The core periphery model with asymmetric inter-regional and intra-regional trade costs

We generalize the model of Krugman (J Polit Econ 99(3):483–499, 1991) to allow for asymmetric trade costs between regions and for (asymmetric) trade costs that are internal to the regions. We find that industrial activity, in a region, is enhanced by higher costs of importing and lower costs of exporting (more precisely, by a higher ratio between the two trade costs). This suggests that countries may impose tariffs on imported goods and seek to remove the import tariffs in other countries (unilateral protectionism) in order to foster industrial activity. Industrial activity is also promoted by lower domestic internal trade costs and higher foreign internal trade costs (more precisely, by a lower ratio between the two trade costs).     

Ethical Aspects in Nordic Business Mergers: The Case of Electro-Business

Postmerger integration is a highly challenging and demanding task. Its success depends not only on economic factors but also on the organisational members' feelings and their personal contribution to the new entity. Mergers are usually made for the sake of profitability in the first place, whereas less attention is paid to employees in such situations. This article describes various ethical observations made in our study on corporate mergers in the Nordic Electro-business industry. We examine how the organisational change was experienced by personnel, what kinds of ethical reflections surfaced in different phases of the process, and what conclusions might be drawn from them. The main focus is on the ethical meanings that emerged in our interviewees' stories spontaneously, without the topic of ethics having been separately brought up in the interview situation. The organisational members: we interviewed 35 electro-business employees who were either transferred from Vattenfall's contracting unit to the acquiring company or were already working there at the time of the merger. These persons were interviewed twice: first in 2001, the year of the initial merger, and again in 2005, 4 years from the start of the process and 1 year from the final ownership change. The merger process seemed to lead to decreased responsibility among the organisational members, which highlights the discrepancy between genuine ethical thinking and executive talk. Our study also revealed a dramatic shift in the moral attitudes of the managers who fell from power in the turmoil of organisational change. This moral dimension is evident in their sharply critical argumentation against the new operating model and new corporate management, as well as in their eventual indifference and non-commitment to the organisation. The ethical meanings of 'the good life' and a happy work community slowly disintegrated and were replaced by a longing for the earlier communality and sense of togetherness in their old organisation. This meant that 'the good life' would have to be sought elsewhere.     

Decision making and brand choice by older consumers

Older adults constitute a rapidly growing demographic segment, but stereotypes persist about their consumer behavior. The goal of this review was to develop a more considered understanding of age-associated changes in consumer decision making. Our theoretical model suggests that age-associated changes in cognition, affect, and goals interact to make older consumers’ decision-making processes, brand choices, and habits different from those of younger adults. We first review literature on stereotypes about the elderly and then turn to an analysis of age differences in the inputs (cognition, affect, and goals) and the outcomes (decisions, brand choices, and habits) of decision processes.     

Understanding co‐consumption between consumers and their pets

Pets live with people; they participate in people's everyday life activities and are often seen as human‐like family members. Consumers in the industrialized countries are investing more money in their pets and spending more time with them than ever before. The pet and the owner can even be considered to form a unit that consumes together. In this article, we develop a conceptual understanding of co‐consumption by examining how pets act as co‐consumers in everyday consumption. The pet owner and pet have joint consumption experiences in which they interact with other actors such as service providers. The consumer (pet owner) consumes because of the pet, meaning that he or she constantly needs to take the pet into account in choices and activities beyond pet‐related consumption, such as what kind of car to buy, where to work, whom to marry and how to live. The co‐consumer (pet) also acts as an active agent who experiences, feels, suffers and likes the goods and services that the consumer buys for the pet. Reciprocally, the pet provides the consumer (pet owner) with companionship, support and a boost to wellbeing. As such, our research suggests that co‐consumption provides an understanding not only of consumption with pets but also of other contexts, especially those in which the aim is shared well‐being such as consumption together with children, the disabled or the elderly.     

Performance comparison of alternative stochastic volatility models and its determinants in energy futures: COVID-19 and Russia–Ukraine conflict features

This paper studies the volatility dynamics of futures contracts on crude oil, natural gas, and gasoline. An appropriate Bayesian model comparison exercise between seven stochastic volatility (SV) models is estimated using daily prices for our futures contracts between 2005 and 2023. Moreover, to assess the impacts of COVID-19 and the Russia–Ukraine conflict on volatility, we analyze these two subsamples. Overall, we find that: (i) the Bayes factor shows that the SV model with -distributed innovations outperforms the competing models; (ii) crude oil contracts with different expiry dates may require the introduction of leverage effects; (iii) the $$-distributed innovations remain the appropriate model for the COVID-19 subsample, while jumps are needed in the conflict period; and (iv) other Bayesian criteria more appropriate to short-term predictive ability—such as the conditional and the observed-date deviance information criterion—suggest other rank order to model our futures contracts, despite the agreements for the best models.     

Optimal Time to Sell in Real Estate Portfolio Management

This paper examines the properties of optimal times to sell a diversified real estate portfolio. The portfolio value is supposed to be the sum of the discounted free cash flows and the discounted terminal value (the discounted selling price). According to Baroni et al. (Journal of Property Investment and Finance 25(6):603–625, 2007b), we assume that the terminal value corresponds to the real estate index. The optimization problem corresponds to the maximization of a quasi-linear utility function. We consider three cases. The first one assumes that the investor knows the probability distribution of the real estate index. However, at the initial time, he has to choose one deterministic optimal time to sell. The second one considers an investor who is perfectly informed about the market dynamics. Whatever the random event that generates the path, he knows the entire path from the beginning. Then, given the realization of the random variable, the path is deterministic for this investor. Therefore, at the initial time, he can determine the optimal time to sell for each path of the index. Finally, the last case is devoted to the analysis of the intertemporal optimization, based on the American option approach. We compute the optimal solution for each of these three cases and compare their properties. The comparison is also made with the buy-and-hold strategy.

The effect of Covid-19 depression on spirituality and psychological well-being through the perceived environmental restorativeness of a pilgrimage route: Focusing on pilgrims on Seoul Catholic Pilgrimage Route

During the COVID-19 pandemic, policies adopted by various countries to prevent the spread of the disease exacerbated social isolation among people, and their prolonged implementation has had a negative effect on people's mental health, leading to increased anxiety, stress, and depression. Group religious activities were prohibited, so believers continued their faith practices through individual pilgrimages. Therefore, the purpose of this study is to clarify the relationship between depression caused by COVID-19 and its impact on spirituality and psychological well-being, through the perceived restorative environment of the Seoul Catholic Pilgrimage Route. The results confirmed that COVID-19 depression had a negative effect on perceived environmental restorativeness and psychological well-being but perceived environmental restorativeness had a positive effect on Spirituality, and Spirituality had a positive effect on psychological well-being. These results imply that pilgrims who have experienced depression due to the pandemic can improve their spirituality and psychological well-being through nature-based pilgrimages.     

Blockholders’ Ownership and Audit Fees: The Impact of the Corporate Governance Model

This paper examines how two prominent corporate governance models, namely the shareholder and stakeholder models, have different effects on the relation between agency conflicts and the supply, and demand of audit services. Shareholder (stakeholder) countries rely heavily on public (private) information to reduce information asymmetry for outside investors in the context of high (low) litigation risk. We expect audit fees to reflect the level of agency conflicts in shareholder countries as well as the needs for information of the major blockholders in stakeholder countries. Using a sample of 7982 firm-year observations from 19 countries, we find a U-shaped relation between controlling shareholding and audit fees for shareholder countries and an inverted U-shaped relation between controlling shareholding and audit fees for stakeholder countries. These results are consistent across different firm-level governance arrangements.