Macroeconomic implications of financial policy

This paper studies the effects of financial policy in a model with heterogeneous agents, incomplete markets and portfolio restrictions. For an economy calibrated to replicate key aspects of the U.S. wealth distribution, we find that the quantitative effects of financial policy are relatively small. The reason is that the households determining aggregate behavior are relatively well insured and can therefore offset the actions of the firm by modifying their portfolio allocations. However, financial policy has important effects on asset prices. Whereas a higher level of debt in the capital structure of the firm introduces more risk into the economy by increasing the volatility of the equity return, it enhances the liquidity of households by increasing the supply of bonds. In an economy with a substantial amount of heterogeneity, this last effect dominates and leverage leads to a decrease in the equity premium. This is in contrast to the findings in representative agent models, in which leverage unambiguously increases the premium through a higher equity return volatility.     

Perceived value of interactive digital textbook and adaptive learning: Implications on student learning effectiveness

The authors studied the perceived value of an interactive digital textbook LearnSmart (McGraw-Hill Education, New York, NY) and examined its implications on adaptive learning and student learning effectiveness. Constructionism and constructivism provided the theoretical foundation. Data were collected from an American public university over three semesters. Multiple regression analysis results show that LearnSmart improves students’ perceived competency and their satisfaction with LearnSmart, thus increasing their perceived value of using LearnSmart. In addition, perceived value of LearnSmart varies across different course delivery formats and devices, while perceived challenge has no influence on perceived value. Pedagogical implications and future research directions are discussed.     

Children’s Responses to Traditional Versus Hybrid Advertising Formats: The Moderating Role of Persuasion Knowledge

Research on the impact of advertising on children has failed to keep pace with the rapidly changing media environment. Using an experimental approach, children’s responses towards traditional (television advertisement) versus new, hybrid advertising techniques (trailer, advergame, and their combination), and the moderating role of persuasion knowledge, are investigated. Results show that children who played an advergame have more difficulty recalling the advertised brand than children who saw a traditional television advertisement. When confronted with integrated marketing communications (a trailer followed by an advergame), children without knowledge of persuasive intent developed a more positive brand attitude than children with persuasion knowledge. The implications of these results are discussed.