Estimating the gravity model when zero trade flows are frequent and economically determined

ABSTRACT

Since the 1950s, we have known that the presence of zero-valued dependent variables can seriously bias econometric estimates whether the zeros are included or excluded. Yet the widely-used gravity model is frequently estimated on samples that include large fractions of zeros. An influential paper by Santos Silva and Tenreyro – based on simulations that include no economically-determined zeros – concludes that the bias problems resulting from zeros and those resulting from heteroscedasticity and nonlinearity can be solved using the Poisson Pseudo-Maximum-Likelihood (PPML) model including the zero values. This paper begins by adapting the Santos Silva and Tenreyro experimental design to include economically-determined zeros to see whether this conclusion continues to hold. With this design, it finds that alternative estimators have lower bias than PPML. Changing to a Monte Carlo design that replicates the much-higher real-world frequency of predicted values near zero restores the finding of lower bias with the PPML estimator. The results highlight the need for very careful design of Monte Carlo experiments when evaluating alternative estimators of the gravity model.     

Digital gaming culture in Vietnam: an exploratory study

ABSTRACT

New information and communication technologies continue to spread rapidly into the Asian marketplace, which has led to new patterns of leisure consumption, one of the most popular being digital gaming. However, in Vietnam there is limited research on gaming as a leisure activity. The purpose of this study is to explore the phenomenon of digital gaming in Vietnam to better understand how it is practiced in this culture. Semi-structured interviews were conducted with twenty-five gaming industry figures and gamers. Thematic analysis was used to guide data collection and analysis. The findings indicate that glocalisation, socialised gaming practices and competitiveness characterise the Vietnamese gaming experience. The distinct culture of Vietnam combined with globalised gaming consumption habits has created new modes of play culture, and hence leisure experiences that are growing in pervasive and influential ways.     

Deals inside: examining restaurant operators’ motives when choosing whether to offer a flash-sale

As restaurants are the primary hospitality business represented on flash-sale sites, this study examined motivations of restaurant managers when choosing whether to utilize the promotional mediums of flash-sales. Interviews were administered as a measurement instrument. Results demonstrated restaurants which have employed flash-sales are weary of the likelihood of success and believe the flash-sales brought in established customers. Non-users indicated hesitation towards adoption of flash-sales related to low profit margins per item in their operation and the percentage split of the sale price between the firm and flash-sale provider. Findings provide keen foundational insight into the flashsale phenomenon.     

The making of a fiscal state in Song China, 960–1279

In light of the Schumpeterian paradigm, this article explores the rise of the tax state in eleventh‐century China and its further transition towards a fiscal state until the Mongol conquest in 1279. By the late eleventh century in the Song dynasty, two‐thirds of state revenues came from taxing non‐agricultural sectors, especially from the collection of excise. The Song state became the first sustainable tax state in global history, as manifested in three major aspects: monetization; indirect taxation; and centralization and professionalization in the tax administration. The boundary of the Song tax state was largely confined to urban settlements. In rural areas, the state gave up the collection of commercial taxes by farming out this right to local elites. In the twelfth century, as traditional tax revenues fell far short of supporting military defence, the Song administration utilized credit instruments. Around 1200, the amount of redeemable promissory notes first exceeded that of annual tax revenues. This shift from tax‐based public finance to credit‐based public finance completed the transition towards a fiscal state. Nonetheless, this development in the fiscal state was still at an early stage and proved to be unstable. Toward the end of the Southern Song, hyperinflation caused by the over‐issuance of promissory notes seriously threatened the economy.     

The growth of manufacturing protection in 1920s Britain

Prior to the Import Duties Act of 1932, an assortment of legislation expanded the scope of manufacturing protection in Britain. This article assesses the magnitude of manufacturing protection before the Import Duties Act and finds that, in 1930, 9% of net manufacturing output occurred in a protected industry. In the late 1920s, protected industries exhibited above‐average growth in labour productivity. However, protection was disproportionately extended to newer manufacturing industries, which presented greater potential for productivity growth. This article concludes that protection did not enhance productivity growth in Britain's manufacturing industries in the late 1920s.     

Credibility lost: attempting to reclaim an expert identity in an HR professional context

Professional insecurity is a long‐standing concern within HR, with claims to expertise seen as critical to credibility. Considering HR as an epistemic community and drawing on the identity work literature, we examine an identity threat to, and subsequent response by, a training and development (T&D) team. Based on ethnographic exposure to their practice, we explore how team members experience the threat and follow their attempts to re‐establish their position in the local epistemic community, the HR department. We examine both individual and collective identity work, considering how both the identity threat and subsequent responses are embedded within T&D and HR practice more broadly. Through this analysis, we offer academic insight on the nature of HR practice and the construction of claims to expertise.     

Christopher Leonard: The Lords of Easy Money: how the federal reserve broke the American economy

Business Economics -     

Agriculture in the United States,Mexico, Canada Agreement: Agreeing to keep things pretty much the same

North American Free Trade Agreement (NAFTA) was referred to by U.S. President Trump as one of the worst trade deals ever made. Given this billing, one might have expected the result of its renegotiation to be a major change to the trading relationship between the United States and Canada. The new United States, Mexico, Canada Agreement (USMCA), however, retains a great deal of its predecessor. This is particularly true for agricultural trade. Canadian market access into the United States remains virtually unchanged. No major domestic regulatory changes were agreed to by Canada. While there were concessions made on market access for U.S. products into Canada's heavily protected sectors where the supply management policy applies, they do not appear to threaten the system. While the value of the compensation has not yet been announced, compensation for losses that will be suffered by farmers producing under supply management is agreed in principle. The USMCA is an agreement to keep things pretty much the same.