Sudden changes in volatility: The case of five central European stock markets

This paper investigates sudden changes in volatility in the stock markets of new European Union (EU) members by utilizing the iterated cumulative sums of squares (ICSS) algorithm. Using weekly data over the sample period 1994–2006, the time period of sudden change in variance of returns and the length of this variance shift are detected. A sudden change in volatility seems to arise from the evolution of emerging stock markets, exchange rate policy changes and financial crises. Evidence also reveals that when sudden shifts are taken into account in the GARCH models, the persistence of volatility is reduced significantly in every series. It suggests that many previous studies may have overestimated the degree of volatility persistence existing in financial time series.     

Dynamic in-destination decision-making: An adjustment model

The study of tourist decision-making usually focuses on destination choice, framed in terms of informational inputs into the rational decision-making processes of individuals. We report on a study of on-site tourist decision-making in the South Island of New Zealand. The framework within which decision-making is conceptualised draws on process accounts derived from work in naturalistic decision-making, and adaptive, situated and embodied cognition, and in this respect the study distinguishes itself from much previous work in this area. One hundred and forty qualitative interviews were analysed thematically to identify four dimensions of an emergent process of decision-making: (In)Flexibility; Location/timing; Social Composition; Stage of Trip. Decision-making varies on these dimensions in line with various ‘Types of Trip’ also identified from the data. This study provides support for process approaches to tourist decision-making and characterises it in terms of a continual process of socially mediated adjustment to features of the destination and overall trip evolution.     

Time to Cut Up Those Debit Cards? Effect of Payment Mode on Willingness to Spend

Financial industry data indicate that consumers increasingly prefer debit cards over credit cards, especially as a means of enforcing financial self-discipline. Given prior research suggesting that credit cards act as spending facilitating stimuli, this move toward reduced credit card use would appear to be in the right direction. Ironically, however, the same logos that were implicated in facilitating spending with credit cards are the logos that appear on debit cards. In what should serve as an eye-opener to consumers, it is found that exposure to debit card logos does result in an increased willingness to spend, similar to credit cards.     

Gender differences in charitable giving

This paper examines the mechanisms for giving by investigating the psychological and values differences between men and women's motivations for giving. We explored two of the eight mechanisms for giving developed by Bekkers and Wiepking as a framework for why people give—principle of care and empathic concern. Are there differences in these motives for giving by gender, and can these differences in values and the psychological benefits that people receive when making donations explain gender differences in charitable giving? Are women more likely to give and give more than men because of their higher levels of empathic concern and principle of care? We used two US national data sets to test our hypotheses. Our results for both data sets indicate significant differences in motives by gender, as well as differences in the probability of giving and amount given by gender, even after controlling for empathic concern and principle of care measures. Our findings are discussed in terms of the importance of viewing charitable giving through a gender lens as well as practical implications for practitioners. Copyright © 2011 John Wiley & Sons, Ltd.     

Optimal and Simple,Nearly Optimal Rules for Minimizing the Probability Of Financial Ruin in Retirement

Abstract

The increasing risk of poverty in retirement has been well documented; it is projected that current and future retirees’ living expenses will significantly exceed their savings and income. In this paper, we consider a retiree who does not have sufficient wealth and income to fund her future expenses, and we seek the asset allocation that minimizes the probability of financial ruin during her lifetime. Building on the work of Young (2004) and Milevsky, Moore, and Young (2006), under general mortality assumptions, we derive a variational inequality that governs the ruin probability and optimal asset allocation. We explore the qualitative properties of the ruin robability and optimal strategy, present a numerical method for their estimation, and examine their sensitivity to changes in model parameters for specific examples. We then present an easy-to-implement allocation rule and demonstrate via simulation that it yields nearly optimal ruin probability, even under discrete portfolio rebalancing.     

