AN ATTEMPT TO EXPLAIN DIFFERENCES IN ECONOMIC GROWTH: A STOCHASTIC FRONTIER APPROACH

Total factor productivity (TFP), factor accumulation, and growth are analysed for a panel of 40 countries in 2001–11. TFP growth and technical inefficiency are estimated using a stochastic frontier model. Environmental variables are found to have an important role in explaining differences in inefficiency across countries. Over 2001–11, the general improvement in technical efficiency of countries is almost outweighed by technological regress. Results indicate that differences in factor accumulation between OECD and emerging economies are more important than differences in TFP change to explain differences in economic growth. Results also indicate negative and significant random shocks for the OECD countries.     

Does Inter‐jurisdictional Competition Engender a “Race to the Bottom”? A Meta‐Regression Analysis

A growing literature documents the existence of strategic political reactions to public expenditure between rival jurisdictions. These interactions can potentially create a downward expenditure spiral (“race to the bottom”) or a rising expenditure spiral (“race to the top”). However, in the course of identifying the existence of such interactions and ascertaining their underlying triggers, the empirical evidence has produced markedly heterogeneous findings. Most of this heterogeneity can be traced back to study design and institutional differences. This article contributes to the literature by applying meta‐regression analysis to quantify the magnitude of strategic inter‐jurisdictional expenditure interactions, controlling for study, and institutional characteristics. We find several robust results beyond confirming that jurisdictions do engage in strategic expenditure interactions, namely that strategic interactions: (i) are weakening over time, (ii) are stronger among municipalities than among higher levels of government, and (iii) appear to be more influenced from tax competition than yardstick competition, with capital controls and fiscal decentralization shaping the magnitude of fiscal interactions.     

Toward a better comprehension of Lean metrics for research and product development management

This paper presents a compilation and empirical survey‐based evaluation of the metrics most commonly used by program managers during product development management. This work is part of a bigger project of Massachusetts Institute of Technology (MIT), Project Management Institute (PMI) and International Council on Systems Engineering (INCOSE). Three methodological procedures were applied: systematic literature review, focus‐group discussions, and survey. The survey results indicate the metrics considered to be the most and least useful for managing lean engineering programs, and reveals a shift of interest towards qualitative metrics, especially the ones that address the achievement of stakeholder values, and the absence of useful metrics regarding the lean principles People and Pull.     

Market power and fiscal policy in OECD countries

We compute average markups as a measure of market power throughout time and study their interaction with fiscal policy and macroeconomic variables in a VAR framework. From impulse-response functions, the results, with annual data for a set of 14 OECD countries, show that the markup (i) depicts a pro-cyclical behaviour with productivity shocks and (ii) a counter-cyclical behaviour with fiscal spending shocks. We also use a PVAR, increasing the efficiency in the estimations, which confirms the country-specific results.     

Editors’ note

Portuguese Economic Journal -     

The impact of affective and cognitive antecedents on negative word-of-mouth intentions

Negative word-of-mouth (WOM), defined as derogatory information disseminated from person to person and aimed at defaming a product, highlighting a product complaint, and/or highlighting unsatisfactory service experiences, influences consumer behavior and can harm a company’s image. The present study was conducted to ascertain the impact of affective antecedents (negative emotions) and cognitive antecedents (distrust) in the intent of negative WOM. A proposed theoretical model was employed to analyze the effect that perceived injustice had on negative WOM and how this effect was mediated by emotional and cognitive aspects. The research was a pre-experimental design – one treatment leading to one observation – with 252 students. Through an OLS regression and mediation analyses, we found an indirect link between perceived injustice and negative WOM intent, which was mediated by negative emotions and distrust. Contributing to the field of marketing studies, this paper fills an investigative gap regarding affective and cognitive antecedents as mediators of negative WOM. The results suggest that marketing managers should create mechanisms to allow consumers to express their negative emotions and rebuild their trust in order to avoid the spread of negative WOM.     

Running for pleasure or performance? How store attributes and hedonic product value influence consumer satisfaction

Previous retailing studies have linked consumer satisfaction to perceived hedonic or utilitarian product value. This research extends previous studies by examining how the context in which the product is purchased (store attributes) and product value influence consumer satisfaction. We conducted a field study with 213 consumers attending two major running events. The findings from structural equation modelling suggest that a specific combination of store attributes (tangible and intangible) and hedonic product value has a positive influence on satisfaction. Results also show that tangible store attributes have a stronger positive impact on utilitarian (vs. hedonic) product value, and that intangible store attributes have a positive impact on hedonic product value. However, we found that only hedonic product value has a positive impact on satisfaction. This research contributes to theory by showing that a match between store attributes (tangible and intangible) and hedonic product value can positively influence satisfaction. In managerial terms, the findings provide insights on how to improve consumer satisfaction in retail environments through store attributes and hedonic product value.     

Corporate Frauds as Criminal Business Models: An Exploratory Study

In this article, we report on the findings of an exploratory, interpretive study of a notorious corporate fraud that occurred in Brazil from 1989 to 2005. We examine the process by which this scheme was created as well as how it was maintained for all those years. Our analysis covers both the substantive aspects (the actions fraud agents effectively perform) and the symbolic aspects (the resources of impression management that they use). We suggest that under certain circumstances, corporate frauds may be understood as the result of implementation of a criminal business model that focuses on a niche market of risk takers or greed investors, uses aggressive commercial practices and offers exclusivity, promotes the organization's image and personality cult of the entrepreneur, operates a management model that combines centralized control with fragmented systems, and uses complex fraudulent practices. This perspective allows us to understand the phenomenon of corporate fraud from a systemic point of view. We also suggest directions for future research and theory development on corporate frauds. © 2014 Wiley Periodicals, Inc.