Does size asymmetry exacerbate the inefficiency of tax competition?

Many authors demonstrate that the tax gap resulting from tax competition increases with the size asymmetry of the competing countries. Consequently, increasing country-size disparities exacerbates the inefficiency of tax competition. The aim of this note is to show that this classical view has no general validity, if we consider that countries compete not only in taxes, but also in the provision of infrastructure. The simple model we develop for this purpose demonstrates that the effect of size disparity on efficiency depends crucially on the degree of international capital mobility.     

An extension of the home-attachment criteria under dynamic tax competition

In this short note we extend the home attachment setting of Mansoorian and Myers (1993) and Ogura (2006) to allow the study of tax competition in a dynamic framework when international business relocation occurs over successive periods. The dynamic framework we propose also helps to understand why tax rates may change over time. Our modified home-attachment rule is illustrated by a simple model of dynamic tax competition in discrete time.     

Why economic dynamics matter in assessing climate change damages: Illustration on extreme events

Extreme events are one of the main channels through which climate and socioeconomic systems interact, and it is likely that climate change will modify the probability distribution of the losses they generate. The long-term growth models used in climate change assessments, however, cannot capture the effects of such short-term shocks. To investigate this issue, a non-equilibrium dynamic model (NEDyM) is used to assess the macroeconomic consequences of extreme events. This exercise allowed us to define the economic amplification ratio, as the ratio of the overall production loss due to an event to its direct costs. This ratio could be used to improve the cost-benefit analysis of prevention measures. We found also that, unlike a Solow-like model, NEDyM exhibits a bifurcation in GDP losses: for each value of the capacity to fund reconstruction, GDP losses remain moderate if the intensity and frequency of extremes remain under a threshold value, beyond which GDP losses increase sharply. This bifurcation may partly explain why some poor countries that experience repeated natural disasters cannot develop. Applied to the specific issue of climate change, this model highlights the importance of short-term constraints in the assessment of long-term damages, and shows that changes in the distribution of extremes may entail significant GDP losses in absence of specific adaptation. It suggests, therefore, that to avoid inaccurately low assessments of damages, researchers must take into account the distribution of extremes instead of their average cost and make explicit assumptions on the organization of future economies.     

What Do Unions Do to Productivity? A Meta‐Analysis

The impact of unions on productivity is explored using meta-analysis and meta-regression analysis. It is shown that most of the variation in published results is due to specification differences between studies. After controlling for differences between studies, a negative association between unions and productivity is established for the United Kingdom, whereas a positive association is established for the United States in general and for U.S. manufacturing.     

Mean‐variance efficiency of the market portfolio and futures trading

We derived an intertemporal capital asset pricing model in which the mean‐variance efficiency of the market portfolio is neither a necessary nor a sufficient condition. We obtained this result by modeling a frictionless, continuously open financial market in which nonredundant futures contracts are available for trade, in addition to cash assets. Introducing such contracts modifies the way investors optimally allocate their wealth. Their portfolios then comprise the riskless asset, a perturbed mean‐variance‐efficient portfolio of cash assets, and a perturbed mean‐variance‐efficient portfolio of futures contracts. Furthermore, a (3 + K) mutual fund separation is obtained, with K being the number of economic state variables, in lieu of the usual (2 + K) fund separation. Mean‐variance efficiency of the market portfolio is a necessary condition only when cash assets are the sole traded assets. © 2001 John Wiley & Sons, Inc. Jrl Fut Mark 21:329–346, 2001     

From desire to help to taking action: Effects of personal traits and social media on market mavens’ diffusion of information

While extant research has studied traits of market mavens and the link from mavenism to market helping behavior, there is a need for more research to understand personal and contextual factors that influence actual recommendations of products and differences among market mavens with different traits in that respect. In this study, we took research in the area of market mavenism one step further and investigated the role of personal traits such as self‐esteem and susceptibility to normative interpersonal influence, and the contextual factor of social media, in the frequency of recommendations. We hypothesize that while market mavens with lower self‐esteem are likely to engage in less frequent recommendations, negative effect of their lower self‐esteem is attenuated when they use social media platforms as their medium of choice. Our findings lend support to our hypotheses, including the triple interaction effect between self‐esteem, choice of social media, and market mavenism on market recommendations.     

The influence of culture,emotions, intangibility,and atmospheric cues on online behavior

This paper examines how emotions and website atmospheric cues influence service tangibility and consumer attitudes. The proposed model was compared across three cultures: North America (Canada and U.S.), China, and the Middle East. The findings support the overall model and demonstrate several non-invariant paths across the groups. Particularly, the results suggest how the influences of two emotional dimensions (pleasure and dominance) on consumer perceptions of site atmospherics vary across cultures. Moreover, the effects of service tangibility dimensions (physical tangibility, specificity, and mental tangibility) on consumers' attitudes toward the website and service vary significantly across the three cultures. Mental tangibility has the greatest influence on North American customers' attitudes, while physical tangibility and specificity have the greatest impact on Chinese and Middle Eastern customers' attitudes, respectively.     

The effect of information sources on technology adoption and modification decisions

This article focuses on adoption and modification decisions on improved maize storage technologies in southern Benin. Modification implies changing a technology to adapt to farmers' circumstances. A sample selection framework is used to account for selectivity bias as some farmers were not aware of the new technologies. Using this framework, the study investigates the effect of alternative information sources on adoption and modification decisions. Farmers are either informed by extension agents or by other farmers. The empirical results show that there are differences in adoption and modification decisions between these two groups.     

Online consumer behavior: Comparing Canadian and Chinese website visitors

Zajonc's (1980) theory of emotions and Mehrabian and Russell's (1974) stimulus-organism-response (SOR) framework inform the development of a model of online customer behavior. The model examines the impacts of the three types of emotions (pleasure, arousal, and dominance) on perceptions of site atmospherics (informativeness, effectiveness, and entertainment). In turn, the associations of site atmospherics on site attitudes, site involvement, service attitudes, and purchase intentions are investigated. The model is compared between Canadian and Chinese customers based on Hofstede's (1991) cultural value dimensions. The findings supported the model and revealed several non-invariant paths between the groups. Particularly, the impact of pleasure (dominance) on the other behavioral variables was higher for Canadian (Chinese) compared to Chinese (Canadian) customers. Moreover, the impacts of low (high) task relevant cues were stronger for Chinese (Canadian) customers compared to their Canadian (Chinese) counterparts. Discussion centers on the theoretical and practical implications of the findings.     

Management Control as an Employee Resource: The Case of Front‐line Service Workers

ABSTRACT This paper argues that the conception of management control as an employee resource can enhance critical understandings of front‐line service work. The argument is developed first through a critique of the contemporary control literature and its prominent worker images of smiling docility and haggard exhaustion. Seeking to encourage accounts more sensitive to the subjectivity and agency of service workers, the paper calls for more research attention to the question of how these employees experience and evaluate management control in relation to their self‐defined interests. Analysis of the nature of contemporary service work suggests that one such perceived interest is likely to be interactive control, or the capacity of workers to control and influence those parties with whom they directly interact. Based on a close reading of the emerging empirical literature on services, the article explores various ways in which the bureaucratic, technical and normative regulation designed by management to control service workers is used in turn by workers to further their own control and influence over managers and customers.