The good, the bad and the forgettable — or lessons the US can learn from European transport policy

Transport policy has undergone considerable change over the past 30 years on both sides of the Atlantic. In many ways the US has led the way, and part of the impetus for change within Europe has been the result of demonstration effects from the US experiences. Nevertheless, the changes in Europe have not represented a mirror image of the reforms that have occurred in the USA. This suggests that there may be lessons from Europe that could be of interest on the western side of the Atlantic.Some of these lessons offer positive refinements or alternatives to what has been done in the USA (‘The Good’). An obvious example of this is the relative success of many cities in Europe in maintaining the vitality of their central areas though traffic restraint and public transport policies.The European lessons may not, of course, all be positive but may reflect paths that should be avoided rather than pursued (‘The Bad’). Subsidies for European airlines offer one example. This may prove to be a non-trivial issue at a time when there are undercurrents of pressure for some degree of reregulation of transport in the USA.Another form of policy experience is that which fades away into the distance as a possibility but has no real scope (‘The Forgettable’) — the forked tariff regime applied to international trucking in Europe is a case of this.The examples cited are simply illustrative, but given the globalization of economic activities that is occurring and the speed at which transport policy is continually developing, there is a case for exploring the insights that may be gained from considering the experiences of others.     

Defining Access to Health Care: Evidence on the Importance of Quality and Distance in Rural Tanzania

We examine the implications of health-seeking behavior on access to quality health care using a unique dataset that combines a household survey from rural Tanzania with the location and quality of all health facilities available to households. Patients do not always visit the nearest facility, but choose from among multiple facilities, improving the quality of care they receive by bypassing low quality facilities. Recognizing this behavior alters the projected benefits to health interventions, reducing the value of focusing on the staff qualifications and increasing the value of focusing on travel time and the motivation of current staff.     

Exploring Big Data and Privacy in Strategic Communication Campaigns: A Cross-Cultural Study of Mobile Social Media Users’ Daily Experiences

Mobile communications have played an indispensable part in contemporary human experiences. The combination of social networking and mobile technologies presents an interesting phenomenon because the pervasive nature of mobile technologies significantly impacts on users’ privacy concerns about highly personal social media like Facebook. The massive amount of data collected from users’ mobile social media usage behaviors is beneficial to strategic communication professionals and practices. However, there are significant privacy concerns as a result of these big data applications. Because cultural context provides what is considered to be private and how individuals should respond to any infringement with their own privacy, Geert Hofstede’s 5-D cultural dimension framework was used as an interpretive framework to understand cross-cultural data collected from the Experience Sampling Method (ESM). The data were analyzed by examining country-specific differences in mobile social media users’ experiences, particularly, concerns over privacy among these cross-cultural mobile social media users. Individualism/Collectivism index was found to explain cross-cultural variations in our study. Theoretical and practical implications were discussed.     

The effects of extrinsic product cues on consumers’ perceptions of quality, sacrifice, and value

The authors report the results of two experiments designed to test the effects of extrinsic cues—price, brand name, store name, and country of origin—on consumers’ perceptions of quality, sacrifice, and value. The results of the experiments support hypothesized linkages between (a) each of the four experimentally manipulated extrinsic cues and perceived quality, (b) price and perceived sacrifice, (c) perceived quality and perceived value, and (d) perceived sacrifice and perceived value. The results also indicate that the linkages between the extrinsic cues and perceived value are mediated by perceived quality and sacrifice. R. Kenneth Teas is a distinguished professor of business in the Department of Marketing, College of Business, Iowa State University. He received his Ph.D. from the University of Oklahoma. His areas of research include consumer behavior and decision processes, marketing research methods, services marketing, and sales force management. His articles have been published in numerous journals, including theJournal of Marketing, theJournal of Marketing Research, theJournal of Consumer Research, theJournal of the Academy of Marketing Science, theAmerican Journal of Agricultural Economics, theJournal of Retailing, theJournal of Personal Selling and Sales Management, theJournal of Occupational Psychology, andIndustrial Marketing Management. Sanjeev Agarwal is an associate professor in the Department of Marketing, College of Business, Iowa State University. He received his Ph.D. from The Ohio State University. His areas of research include multinational marketing strategies, modes of foreign market entry, and sales force management. His articles have been published in theJournal of Consumer Research, theJournal of International Marketing, International Marketing Review, Industrial Marketing Management, theJournal of International Business Studies, theJournal of the Academy of Marketing Science, and theJournal of Personal Selling and Sales Management.     

Persistent differences in national productivity growth rates with a common technology and free capital mobility: The roles of private thrift, public debt, capital taxation, and policy toward human capital formation

The paper develops a two-country endogenous growth model to investigate possible causes for the existence and persistence of productivity growth differentials between nations despite a common technology, constant returns to scale, and perfect international capital mobility. Private consumption is derived from a three-period overlapping generations specification. The source of productivity (growth) differentials in our model is the existence of a nontraded capital good (“human capital”) whose augmentation requires a nontraded current input (time spent by the young in education rather than leisure). We consider the influence on productivity growth differentials of private thrift, public debt, the taxation of capital and savings, and policy toward human capital formation.     

Rollover risk and managerial cost adjustment decisions

Rollover risk is the risk that a firm may not be able to refinance its debt when it becomes due. We investigate whether managers’ resource adjustment decisions are influenced by rollover risk and find that cost stickiness is decreasing in rollover risk. Additionally, the negative relationship between rollover risk and cost stickiness is stronger for firms with higher financial constraints and fewer financing sources. These results suggest that, when faced with elevated rollover risk, managers are willing to forego the benefits from a sticky cost behaviour. Finally, the use of an alternative firm-specific measure of cost stickiness corroborates our main finding.     

Attribute substitution in household vehicle portfolios

Roughly three quarters of vehicles are purchased into multi-car households. We study whether households are willing to substitute attributes, such as fuel economy, across vehicles within their portfolio. We develop a novel strategy to separately identify idiosyncratic preferences for an attribute from these within-portfolio effects. Using the universe of household vehicle registration records in California over a 6-year period, we find that two-car households exhibit strong substitution across vehicles when faced with an exogenous change to fuel intensity of a kept vehicle. This effect can erode a substantial portion of the benefit from major policies, such as Cash-for-Clunkers.     

Is piracy sustainable?

We develop a model of international trade between three countries, one of which hosts pirates. When the number of pirate ships increases, the probability for one of the pirate ships (for one commercial ship) encountering a commercial (pirate) ship decreases (increases). Then, the commercial ships have an incentive to spend more on defence and pirate ships to invest less on attack. If pirates operate under free entry, they do not internalize the entry externality. Then, their number rises until it reaches a level such that their attack power has become negligible and the defence of the commercial ships has reached a high level. The economy settles in a full deterrence equilibrium. However, if the number of pirate ships is controlled by an authority, which maximizes piracy's profit, the economy settles in an equilibrium where piracy is active and commercial ships spend less on defence. Piracy is a substitute for trade. Piracy depends on the terms of trade of the pirate country and on the relative efficiency of the attack versus the defence.