The great moderation of the term structure of UK interest rates

The conduct of monetary policy, the term structure of interest rates and the structure of the economy in the UK have changed over the post-WWII period. We model the interaction between the macroeconomy and financial markets using a time-varying VAR augmented with the factors from the yield curve. There is evidence of a great moderation in the dynamics of the yield curve, with the factors being persistent and volatile before the introduction of inflation targeting in 1992 but becoming stable afterwards. The introduction of time-variation in the Factor Augmented VAR improves the fit of the model and results in expectation hypothesis consistent yields that are close to actual yields, even at long maturities. Monetary policy shocks had a significant impact on the volatility of inflation, output and the policy rate over the pre-inflation targeting era, but their contribution has been negligible under the current regime. Shocks to the level of the yield curve accounted for a large fraction of inflation variability only before 1992.     

How can tourism use land more efficiently? A model-based approach to land-use efficiency for tourist destinations

In densely populated areas of Central Europe, many successful tourist destinations face the problem of approaching the limit of their growth potential. Solutions to this problem commonly refer to the idea of “smart growth” based on increasing efficiency in the use of nature for economic production (eco-efficiency). In this paper, we show how eco-efficiency can be used to evaluate tourism strategies on local scale based on an augmented regional input–output model that delivers information on economic performance, land use (as indicator for environmental pressure), and employment. We illustrate this approach via a case study of the tourist destination of Davos in the Swiss Alps. The model predicts that the key drivers of land-use efficiency are: (i) the economic impact of tourists, (ii) occupancy intensity, and (iii) the density of beds per area covered by residential buildings and hotels. The economic impact of increasing bed capacity is highly dependent on the tourist category triggering the development; this can also be used to attract new tourist categories at the expense of tourist categories that make inefficient use of available land. As the impact of an increased density of beds per ground floor area is as high as an improved occupancy rate over during the year, spatial planning, building design, and facility management also play a major role in improving land efficiency in the tourism sector.     

Methods that may stimulate creativity and their use in architectural design education

The architectural design process is based on a creative phase where creativity is highly valued. Although the literature on creativity is rich in ways to stimulate the decision-making process, these tools are rarely formally present in the building design process. To further the discussion on creativity and design education this paper presents a study on methods that may enhance the creative process and their application in architecture courses around the world. The results of this inquiry indicate that design instructors apply methods that may stimulate creativity mostly informally, with some positive results. To explore more fully the richness of the literature on the enhancement of creativity, structured applications of methods are recommended in controlled experiments to analyze results.     

A copula-VAR-X approach for industrial production modelling and forecasting

World economies, and especially European ones, have become strongly interconnected in the last decade and a joint modelling is required. We propose here the use of copulae to build flexible multivariate distributions, since they allow for a rich dependence structure and more flexible marginal distributions that better fit the features of empirical data, such as leptokurtosis. We use our approach to forecast industrial production series in the core European Monetary Union (EMU) countries and we provide evidence that the copula-Vector Autoregression (VAR) model outperforms or at worst compares similarly to normal VAR models, keeping the same computational tractability of the latter approach.     

The effect of settler farming on indigenous agriculture: Evidence from Italian Libya

What effect did the settlement of European farmers have on the indigenous agricultural sector during the colonial period? On the one hand, European immigrants imported skills and capital but, on the other, they took control of local resources. By looking at the short-term effect of Italian farming in colonial Libya, I shed new light on this question. Through regression analysis on a novel village dataset covering the entire country, I show that, in 1939, proximity to Italian farms was associated with significantly lower land productivity relative to distant locations. Lower yields can be explained by the adoption of land-extensive cultivation techniques, implemented by indigenous farmers to counteract a labour drain operated by Italian farms through factor markets. The combined mitigating effect of monetary wages and land-extensive farming only partially compensated for the fall in income linked to reduced land productivity.     

The Growth and International Expansion of an Emerging Market Retailer in Latin America

ABSTRACT

This study contributes to the literature on international retailing by addressing a gap in the literature regarding how retailers from emerging markets expand internationally. This historical case study analyzes the growth and internationalization process of Chilean retailer Falabella, which is one of the largest retailers in Latin America and has been able to compete with multinationals from developed countries. The research is based on primary and secondary data sources including 33 oral interviews with company managers and family executives, as well as industry data, corporate reports, and trade journals. Drawing on institutional theory, the findings show that belonging to a family conglomerate, engaging in networks, partnerships, and organizational learning, and having an experienced management team helped Falabella gain legitimacy in all international markets.     

Comply or Explain: Investor Protection Through the Italian Corporate Governance Code

Nearly 86% of listed Italian companies now claim to be in formal compliance with the provisions of the Italian Corporate Governance Code, which, like many codes in EU countries, give companies the option to either comply or explain their decision not to do so. But in the wake of the recent financial crisis, the effectiveness of such self‐regulatory corporate governance codes has been subjected to increasing skepticism. In particular, critics wonder whether such governance codes actually encourage the adoption of best practices and promote better governance. This article presents a governance indicator (CoRe) devised by the authors that attempts to assess the actual, or effective, levels of compliance with the Italian Corporate Governance Code in terms of listed companies' procedures for dealing with related party transactions (RPTs). The authors report that the companies' level of effective compliance with regard to RPTs is considerably lower than their publicly reported levels of formal compliance. The authors also report that higher levels of effective compliance tend to be found in companies where (1) minority shareholders have appointed one or more directors; (2) independent directors serve on important committees; and (3) there are significant holdings by institutional investors—particularly foreign investors—who participate in general shareholder meetings.     

Galileo used to live here.: Tuscany Hi Tech: the network and its poles

The paper outlines how networking between smaller companies and larger companies is evolving and how these changes need to be incorporated into policies for regional economic development. The strengths and weaknesses of the Tuscan region are outlined and on the basis of this situation a strategy was devised to exploit its scientific and technological resources. A particular feature of the strategy is the establishment of a new optical fibre communications system linking three university centres, Pisa, Florence and Siena.     

Value co-creation behaviours from customer-to-customer interactions (CCIs) in recreational social tango experiences

ABSTRACT

Drawing on customer-dominant (C-D) logic, the main objective of this study is to examine value co-creation behaviours that emerge from customer-to-customer interactions (CCIs) in recreational dance experiences. In-depth interviews were held with 15 dance participants located in Chile, who take social tango classes. The findings identify seven CCI value co-creation behaviours, such as seeking and sharing information about the service with other participants, complying with service requirements and behaving responsibly towards other participants, developing personal interactions with other participants, helping and providing feedback to other participants, and finally being tolerant of and courteous to other participants. The findings of this study advances knowledge on value co-creation and can assist recreational services and dance school managers to develop more effective service strategies for improved customer experiences.