The competitiveness of nations and implications for human development

Human development should be the ultimate objective of human activity, its aim being healthier, longer, and fuller lives. Thus, if the competitiveness of a nation is properly managed, enhanced human welfare should be the key expected consequence. The research described here explores the relationship between the competitiveness of a nation and its implications for human development. For this purpose, 45 countries were evaluated initially using data envelopment analysis. In this stage, global competitiveness indicators were taken as input variables with human development index indicators as output variables. Subsequently, an artificial neural network analysis was conducted to identify those factors having the greatest impact on efficiency scores.     

Modeling Russian exports and imports in a forecasting and analytical calculation system

Information and statistical problems in building regression models of the dynamics of Russian exports and imports in 1990 to 2005 are discussed. Formalized adjustment for economic change takes the shape of a nonlinear association of independent and dependent variables. Model constructs are built for annual and monthly data with subsequent comparison of estimated parameters of regression equations.     

Volatility Reversion and Correlation Structure of Returns in Major International Stock Markets

This paper investigates the stochastic behavior of weekly stock market returns in the U.S., Japan, and the U.K. during the period 1984 to 1994. The analysis is carried out using an augmented version of Bollerslev's [7] multivariate GARCH model with structural dummies to test for differences in the mean, volatility, and covariance structure of returns during the pre- and post-October 1987 crash periods. In addition, the paper explores the issue of the volatility reversion and time-varying behavior of correlation structure of returns in these markets. Mean-spillovers exist from the U.S. and Japan to the U.K. The magnitude of these spillovers is, however, low. Volatility spillovers exist from the U.S. and, to a lesser extent, from Japan to the U.K. Mean returns in all three markets and volatility in Japan and the U.K. are the same during the two periods, while volatility in the U.S. is lower during the post-crash period. With the exception of the correlation of returns between Japan and the U.K., which has doubled since the October 1987 crash, the remaining correlations are statistically similar during the two periods. Simulations performed indicate that volatility is reverting in the sense that, when it departs from its long-run equilibrium level, it tends to revert back to that level.     

The extended theory of planned behavior in Turkish customers' intentions to visit green hotels

Over the last decade, many studies have started to focus on understanding customers' green purchase intentions since the increasing importance of environmental issues in the hotel industry. This study examined customers' intentions to visit green hotels by using the theory of planned behavior. Two constructs, environmentally friendly activities and overall image, were incorporated into the theory, and the extended theory of planned behavior model was tested. The aim of this study was to analyze the effects of the extended theory of planned behavior constructs (attitudes towards green hotels, subjective norms, perceived control, environmentally friendly activities, and overall image) on visit intentions and also to predict the effects of visit intentions on willingness to pay, satisfaction, and loyalty. Within this aim, the research model was formed to show the antecedents and consequences of intentions to visit green hotels. Data were collected by face‐to‐face survey technique, and 400 usable questionnaires were held from the customers in Izmir City, Turkey. In the findings, four of five constructs in the antecedents of intentions, except perceived control, were found as significant, and all three consequences of intentions were found as significant. The results of the study supported the usage of the extended theory of planned behavior in the context of green hotels. Theoretical contributions and discussions were explained lastly.     

Discrete clock auctions: an experimental study

We analyze the implications of different pricing rules in discrete clock auctions. The two most common pricing rules are highest-rejected bid (HRB) and lowest-accepted bid (LAB). Under HRB, the winners pay the lowest price that clears the market; under LAB, the winners pay the highest price that clears the market. In theory, both the HRB and LAB auctions maximize revenues and are fully efficient in our setting. Our experimental results indicate that the LAB auction achieves higher revenues. This revenue result may explain the frequent use of LAB pricing. On the other hand, HRB is successful in eliciting true values of the bidders both theoretically and experimentally.     

New models for exhaustible resource development

Minerals sector firms have joined other industries in going green, and some have used the language of sustainable development in the context of the relationship between industry, environment and community. Because of its historical practices of causing severe land disturbance, water pollution and ecosystem disruption, many have thought the concept of ‘sustainable mining’ an oxymoron. Within the context of trying to find the ‘best’ models for minerals development in the fledgling Russian democracy (specifically in Western Siberia), however, we discovered a number of possibilities for creating at least a more sustainable mining sector. This paper presents in summary form some interim results from our work on sustainable development in the extractive hydrocarbon economies of Western Siberia. We identify practices along three dimensions of sustainability – environment, community and labor – and briefly discuss the implications of these practices for Western Siberia.     

An experiment on auctions with endogenous budget constraints

We perform laboratory experiments comparing auctions with endogenous budget constraints. A principal imposes a budget limit on a bidder (an agent) in response to a principal-agent problem. In contrast to the existing literature where budget constraints are exogenous, this theory predicts that tighter constraints will be imposed in first-price auctions than in second-price auctions, tending to offset any advantages attributable to the lower bidding strategy of the first-price auction. Our experimental findings support this theory: principals are found to set significantly lower budgets in first-price auctions. The result holds robustly, whether the principal chooses a budget for human bidders or computerized bidders. We further show that the empirical revenue difference between first- and second-price formats persists with and without budget constraints.     

The effect of scale and mode of ownership on the financial performance of the Turkish banking sector: results of a DEA-based analysis

Turkey and the International Monetary Fund (IMF) agreed to a stand-by arrangement at the outset of 2000. Consequently, Turkey implemented an exchange-rate based stabilization program to combat its high inflation. However, two financial crises followed: one in November, 2000 and the other in February, 2001. As the result some banks became problematic. This necessitated restructuring of the banking sector to increase its financial efficiency.This paper presents a financial performance index for commercial banks. The index allows one to observe the effects of scale and of the mode of ownership (public/domestic, private/domestic/foreign) on bank behavior and, therefore, on bank performance in a developing economy. It documents the effects of financial liberalization, cross-country movements, and the impact of financial crises originating in neighboring countries e.g. Russia. The study applies Data Envelopment Analysis (DEA) to selected fundamental financial ratios using 1989-99 data from commercial banks in Turkey. Year-by-year results explain the effects on this sector of major shifts in both national macro-economic policy and various international developments. The banks that were taken over by the regulatory government agency most recently in the analyzed period were observed to perform poorly with respect to their DEA performance index values.     

Understanding sustainable consumption in an emerging country: The antecedents and consequences of the ecologically conscious consumer behavior model

For past few decades, consumers have lately started to adapt sustainable consumption in emerging countries. The increasing importance of sustainable consumption led the researchers to analyze green purchase and ecological behaviors. The aim of this study was to examine the antecedents of ecologically conscious consumer behavior model and show the relationships among ecologically conscious consumer behavior, green purchase conspicuous behavior, and green purchase intention based on the theory of planned behavior in an emerging country. Data were collected from 650 consumers in Turkey, one of the emerging countries, by using face‐to‐face survey technique and analyzed by factor analyses and structural equation modelling. In findings, environmental concern, altruism, and perceived consumer effectiveness were found as the antecedents of the model, and there were significant effects of ecologically conscious consumer behaviors on green purchase conspicuous behaviors and green purchase intentions.     

The relevance of irrelevant information

This paper experimentally investigates the effect of introducing unavailable alternatives and irrelevant information regarding the alternatives on the optimality of decisions in choice problems. We find that the presence of unavailable alternatives and irrelevant information generates suboptimal decisions with the interaction between the two amplifying this effect. Irrelevant information in any dimension increases the time costs of decisions. We also identify a “preference for simplicity” beyond the desire to make optimal decisions or minimize time spent on a decision problem.