Data frequency and exchange rate pass-through: Evidence from India's exports

This paper studies the pricing behavior of Indian exporters using both annual and monthly data in order to uncover the role of data frequency in determining variation in the degree of short and long-run exchange rate pass-through (ERPT). Export price data during the post-1991 economic reforms period is disaggregated at the two-digit industry level and using a novel methodology in the ERPT literature (cointegration for heterogeneous panels) cross-industry differences in adjustment are identified. We observe that there is clear evidence of incomplete ERPT to prices in India's export markets, after having controlled for the level of exchange rate volatility and domestic inflation as an indicator of variations in marginal cost. The empirical results indicate that monthly data reflect more incomplete ERPT to destination market prices, relative to annual data, in which all the short run rigidities are more likely to have been adjusted. Thus studies that use higher frequency data are more likely to find incomplete ERPT in the short-run, even in the context of an emerging market economy. In the long-run, incomplete ERPT subsists in a few industries for both data frequencies.     

Five caveats for risk–risk analysis

Risk analysis should be symmetrical in the sense that when evaluating an option for decision-making, we assess the risks that it may increase in the same way as those that it may decrease. However, implementing such symmetry is not always easy. In this contribution, five complications that have to be dealt with are introduced and briefly discussed: (1) We need to take all types of advantages and disadvantages into account, not only the risks. (2) There is more than one way to weigh risks against each other. (3) Decision-makers may legitimately put more weight on the direct effects of their decisions than on more indirect and uncertain effects, in particular, if the latter fall outside of their area of responsibility. (4) When a trade-off between risks is unsatisfactory, we should search for innovative solutions that make the trade-off unnecessary. (5) An exclusive focus on risks does not solve the incommensurability problem.     

Stress at the top: myth or fact? Causal explanations from a fuzzy-set qualitative comparative analysis (fsQCA)

Stress and its associated health issues are a serious concern, because they not only affect employees but also organizations through related costs. The common perception is that being at the top of a hierarchy is associated with higher levels of stress because of the increased responsibilities, challenges, and demands. The present study examines this perception by applying a fuzzy-set qualitative comparative analysis. The study investigates how the top position, authority, number of subordinates, workload, and a sense of control, alone or in combination, lead to stress or its absence. The results show that there are several recipes for stress and that being (or not being) in the top position is neither a sufficient nor a necessary condition for stress (or absence of stress). One of the recipes, however, indicates that being in the top position might be conducive to stress. This finding shows that the position an individual has in the hierarchy does not determine stress. The present study also shows that the absence of a sense of control is almost always a necessary condition for predicting stress and is present in all recipes for the absence of stress. The results can inform managers about the conditions that cause stress and enable managers to think about solutions that can lead to good mental health in their organizations.     

The role of ethics in gathering corporate intelligence

This paper analyzes business people's attitudes towards the tactics used for gathering competitive corporate intelligence both within their own and their competitors' corporations. Business people in large corporations are highly motivated to gather such intelligence. Their attitudes towards the ethicality of specific practices, however, are influenced by the corporate culture, their perceived effectiveness of the techniques, and their perception of the competitors' tactics. Interestingly enough, the most popular technique for securing information is socializing with competitors in nonbusiness settings. Business people generally view their competitors negatively, believing that they go to much further lengths than does their own corporation in gathering competitive intelligence. William Cohen is Professor and Chairman of the Marketing Department at California State University, Los Angeles. He has won the Outstanding Professor Award 1982–83 and Freedom Foundation of Valley Forge Medal for Excellence in Economic Education 1985. He is the author of some 15 books in marketing and business of which the most recent is Developing a Winning Marketing Plan.Helena Czepiec is Associate Professor at California State University, Hayward. She is the author of several articles which appeared in various journals on marketing and advertising.     

The consumer monoculture

‘Development’ and the globalization of consumption is leading to a breakdown of biological and cultural diversity, erosion of food security, an increase in violence and devastation for the global biosphere. We urgently need to shift away from economic globalization and homogenization towards localization and diversification.     

