A multiple time-series analysis of labor supply and earnings in economic development

Using multivariate time-series techniques, the dynamics of male and female labor supply and earnings in Puerto Rico are examined during a period of rapid economic developemnt, 1953–1978. The temporal analysis suggests that aggregate male and female labor force participation rates are exogenous to male and female earnings. In addition, continous declines in male participation have been partly responsible for increases in both male and female earnings and a narrowing of relative earnings differentials. The study also finds that the advent of the Food Stamp Program in 1975 has resulted in a small reduction in male labor force participation. Moreover, the inclusion of food stamps as an intervention component is quite useful in forecasting the male participation rate. The forecasting accuracy of univariate and multivariate models is assessed with the result that, in every instance, the multivariate transfer functions prove superior. Overall, the results support the incorporation of multiple time-series in econometric studies of developing countries and provide evidence of its usefullness for development planning and policy.     

Optimal standard measures for marketing

In this article, the author argues that marketing will not become a science until we agree on an optimal standard measure (OSM) for each of our major constructs. The case for OSMs is made by critically examining the leading alternative measures of four constructs used widely in marketing management – corporate business reputation, corporate ethical reputation, customer satisfaction, and customer recommendation – and showing how we might progress towards designing an OSM for each.     

ANTECEDENTS AND DIMENSIONS OF CUSTOMER PARTNERING BEHAVIOR IN LOGISTICS OUTSOURCING RELATIONSHIPS

In order to be successful in today's competitive environment, third‐party logistics providers (3PLs) increasingly strive to develop close, mutually beneficial long‐term relationships with customers. The current study identifies inter‐organizational conditions and firm‐specific factors that influence a firm's partnering behavior with its 3PL. A model of the antecedents and dimensions of partnering behavior is developed and tested with a diverse set of relationships between a focal 3PL and members of its customer base.     

The C-OAR-SE procedure for scale development in marketing

Construct definition, Object classification, Attribute classification, Rater identification, Scale formation, and Enumeration and reporting (C-OAR-SE) is proposed as a new procedure for the development of scales to measure marketing constructs. C-OAR-SE is based on content validity, established by expert agreement after pre-interviews with target raters. In C-OAR-SE, constructs are defined in terms of Object, Attribute, and Rater Entity. The Object classification and Attribute classification steps in C-OAR-SE produce a framework (six types of scales) indicating when to use single-item vs. multiple-item scales and, for multiple-item scales, when to use an index of essential items rather than selecting unidimensional items with a high coefficient alpha. The Rater Entity type largely determines reliability, which is a precision-of-score estimate for a particular application of the scale.     

The Roles of Procedural and Distributive Justice in Logistics Outsourcing Relationships

In this paper, the effects of two dimensions of justice—procedural and distributive—on key attitudinal and behavioral elements of logistics outsourcing relationships are investigated. The findings suggest that the fairness of policies adopted by a third‐party logistics provider (3PL) and respective outcomes nurtures a customer's trust in and long‐term orientation toward the relationship with a 3PL. In such a relationship climate, patterns of cooperative behavior take place, providing an incentive for a 3PL to proactively pursue operational improvements.     

Methodological Guidelines for Advertising Research

In this article, highly experienced advertising academics and advertising research consultants John R. Rossiter and Larry Percy present and discuss what they believe to be the seven most important methodological guidelines that need to be implemented to improve the practice of advertising research. Their focus is on methodology, defined as first choosing a suitable theoretical framework to guide the research study and then identifying the advertising responses that need to be studied. Measurement of those responses is covered elsewhere in this special issue in the article by Bergkvist and Langner. Most of the frameworks are derived from the authors' own published work, although other frameworks are noted where appropriate.     

Implicit returns on conventional demand deposits: An empirical comparison

This paper compares the relative performance of alternative series of implicit returns on conventional demand deposits by estimating for each series a set of equations derived from a generalized CES utility model for a liquid asset portfolio. This approach offers the unique advantage of explaining money holdings with a substantially larger number of degrees of freedom than originally available, while avoiding multicollinearity even in the presence of several interest rate variables in the model. An implicit return series obtained by Barro and Santomero (1972) performs the best among all of the available seven series tested based on the criteria of a generalized measure of goodness-of-fit and a robustness of coefficient estimates.     

Stable cointegrating regressions: Fully-modified estimates for inflation and employment cost indices

This paper investigates the stability of relationships between inflation and changes in employer cost for labor using tests based on the null hypothesis of no cointegration (Gregory and Hansen (1996a)) as well as tests based on the null hypothesis of cointegration (Hansen (1992)). In addition to specifications which include wages or unit labor cost, employment cost indices for compensation and wages are used to eliminate composition bias over the business cycle. Empirical results support stability and fully-modified estimates are obtained using the semiparametric approach of Phillips (1995). In contrast to studies which have found only one-way causality, this paper presents empirical evidence of feedback between inflation and employer cost for labor, consistent with an expectations-adjusted Phillips's Curve. First version received: July 1997/final version received: September 1998     

Supplier dependence asymmetry and investment in innovation: The role of psychological uncertainty

A key source of competitive advantage for large firms accrues from investments in innovative products and processes by their suppliers, incentivized by a positive relationship climate. A fundamental hindrance lies in a condition that commonly characterizes buyer-supplier relationships: asymmetric levels of dependence between business partners. Such asymmetry has been shown to be detrimental to the relationship, enhancing the likelihood of conflict, and negatively impacting the performance of the more dependent party. Considering that such dependence asymmetry is likely to persist, large buyers face the challenge of promoting a relationship environment that provides an incentive for suppliers to invest in innovation. In this study, we propose that large, dominant buyers can influence suppliers' intentions and behaviors by mitigating the effects of their perceived riskiness and ambiguity that emerge from a situation of dependence asymmetry. Specifically, using the lens of resource dependence theory, we investigate the effects of these two psychological dimensions of uncertainty on a supplier's trust, commitment, and willingness to invest in innovation, as well as the moderating effect of a buyer's information sharing in shaping a supplier's perceived uncertainty. The model is tested with a scenario-based experiment and results are corroborated by interviews with experienced managers of retail suppliers. Our findings indicate that a supplier's dependence on a large buyer increases its perception of ambiguity and riskiness in the relationship, negatively impacting its trust, commitment, and willingness to invest in innovation. However, a buyer who shares relevant and timely information with the supplier mitigates its perceived uncertainty, promoting the supplier's positive attitudes towards the buyer and incentivizing innovation. Sharing operational and strategic information such as point-of-sales data, sales forecasts, or strategic plans, becomes a valuable strategy to powerful buyers in the pursuit of becoming a preferred customer and enhancing a supplier's resource mobilization towards the relationship.