The European Commission’s new NAIRU: Does it deliver?

The non-accelerating inflation rate of unemployment (NAIRU) is a key component of potential output and as such critically affects output gap estimates. In May 2014, the European Commission changed its specification of the NAIRU for several countries and lowered its NAIRU estimates – in the case of Spain from 26.6% to 20.7% for 2015. To test the dependence of the new NAIRU on unemployment versus structural factors, we run counterfactual simulations applying 1SD shocks to actual unemployment and to the structural variable – real unit labour costs. We find that the NAIRU in its new specification is still largely determined by actual unemployment. This calls in question both the interpretation of potential output estimates as barriers to more vigorous inflation-stable economic activity and the accuracy of structural deficit figures.     

Cost and economic burden of adverse events associated with metastatic melanoma treatments in five countries

Objective: To estimate per-event cost and economic burden associated with managing the most common and/or severe metastatic melanoma (MM) treatment-related adverse events (AEs) in Australia, France, Germany, Italy, and the UK.

Methods: AEs associated with chemotherapy (dacarbazine, paclitaxel, fotemustine), immunotherapy (ipilimumab), and targeted therapy (vemurafenib) were identified by literature review. Medical resource use data associated with managing AEs were collected through two blinded Delphi panel cycles in each of the five countries. Published costs were used to estimate per-event costs and combined with AEs incidence, treatment usage, and MM prevalence to estimate the economic burden for each country.

Results: The costliest AEs were grade 3/4 events due to immunotherapy (Australia/France: colitis; UK: diarrhea) and chemotherapy (Germany/Italy: neutropenia/leukopenia). Treatment of AEs specific to chemotherapy (Australia/Germany/Italy/France: neutropenia/leukopenia) and targeted therapy (UK: squamous cell carcinoma) contributed heavily to country-specific economic burden.

Limitations: Economic burden was estimated assuming that each patient experienced an AE only once. In addition, the context of settings was heterogeneous and the number of Delphi panel experts was limited.

Conclusions: Management costs for MM treatment-associated AEs can be substantial. Results could be incorporated in economic models that support reimbursement dossiers. With the availability of newer treatments, establishment of a baseline measure of the economic burden of AEs will be crucial for assessing their impact on patients and regional healthcare systems.     

Emotional support from a digital assistant in technology-mediated services: Effects on customer satisfaction and behavioral persistence

In their traditional role, digital assistants in technology-mediated services provide customers with information, guidance, and suggestions. However, as the opportunities offered by technology and artificial intelligence increase, digital assistants can also provide emotional support, which refers to empathetic, reassuring expressions for customers who have failed or succeeded in fulfilling a task. We show across four experiments that emotional support offered by a digital assistant increases customer satisfaction (Study 1 and 2) and persistence (Study 3 and 4) in using technology-mediated services. The increase in satisfaction occurs via the perceived warmth of the digital assistant, and the increase in persistence via the serial mediation of perceived warmth and satisfaction. Further, the results of a moderated serial mediation show that the effect on persistence only occurs when a digital (but not when a human) assistant provides emotional support in technology-mediated services. Finally, the effect of emotional support on persistence occurs independently of the digital assistant's embodiment. Practitioners learn how to imbue technology-mediated services with a human touch, inducing favorable customer outcomes.     

Identifying and analysing the drivers of heterogeneity among ecosystem builder accelerators

In response to convergent and dynamic market developments, established firms use corporate accelerators to open their innovation processes to start‐ups. Among different accelerator themes, the ecosystem builder theme introduced by recent research plays a crucial role in furthering our understanding of the heterogeneity of accelerators due to its broad objectives. By interviewing 20 leading experts from 16 German corporate accelerators, we first identify heterogeneity among different ecosystem builder accelerators based on the differences in the process of selection, business support, and graduation. Second, we further structure the observed heterogeneity by depicting five different ecosystem builder accelerator types instead of a single ecosystem builder theme. These ecosystem builder accelerator types show important differences and similarities in terms of strategies, design elements, and processes within each of the process steps. Our findings hold meaningful research and managerial implications by providing (1) a consistent and systematic conceptual understanding about ecosystem builder accelerators, their strategies, design elements, and processes and (2) guidance to design and position ecosystem builder accelerators with regard to a long‐term corporate strategy.     

