Schumpeterian competition and efficiency among commercial banks

In this paper, we aim to fill the gap in the banking literature by quantifying the impact that the Schumpeterian competition mode – i.e. competition through the launch of new products (or new varieties of products) – has on the cost and profit efficiency of a sample of commercial banks based in the United Kingdom. We estimate both a cost and an alternative profit frontier on an unbalanced panel of UK commercial banks over the period 2001–2012. The intensity of competition through product innovation is proxied by the trademark intensity (i.e. the ratio between the number of trademarks registered in a given year by all the commercial banks – net of the trademarks registered by the bank under observation – and the employment in the sector) in the commercial banking sector. Our results show that the (lagged) trademark intensity in the commercial banking sector does affect negatively the mean cost and profit efficiency in the sector but there is evidence that as trademark intensity increases in the sector, commercial banks react by improving their cost and profit efficiency.     

Analysis of the effect of risk management practices on the performance of new product development programs

Risk management is receiving much attention, as it is seen as a method to improve cost, schedule, and technical performance of new product development programs. However, there is a lack of empirical research that investigates the effective integration of specific risk management practices proposed by various standards with new product development programs and their association with various dimensions of risk management success. Based on a survey of 291 product development programs, this paper investigates the association of risk management practices with five categories of product development program performance: (A) Quality Decision Making; (B) High Program Stability; (C) Open, problem solving organization; (D) Overall new product development project success; and (E) overall product success. The results show that six categories of risk management practices are most effective: (1) Develop risk management skills and resources; (2) Tailor risk management to and integrate it with new product development; (3) Quantify impacts of risks on your main objectives; (4) Support all critical decisions with risk management results; (5) Monitor and review your risks, risk mitigation actions, and risk management process; and (6) Create transparency regarding new product development risks. The data shows that the risk management practices are directly associated with outcome measures in the first three categories (improved decision making, program stability and problem solving). There is also evidence that the risk management practices indirectly associate with the remaining two categories of outcome measures (project and product success). Additional research is needed to describe the exact mechanisms through which risk management practices influence NPD program success.     

One size does not fit all: Heterogeneous economic impact of integrated pest management practices for mango fruit flies in Kenya—a machine learning approach

Most previous studies evaluating agricultural technology adoption focus on estimating homogeneous average treatment effects across technology adopters. Understanding the heterogeneous effects and drivers of impact heterogeneity should enable interventions to be better targeted to maximise benefits. We apply machine learning using data from a randomised controlled trial to estimate the heterogeneous treatment effect of fruit fly IPM practices (i.e., parasitoids, orchard sanitation, use of food bait, biopesticides, male annihilation technique, and their combinations) in Central Kenya. Results suggest significant heterogeneity in the effect of IPM practices conditioned on household characteristics. The most important covariates explaining differences in treatment effects are wealth, distance to the mango fruit market, age of the household head, labour and experience in mango farming. Results further indicate that those with fewer mango trees benefit more from most IPM practices. Additional analysis across other covariates shows mixed results but generally suggests significant differences between households benefiting the most and those benefiting the least from IPM practices.     

The Fisher hypothesis: a multi-country analysis

This paper tests whether the Fisher hypothesis holds for a sample of 26 countries by assessing the long run relationship between nominal interest rates and inflation rates taking into consideration the short run dynamics of interest rates. The empirical evidence supports the hypothesis that there is a one-to-one relationship between the interest rate and inflation for more than half of the countries under study.     

The Role of Financial,Macroeconomic, and Non-financial Information in Bank Loan Default Timing Prediction

We assess the use of bank loan information in predicting the timing to default. We use unique data on defaults in small and medium enterprises maintained by the Central Bank of Portugal which includes financial accounting and macroeconomic indicators, as well as non-financial information. The findings are indicative of the incremental predictive ability of non-financial information over and above macroeconomic and financial accounting information in the baseline, industry, and in- and out-of-sample models. Specifically, total credit secured by firms is, as expected, negatively and significantly related to default. Gross domestic product is negatively and significantly related to default, and benchmark market rate is positively and significantly associated with default. The findings also reveal that firms which are operated by partners, which have stronger financial support from partners, and which possess operational assets exhibit lower hazards of default. The study indicates that non-financial information and macroeconomic indicators assessed alongside financial accounting data can significantly improve the forecasting performance of default models.     

