Asymptotic behaviour of tests for a unit root against an explosive alternative

We compare the asymptotic local power of upper-tail unit root tests against an explosive alternative based on ordinary least squares (OLS) and quasi-differenced (QD) demeaning/detrending. We find that under an asymptotically negligible initialisation, the QD-based tests are near asymptotically efficient and generally offer superior power to OLS-based approaches; however, the power gains are much more modest than in the lower-tail testing context. We also find that asymptotically non-negligible initial conditions do not affect the power ranking in the same way as they do for lower-tail tests, with the QD-based tests retaining a power advantage in such cases.     

Relational and Process Multiplexity in Vertical Supply Chain Triads: An Exploration in the U.S. Restaurant Industry

Both supply chain relationships and process connections between organizational units have been studied in business research, to enhance the understanding of supply chain integration, and to explore the differential outcomes of both types of connections for business and functional performance. However, the extant research remains deficient in two ways: within individual studies, researchers have operationalized supply chain connectivity unidimensionally, with the concept of connectivity constrained to either social relations or operational/process ties while disregarding the other viewpoint. Additionally, researchers have persistently designed studies to evaluate dyadic structures, while foregoing the larger, more intricate structures representative of complex supply chains. We address these issues by modeling supply chain connectivity as having multiple relational‐ and process‐based threads comprising linkages, and by empirically testing a set of theorized relationships describing vertical triadic supply chain networks (manufacturer, broker, retailer) within the U.S. restaurant industry. We find that increased supply chain connectivity improves chain performance, but this improvement is more directly attributable to process‐based linkages than relational linkages, which impact performance only through the process mediator variable, suggesting that current theories of interorganizational relationalism may lack complete conceptualization. Implications of these findings for managers and the academy are highlighted, and areas of follow‐on research are discussed.     

Marrying personality and job resources and their effect on engagement via critical psychological states

This study examined the process by which individuals become engaged with their jobs by integrating seminal engagement theory. More specifically, we suggest that an individual factor (i.e. autotelic personality) and two contextual factors (i.e. feedback environment, job autonomy) interact to predict work engagement through three critical psychological states – namely availability, meaningfulness, and safety. This moderated mediation framework was tested using a cross section of the US population (n = 284); data were collected at two points in time with 3 months in between. Availability and meaningfulness mediated the relationship between autotelic personality and work engagement. Autotelic personality’s indirect effect on work engagement through meaningfulness and safety was conditional such that the nature of feedback environment’s effect depended on job autonomy level. Theory and practice implications are discussed.     

Information,market power,and price volatility

We consider demand function competition with a finite number of agents and private information. We show that any degree of market power can arise in the unique equilibrium under an information structure that is arbitrarily close to complete information. Regardless of the number of agents and the correlation of payoff shocks, market power may be arbitrarily close to zero (the competitive outcome) or arbitrarily large (so there is no trade). By contrast, price volatility is always lower than the variance of the aggregate shock across all information structures. Alternative trading mechanisms lead to very distinct bounds as a comparison with Cournot competition establishes.     

Measurement of patient-reported outcomes. 1: The search for the Holy Grail

Abstract

Patient-reported outcome measures (PROMs) are used to collect information directly from patients. They may cover several different types of outcomes ranging from symptoms, functioning, utility, satisfaction, through to quality-of-life (QoL). They generally consist of self-completed questionnaires that can be administered by means of hard copies or in a range of electronic formats. PROMs vary considerably in terms of the constructs they assess, the care with which they are developed, and their scientific quality. However, none of the PROMs available approach the quality of measurement achieved by measures/instruments used in physics. PROs are examples of latent variables. These are not directly observable, but can be inferred from, for example, responses to a questionnaire. The only measure of a latent variable that approaches the quality of measurement achieved by the physical sciences is the Lexile Framework for Reading. This framework is based on a construct theory that grew out of an analysis of several available reading measures. A specification equation was generated that was able to link the construct theory to scores obtained with the Lexile measure. A fundamental requirement of this quality of measurement is that the data collected with the model fit Rasch Measurement Theory (RMT). It is argued that PROM developers should aspire to match this level of measurement sophistication if their instruments are to provide valid insights into the impacts of disease and its treatment.     

Cannabis use and mental health problems

This paper investigates whether cannabis use leads to worse mental health. To do so, we account for common unobserved factors affecting mental health and cannabis consumption by modeling mental health jointly with the dynamics of cannabis use. Our main finding is that using cannabis increases the likelihood of mental health problems, with current use having a larger effect than past use. The estimates suggest a dose–response relationship between the frequency of recent cannabis use and the probability of currently experiencing a mental health problem. Copyright © 2010 John Wiley & Sons, Ltd.     

Impacts of trade liberalization in Canada's supply managed dairy industry

Trade is an integral part of the Canadian economy. The main institutional drivers governing trade are bilateral and multilateral agreements outlining permissible trade distorting measures. Since its inception in 1972, Canada's supply management system has remained protected throughout trade negotiations. The system appears, by any economic measure, to be having an increasingly disproportional influence in recent trade negotiations. However, trade agreements serve not only to maximize social surplus, but also to maximize some measure of political welfare. Canada has recently negotiated three prominent trade agreements: the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) came into effect in the latter part of 2017; the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect at the end of 2018; and the Canada-United States-Mexico Agreement (CUSMA) could come into effect in 2020. Collectively, these agreements have guaranteed increased market access for fresh and processed dairy products. We build a spatial partial equilibrium model of the Canadian dairy industry consisting of three regions and 10 commodities to assess the individual and cumulative effect of these trade agreements. We pay particular attention to the institutional drivers within today's dairy sector: milk protein isolates; component pricing, including Class 7; and differential demand growth. We find that the aggregate impacts are: (a) a 1.4% decrease in the marginal retail price; (b) a 4.8% decrease in the blended producer price; and (c) an overall increase in social welfare of 7.8%. Worth noting, the decrease in producer surplus varies from 0.7% in the western region to 1.5% in Ontario. Our results may be relevant to future negotiations as well as the publicly promised compensation package for dairy producers.     

Integrating Financial Stability into Monetary Policy

The global financial crisis has highlighted the importance of integrating financial stability concerns into monetary policy. In the Bank of Canada’s view, monetary policy should be the last line of defence against threats to financial stability, behind the joint responsibility of borrowers and lenders, appropriate regulatory oversight, and sound macroprudential policies. Still, it is critical to understand the interlinkages between monetary policy and financial stability, given that the objectives are not always consistent. This implies the necessity of trade-offs. At the Bank of Canada, this is regarded as a problem of risk management rather than policy optimization. That is why the Bank operates a risk-management approach to monetary policy—keeping inflation control as its primary mission.