The relationship between the inflation rate and its variability: the issues reconsidered

This paper empirically reexamines the hypothesis of a positive relationship between the inflation rate and its variability. The sample consists of 66 countries for the 1955–85 sample period. Using pooled cross-section time series data, empirical tests are performed for nine different country-groupings ranging from the G–7 developed countries to a group of 10 developing Asian countries. Several important conclusions can be derived. First, irrespective of the variability measure employed, the results indicate the presence of a significant positive relationship between the inflation rate and its variability. This provides strong support to Okun's hypothesis. Second, this relationship is stronger during the flexible rather than the fixed exchange rate period. Third, there appears to be an optimum zone of inflation rate within which the predictability of inflation is at its highest and hence uncertainty cost is at its lowest. For the 1955–85 sample period, this optimum zone of average inflation rate lies in the range of 5 to 7 percent.     

The impact of output and exchange rate volatility on fixed private investment: evidence from selected G7 countries

This study examines the impact of shocks to exchange rate and output uncertainty (volatility) on real private fixed investment (FI) in Canada, Germany, the United Kingdom and the United States. The analysis is conducted using vector autoregressive models that contain the price level, real output, the volatility of real output, the real exchange rate, the volatility of the real exchange rate, an interest rate and FI. The results yield important public policy implications with regard to the impact of output volatility of FI. Our analysis indicates that volatility shocks, measured as output volatility or exchange rate volatility, do not have a significant impact on FI for any country in our study.     

Drivers to Nurturance: Application and Extension of FWB in India

The purpose of this paper is to investigate the factors influencing the choice of healthier foods in India through observation of 250 consumers in a feast arranged with most of the millet-based food items, followed by a focus group study of nine selected consumers from the feast. Although much of the work about healthier food choices have been done in the western countries, their replication is not possible for the Indian consumers due to the differences in perception, culture, and consumption patterns. This paper attempts to highlight the importance of indigenous culture of a land in influencing one’s food choice. The findings of the qualitative study match with the Food as Well Being (FWB) dimensions proposed by Block et al., 2011 Block, L. G., Grier, S. A., Childers, T. L., Davis, B., Ebert, J. E., Kumanyika, S., … &; Pettigrew, S. (2011). From nutrients to nurturance: A conceptual introduction to food well-being. Journal of Public Policy &; Marketing, 30(1), 5–13.[Crossref], [Web of Science ®] , [Google Scholar]. Food perception emerged as another important factor from this study and furthermore an extended model of FWB is proposed for the Indian consumers.     

The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry

The present research aims to investigate the effects of service failure and complaint handling on customer satisfaction with complaint handling which consequently impacts overall satisfaction and brand credibility. To examine the objectives of the present research, the authors deployed a sample of 384 respondents in Persian banks within Iran. Structural equation modeling has been used to analyze the data. The findings suggest that the magnitude of service failure negatively effects customer satisfaction with complaint handling. Complaint handling positively affects customer satisfaction with complaint handling. In addition, the results suggest that customer satisfaction with complaint handling positively influences brand credibility and overall satisfaction. Finally, overall satisfaction positively impacts brand credibility. The results revealed that if the complaint handling occurs instantly at the right time, it would have been a positive influence on customer satisfaction and ultimately develop brand credibility. Therefore, banks can adopt customer relationship management systems and processes which enable quick responses to customer complaints. Bank managers could find the results of the present study useful and beneficial in developing complaint handling efforts and expanding appropriate service recovery and brand credibility strategies.     

The Determinants of Sukuk Market Development

The objective of this article is to empirically investigate the structural, financial, developmental, institutional, and macroeconomic determinants of Sukuk market development for a sample of 13 countries over the period 2001–2013. We employ the Generalized Method of Moments (GMM) procedure to tackle the problems of endogeneity of lagged dependent variable, heteroscedasticity, and serial correlation in the residuals. Our results suggest that a combination of structural, financial, and institutional factors seem to exert a significant effect on Sukuk markets. Indeed, larger economic size, higher proportion of Muslims in the population, better investment profile (IP), and lower corruption are associated with larger Sukuk markets, while higher interest rate spread is negatively related to Sukuk market development.     

A monetary model of balance of payments: The case of Venezuela

The monetary approach to the balance of payments has gained considerable appeal in the literature and is viewed as being concerned with the long run since it does not analyze the adjustment process of the balance of payments. The model developed in this paper is concerned essentially with the short-run implications of this approach and the model is applied to the case of Venezuela. The results were very encouraging for the monetary approach as the model was able to explain a great part of the fluctuations in the balance of payments of Venezuela during the period of study.     

Mutual fund flows and investors’ expectations in BRICS economies: Implications for international diversification

This paper empirically examines the relationship between different classes of mutual funds, measures of investors’ expectations and business cycle movements in the BRICS markets over the 1996Q1-2017Q3 period. Applying the Panel Vector Autoregressive (PVAR) model in a Generalized Method of Moments (GMM) setting, the results suggest a strong causal relationship between mutual fund flows and measures of investors’ future expectations. In particular, fund flows are forward-looking and assist in forecasting real economic conditions. Moreover, investors choose to invest in riskier funds when economic conditions are good, while they prefer safer options in poor economic situations. These findings have important implications for international diversification.     

The extent of resource use inefficiencies in cotton production in Pakistan's Punjab: an application of Data Envelopment Analysis

This paper attempts to identify sources of resource use inefficiency for cotton production in Pakistan's Punjab. The use of a non‐parametric method, Data Envelopment Analysis (DEA), is developed to study the relative technical and allocative efficiencies of individual farms which use similar inputs, produce the same product and operate under comparable circumstances. In the ‘cotton‐wheat’ system of Pakistan, there are a considerable number of farms that are both technically and allocatively inefficient. The use of DEA shows that the technique provides a clear identification of both the extent and the sources of technical and allocative inefficiencies in cotton production. However, both the interpretation of the farm level results generated and the projection of these results to a higher level require care, given the technical nature of the agricultural production processes.     

Backpackers in the Northern Territory of Australia—motives,behaviours and satisfactions

This paper reports the findings of a study of 475 backpackers in the Northern Territory of Australia. It finds that backpackers tend to visit many of the same locations as other tourists, and like those tourists, are attracted to the natural sights of the Territory. It is also found that the backpackers can be divided into various groups. For example, of this sample about one‐third had left their previous career to travel, and about 12% had just completed studies. On the other hand about one‐quarter were holidaying during periods of normal paid holiday leave. It is argued that the market is not solely comprised of ‘life change’ or rite de passage holidaymakers. Additionally, differences are found between national groupings. Copyright © 2003 John Wiley & Sons, Ltd.