Economics at the FCC, 2016–2017: Auction Designs for Spectrum Repurposing and Universal Service Subsidies

The Federal Communications Commission is responsible for federal regulation in the telecommunications and electronic media sectors, and for management of the nation’s non-federal radio frequency spectrum. During the past year, Commission economists contributed to the agency’s ongoing efforts to use market-based mechanisms—such as auctions—to allocate spectrum and distribute universal service subsidies efficiently. This includes repurposing broadcast television spectrum for more efficient use by wireless service providers through the recently concluded Broadcast Incentive Auction and structuring auction mechanisms to promote efficient allocation of universal service subsidies for the increased build-out of mobile wireless and fixed broadband service in unserved and underserved areas.     

Politikvermittlung durch Boulevardjournalismus

Research on tabloid journalism suffers from two shortcomings: On the one hand, scholars regard tabloid journalism mostly as an entertaining but apolitical form of journalism with little societal relevance. On the other hand, empirical research measures a variety of supposedly tabloid features but fails to ground these aspects in a theoretical concept of tabloid journalism. The paper addresses these shortcomings by theorizing tabloid media as mediated arenas for a distinct public sphere, which may very well contribute to the political functions of mass media for democracy. On this theoretical basis, the paper identifies indicators that researchers should consider when measuring the political dimension of tabloid journalism.     

Modelling Co-movements and Tail Dependency in the International Stock Market via Copulae

This paper examines international equity market co-movements using time-varying copulae. We examine distributions from the class of Symmetric Generalized Hyperbolic (SGH) distributions for modelling univariate marginals of equity index returns. We show based on the goodness-of-fit testing that the SGH class outperforms the normal distribution, and that the Student-t assumption on marginals leads to the best performance, and thus, can be used to fit multivariate copula for the joint distribution of equity index returns. We show in our study that the Student-t copula is not only superior to the Gaussian copula, where the dependence structure relates to the multivariate normal distribution, but also outperforms some alternative mixture copula models which allow to reflect asymmetric dependencies in the tails of the distribution. The Student-t copula with Student-t marginals allows to model realistically simultaneous co-movements and to capture tail dependency in the equity index returns. From the point of view of risk management, it is a good candidate for modelling the returns arising in an international equity index portfolio where the extreme losses are known to have a tendency to occur simultaneously. We apply copulae to the estimation of the Value-at-Risk and the Expected Shortfall, and show that the Student-t copula with Student-t marginals is superior to the alternative copula models investigated, as well the Riskmetics approach.     

Brand Ownership As a Central Component of Adolescent Self‐esteem: The Development of a New Self‐esteem Scale

This article outlines the development of a new scale to measure adolescent self‐esteem. The new scale addresses weaknesses in existing measures that have failed to consider the growth of the consumer society in the Western world and the impact of this on the formation of adolescent self‐esteem. The development of this scale includes extensive qualitative research with over 100 high school pupils, which led to a series of quantitative data collection and analysis processes to develop the scale. In the final stage, data were collected from 889 pupils and analyzed to confirm the validity and reliability of the new measure. The result of this work is a 21‐item self‐esteem scale comprising of four distinct, yet interrelated factors: self‐evaluation, social ability, social comparison effects, and notably, brand ownership. The findings provide an updated and upgraded measure of self‐esteem that takes into consideration the specific audience of adolescents living in a consumer culture. The scale development process demonstrates that when considering the formation of self‐esteem, the influence of the use and possession of commercial brands is as relevant as the traditional factors/components such as academic achievement or sporting prowess.