Long waves in prices: new evidence from wavelet analysis

In this paper we apply wavelet analysis to study the dynamics of long-term movements in wholesale prices for the USA, the UK and France over the period 1791–2012. The application of wavelet analysis to long-term historical price series allows us to detect long waves in prices whose periodization is remarkably similar to those provided in the literature for the pre-World War II period. Moreover, we find evidence on the existence of long waves in prices also after World War II, a period in which long waves are generally difficult to detect because of the positive trend displayed by prices. The comparison between the long wave components extracted through wavelets and the Christiano–Fitzgerald band-pass filter suggests that wavelets provide a reliable and straightforward technique for analyzing long waves dynamics in time series exhibiting quite complex patterns such as historical data.     

Choice, preference and rationalizability in pareto’s theory of economic behavior

Pareto initiated the shift of economic theory from utility/preference to choice in order to fill a gap between theoretical and empirical economics. His suggestions for an empirically-oriented theory of choice were to be developed decades later in the literature on revealed preference and on the conditions of equivalence between preference-based and choice-based axiomatic structures. In the process, however, substantial departures from Pareto’s implicit design of the situation of choice were introduced. In this paper, the conditions for the rationalizability of choice are re-defined so that they fit the type of situation that Pareto had in mind. The result is that the main consistency axioms of standard choice theory have to give way to a different combination of axioms that concern decisiveness as well as consistency. (JEL:B13, D01, D11).     

Wage bargaining as an optimal control problem: a dynamic version of the efficient bargaining model

Decisions in Economics and Finance - In this paper, I develop a dynamic version of the efficient bargaining model grounded on optimal control in which a firm and a union bargain over the wage in a...     

Planning in Turbulent Times: Exploring Planners' Agency in Jerusalem

This article explores the role of planning in the deeply divided and politically polarized context of Jerusalem. The overall argument developed throughout the article is that the relation between planning and politics is a non‐hierarchical set of interactions, negotiated within specific historical, geographical, legal and cultural contexts—in other words, orders don't come down from the politicians to be slavishly followed by planners. In this respect our findings, based on in‐depth interviews with Israeli planners, suggest that the case of Jerusalem represents a particularly dramatic illustration of the fact that the function of planning expertise can only be understood in relation to the surrounding socio‐political environment. Furthermore, contrary to conventional wisdom, planners in Jerusalem are not destined to either complicity or irrelevance in the face of political imperatives; planners' agency, however, does not simply reflect their mastery of specific professional knowledge and tools, but also their ability to act strategically in relation to the context in which they operate.     

The emergence of new networked business models from technology innovation: an analysis of 3-D printing design enterprises

Technology does not have intrinsic value: obtaining competitive advantage from it and transforming it into profits requires a business model based on the application of competencies and dynamic capabilities, and the ability to select and apply appropriate resources. Innovative 3-D printing technology appears to be dependent on a new business model based on the ability to structure and integrate creative inputs, crowdsourcing processes, and market distribution networks. This new business model is being used by design enterprises that employ 3-D printing technology in order to enrich their service portfolio or to inaugurate completely new business lines. This paper analyzes how the use of new 3-D printing technology in design enterprises is coupled with proper business model components. Through a qualitative analysis of three cases - Quirky, i.materialise and Fab-Lab - the authors develop four propositions on a number of factors that contribute to business model effectiveness in design ventures using 3-D printing technology.     

Reliable Inference in Categorical Regression Analysis for Non‐randomly Coarsened Observations

In most surveys, one is confronted with missing or, more generally, coarse data. Traditional methods dealing with these data require strong, untestable and often doubtful assumptions, for example, coarsening at random. But due to the resulting, potentially severe bias, there is a growing interest in approaches that only include tenable knowledge about the coarsening process, leading to imprecise but reliable results. In this spirit, we study regression analysis with a coarse categorical‐dependent variable and precisely observed categorical covariates. Our (profile) likelihood‐based approach can incorporate weak knowledge about the coarsening process and thus offers a synthesis of traditional methods and cautious strategies refraining from any coarsening assumptions. This also allows a discussion of the uncertainty about the coarsening process, besides sampling uncertainty and model uncertainty. Our procedure is illustrated with data of the panel study ‘Labour market and social security' conducted by the Institute for Employment Research, whose questionnaire design produces coarse data.     

Conducting Mode 2 research in HRM: A phase‐based framework

Recent studies in the field of human resource management (HRM) have highlighted that current research is mostly performed and consumed by academics, and is driven by theoretical and disciplinary concerns rather than practical ones. This debate has invoked the need to produce more Mode 2 research in the HRM field, that is, research driven by practical problems that integrate collaborative efforts by academics and practitioners. Yet, guidelines on how academics and practitioners may implement Mode 2 research remain disjointed and incomplete. Our study provides a phase‐based collaborative‐based framework for the implementation of Mode 2 research in the HRM field, in ways that both academic rigor and practical relevance are achieved. Our framework is informed by a comprehensive review of previous Mode 2 research, within and outside the HRM field. The proposed framework details four macro‐phases: the codevelopment of research questions with practitioners; the design of collaborative spaces and mechanisms; the design and management of double‐loop iterative research processes; and finally the academic and practice legitimization of Mode 2 outcomes. Our framework has the objective to support HRM researchers and practitioners, as well as relevant institutions and gatekeepers in the design, implementation, education, and assessment of Mode 2 research.     

The effects of economic news on commodity prices

We assess how commodity prices respond to macroeconomic news and show that commodities have been relatively insensitive to such news over daily frequencies between 1997 and 2009 compared to other financial assets and major exchange rates. Where commodity prices are influenced by news, there is a pro-cyclical bias and these sensitivities have risen as commodities have become increasingly financialized. However, models based on news still do a relatively poor job of forecasting commodity prices at daily frequencies. We also find some asymmetries in how commodity prices respond to news, most notably for gold, which alone among commodities acts as a safe-haven when “bad” economic news emerges.     

Bids as a Vehicle of (Mis)Information: Collusion in English Auctions with Affiliated Values

In an English auction, a bidder’s strategy depends on the prices at which his competitors drop out, because these convey information on the value of the object on sale. A ring of colluding bidders can strategically manipulate the information transmitted through its members’ bids, in order to mislead other bidders into bidding less aggressively and thus allow a designated bidder to bid more aggressively. Collusion increases the probability that the ring wins the auction and reduces the price it pays. The presence of a ring harms other bidders (as well as the seller) and reduces efficiency.     

INFORMATION IN THE YIELD CURVE: A MACRO‐FINANCE APPROACH

We use a macro‐finance model, incorporating macroeconomic and financial factors, to study the term premium in the US bond market. Estimating the model using Bayesian techniques, we find that a single factor explains most of the variation in bond risk premiums. Furthermore, the model‐implied risk premiums account for up to 40% of the variability of one‐ and two‐year excess returns. Using the model to decompose yield spreads into an expectations and a term premium component, we find that, although this decomposition does not seem important to forecast economic activity, it is crucial to forecast inflation for most forecasting horizons. Copyright © 2012 John Wiley & Sons, Ltd.