Stress Appraisal and Coping Response to Hassles Experienced in Outdoor Recreation Settings

The purpose of this article was to report recreationists' coping response to stress experienced in outdoor recreation settings. Stress was defined as daily hassles. The most frequent sources of hassles were litter, noise from other people, damage to the resource, and too many people at campsites. Recreationists used a coping scheme that combined problem and emotion-focused coping mechanisms. Intensity of stress moderately predicted coping response and frequency of stress weakly predicted coping. The use of coping had a moderately positive relationship with negative impacts to the recreation experience resulting from the hassle situation. The results were interpreted using psychological stress theory to offer refinement and future research directions in recreation-stress research.     

The transition from paid to self-employment in Canada: the importance of push factors

The share of self-employment in total employment has been growing in Canada throughout the 1990s. Recent research for Canada and elsewhere suggests that some workers may be ‘pushed’ into self-employment as a response to inadequate opportunities in the paid sector. Examining transitions from paid work to selfemployment using the Labour Market Activity Survey, this push hypothesis is tested using a number of indicators of the economic opportunities facing the newly selfemployed. It is found: (i) longer spells of joblessness favour self-employment, (ii) workers who collect unemployment benefits between jobs are less likely to become self-employed than are workers who did not, (iii) workers who left their previous, paid jobs involuntarily - i.e., due to layoff - were more likely to become selfemployed than those who left voluntarily, but less likely than workers who specified personal reasons for leaving, and (iv) self-employment decisions are independent of the health of the labour market as measured by the unemployment rate. These results are generally consistent with the push hypothesis but provide more ambiguous evidence than found in some other studies.     

Technology literacy: the extension of cognition

Technology literacy is a construct that is increasingly referred to as an essential twenty-first century skill. However, too often, it is ambiguous as to what constitutes technology literacy. This paper posits that technology literacy has three distinct levels, including, (1) identify technologies relevant to a task, (2) understanding how to use the technology and how to navigate its interface, and (3) understanding the inner-working or structure of the technology. This paper describes why one or more of these three ways of knowing technology are involved in almost every learning task. In other words, the paper argues that technology literacy should not be thought of as a isolated set of skills, but as an essential strategy for most learning objectives.     

The measurement of intergenerational communication and influence on consumption: Development, validation, and cross-cultural comparison of the IGEN scale

This article develops and validates measures of intergenerational communication and influence about consumption. Despite the widespread belief that parents play a pivotal role in the consumer socialization of their children, empirical research on the skills, attitudes, and preferences transmitted from one generation to the next is quite limited. One factor that may explain this deficiency is the lack of appropriate instruments for assessing intergenerational issues. Drawing on consumer socialization theory and research, intergenerational transmission is defined in terms of three components directly relevant to marketplace transactions: (1) consumer skills, (2) preferences, and (3) attitudes toward marketer-supplied information. Multi-item scales are developed to measure each of these components. The findings of three studies supporting the reliability, dimensionality, and validity of the intergenerational scales are reported. Validation efforts incorporate cross-cultural analyses from the United States and Thailand, as well as dyadic-level comparisons between parents and children. Madhubalan Viswanathan is an associate professor of marketing at the University of Illinois. He received his Ph.D. from the University of Minnesota. His research interests include consumer psychology and measurement. His research appears in several journals including theJournal of Consumer Psychology, theJournal of Marketing Research, theJournal of Applied Psychology, Personality and Social Psychology Bulletin, andPsychology and Marketing. He serves on the editorial review boards of theJournal of Consumer Psychology andPsychology and Marketing. Terry L. Childers is a professor of marketing at the University of Minnesota. He received his Ph.D. from the University of Wisconsin. His research interests include visual information processing, measurement, and psychometrics. His work has been published in several journals including theJournal of Marketing Research, theJournal of Consumer Research, theJournal of Consumer Psychology, and theJournal of Mental Imagery. He serves on the editorial review boards of theJournal of Consumer Research and theJournal of Business Research. Elizabeth S. Moore is an assistant professor of marketing at the University of Notre Dame. She received her Ph.D. from the University of Florida. Her research interests include consumer decision processes within the household, the effects of advertising and promotion on children, as well as marketing and society issues. Her work has been published in theJournal of Marketing, theJournal of Consumer Research (in press), and theJournal of Macromarketing, as well as other books and conference proceedings.