Green shoots and double dips in the euro area: A real time measure

In order to perform real-time business cycle inferences and forecasts of GDP growth rates in the euro area, we use an extension of the Markov-switching dynamic factor models that accounts for the features of the day-to-day monitoring of economic developments, such as ragged edges, mixed frequencies and data revisions. We provide examples that show the nonlinear nature of the relationships between data revisions, point forecasts and forecast uncertainty. Based on our empirical results, we think that the real-time probabilities of recession inferred from the model are an appropriate statistic for capturing what the press call green shoots, and for monitoring double-dip recessions.     

Telework, human resource flexibility and firm performance

The results of a survey of 156 Spanish firms indicate that HR development practices are positively associated to the intensity of telework adoption and they moderate the relationship between telework and firm performance. The positive moderator effect of HR development practices indicates that their implementation is necessary not only to facilitate telework adoption but also to enhance the otherwise marginal contribution of telework at organisational level.     

Customer Involvement in New Service Development: An Examination of Antecedents and Outcomes*

Customer involvement has been recognized as an important factor for successful service development. Despite its acknowledged importance, a review of the literature suggests that there is little empirical evidence about the effectiveness and outcomes of interacting with customers while developing new services. Similarly, the extant literature shows mixed views about the effect of technological uncertainty on customer involvement and the effectiveness of customer involvement at different stages of the new service development process. Against this backdrop, the present study has three objectives: (1) to investigate the effects of customer involvement on operational dimensions (i.e., innovation speed and technical quality) and market dimensions (i.e., competitive superiority and sales performance) of new service performance; (2) to examine the effect of technological novelty and technological turbulence on customer involvement; and (3) to explore the moderating effect of the stage of the development process on the relationships among technological novelty, technological turbulence and customer involvement, and customer involvement and new service performance. A total of 807 firms with 75 or more employees in a varied set of industries were selected from the Dun & Bradstreet's 2004 listing of Spanish service firms. A questionnaire was mailed to the person in charge of new service development at each company. A total of 102 complete questionnaires were returned. Findings reveal that whereas customer involvement has a positive direct effect on technical quality and innovation speed, it has an indirect effect on competitive superiority and sales performance through both technical quality and innovation speed. The study also finds a positive effect of technological novelty as well as technological turbulence on customer involvement. Contrary to expectations, the study does not find any moderating effects of the stage of the development process. This study has several theoretical and managerial implications. In terms of theoretical implications, the study supports the role of technological uncertainty (novelty and turbulence) as an antecedent to customer involvement. It also provides empirical evidence of the impact of customer involvement on operational and market dimensions of new service performance. In terms of managerial implications, the study offers critical insights on how customer involvement in new service development translates into improved new service performance. Furthermore, it reveals that the importance of customer involvement in technologically uncertain contexts and its impact on new service performance are independent of the stage of the development process, suggesting that managers should involve customers throughout the entire development process.     

OMITTED VARIABLES IN THE MEASUREMENT OF A LABOR QUALITY INDEX: THE CASE OF SPAIN

Traditional measures of labor quality might have the shortcoming of missing some features of the very important increase in labor utilization within European countries. In particular, we explore the case of Spain. Despite showing one of the most important increases in labor quality in the EU according to standard methods, it also presents a negative TFP growth. The paper shows the importance of considering—on top of observed changes in the composition of the labor force by gender, age, education, tenure, and nationality—changes in both average and relative productivities of those abovementioned socio‐demographic groups over time. We first use a time varying weight index in order to capture the decrease in relative productivities across characteristics. Once this issue is considered the estimated growth of labor quality decreases notably and the index becomes flat between 2002 and 2006. We relate this slowdown to the increasing over‐education of the Spanish workforce in the recent past. We then incorporate a selection model into the labor force. We argue that in the recent past there has been a massive entry of workers with below average unobserved abilities, generating a decrease in quality of labor. Indeed labor quality slightly decreased from 1995 onwards (always increasing without the selection model).     

Determinants of the satisfaction of firms with the competencies of university students: a Spanish case study

Spanish universities pay little attention to business demands with regard to workforce training and to the research that has been developed in this area. The present study analyses the effect of various factors on firms’ satisfaction with the education provided by universities. The factors include the content of the student's major subject of study and social, methodological and participation skills. The data were obtained from a survey of businesses. Although the results obtained show that all of the factors have an impact on overall satisfaction, they are not of equal importance. University managers may be able to use the information obtained from this study as a basis for designing and implementing action that might improve employers’ level of satisfaction, which has considerable positive consequences. Moreover, the study's methodology could be applied to other outputs of universities, such as the research performed.     

Effect of information quality due accounting regulatory changes: Applied case to Mexican real sector

The purpose of this paper is to examine whether changes in accounting standards improve value relevance of financial information on listed companies in Mexico. The research was conducted for the period 2000–2013 using a sample of 141 companies that report to the Mexican stock exchange using the methodology of panel data. Our findings show that changes in local regulations (generally accepted accounting principles) to internationally approved standards (Financial Reporting Standards and International Financial Reporting Standards) increase the value relevance and therefore the quality of information. The study shows that the accounting information with international Financial Reporting Standards is more trustworthy for foreign and national investors.     

Measuring uncertainty and assessing its predictive power in the euro area

Expectations and uncertainty play a key role in economic behavior. This paper deals with both, expectations and uncertainty derived from the European Central Bank Survey of Professional Forecasters. Given the strong turbulences that the euro area macroeconomic indicators observe since 2007, the aim of the paper is to check whether there is any room for improvement of the consensus forecast accuracy for GDP growth and inflation when accounting for uncertainty. We propose a new measure of uncertainty, alternative to the ad hoc equal weights commonly used, based on principal components. We test the role of uncertainty in forecasting macroeconomic performance in the euro area between 2005 and 2015. We also check the role of surprises in the considered forecasting sample.