On tax competition, public goods provision and jurisdictions' size

In this paper, we analyze competition among jurisdictions to attract foreign capital through low taxes and public inputs that enhance firms' productivity. The competing jurisdictions are different in size and mobility of capital is costly. We find that for moderate mobility costs, small economies can attract foreign capital by supplying higher levels of public goods than larger jurisdictions, without practicing tax undercutting. The classical result that small jurisdictions are attractive because they engage in tax dumping is recovered only for high mobility costs of capital.     

Optimal dynamic hedging in incomplete futures markets

This article derives optimal hedging demands for futures contracts from an investor who cannot freely trade his portfolio of primitive assets in the context of either a CARA or a logarithmic utility function. Existing futures contracts are not numerous enough to complete the market. In addition, in the case of CARA, the nonnegativity constraint on wealth is binding, and the optimal hedging demands are not identical to those that would be derived if the constraint were ignored. Fictitiously completing the market, we can characterize the optimal hedging demands for futures contracts. Closed-form solutions exist in the logarithmic case but not in the CARA case, since then a put (insurance) written on his wealth is implicitly bought by the investor. Although solutions are formally similar to those that obtain under complete markets, incompleteness leads in fact to second-best optima.     

General equilibrium pricing of nonredundant forward contracts

We derive the general equilibrium of a dynamic financial market in which the investors' opportunity set includes nonredundant forward contracts. We show that Breeden's (1979) consumption‐based CAPM equation for forward contracts contains an extra term relative to that for cash assets. We name this term a strategy risk premium. It compensates investors for the (systematic) risk that stems from their very portfolio strategies when the latter involve nonredundant forward contracts. We also show that Merton's (1973) multibeta intertemporal CAPM must be amended for forward contracts to exhibit adjusted risk premia for the market portfolio and all relevant state variables, as opposed to the usual risk premia for cash assets. Our results are shown not to depend on the usual cash‐and‐carry relationship, which, in general, does not hold. We, nevertheless, provide a well‐known special case where it does hold, albeit not grounded on the usual no‐arbitrage argument. © 2003 Wiley Periodicals, Inc. Jrl Fut Mark 23:817–840, 2003     

META‐ANALYSIS OF ECONOMICS RESEARCH REPORTING GUIDELINES

Meta‐regression analysis (MRA) can provide objective and comprehensive summaries of economics research. Their use has grown rapidly over the last few decades. To improve transparency and to raise the quality of MRA, the meta‐analysis of economics research‐network (MAER‐Net) has created the below reporting guidelines. Future meta‐analyses in economics will be expected to follow these guidelines or give valid reasons why a meta‐analysis must deviate from them.     

New developments in global consumer behavior and marketing strategy: Introduction to the special issue

This special issue of the Journal of Business Research features ten articles selected from the papers presented during the seventh meeting of the Royal Bank International Research Seminar which took place in Montreal (Canada), September 22–24, 2011. The papers cover topics relating to new developments in online research, acculturation/socialization research, research methodology, and marketing strategy.     

Understanding Cosmopolitanism and Brand Origin Recognition Accuracy: The Moderating Effect of Need for Cognition

This paper investigates whether cosmopolitan individuals have a greater knowledge of brand origins compared to non-cosmopolitans. The moderating effect of need for cognition is tested. Additionally, this work tests whether the level of confidence in assigning a country of origin to a brand affects brand attitude. The results show that cosmopolitan individuals have significantly higher brand origin recognition accuracy scores than non-cosmopolitans. Second, an interaction is found between cosmopolitanism and need for cognition to impact the brand origin recognition accuracy. Third, when individuals are more confident about the origin of a brand, brand attitude increases.     

How service seasons the experience: Measuring hospitality servicescapes

Hospitality servicescapes incorporate physical complexity and social interaction. These two features are often measured separately but rarely measured together in attempts to uncover consumer perceptions within these settings. A psychometric scale developed within the restaurant setting shows a five-dimensional structure for capturing the personality of a hospitality setting. In contrast to attribute-based measures, this measurement approach highlights the importance of service interactions in shaping consumer perceptions. The items proposed account for the dynamism of the setting including the heterogeneity possible due to high service levels. The scale indicates how certain consumer perceptions, as outlined in the dimensions of the proposed scale, are likely to influence consumer outcome behaviors. Managerially, the scale provides a more precise understanding of consumer perceptions within restaurants. As such, the scale can serve as an interesting positioning tool as well a method to evaluate consumer perceptions of restaurants.     

Digital innovations,impacts on marketing,value chain and business models: An introduction

Digital innovations are changing business models and industries and, in today's world, effective mastery of digital innovations can be greatly advantageous, yet digital innovation literature suffers from major lacunae. We contribute to this literature by providing definitions and analysing specificities of this emerging research stream. We then discuss the impact of digital innovation on marketing, value chain, and business models, focusing on tensions and marketing challenges, the value chain, and the evolutions of business models. We conclude with suggestions for further research.     

Is Profit Sharing Productive? A Meta-Regression Analysis

In this article, we re-examine the relationship between group-based profit sharing and productivity. Our meta-regression analysis of 355 estimates from 56 studies controls for publication selection and misspecification biases and investigates the impact of firm-level unionisation. Profit sharing is positively related to productivity on average, with a stronger relationship where there is higher unionisation. The positive effect of profit sharing on productivity is larger in cooperative firms and in transition economies. Separate meta-analysis of interactions suggests that profit sharing works better in combination with capital investment and employee participation in decisions.