental initiatives on their web sites, most did not employ interactive features to encourage dialogue with stakeholders and enhance these relationships.     

Do banks price discriminate spatially? Evidence from small business lending in local credit markets

In this paper we explore the effects of bank–borrower physical proximity on price and non-price aspects of small business lending in local credit markets. Along the price dimension, our analysis reveals that interest rates increase with bank–borrower distance and decrease with the distance between borrower and other competing banks. Along the quantity dimension, we observe that more distant borrowers are more likely to experience binding credit limits. We also show that the quantity effects of bank–borrower distance are concentrated among less transparent firms. Our findings are consistent with pricing based on marginal costs that reflect information-based factors, and are in contrast to the established paradigm, where banks adopt spatial discriminatory pricing rules when lending to small-sized enterprises.     

Measuring CSR Image: Three Studies to Develop and to Validate a Reliable Measurement Tool

Although research on the corporate social responsibility (CSR) dimension of corporate image has notably increased in recent years, the definition and measurement of the concept for academic purposes still concern researchers. In this article, literature regarding the measurement of CSR image from a customer viewpoint is revised and areas of improvement are identified. A multistage method is implemented to develop and to validate a reliable scale based on stakeholder theory. Results demonstrate the reliability and validity of this new scale for measuring customer perceptions regarding the CSR performance of their service providers. With regard to this, CSR includes corporate responsibilities towards customers, shareholders, employees and society. The scale is consistent among diverse customer cohorts with different gender, age and level of education. Furthermore, results also confirm the applicability of this new scale to structural equation modelling.     

The development of a stakeholder-based scale for measuring corporate social responsibility in the banking industry

Research on corporate social responsibility (CSR) has notably increased in recent years and many scales for measuring CSR image have been developed in academic literature. Due to the contextual character recognized in the implementation of CSR strategies, in this paper a new scale based on stakeholder theory is developed to evaluate customers’ perception regarding the CSR performance of their banking service providers. The proposal of reliable measurement tools for evaluating customers’ perception is especially relevant for companies because of their significant role in influencing the design and implementation of corporate strategies. Results demonstrate the reliability and validity of this new scale in two different samples. In the banking industry, CSR includes corporate responsibilities toward customers, shareholders, employees, society, and all legal and ethical requirements of banking institutions. Nevertheless, different kinds of banking institutions have specific CSR images, which reveal different strategic approaches to CSR.     

Did the 2008–2009 Food and Financial Crises Affect Child Mortality? The Case of Sub-Saharan Africa

We estimate an aggregate model of child mortality on a panel of 40 African countries over the period 1995–2007. This model is then used to assess the impact of the 2008–2009 food and financial crises on child mortality, by comparing the number of child deaths computed under a “business-as-usual scenario” with those computed under the actual 2008–2009 “crisis scenario”. According to the simulation results, the 2008–2009 food price rise and recession caused a statistically non-significant additional 27,000 child deaths. However, if the 2008–2009 changes in other determinants of child mortality are factored in, the number of child deaths declined by 15,000. This unexpected result is explained by the fact that the effects of the rise in domestic food prices and the recession were offset in most of the region by the protective effect on the under-five mortality rate of a surge in food production, and by a rise in public expenditure on and foreign aid to the health sector.     

Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries

This paper presents a critical review of the global value chain (GVC) literature in light of the “technological capabilities” approach to innovation in less-developed countries (LDCs). Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning and technological efforts at the firm level remain largely hidden in the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research should integrate the analysis of the endogenous process of technological capability development, including specific firm-level efforts, and of the mechanisms allowing knowledge to flow within and between different global value chains into the GVC literature.     

“Less is more” or “more is better”? The effect of asymmetric information distribution on market efficiency and wealth inequality

Journal of Economic Interaction and Coordination - We provide experimental and empirical evidence on the role of information distribution and accuracy in solving market inefficiency and the related...     

A simple note on herd behaviour

In his ‘Simple model of herd behaviour’, (Banerjee A (1992) A simple model of herd behaviour. Q J Econ CVII:797–817) shows that—in a sequential game—if the first two players have chosen the same action, player 3 and all subsequent players will ignore his/her own information and start a herd, an irreversible one. In this paper, we analyse the role played by the tie-breaking assumptions in reaching the equilibrium. We show that: players’ strategies are parameter dependent—an incorrect herd may be reversed; a correct herd is irreversible.