Supply chain risk: empirical research in the automotive industry

Supply chain risk management (SCRM) has become a popular topic over the past decade. It is not a surprise that the automotive industry has been a motivating arena for research within this field; however, the few existing empirical studies reveal that SCRM practices within this industry are still in their infancy. Because the identification of risks can be viewed as the trigger for SCRM, attempts to develop a risk profile for this industry that could serve as a guide to start the SCRM process are needed. This research identifies the main risks along the automotive supply chain by investigating their manifestation in three supply chains in Brazil and offers an initial risk profile for the Brazilian automotive industry. Although the importance of SCRM has been recognised by all analysed companies, the research findings underline the lack of preparedness regarding either identifying risk or considering risk-mitigation strategies and risk assessment. In this context, this study identifies the main risk in which a supply chain can be exposed, through the analysis of real-life manifested risks along different supply chains, as a way to help the supply chain start a SCRM process.     

Assessing French inflation persistence with impulse saturation break tests and automatic general-to-specific modelling

This article has three different motivations. Firstly, we wish to contribute to the debate on whether French inflation has been persistent since the mid-eighties. Empirical evidence in this domain has been mixed. We use the standard method of testing for breaks in the mean of the inflation series to conclude whether possible unit root findings are the result of neglected breaks. Then, we build standard autoregressive representations of inflation, using an automatic general-to-specific approach. We conclude against inflation persistence in the sample period, and the point estimates of persistence we obtain are several percentage points below those achieved with other break tests and model selection methods. Moreover, our final model is congruent. Secondly, we provide the first empirical application of the new impulse saturation break test. The resulting estimates of the break dates are in line with other literature findings and have a sound economic meaning, confirming the good performance the test had revealed in theoretical and simulation studies. Finally, we also illustrate the shortcomings of the Bai–Perron test when applied to a small sample with high serial correlation. Indeed, we show the Bai–Perron break dates’ estimates would not allow us to build a congruent autoregressive representation of inflation.     

Back to the futures: An assessment of market performance on the early Winnipeg Grain Exchange

In this paper, I offer a quantitatively rich, historical perspective with which to consider Western Canada's recent return to private grain marketing. I assess how futures markets on the Winnipeg Grain Exchange (WGE) performed before the Canadian Wheat Board, and I consider the extent to which this performance contributed to the Canadian government's decision to create the Board. I conclude, despite significant agrarian dissatisfaction with private grain marketing on the WGE, the Canadian government ultimately proscribed futures trading because it was incompatible with the CWB model, which the Canadian government needed in order to stabilize farm incomes, particularly in the aftermath of the Great Depression.     

Mr Keynes,the Classics and the new Keynesians: A suggested formalisation

Abstract

The paper suggests a new Keynesian model of the General Theory. A reduced form entails a diagram with three curves relating employment and the real wage, which represent the two fundamental classical postulates and the principle of effective demand. This diagram illustrates better than IS–LM the generality of Keynes's theory, clarifying the distinction between voluntary and involuntary unemployment. Other significant features are the role of the distribution of expected interest rates among heterogeneous agents, whether dispersed or concentrated, in shaping the LM curve, as well as the role of wage competitiveness constraints as a foundation of Keynes's relative wage hypothesis.     

Fostering fair and sustainable marketing for social entrepreneurs in the context of subsistence marketplaces

Abstract

In recent years, in-depth, on-the-ground research has generated many insights into the nature and functioning of subsistence marketplaces and the people who operate in them. Such knowledge is bound to be useful to various companies and organisations, as they seek to engage such marketplaces, particularly for marketing managers, who quite likely have not had education or experience in marketing in such impoverished settings. This paper complements these practical insights with a normative ethical framework, presented in the marketing literature and labelled the integrative justice model (IJM) for impoverished markets, so as to synthesise a new framework for fair and sustainable marketing for social entrepreneurs in the context of subsistence marketplaces.     

Using consumer responsibility reminders to reduce cuteness-induced indulgent consumption

Cute products targeted to adults abound in the marketplace, and recent research has shown that whimsically cute products can increase indulgent consumption in adults. The current research explores the potential of using consumer reminders to curb these effects. This research identifies consumer responsibility reminders as an important factor that can limit indulgent consumption induced by exposure to cute products. Two studies show that the effect of cute products on indulgence can be reduced by (1) reminding consumers of their responsibility for their outcomes in life by enhancing feelings of personal control and (2) reminding consumers of their responsibility to other people by increasing prosocial orientation. Findings from this research have important implications for helping consumers make choices more consistent with their long-term well-being when faced with cute products in various categories.     

Consumer service and loyalty in Spanish grocery store retailing: an empirical study

The purpose of this paper is to investigate the effects of consumer service on loyalty in retail establishments. Based on a theoretical discussion regarding the relationship between waiting time, product quality, store atmosphere and loyalty, an empirical research was conducted to test the proposed relationships. Multiple‐item indicators from previous studies were used to measure the constructs. Results from the study provide empirical support, suggesting that consumer service through three dimensions influences loyalty. Research results suggest that consumer service in retail establishments can be viewed as a threshold factor in order to maintain satisfied and loyal customers. Additionally, managers should consider that loyalty depends on waiting time, product quality and store atmosphere. The present study provides useful information on the relationship between consumer service and loyalty in retailing.     

Optimal portfolios with minimum capital requirements

We propose a novel approach to active risk management based on the recent Basel II regulations to obtain optimal portfolios with minimum capital requirements. In order to avoid regulatory penalties due to an excessive number of Value-at-Risk (VaR) violations, capital requirements are minimized subject to a given number of violations over the previous trading year. Capital requirements are based on the recent Basel II amendments to account for the ‘stressed’ VaR, that is, the downside risk of the portfolio under extreme adverse market conditions. An empirical application for two portfolios involving different types of assets and alternative stress scenarios demonstrates that the proposed approach delivers an improved balance between capital requirement levels and the number of VaR exceedances. Furthermore, the risk-adjusted performance of the proposed approach is superior to that of minimum-VaR and minimum-stressed VaR portfolios.     

Calculating the Efficient Frontier for the Portuguese Stock Market

The paper investigates the efficient frontier and capital market line for the Portuguese stock market before and after the Global Financial Crisis. The efficient frontier and capital market line shift to positions that offer investors better opportunities as we move from 2000‐2008 to 2009–2015.