Generality of human behavior and economic philosophy

The theologian, Bruce Malina, argued in this journal (1997) that the Bible is not relevant to economics in the contemporary world. This paper contends the contrary. A body of economists and social theologians hold that a set of consistent socio-economic principles and ethics underlying the long history of the Biblical texts can be applied to the modern world, and are so intended to apply. An assumption of this group is that the Bible depicts the word of God interpreted and ultimately written down by people in their day and age. It is the socio-economic warrants in principle contained in this material that are relevant today. The argument here has two aspects. One questions Malina, concluding that he does not sustain his conclusions. The second aspect is to illustrate something of the methodology and conclusions of the economist/social theologian group that asserts the relevance of Biblical principle to contemporary society.     

The effect of service quality and satisfaction on destination attractiveness of sub-Saharan African countries: the case of Ghana

This paper examines the functional forms of service quality (SQ) and satisfaction in relation to destination attractiveness. It focuses on the varying influence of destination characteristics, customer economics, and demographic variables to explore how SQ might be used to improve value positioning and, therefore, potential attractiveness of Ghana as a destination choice for tourists. Using methods triangulation data collection protocol, the paper finds causal links between SQ and selected composites of destination attractiveness (destination attributes, support services, facilities, and people-related factors) in the degree to which they influence customer satisfaction and return-visit intentions. The paper contributes refreshing insights useful for segmentation marketing, tour planning, and product/service development. The implications are far-reaching when considered alongside the fact that Ghana is relatively a new entrant into the organised tourism marketing arena and has the consequent imperative to scale-up structural and human capabilities to compete effectively with the more established global competitors.     

A proposed model of external consumer information search

An enduring interest in consumer behavior is the investigation of external prepurchase information search. Past research has identified a large number of factors that have been found to influence the extent of information search. The purposes of this article are to summarize the external information search literature and then develop a more parsimonious model of information search. Specifically, we propose that the effects of these antecedents of information search are mediated by four variables: ability, motivation, costs, and benefits. This model integrates the psychological search literature by incorporating ability and motivation to search for information and the economic paradigm that centers on the perceived costs and benefits of information search. Propositions are developed based on this comprehensive model for future testing. Jeffrey B. Schmidt recently became an assistant professor of marketing at Kansas State University after completing his Ph.D. at Michigan State University. His research interests include new product development and international product strategy. His work has appeared in theJournal of Product Innovation Management andJournal of Business and Industrial Marketing as well as in various conference proceedings. He received his Ph.D. from Indiana University. His research interests include consumer satisfaction/dissatisfaction and issues involving consumer knowledge. His work has appeared in theJournal of the Academy of Marketing Science, Journal of Consumer Research, Journal of Marketing, Journal of Retailing, Journal of Services Marketing, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, andJournal of Product Innovation as well as in various conference proceedings.     

Financial Econometrics, Financial Innovation, and Financial Stability

Innovation in financial markets, spurred to a significant extentby developments in finance theory and financial econometrics,has played a critical role in spurring economic growth. However,the current turmoil in financial markets raises fundamentalquestions about the nature of financial innovation and the roleof policymakers in maintaining financial stability. This paperexplores these questions, focusing on the complexities of modelingfinancial risk and the potential trade-off between policiesaimed at combating short-run financial instability on the onehand and the potential financial market distortions and moralhazard that can result from such policies on the other.     

Are Incentives the Bricks or the Building?

The efforts of economists to emphasize the importance of incentives as determinants of organizational performance, while successful to some degree, may have left the mistaken impression that "getting the incentives right" is the only task requiring the attention of senior executives when designing corporate organizations. The author identifies the incentive-intensive companies envisioned by economists as "mercenary organizations" (or MOs), or companies whose distinguishing feature is near-complete reliance on financial rewards and controls. Citing the difficulties of devising an effective incentive system that cannot be gamed (which he calls the organizational equivalent of "an anti-gravity machine"), the article questions whether such organizations are likely to yield superior performance.
As an alternative to paying more attention to incentive design, the author suggests devoting more corporate resources to seeking and attracting individuals with low "monitoring costs." After holding up examples of top executives who appear committed to that search, the author posits a "character-rich" organization (CRO) as an alternative to the MO of the economists.
Then, viewing all companies as occupying points on a continuum with the MO and CRO as its poles, the author argues that all companies combine elements of both kinds of organizations. And perhaps most important, the CEOs of many of the most successful large organizations, without minimizing the importance of incentives, pay even greater attention to the search for trustworthy individuals and the creation of a culture of teamwork and accountability.     

Originators,wholesalers, and conduits: The marginal value of the contract rate on 30-year conventional mortgages

The model we present solves for the value of an incremental change in the mortgage contract given an expectation about the time the mortgage will be outstanding and a required return for this time span. The marginal value participants in the primary mortgage market place on the contract rate of a 30-year conventional mortgage determines the array of bids for new mortgage production. Mortgagors can issue mortgages at various discounts. High discounts are associated with low contract rates, and low discounts are associated with high contract rates. This article examines the way wholesale dealers and conduits value the various contract rates associated with current production of 30-year conventional mortgages.