Econometric Methods for Modelling Systems With a Mixture of i(1) and i(0) Variables

This paper considers structural models with both I(1) and I(0) variables. The structural shocks associated with either set of variables could be permanent or transitory. We classify the shocks as (P1,P0) and (T1,T0), where P/T distinguishes permanent/transitory, while 1/0 means they are attached to structural equations with either I(1) or I(0) variables as their ‘dependent’ variable. We show that P0 shocks can affect cointegration analysis and provide a formula to compute the permanent component if they are present. Finally, we reformulate a well‐known empirical structural vector autoregression showing the impact of P0 shocks when there are just long‐run parametric and sign restrictions. Copyright © 2015 John Wiley & Sons, Ltd.     

Scarcity Appeals in Advertising: The Moderating Role of Expectation of Scarcity

Advertisers often use scarcity appeals to influence consumers, with announcements such as “hurry, limited quantities,” and “limit: two per customer.” Based on a persuasion knowledge framework, we show in three studies that the effect of scarcity appeals on product evaluation is moderated by consumers' expectation of scarcity, such that scarcity appeals have a positive effect when expectation of scarcity is high but not when it is low. We also show that this interaction effect holds for expectation of scarcity due to demand as well as supply, and that cognitive load constitutes a boundary condition for this effect. These findings contribute to the literature by identifying expectation of scarcity as a moderator, persuasion knowledge as a mechanism, and cognitive load as a boundary condition for the effect of scarcity appeals on product evaluation. From a managerial perspective, this research indicates that scarcity appeals are more effective when consumers have high compared to low expectations of scarcity; that activation of persuasion knowledge can eliminate the positive effect of scarcity appeals; and that cognitive load can reinstate the positive effect of scarcity appeals on product evaluation.     

Effects of Lightness‐Location Congruency on Consumers’ Purchase Decision‐Making

A considerable body of psychological and neuroscientific research has demonstrated the existence of robust sensory correspondences between various features, attributes, or dimensions of experience in different sensory modalities. Despite findings indicating the importance of sensory correspondences to human information processing, research on purchase decision‐making has not to date focused sufficiently on this phenomenon. The present study examines how the lightness of packaging colors, and the location of products on a display shelf interact to affect consumers’ purchase decision‐making via perceived visual heaviness. As predicted, a display with light (dark) colored products positioned in the upper (lower) shelf positions increases shoppers’ perceptual fluency and facilitates their visual search, thus leading to the suggestion that “light” (heavy) locations are most appropriate for light (dark) colored products. Moreover, the lightness‐location congruent display is shown to influence people's choice behavior positively as well. This research also demonstrates that when consumers consider the lightness (in terms of their weight) of the products, they are more likely to choose light (vs. dark) colored products located in the upper shelf positions. These results therefore demonstrate that consumers’ purchase decision‐making may be promoted by in‐store environments designed to be congruent with their sensory correspondences.     

The Influence of Plan Demographics on Contribution Behavior of 401(k) Participants

This article examines the influence of plan demographics, which is defined as the salary and tenure composition of a plan, on contribution behavior of 401(k) participants. Results using a large sample of 401(k) plans show that plan demographics influence participant contribution rates directly or through interaction with individual demographic characteristics. A participant's contribution rate can be varied by 1.6–3.0 percentage points for each age between 25 and 64, depending on what plan demographics she is exposed to. In addition, for the decision to contribute the maximum allowed amount, plan demographics significantly interact with individual demographic characteristics.     

Measuring the economic impacts of major sports events: the case of Formula One Grand Prix (F1)

This study was examined the new money generated from Formula One Grand Prix (F1) and the economic impacts of this new money on the host economy using input–output analysis. We find that the impact of the new money from non-local attendees or international attendees is more pronounced compared to that from local attendees. Also, F1 event appears to influence on sports-related industry as well as other industries such as manufacturing industry. Our findings suggest that the host cities should focus on increasing the non-local and international attendees in order to enhance the economic impacts of a sport event.     

Resource abundance and economic growth in China

This paper revisits the resource curse phenomenon in China and differs from the previous studies in four respects: (i) City-level data is used; (ii) A spatial variable is constructed to estimate the diffusion effect of natural resources among cities in the same province; (iii) The impact of resource abundance on economic development is investigated not only at the city level but also at the prefectural level in China; (iv) We use a functional coefficient regression model to deal with city-specific heterogeneity and, at the same time, analyze the transmission mechanism of the resource curse phenomenon. Our empirical results show that there is no significant evidence to support the existence of a resource curse phenomenon in China. On the other hand, we find that the degree of natural resource abundance in a city has a positive diffusion effect on the economic growth of neighboring cities within the same province at the city level, but not at prefectural levels. We attribute this to the urban bias policy.     

Web users’ behavioural patterns of tourism information search: From online to offline

This paper presents a conceptual framework of Web users’ engagement in tourism information search for a comprehensive understanding of their integrated online and offline search behaviour. The information search experiences are characterised as a process constituting some common elements: prior knowledge and searching experiences, online searching strategies, processing and recording information, barriers to online searching, reasons for ending an online search, summarising information, exchanging information and searching for more information through other sources. Such behaviour goes beyond the scope of information searching and captures the other activities, including information processing, utilising and disseminating. The grounded theory research method is employed as an inductive investigative process in which the authors construct the framework by systematically collecting and analysing data. The aim of this research method is to build a theory. The data sets consist of both semi-structured in-depth interviews with subjects and their field observations based on online searching. A theoretical model incorporating 10 propositions is proposed for future testing.