Behavioural factors in young people's fruit consumption

This study aims to find out the determinant factors affecting fruit consumption behaviour in Portuguese young people, based on the Health Action Process Approach (HAPA) model, and determine if this model explains differences according to gender, age and rural/urban environments. This research is innovative because it tests the HAPA model with young people, and because it adds social support to the HAPA model as an extra predictor of young people's behaviour. To gather the data, a questionnaire survey was applied in two public schools, one in a rural area and the other in a city. The survey was answered by 266 Portuguese young people, aged 15–21 years, from the 10th to the 12th grades. Authorization for the survey was given in advance, from the Ministry of Education, schools and parents, after which the survey was performed. Before applying the questionnaire, two pre‐tests were carried out, each with ten participants and with similar characteristics to the population studied. This study analyses action self‐efficacy, outcome expectancies, action planning, risk perception, intention, maintenance self‐efficacy and social support variables. The result was obtained through a two‐step process, by determining the measurement and structural model, using Smart PLS 2.0. The results show that young females have more factors determining fruit consumption, with greater social support for action self‐efficacy, greater maintenance self‐efficacy through action self‐efficacy, and greater perception of risk regarding fruit consumption. In terms of age, young people over 16 years present greater outcome expectations for the intention, greater perception of risk and action self‐efficacy for fruit consumption. The multi‐group analysis referring to differences between young people living in rural or urban environments did not show proof of the model giving a better explanation of one situation or the other. It can be concluded that the HAPA model is appropriate to the investigation of behaviour factors that influence young people's fruit consumption. The results also indicate that in the scope of the behaviour analysed the proposed model gives a better explanation for females and for those over 16 years.     

Volatility transmission patterns and terrorist attacks

The objective of this study is to analyse volatility transmission between the US and Eurozone stock markets considering the financial market responses to the September 11, March 11 and July 7 terrorist attacks. In order to do this, we use a multivariate GARCH model and take into account the asymmetric volatility phenomenon, the non-synchronous trading problem and the turmoil periods themselves. Moreover, a graphical analysis of the Asymmetric Volatility Impulse-Response Functions (AVIRF) is introduced, which takes into consideration the financial market responses to the terrorist attacks. Results suggest that there is bidirectional and asymmetric volatility transmission and show the different impacts that terrorist attacks had on both markets.     

Public participation in municipal transport planning processes – the case of the sustainable mobility plan of Ponta Delgada, Azores, Portugal

Public participation in transport planning is a recent trend. There is an increasing number of cases in Europe where the public is involved in the decision-making process. In Portugal, where the use of a motor vehicle as a means of transportation still enjoys a deep approval in the society, a participatory approach is an opportunity to change perceptions towards more sustainable transport modes. In Ponta Delgada (Archipelago of the Azores), for the first time in Portugal, the relevant stakeholders were involved in the development process of a sustainable mobility plan. It proved that, on a participatory basis, sustainable transport planning provides more satisfactory and efficient solutions. This paper presents the methodology and results of a participative transport management planning model. This model can be adapted to the specific needs and problems of other small island cities.     

Consumers' anger and coping strategies following appraisals of appliance failure

With the disconfirmation paradigm, Day and Landon's taxonomy of complaint behaviour, and the cognitive appraisal theory developed by Lazarus and colleagues as theoretical approach, this study explored and described consumers' anger and coping strategies following appraisals of appliance failure. In addition, consumers' reasons for engaging in particular complaint behavioural responses were investigated in terms of the cognitive and emotional types of reasoning underlying the different coping behaviours. A cross‐sectional survey was conducted among consumers who were dissatisfied with the performance of a major household appliance item and who resided in a major metropolitan area in South Africa. A self‐administered questionnaire was distributed by means of convenience sampling, which generated 216 usable responses. The results emphasize the importance of understanding consumers' reasoning behind their choice of a specific coping strategy. Respondents who took formal complaint action engaged in problem‐focused coping and those who took private action engaged in emotion‐focused coping and avoidance coping. Those who took no action experienced lower levels of anger.