Growth decomposition bias when accounting for heterogeneous regimes: Evidence from China

When exploring the logic why some economies grow faster than others, previous studies commonly assume that all economies follow a universal growth path. This paper explores the heterogeneity of growth regimes across economies and then investigates the decomposition bias of growth sources in traditional methods. Using a panel data of China's provinces, the empirical results show that a finite mixture model with three classes is best to describe the data, revealing that there are multiple growth regimes across provinces. Also, some provinces switch regimes over time while the others remain stable. Further, neglecting heterogeneous regimes overestimates the importance of factor endowment and underestimates the importance of sector productivity, while it does not greatly influence the importance of of factor market efficiency. In particular, the decomposition bias embodies in physical capital and energy input rather than labor. Our findings indicate that the existing literature may underestimate the contribution of sector productivity. Thus, it is critical to account for heterogeneous regimes when exploring the sources of economic growth.     

Investigating festivals and events as social gatherings: the application of social identity theory

Festivals and events as social gatherings have become an increasingly important sector of the tourism and leisure industries. The present study applied social identity theory to examine the causal relationship between the three mental stages experienced by event visitors: social categorization (fundamental and hedonic values), social identification (social identity), and social comparison (self-esteem), as well as another two consequential factors (revisit intention and electronic word-of-mouth). Data were collected at the Harbin Ice and Snow Sculpture Festival in Harbin, China. The results confirmed that fundamental and hedonic values influence visitors’ social identity, which consequently influences self-esteem. The study provides a theoretical foundation for understanding visitors’ attitudes and behaviors in the contexts of festivals and events.     

Household characteristics and the change of financial risk tolerance during the financial crisis in the United States

This study examines how household financial risk tolerance is affected during the period of 2007 and 2009, which covered the eve and trough of the financial crisis in the United States and what types of households are associated with the change of risk tolerance. Risk tolerance is measured by two objective indicators, narrowly and broadly defined stock ownership, and a subjective indicator, risk taking attitude. Using panel data from 2007 to 2009 Survey of Consumer Finances, results show that during the financial crisis, the households in general are more risk averse, indicated by withdrawing from stock markets and holding a less risk taking attitude. In addition, Black and Hispanic households are more likely and households with higher education are less likely to withdraw from stock markets. Older households are less likely to change in risk tolerance during the financial crisis, as are richer households. The findings show panel data could generate novel results and contribute to the literature of financial risk tolerance.     

The Distributions of Policy Reserves Considering the Policy-Year Structures of Surrender Rates and Expense Ratios

In this article, we examine how the policy-year structures of expense ratios and surrender rates affect the distributions of policy reserves. Our results show that a convex expense ratio curve, though reduces the mean and the uncertainty of reserves, could make the beneficial impact of surrenders on insurers become detrimental. Our results also show that the convexity of the surrender rate curve is favorable to insurers while the volatilities of surrender rates are unfavorable. We further find that neglecting the policy-year structures of surrender rates and expense ratios may result in overestimation of the mean and the uncertainty of reserves.     

The moderating roles of job control and work-life balance practices on employee stress in the hotel and catering industry

This study investigated the relationships among job stressors, coping resources, and job stress. Data were collected from food service employees (n = 255) in the hotel and catering industry. Hierarchical regression showed main significant effects of job demands and job control and three-way (job demands × job control × work-life balance practices) interactions on job stress. The results further demonstrated that high job demands coupled with low job control and the availability of work-life balance practices resulted in a higher level of stress. Implications for Karasek's job demand–control model, managerial practice and future research are provided.     

How does Bank Capital Affect Bank Profitability and Risk? Evidence from China's WTO Accession

This paper examines how bank capital affects bank profitability and risk in China, and how its impact differed before and after the nation entered the WTO. Our study uses the dynamic generalized method of moments approach with a panel database containing 171 Chinese commercial banks. We find that bank capital has significant influence on bank profitability and risk, but its impact has declined since China joined the WTO in 2001. For different sized groups, the impact of capital on profitability exhibits a distinct trend. The effects of capital on bank risk are different for large and small banks depending on the risk variables used for the Chinese banking industry.     

What should we call this color? The influence of color-naming on consumers' attitude toward the product

Many companies use unique color names to differentiate products, attract consumer attention, and promote sales. This study categorizes the names of colors in detail, and uses schema incongruity and affect regulation theory to elucidate the effects of color names with different typicality and ambiguity. We identify the underlying mechanism and explore how color attribute importance and color name valence moderate the effects of the color name. The results of five studies show the following: (a) atypical-low ambiguity color names (vs. atypical-high ambiguity and typical color names) create a more favorable consumer attitude toward the product; (b) when color is the primary attribute of the product, typical color names are more effective; when color is a secondary attribute, atypical color names yield more favorable effects; (c) for positively-valenced color names, an atypical-low ambiguity naming method yields a better response, while for negatively-valenced color names, an atypical-high ambiguity naming method yields a more favorable response; and (d) the color-naming effects are mediated by perceived product uniqueness or playfulness, depending on different conditions.     

R&D EFFICIENCY AND THE NATIONAL INNOVATION SYSTEM: AN INTERNATIONAL COMPARISON USING THE DISTANCE FUNCTION APPROACH

This paper applies the distance function approach for stochastic frontier analysis (SFA) to compare research and development (R&D) efficiency across 24 nations during 1998–2005. In this multiple input–output framework, R&D expenditure stock and R&D manpower were inputs, while patents, scientific journal articles, and royalties and licensing fees (RLF) were outputs. Intellectual property rights protection, technological cooperation among business sectors, knowledge transfer between business sectors and higher education institutions, agglomeration of R&D facilities, and involvement of the government sector in R&D activities significantly improve national R&D efficiency.