Are In‐House and Outsourcing Innovation Strategies Correlated? Evidence from the European Agri‐Food Sector

We analyse European agri‐food firms’ choices about innovation in‐house or through outsourcing and provide empirical evidence about the correlation between these strategies. The relationship between the innovation strategy and firm‐, industry‐ and innovation‐specific characteristics is analysed through a bivariate probit model, which uses firm data from the EFIGE Bruegel‐UniCredit dataset. Transaction cost, resource base and knowledge governance arguments are used to explain the choice of innovation strategy. Our results show that the decisions to innovate in‐house or through outsourcing are independent from each other. In addition, we find that several organisational characteristics such as communication systems, human resource practices and specialisation are likely to influence both strategies. Conversely, organisational characteristics such as the allocation of authority and the business network do not seem relevant in determining the innovation strategies of the European agri‐food sector.     

Imported Intermediate Inputs and Firms’ Productivity Growth: Evidence from the Food Industry

Imported goods play a central role in determining the gains from trade. Using detailed trade and firm‐level data for Italy and France, we investigate the relationship between trade integration, imported intermediate inputs and firm performance in the food industry. Our main findings show that an increase in import competition spurs firm‐level productivity growth. Furthermore, the productivity growth effect attributable to imported intermediate inputs is significantly stronger than the effect due to imported final products. In addition, we find that new imported inputs are of particular importance, especially for Italian food firms, though less so for the French firms. Finally, the productivity growth effect of trade integration tends to be asymmetric across firms: more productive firms gain more from trade integration. These stylised facts have interesting policy implications.     

Influences of visual attributes of food packaging on consumer preference and associations with taste and healthiness

Two experiments designed to investigate how the shape and colour of packaging, and product category, conjointly impact consumers’ product and packaging expectations are reported. In Experiment 1, the shape (rounded vs. angular) and visual appearance (greyscale, red‐to‐yellow and blue‐to‐green colour schemes) of the packaging were manipulated. Dependent measures were preference (willingness to purchase the product, how attention‐capturing the packaging is, and the pleasantness of the design) and any taste associations. In Experiment 2, shape (rounded vs. angular), colour (red‐to‐yellow vs. blue‐to‐green colour schemes), and product category (buttery vs. cereal cookies) were manipulated. In this case, the dependent measures were the perceived product healthiness and the preference of consumers. The results of Experiment 1 revealed that packaging colour influenced product preference. Red‐to‐yellow and blue‐to‐green colour schemes and angular packaging were preferred over greyscale and round packaging. Colour also influenced taste associations, while shape only influenced ratings of expected sweetness. In Experiment 2, packaging shape and product category influenced product preference. In particular, rounded packaging and the packaging of buttery cookies were preferred over angular packaging and the cereal cookies packaging. The healthiness of the product was rated higher for the rounded and red‐to‐yellow packaging containing a buttery product. Taken together, these results highlight the important role played by colour, shape, and category on the expectations and associations elicited by viewing product packaging.     

Testing for optimal monetary policy via moment inequalities

The specification of an optimizing model of the monetary transmission mechanism requires selecting a policy regime: commonly, commitment or discretion. In this paper we propose a new procedure for testing optimal monetary policy, relying on moment inequalities that nest commitment and discretion as two special cases. The approach is based on the derivation of bounds for inflation that are consistent with optimal policy under either policy regime. We derive testable implications that allow for specification tests and discrimination between the two alternative regimes. The proposed procedure is implemented to examine the conduct of monetary policy in the US economy.     

Managing customer knowledge through the use of big data analytics in tourism research

The use of big data is growing in relevance and importance in tourism management research. Companies operating in this industry are exploiting big data analytics and developing systems to manage customer knowledge and provide the best service in the right place at the right time. This paper aims to provide a systematic literature review to present issues associated with the use of big data in tourism and identify future research directions on the topic. To achieve this aim, this paper develops a citation network analysis methodology to drive the content analysis and explore the content of 109 selected papers. The findings of this review highlight that although there is an increasing number of contributions on the topic, there are yet some issues that require to be further developed. In particular, the paper identifies research gaps and consequent research questions that represent an agenda for both researchers and practitioners.     

The effect of data transformation on common cycle,cointegration, and unit root tests: Monte Carlo results and a simple test

Cointegration, common cycle, and related tests statistics are often constructed using logged data, even without clear reason why logs should be used rather than levels. Unfortunately, it is also the case that standard data transformation tests, such as those based on Box–Cox transformations, cannot be shown to be consistent unless assumptions concerning whether variables I(0)$I(0)$ or I(1)$I(1)$ are made. In this paper, we propose a simple randomized procedure for choosing between levels and log-levels specifications in the (possible) presence of deterministic and/or stochastic trends, and discuss the impact of incorrect data transformation on common cycle, cointegration and unit root tests.     

Should you pay off your mortgage or invest?

The mortgage payoff dilemma affects many retirees that have enough financial assets to pay off their mortgage. I find that, on average, retirees with less than $300,000 in non-housing financial wealth are better off keeping the mortgage and investing.     

The Signal of Applying for a Job Under a Vacancy Referral Scheme

We investigate the signalling effect related to participation in active labor‐market programs. To this end, we conduct an experiment in which human resources professionals make hiring decisions concerning fictitious job candidates who apply either under a job‐vacancy referral system or directly. We provide first causal evidence for a substantial adverse effect of referral on the probability of being hired. In addition, we find that employers perceive referred candidates as being less motivated than other candidates.     

Trade Elasticity,Gravity and Trade Liberalisation: Evidence from the Food Industry

We present an econometric investigation of the trade effect produced by the elimination of tariffs in 18 food sectors for a large sample of developing and developed countries. The standard CES monopolistic competition trade model and the gravity equation were used to estimate trade substitution elasticities, exploring their sensitivity to different estimation methods. Using these elasticities, we simulate the trade effect of the elimination of tariffs, dealing with the problem of uncertainty in the estimated values. Results point to a significant variation in the elasticities estimated by different econometric methods, suggesting that the Poisson pseudo‐maximum‐likelihood estimator significantly inflates their magnitude. Simulation results indicate that trade liberalisation will strongly increase food exports especially from high income and emerging countries, leading to a general loss of market share by developing countries. The simulated trade flows obtained from the econometric approach are quite close to current evidence based on computable general equilibrium models.