Using segment level stability to select target segments in data-driven market segmentation studies

Market segmentation is widely used by industry to select the most promising target segment. Most organisations are interested in finding one or a small number of target segments to focus on. Yet, traditional criteria used to select a segmentation solution assess the global quality of the segmentation solution. This approach comes at the risk of selecting a segmentation solution with good overall quality criteria which, however, does not contain groups of consumers representing particularly attractive target segments. The approach we propose helps managers to identify segmentation solutions containing attractive individual segments (e.g., more profitable), irrespective of the quality of the global segmentation solution. We demonstrate the functioning of the newly proposed criteria using two empirical data sets. The new criteria prove to be able to identify segmentation solutions containing individual attractive segments which are not detected using traditional quality criteria for the overall segmentation solution.     

The Impact of EMU on Inflation Expectations

This paper analyses the impact of the monetary regime change from the Bundesbank to the ECB on inflation expectations. In the theoretical part, the Barro-Gordon model is used to derive the potential effect of a new central bank on inflation and inflation expectations. The econometric investigation is based on a flexible specification of expectation formation which allows both for rational and adaptive elements. The results indicate that the monetary regime change did not have a strong and lasting impact on the formation of inflation expectations and that the credibility of both central banks is not perceived to differ significantly anymore. JEL Classification Numbers: E 58, E 31     

Einzelbesprechungen

Ohne Zusammenfassung     

An outlier test for linear processes

In this paper we introduce an outlier test for linear processes. It is assumed that an upper bound for the number of outliers is known which is not too big in relation to the sample size. The test statistic bases on the comparison of the observations with certain predictors. We discuss the asymptotical behaviour of the test statistic under the null hypothesis ‘no outlier’ and derive the asymptotic distribution for the case that the distribution of the squared white noise process belongs to a certain subset of the domain of attraction of the Gumbel distribution. Especially the most important case in applications, the Gaussian white noise is included.     

Would China＇s Sovereign Wealth Fund Be a Menace to the USA？

The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation （CIC） on 29 September 2007. The arrival of CIC has further heated up debate regarding sovereign wealth funds （SWFs） and their potential implications for global financial markets. This is because, in carrying out its investments, CIC can tap into China＇s huge official foreign exchange reserves, which by April 2008 had surged to US$1.76tn. CIC＇s initial working capital of US$2OObn makes it the fifth largest SWFs in the world today. This article seeks to analyze CIC＇s investment strategies, as well as their potential economic and political implications for global as well as US financial markets.     

Attitudes Towards Paying Taxes in Austria: An Empirical Analysis

People mostly pay their taxes although there is a low probability of getting caught and being penalized. Thus, new attempts in the tax compliance literature try to go beyond standard economic theory. This paper examines citizens attitudes toward paying taxes – what is sometimes termed their tax morale, or the intrinsic motivation to pay taxes. Tax morale may be a key determinant to explain why people are honest. However, there are very few papers that explore the concept of tax morale theoretically and empirically. This study, based on the World Values Survey and the European Values Survey, therefore attempts to fill this gap in the literature, focusing on tax morale in Austria. Societal variables such as trust or pride have been identified as key determinants that shape tax morale in Austria. Furthermore, a lower perceived compliance leads to a decrease of tax morale, which indicates that social comparisons are relevant. The results also show a decrease of tax morale between 1990 and 1999, although Austrias taxpayers still have a very high tax morale compared to other European countries.     

Die Stellung von Mengers „Grundsätzen“ in der Geschichte der Volkswirtschaftslehre

Ohne Zusammenfassung     

Diffusion der Biogastechnologie in der Schweiz: eine GIS-basierte Multiagenten-Simulation

In this article we introduce a GIS-based multi-agent simulation model. It is used to study the spatial diffusion dynamics of agricultural biogas plants in Switzerland, which lags markedly behind those in the neighboring countries Austria and Germany. The investigation concentrates in particular on the impacts of economic factors and of locally available resources on the diffusion process. The model considers three different types of plants (100 kW_el, 200 kW_el, 1 MW_el). The results show that feed-in tariffs, cosubstrate prices and the revenues from heat sales are critical parameters. They indicate further that the present promotion policy fosters smaller plants, whereas larger plants are preferred only in few areas with high substrate densities. Finally, we find evidence that increased heat sales can significantly raise diffusion dynamics, and that the higher feed-in tariffs planned in Switzerland could actually overcompensate deteriorating cosubstrate prices.