Current account sustainability in G7 and BRICS: Evidence from a long-memory model with structural breaks

In this paper, we extend the existing literature on current account sustainability by examining the relevance of long memory and structural breaks in modelling the dynamics of current account to gross domestic product (GDP) ratios in G7 and BRICS. Unlike standard unit root tests, which have low power, especially in cases where the series is characterized by a fractional process, the long-memory approach provides an exact measure of the degree of persistence. However, long-memory models are known to overestimate the degree of persistence of the series in the presence of structural breaks. We show that regime changes do exist in both the mean and trend of the current account to GDP ratios. Thus, we test persistence allowing for both smooth and sharp breaks. Our methodology also allows any number of sharp breaks, whereas standard unit root tests only permit either one or two breaks. Hence, our approach is more general and more robust to misspecifications caused by the omission of breaks than standard methods. We show that current accounts are sustainable in both groups of countries, with the G7 and South Africa displaying long-memory behaviour.     

Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral

By being a supply chain integrator who can assemble and manage the resources, capabilities, and technology of its own organization with those of complementary service providers, fourth party logistics (4PL) providers deliver comprehensive supply chain solutions and form an important option for business outsourcing. The adequate design of the partnership between companies in this type of outsourcing activities is essential. In order to support the effective usage of 4PL services, this paper proposes an analytical multiple criteria decision making approach to evaluate 4PL operating models. While decision criteria and their hierarchy were identified, it is observed that there exist interactions, e.g. simultaneous satisfaction of two or criteria is sometimes required. This situation can not be handled with traditional multi-criteria decision making methods which assume criteria independence. 2-additive Choquet integral is appropriate to model criteria interactions by pairs and is used in this study. The proposed framework is applied for a logistics company willing to expand its operations. Finally, an application is provided to demonstrate the potential of the methodology for 4PL operating model selection.     

The replacement problem

A prototypical vintage capital model of economic growth is developed, where the decision to replace old technologies with new ones is modeled explicitly. Technological change is investment specific. Depreciation in this environment is an economic, not a physical, concept. The vintage capital economy's balanced-growth paths and transitional dynamics are analyzed. The transitional dynamics are markedly different from the standard neoclassical growth model.     

Signaling bargaining power: Strategic delay versus restricted offers

Summary. I study the first-round separating equilibrium of a buyer-seller bargaining game, extended to allow for asymmetric information, strategically delayed offers and offers restricted to a portion of the good. When bargaining is over a consumption good, in equilibrium the “strong” buyer uses a restricted offer if his optimal consumption path is conservative relative to the “weak” buyer. A pure restricted offer may even be a costless, efficient signal. When the good is durable, a pure strategic delay is involved in signaling a strong bargaining position if the discount factor is high. Received: June 24, 1998; revised version: May 30, 1999     

Institutional and transaction cost influences on MNEs’ ownership strategies of their affiliates: Evidence from an emerging market

This paper examines the impact of institutional, and transaction cost specific variables on MNEs’ choice of equity ownership in their foreign affiliates. We consider the determinants of the choice of foreign investors between full ownership (setting up a wholly owned greenfield subsidiary or engaging in a full acquisition) and sharing ownership with a local firm (establishing a greenfield joint venture or making a partial acquisition). Drawing on both transaction cost and institutional theories, a number of hypotheses are developed. Based on a dataset of 6838 foreign affiliates in Turkey, the empirical analysis reveals that institutional variables are important in explaining the equity composition of foreign affiliates. Particularly important in determining equity ownership were found to be political risk, cultural distance, linguistic distance, agglomeration, location and the size of the affiliate. A distinguishing feature of the paper is that we examine the marginal effects of the independent variables in explaining ownership patterns of MNEs.     

Manipulation through political endorsements

We study elections with three candidates under plurality voting. A candidate is a Condorcet loser if the majority of the voters place that candidate at the bottom of their preference rankings. We first show that a Condorcet loser might win the election in a three-way race. Next we introduce to the model an endorser who has private information about the true probability distribution of the preferences of the voters. Observable endorsements facilitate coordination among voters who may otherwise split their votes and lead to the victory of the Condorcet loser. When the endorser has an ideological bias towards one of the candidates, the coordination impact of endorsements remains unaltered, moreover the endorser successfully manipulates the outcome of the election in favor of his bias, even if his ideological bias is known by the voters. The results are true for any endorsement cost and any magnitude of bias as long as the electorate is large enough.     

The global dissemination of scholarly tourism outputs from 1976 to 2016: evidence from Australia

This paper explores the growing breadth and depth of networks and collaborations in the expansion of tourism scholarship. By using bibliometric techniques and mining data from 25 top tourism (and hospitality) journals, the authors provide a visualization of how the field has developed. Focusing on the example of Australia, it shows a process of intensifying internationalization with leading institutions in the UK and Hong Kong, though with minimal representation from institutions in less developed countries. The paper confirms previous findings about the growth of multi-authorships and an increasing propensity for tourism scholars to collaborate with counterparts at other institutions.     

Career paths of hotel general managers in Turkey

This article investigates the career paths of hotel general managers (HGMs) in a developing country, namely Turkey. Based on an in-depth literature review, a questionnaire was developed and data were collected from 168 HGMs in Turkey. Compared to previous studies, this study found a higher percentage of female HGMs working in hotels. According to the research findings, almost half of the respondents received formal education in hospitality and tourism. The participating respondents most frequently reached the HGM position through working in the front office department and the food and beverage department. Honesty, interpersonal skills, and loyalty were found to be the top three characteristics that helped the participants become HGMs. In terms of required skills, communication, human relations, taking initiatives, and the ability to formulate plans were the top four skills for the participants in their career development. Finally, learning a foreign language, having a college degree, and developing long-term career goals were the top three personal development strategies. This is one of the first studies investigating HGMs career paths in a developing country and it offers specific theoretical and practical implications on this important topic.