Food Labels’ Impact Assessment on Consumer Purchasing Behavior in Malaysia

The purpose of this study is to validate the impact of food labels among Malaysian consumers using an extended theory of planned behavior model (TPB). In doing so, the study assessed the direct and indirect effect of food labeling on consumer intention to purchase or otherwise the food products of interest. A stratified random sampling technique was adopted in selecting 2,014 consumers in Klang Valley, Malaysia. The results of structural equation modeling supported the adequacy of the proposed model. This study contributes to and extends the understanding of food labeling and purchasing behavior, identifying the rationales for purchasing of food products with labels that contains information such as halal logo, ingredients, and nutritive value.     

Rank-based poverty measures and poverty ordering with an application to Tunisia

Using the normative approach, we develop a class of poverty measures that is function of a weighting system. Each particular weighting function corresponds to a particular social judgment. This offers the decision-maker a large selection of social preferences functions, and he can choose the one that best represents his social judgment. We also develop new concepts of a-extended TIP curves. They are used to establish the conditions of the robust and unanimous poverty ranking of our measures. These conditions are in terms of second-and higher-degree TIP dominance. Finally, we provide an empirical illustration using Tunisian data on the 2005–2010 period.     

Cost-effectiveness of sacubitril/valsartan versus enalapril in patients with heart failure and reduced ejection fraction

Background: Sacubitril/valsartan reduces cardiovascular death and hospitalizations for heart failure (HF). However, decision-makers need to determine whether its benefits are worth the additional costs, given the low-cost generic status of traditional standard of care.

Aims: To evaluate the cost-effectiveness of sacubitril/valsartan compared to enalapril in patients with HF and reduced ejection fraction, from the Singapore healthcare payer perspective.

Methods: A Markov model was developed to project clinical and economic outcomes of sacubitril/valsartan vs enalapril for 66-year-old patients with HF over 10 years. Key health states included New York Heart Association classes I–IV and deaths; patients in each state incurred a monthly risk of hospitalization for HF and cardiovascular death. Sacubitril/valsartan benefits were modeled by applying the hazard ratios (HRs) in PARADIGM-HF trial to baseline probabilities. Primary model outcomes were total and incremental costs and quality-adjusted life years (QALYs) and the incremental cost-effectiveness ratio (ICER) for sacubitril/valsartan relative to enalapril

Results: Compared to enalapril, sacubitril/valsartan was associated with an ICER of SGD 74,592 (USD 55,198) per QALY gained. A major driver of cost-effectiveness was the cardiovascular mortality benefit of sacubitril/valsartan. The uncertainty of this treatment benefit in the Asian sub-group was tested in sensitivity analyses using a HR of 1 as an upper limit, where the ICERs ranged from SGD 41,019 (USD 30,354) to SGD 1,447,103 (USD 1,070,856) per QALY gained. Probabilistic sensitivity analyses showed the probability of sacubitril/valsartan being cost-effective was below 1%, 12%, and 71% at SGD 20,000, SGD 50,000, and SGD 100,000 per QALY gained, respectively.

Conclusions: At the current daily price sacubitril/valsartan may not represent good value for limited healthcare dollars compared to enalapril in reducing cardiovascular morbidity and mortality in HF in the Singapore healthcare setting. This study highlights the cost-benefit trade-off that healthcare professionals and patients face when considering therapy.     

Retracted: Leadership behaviors that really count in an organization's performance in the middle east: The case of Dubai

Retraction: The following article from the Journal of Leadership Studies entitled “Leadership behaviors that really count in an organization's performance in the Middle East: The case of Dubai” by Mohamed Behery, published on July 28, 2008, on Wiley Online Library ( wileyonlinelibrary.com ) and in Volume 2, Issue 2 (August 2008), has been retracted by agreement between the author, the Editor, Jake Burdick, and Wiley Periodicals, Inc. The Editorial Office of the Journal of Leadership Studies has concluded that the article did not contain precise references to support direct quotations and significant paraphrases from other articles. Although the Editorial Office felt a retraction was necessary, it wishes to note its belief that the author acted in good faith and that Mr. Behery has not been accused of any misconduct with respect to the contents of the article. Jeremy Moreland Editor‐in‐Chief, Journal of Leadership Studies Jake Burdick Editor, Journal of Leadership Studies