Segmenting residents based on emotional reactions to tourism performing arts development

To identify residents’ heterogeneity beyond a perception lens, this research seeks to cluster urban and rural residents based on their emotions, commitment and behavioral intentions toward tourism performing arts (TPA) development. A survey comprising 438 urban and 435 rural respondents was collected in Hangzhou and Yangshuo, China. A two-step cluster analysis revealed that residents’ length of residence and birthplace were the most significant model predicators. Different cluster profiles labeled as “enthusiasts”, “committed supporters”, “appraisers” and “critics” were identified. Findings provide targeted strategies to cultivate resident commitment and reduce hostility toward TPA development in different types of communities.     

Risk aversion,prudence, and compensation

In a standard principal-agent setting, we use a comparative approach to study the incentives provided by different types of compensation contracts, and their valuation by managers with utility function u who are risk averse (u″<0) and prudent (u″′>0). We show that concave contracts tend to provide more incentives to risk averse managers, while convex contracts tend to be more valued by prudent managers. This is because concave contracts concentrate incentives where the marginal utility of risk averse managers is highest, while convex contracts protect against downside risk. Thus, managerial prudence can contribute to explain the prevalence of stock-options in executive compensation. However, convex contracts are not optimal when the principal is sufficiently prudent relative to the manager.     

The Growth and Decline of the Modern Sector and the Merchant Class in Imperial China

This paper offers an explanation of why, in Imperial China, the merchant class expanded and the economy modernized up to the 13th century, and why it entered into decline from the 14th century onward. The modernization of China required the accumulation of public capital and the building of good institutions, upon which a vibrant class of merchants and entrepreneurs could gradually emerge. This class contributed to the enrichment of the society and the emperor, but its activities also weakened the dominance of the emperor and the élite, who would then prefer to block the modernization of China and to restrict the size of the merchant class, putting the economy into long‐run stagnation. However, when the emperor faced severe foreign military threats and when he realized that a modern sector improved the defense capabilities of China, he made the opposite choice.     

Gender Differences in Psychosocial Determinants of University Students’ Intentions to Buy Fair Trade Products

This study examined gender differences in university students’ intentions to buy fair trade (FT) products through the lens of the moral norm extended theory of planned behaviour (TPB). Data were obtained from 782 students at the University of Luxemburg. Results of structural equation analysis indicated that the inclusion of moral norms increased the explained variance in behavioural intentions from 62 to 69.4%. Compared to men, women reported more favourable attitude, higher moral obligation, and stronger intentions toward buying FT products. Moderating analyses showed that the attitude–intentions relationship was stronger for men, whereas the perceived behavioural control–intentions relationship was stronger for women. The implications of the moderation analysis are that sustainability professionals seeking to encourage university students’ intentions to buy FT products should develop gender-targeted interventions: for men, more emphasis should be placed on attitude toward buying FT products (i.e., the advantages of adopting this behaviour), and for women, more emphasis should be placed on perceived behavioural control (e.g., factors that facilitate the purchase of FT products).     

A study of political activism in labour courts

We analyse 1234 judicial decisions to estimate political activism amongst judges arbitrating dismissal disputes in Australian labour courts. The political colour of the appointing political party and judges’ work background affect probability of employee success by about 10% points.     

When is Lift-Off? Evaluating Forward Guidance from the Shadow

We examine the record of the CD Howe’s shadow Monetary Policy Council (SMPC) in Canada. We report a considerable diversity of opinion about the recommended future path of interest rates inside the SMPC. During the period of Bank of Canada forward guidance, market determined forward rates diverge considerably from the recommendations implied by the SMPC. Nevertheless, there is little evidence that the Bank of Canada and the SMPC coordinate their future views about the interest rate path. Finally, changes in views about future changes in policy rates for horizons beyond the next two interest rate decisions are difficult to explain. Our findings imply that there remain challenges in understanding the evolution of future interest rate paths over time. We conclude with some policy implications.