Structural Equation Modeling: A Practical Introduction

Structural equation modeling (SEM) is a popular statistical technique that has become an essential tool for business academics and practitioners. The technique is particularly well suited for evaluating the relationships among any number of observed and latent variables. Thus, typical applications for SEMs are model and theory testing, and scale development. The purpose of this article is to introduce the technique and to explain its use in practical terms that do not require a strong statistical background. Two previous Journal of African Business articles are used to demonstrate SEM applications, and the article concludes with a brief introduction to SEM software packages.     

Outcome-focused national park experience management: transforming participants,promoting social well-being,and fostering place attachment

Understanding visitor experiences is essential if park managers are to facilitate beneficial outcomes for both individuals and society. We investigated visitor experiences in a special model of thematically connected guided walking, biking, and 4WD tours in Australian national parks. Outcomes attained by first-time and repeat participants were assessed by questionnaires with more detailed insights from semi-structured interviews with repeat participants. Participants developed strong social ties with community members and experienced significant improvements in health, well-being, and competence, gaining a sense of achievement from mastering a challenge with positive implications for their lives beyond the tours. The tour series performed well in achieving visitor satisfaction, repeat participation, and word-of-mouth recommendation. The experience increased participants’ attachment to national parks, reinforcing their sense of environmental stewardship. The findings are especially relevant to efforts in parks and elsewhere to better integrate senior citizens into the community and provide opportunities to increase their physical, mental, and social well-being. Such opportunities become limited, for example, when people retire from work or suffer health impairment. The tour series proved an effective tool for outcome-focused park management, providing significant personal benefits to participants with positive implications for larger societal benefits, plus political and financial advantages for park managements.     

Religion,Corruption, and the Rule of Law

In a 207‐country sample, we find that rule of law and corruption are both associated with a country's religious heritage, thereby partially explaining the correlation between religion and economic growth found in previous research. We also show that our results change when we control for some variables lacking data for all countries in the sample but that these differences are attributable to changes in sample composition rather than the effects of the control variables. Our research suggests that researchers doing cross‐country analysis should distinguish between the effects of adding a control variable and the resulting sample composition effects.     

AN EMPIRICAL INVESTIGATION OF THE RELATIONSHIP AMONG WIFE'S EMPLOYMENT STATUS,STAGE IN THE FAMILY LIFE CYCLE,MEAL PREPARATION TIME,AND EXPENDITURES FOR MEALS AWAY FROM HOME

The allocation of time is an ultimate reflection of quality of life choices. Since the current trend for increased proportions of dual wage earner families will probably continue, data on how they allocate and consume time will help in clarification of this dual wage earner lifestyle on future consumer decision making and behaviour. Role theory is used to organize data on the relationships between consumption of time in the wives’ provider and homemaker roles. The relationship between purchased services, i.e. meal preparation, and wives’ time use is explored. Employment is related to meal preparation time, but not to the substitution of buying meals away from home. The age of the youngest child is important in explaining out-of-home meals. Implications for research and future lifestyles are discussed.     

Stock Volatility and the Levels of the Basis and Open Interest in Futures Contracts

This article tests a theoretical model of the basis and open interest of stock index futures. The model is based on the differences between stock and futures in terms of investors' ability to customize stock portfolios and liquidity. Empirical evidence confirms the model's prediction that increased volatility decreases the basis and increases open interest.     

ZERO INFLATION: TRANSITION COSTS AND SHOE LEATHER BENEFITS

The idea that the monetary authority cannot achieve price stability except at the cost of a recession is the most common and convincing argument against price stability. This paper presents calculations showing that the resource costs of a recession that might result from eliminating a 4 percent inflation are approximately equal to the "shoe leather" costs incurred when inflation is stable at 4 percent.     

Trade Unions, Collective Voice and Fringe Benefits*

The exit/voice model of the labour market predicts that unionized workers will enjoy a greater level of fringe benefits, both absolutely and as a share of total compensation, than non-unionists. This is because unions can, through the medium of collective voice, communicate to management a picture of the preferences of the median worker. In non-union settings, however, management responds to the perceived preferences of the young, mobile workers at the hiring margin and these typically place a low priority on fringe benefits relative to money wages. Using data from the A ustralian Longitudinal Survey it is found that the hypothesis is supported by the evidence for Australia.     

Teacher Unions and Black Students' Scores on College Entrance Exams

Using data from the National Assessment of Economic Education survey, this paper examines the influence of teachers' unions and students' race on college entrance examination scores. An "education production function" is estimated for a sample of white and black high school seniors. The model accounts for variations in school distrits and student inputs and controls for the self-selection nature of taking an entrance exam. The results indicate that students in unionized schools score higher on the SAT than like students in nonunion schools, ceteris paribus. Black students who attend unionized schools are estimated to score 13.11 percent above the black SAT mean. These findings suggest a positive productivity effect of collective bargaining for teachers which significantly benefits minority students.     

U.S. Union Membership in Future Decades: A Trade Unionist's Perspective

Slower workforce growth, more gradual industrial restructuring, a tighter labor market, and the gradual emergence of a more efficient organizing capability will help to stem the projected decline in private-sector union membership. A broad array of consumer benefits and the development of new form of union membership, such as those that do not necessarily result in exclusive recognition, should also help stem that decline