Inflation Targeting

There is substantial positive interest within the Federal Reserve in an explicit price level objective as a focus for evaluating Federal Reserve performance. Setting such an explicit objective would raise the question of whether price stability might acquire primacy among the mandates the Federal Reserve has received over the years.JEL Classification E31,E58     

Differentiating emotional intelligence in leadership

Leadership has received considerable attention since the 1990s. We claim that leaders can be found at all levels of employment, and at the very least, all managers are expected to be leaders. Yet managerial status does not guarantee leadership. Leadership is a necessary component of and a filter for successful management. Effective managers demonstrate leadership capabilities. Leadership attributes are well captured in measures of emotional intelligence (EQ). Hence, leadership can improve if managers work to develop their EQ. We show how EQ, and hence leadership, can vary by level of employment among a composite international group of 3,305 employees with the Six Seconds Emotional Intelligence Assessment. The relationship between six leadership groups, as based on their EQ performance, across different employment levels was statistically examined, suggesting that leadership is realized in different ways depending on level of employment. It appears that employees become more skillful in emotional literacy and consequential thinking as they progress up the employment ladder. Intrinsic motivation and optimism are best leveraged by nonmanagerial rather than senior employees. The diminishing incorporation of empathy with an increase in employment level seems to stand in sharp contrast. Nonmanagerial employees, specialists, and entrepreneurs will benefit from developing their competence in pursuing their objectives with an overarching sense of purpose. The finding that high‐EQ leaders seem to dominate in the managerial levels may be viewed as encouraging.     

Prospects for U.S. Rice in Japanese Retail Markets Under COOL: A Sensory Experiment

ABSTRACT

Japanese policies leave its retail market closed to U.S. rice. This study examined prospects of U.S. rice if these markets opened, with required country-of-origin labeling (COOL). Data were from auction experiments examining preferences for U.S. and Japanese rice under two scenarios (COOL with observation and COOL with tasting) using Japanese female primary shoppers. Two segments were identified: those open to U.S. rice at prices equal or above domestic, as likely due to tariffs, and those closed to U.S. rice at any price. About 7% of subjects were in the first segment, while nearly 26% fell in the latter. Tasting failed to generate large changes. Frequent COOL readers were especially closed even after tasting. Tasting did change the profile of open consumers, with demographics mattering less afterward. Under any policy change, U.S. rice would need a discounted price relative to domestic rice; even then, a substantial market segment appears closed.     

Deconstructing the indigenous in tourism. The production of indigeneity in tourism-oriented labelling and handicraft/souvenir development in Northern Europe

ABSTRACT

In literature on tourism in northern or ‘Arctic’ areas and on regions and places in northern areas, terms such as ‘indigenous’ and ‘non-indigenous’ are often used to distinguish people and places from each other. The aim of this paper is to deconstruct the ‘indigenous’/‘non-indigenous’ categories as well as the geographical categories to which they are linked, using examples from tourism in northern Fennoscandia and northwest Russia, selected as areas with circumstances that vary greatly both locally and regionally. Specific focus is on the construction of labels and restrictions of use, particularly regarding handicrafts/souvenirs as a specific object of indigeneity to separate it from other objects. The study reviews the processes in tourism for constructing, labelling, and valuing – and thereby also exerting power upon – specific conceptions, and thereby also on the contesting of such processes amongst broader, but often unacknowledged, local groups.     

Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants

This paper examines the role of international trade in the reallocation of U.S. manufacturing within and across industries from 1977 to 1997. Motivated by the factor proportions framework, we introduce a new measure of industry exposure to international trade that focuses on where imports originate rather than on their overall level. We find that plant survival and growth are negatively associated with industry exposure to low-wage country imports. Within industries, we show that manufacturing activity is disproportionately reallocated towards capital-intensive plants. Finally, we provide the first evidence that firms adjust their product mix in response to trade pressures. Plants are more likely to switch industries when exposure to low-wage countries is high.     

Products and Productivity*

When firms make decisions about which product to manufacture at a more disaggregated level than observed in the data, measured firm productivity reflects both characteristics of the firm and attributes of the products that are non‐randomly chosen by the firm. This paper develops a model of industry equilibrium in which firms endogenously sort across products and characterizes the resulting bias in measured firm and aggregate productivity. Calibrating the model's parameters, we show that endogenous product selection can have quantitatively important effects on measured firm and aggregate productivity and their response to changes in parameter values.     

Travel Arrangements and the Distribution Behaviour of New Zealand Outbound Travelers

This paper contributes to the literature on tourism distribution by examining the distribution behavior of 547 New Zealand outbound travelers segmented by the way in which they have made their travel arrangements: package tourists, independent travelers, and an intermediate group, package plus. The results reveal differences among the three segments in terms of travel characteristics, information search, booking, and purchase, but not profile attributes or the influence of distribution on destination or product choice. Variations are also found in channel behavior across the four different sectors examined: transport to and at the destination, accommodation, and attractions, and activities.