Risk contagion among international stock markets

We develop a stochastic volatility model with jumps in returns and volatility to analyze the risk spillover from the U.S. market and the regional market to a number of European countries’ equity markets. The key advantage of this approach compared to the earlier approaches is that it enables us to identify jumps and investigate spillover of extreme events across borders. We find that a large part of the jumps in the local markets are due to the U.S. market and the regional market. The U.S. contribution to the variances is in general below the contribution from the regional market. In general, we observe an increasing integration during the last two decades, which, to some extent, can be related to the advancement of the European Union. Furthermore, we show that the identification of the jumps can be used as a useful signal for portfolio reallocation.     

Incommensurate paradigms? Bridging the divide between technocrats and the lay public in health care planning: recent experience from Wales

The pressure on the UK National Health Service (NHS) to increase public involvement in the planning of future services has never been greater. Politicians and others argue that ‘lay wisdom’ has much to contribute, and that such involvement is essential if public confidence in the service is to be maintained. Many managers and clinicians, however, operating within an essentially technocratic paradigm, remain unconvinced. Their views are often reinforced by a lack of experience of methods for public involvement that can meet the many practical difficulties involved. Using Arnstein’s ‘ladder of citizen participation’, this paper describes the principal nuances of these two paradigms, explores the nature of the conflict between them, and assesses the extent to which they are really incommensurate. It then briefly describes some of the key methodological principles emerging from public involvement work in parts of the NHS in Wales, and assesses their potential to bridge the divide between the paradigms.     

Public involvement in policy-making: the case of a Citizens’ Jury on genetic testing for common disorders

Abstract: Improving public involvement in policy-making is generally accepted to be a good thing, and a whole range of methods now exist in the UK that try to achieve this aim. However, few steps have been taken to involve the public directly in decisions on policy issues that will be vital in the future but are not yet on the immediate agenda of policy-makers. One attempt to do just this was made in Wales in November 1997 when a Citizens’ Jury explored future policies for genetic testing for common disorders in the NHS. This paper describes the Citizens’ Jury experiment and also includes a summary of this Jury's recommendations.     

How Do Transformational Leaders Promote Exploratory and Exploitative Innovation? Examining the Black Box through MASEM

Understanding how firms can promote exploratory and exploitative innovations is of high interest for both scholars and practitioners. Although a substantial body of research has emphasized that top management's transformational leadership is crucial to innovation, the mechanisms through which strategic leaders influence these distinct types of innovations remain unclear. Building on upper echelon and social learning theory, this study develops and empirically examines a model that investigates the mediating roles of three distinct strategic orientations (market, learning, and entrepreneurial orientation) on the relationship between transformational leadership and exploratory and exploitative innovation. Using meta‐analytic methods combined with structural equation modeling, this study integrates findings from separate research streams, covering over 15 years of research, and using a sample of 215 effect sizes from 75 studies. The results from the partial mediation model reveal that transformational leaders play a key role in creating these specific strategic orientations which, in turn, support different innovation outcomes. Specifically, the findings indicate that transformational leaders promote exploitative innovations predominantly by building a market orientation, whereas they foster exploratory innovations by stimulating an entrepreneurial and a learning orientation. Hence, this study extends upper echelon research by uncovering the different mechanisms through which transformational leaders promote exploratory and exploitative innovations as it theoretically identifies and empirically validates the unique mediating roles of three specific strategic orientations. The results thus provide valuable insights for the challenging management of exploratory and exploitative innovations, as they provide a “guiding map” which reveals how transformational leaders from the top may use specific orientations to foster these distinct types of innovations.     

Retail shopping lists: Reassessment and new insights

The paper addresses consumers' shopping lists. The current study is based on a survey of 871 lists collected at retail grocery stores. Most items on shopping lists appear on the product category level rather than the brand level. The importance of the brand level varies considerably across product categories. An association between the frequency of a brand's appearance on lists and the amount of money spent on advertising the brand could not be found. A strong link between brands, prices and store names is revealed. Price in the majority of cases refers to brands rather than to product categories. The paper ends with a discussion and with suggestions for future research.     

Korea's Growth Performance: Past and Future

South Korea is arguably the premier development success story of the last half century. Rapid growth coincided with extensive state interventions in the economy, and considerable controversy exists as to how much this performance should be credited to the country's state‐led development strategy and to what extent the lessons from that experience might be portable or applied elsewhere. The salience of this issue has grown as South Korea has become a more important provider of development assistance and advice. Now the country faces challenges in maintaining its superior economic performance, notably interrelated problems revolving around the country's demographics, long‐term fiscal position, and lagging productivity in the services sector domestically, and a taxing environment externally. Finally, the country confronts scenarios involving potential instability, collapse, and/or absorption of its neighbor, North Korea.     

Implicit pricing across residential rental submarkets

This paper examines implicit price differences of rental housing characteristics across various property types to measure whether determinants of rents are valued in the aggregate or separately. The results show that hedonic price functions are not identical across property types, which suggests that ordinary least squares is not the appropriate estimation technique when modeling the implicit prices for an aggregate rental market. Generalized least squares estimation of a random coefficient model removes the restriction of fixed parameters imposed by OLS and allows estimation of implicit prices for rental markets containing multiple property types.     

The Effects of Charm Listing Prices on House Transaction Prices

As is the case for many different goods and services, it is common practice in many real estate markets for sellers to offer properties for sale at listing prices just below some round number price ( e.g. , $99,900 instead of $100,000). The academic marketing literature refers to this practice as "charm" pricing and suggests that this strategy is an attempt by sellers to take advantage of buyers' cognitive processes in which charm prices affect buyers' perceptions about the seller or the item being offered for sale. Although numerous papers in the housing economics literature have addressed the impact of the magnitude of listing price on observed house transaction prices, no prior published study has considered the impact of the design of listing prices in housing markets. This paper presents an empirical investigation of the effects of charm pricing on house transaction prices using sample data. The results provide some evidence that houses listed at certain charm prices sell for significantly greater transaction prices than those listed at round number prices.