Influence of the Banks' Money Mediation Behavior on the Monetary Policy: A Study of Korean Case

Abstract

This paper analyses how financial institutions' arbitrary intermediation behaviors, including adjustments in bank lending and deposit rates, influence monetary policy transmission channels. For the analysis, we develop a New Keynesian Dynamic Stochastic General Equilibrium (NK DSGE) model with parameters estimated to fit the Korean conditions. The role of banks is subsequently examined by classifying monetary policy transmission channels (real rate channel, nominal debt channel, financial accelerating channel, and banking attenuator channel). A notable part of this analysis is the inclusion of the banking sector in the model specifically with the intent to study transmissions from the financial sector to the real economy. This paper follows this line of inquiry with recent research in mind. Empirical analysis verifies the existence of the banking attenuator effect in Korea, which means banks act to reduce the effect of monetary policies. This indicates that if financial intermediaries strengthen arbitrary adjustment behaviors of lending and deposit rates, the effect of the monetary policy intended to relieve volatility in the business cycle may not be as high as expected.     

ECONOMETRIC ESTIMATION OF ARMINGTON IMPORT ELASTICITIES FOR A REGIONAL CGE MODEL OF THE ILLINOIS ECONOMY

One of the main concerns associated with the development and use of regional CGE models is the determination of key parameter values, particularly substitution and other price elasticities. A common problem is the lack of appropriate regional data for econometric estimation. Consequently, it is important to identify key parameters that are likely to be important in determining quantitative results and then to prioritize these for estimation where appropriate data are available. In this paper, the focus is on the estimation of the regional trade (import) substitution parameters, which tend to be important in analysis for regional economies (given their openness to trade). Here, commodity import elasticities for the Illinois economy are estimated and tested in a single region CGE model of the Illinois economy. In our econometric estimation, we apply a model that takes account of market size and distance in estimating the substitutability between commodities produced in Illinois and other US states.     

Consumer e-shopping acceptance: Antecedents in a technology acceptance model

This study integrates e-shopping quality, enjoyment, and trust into a technology acceptance model (TAM) to understand consumer acceptance of e-shopping. Online surveys with college students (n = 298) were conducted. E-shopping quality for apparel products consists of four dimensions: web site design, customer service, privacy/security, and atmospheric/experiential. A structural equation model reveals that e-shopping quality determines perceptions of usefulness, trust, and enjoyment, which in turn influence consumers' attitudes toward e-shopping. Consumer perceptions of usefulness and attitude toward e-shopping influence intention to shop online, while perceived ease of use does not influence attitude toward e-shopping. Shopping enjoyment and trust play significant roles in consumers' adoption of e-shopping. This study provides important implications for e-tailers whose web site developers must keep in mind that customers are not only web users with trust/safety and information needs, but also shoppers with service and experiential needs.     

Brand personality and its outcomes in the Chinese automobile industry

The purpose of this study is to understand the relationship between ‘brand personality’ and key outcomes in the Chinese automobile industry. A secondary aim of the study is to look at whether or not these relationships hold across purchasers and non-purchasers. The major conclusion is that while brand personality dimensions are somewhat consistent across both purchasers and non-purchasers, the brand personality outcomes differ somewhat between the groups. First, brand personality plays a critical role in improving perceived quality and creating brand trust, a key finding given the intensely competitive nature of the Chinese automobile industry. Second, perceived quality plays an important role in mediating the relationship between brand personality and brand commitment for both groups. Third, perceived quality does not affect brand trust for the purchaser group. In the context of Chinese automobile industry, increasing the level of perceived quality of a particular brand requires convincing non-purchasers that the brand is valuable, and that the information being provided is useful. Fourth, since the relationship between perceived quality and brand trust was found to be non-significant, future research studies may wish to focus on obtaining a better understanding of Chinese cultural perspectives to shed further light on why perceived quality and brand trust are not related for the automobile purchaser group.     

The link between macroeconomic adjustment and sectoral output in post-reform China

We construct a two-part model of the Chinese economy. The first part consists of a money supply equation, a real money demand equation, and a savings equation. The second part comprises a set of sectoral equations. The model estimated is then used to generate a dynamic simulation of the paths of real national income, the aggregate price level, sectoral output, and sectoral prices. The model tracks quite well within sample, thus indicating that it may be used to analyze the future effects of policy changes. We therefore carry out counterfactual policy simulations based on monetary changes.     

Re-evaluation of global innovation index based on a structural equation model

The Global Innovation Index (GII) was proposed to observe the innovation capability and efficiency levels of individual countries using input and output factors. However, it does not consider potential structural relationships among factors affecting the innovation performance of a country. In this study, we proposed a structural equation model (SEM) based on the hypothesised national innovation structure among seven factors representing inputs (institution, human capital and research, infrastructure, market sophistication, and business sophistication) and outputs (knowledge and technology outputs, and creative outputs). Using GII data from 2013, we discovered that business sophistication and infrastructure have the strongest direct and indirect effects on creative output, respectively. In addition, a new ranking is obtained based on the fitted SEM. We provide feedback information to improve innovation capabilities.     

Limitations and Strengths of Pan-Asian Advertising Media: A Review for International Advertisers

Economic growth in Asia has led to a proliferation in the supply of pan-regional media. Most of these are elitist media targeting affluent businessmen and travellers. The increasing importance of the Chinese-speaking market spurs the growth of Chinese language pan-Asian media. The emergence of satellite television networks popularizes pan-regional media to a broader audience, although its penetration is still small in comparison to local media. When selecting pan-regional media for advertising in the region, advertisers are advised to use data from pan-Asian audience surveys, publication audit figures and competitive advertising expenditure reports in examining the cost-efficiency of each media vehicle. In choosing between pan-regional and local media, advertisers should consider the homogeneity and socio-economic status of their target audience, the importance of international recognition and consistency in image for the brand, geographic strengths, and other added values of the media.     

Becoming a founder: How founder role identity affects entrepreneurial transitions and persistence in founding

We develop a new theory that views organizational founding as involving a role transition. Through the construct of founder role identity, we delineate how identity centrality and complexity affect individuals' ability to exit a work role in order to undertake founding activities. We argue that individuals are challenged to adjust to the founder role requirements and incorporate the new role into an overall self-concept. We then delineate how configurations of founder role identities influence persistence, and the longer-term outcomes of dormancy and successful founding.