Market concentration and the likelihood of financial crises

According to theory, market concentration affects the likelihood of a financial crisis in different ways. The “concentration-stability” and the “concentration-fragility” hypotheses suggest opposing effects operating through specific channels. Using data of 160 countries for the period 1970–2009, this paper empirically tests these indirect effects of financial market structure. We set up a simultaneous system in order to jointly estimate financial stability and the relevant channel variables as endogenous variables. Our findings provide support for the assumption of channel effects in general and both the concentration-stability and the concentration-fragility hypothesis in particular. The effects are found to vary between high and low income countries.     

On the theory of DRC criteria

Srinivasan and Bhagwati (1978) show total and direct DRC are identical in a two-good, two-factor model with an additional, small project. This result is shown here not to extend to the case of more goods than factors, the usual empirical context of DRCs. For first-best solutions the direct DRC is appropriate, the total DRC is biassed against production and the so-called ideal variant biassed toward production. The total DRC is often advocated when areas of control are limited. If production or trade constraints compel obtaining materials from domestic producers, a particular, total DRC decomposition does provide valid guidelines, but its measure requires prior knowledge of the solution. The direct DRC, measured in second-best shadow prices, does convey limited information, even when areas of control are restricted, but in general a total formulation diminishes this information content.     

Guidelines for marketing a new industrial product

This article presents an illustration of what evaluations and obstacles a new product can face in an industrial market. Guidelines are also suggested which will hopefully better prepare industrial marketers for more success in marketing new products.     

Empirical credit cycles and capital buffer formation

We model 1927–1997 US business failure rates using an unobserved components time series model. Clear evidence is found of cyclical behavior in default rates. We also detect significant longer term movements in default rates and default correlations. In a multi-year backtest experiment we show that accommodation of default rate dynamics has important consequences for credit risk capitalization requirements. Static or myopic variants of credit portfolio models miss significant periods of credit risk accumulation. Empirically congruent dynamic models by contrast provide more timely warning signals of credit risk build-up. In this way they may mitigate some of the pro-cyclicality concerns.     

The nonprofit case for corporate volunteering: a multi-level perspective

ABSTRACT

This article argues that the nonprofit case for corporate volunteering is complex, requiring a multi-level perspective on the outcomes for nonprofit organizations (NPOs). To develop this perspective, we adopted an inductive research approach, conducting 39 exploratory semi-structured interviews with NPO staff. We argue that NPO scholars and practitioners should disentangle individual and organizational-level outcomes resulting from interactions between corporate volunteers and NPO staff, as such micro-dynamics ultimately affect NPO services. Moreover, these outcomes are subject to conditions at the organizational level (e.g. involvement of intermediaries), as well as at the individual level (e.g. type of assignment). Our study highlights the complexity that should be considered when addressing the fundamental question of whether corporate volunteering contributes to the ability of NPOs to provide their services, and under what conditions. We therefore propose that corporate volunteer management within NPOs is inherently, albeit contingently, intertwined with the services that these organizations provide.     

Efficacy of public awareness strategies for promoting existing cultural heritage tourism assets in Dar es Salaam

Although Dar es Salaam City is endowed with numerous cultural heritage resources, it fails to exploit such potentials. While there were some initiatives to boost cultural heritage tourism in the city, their efficacy was unknown and they remain undocumented. This study was designed to assess public awareness means and their effectiveness in promoting cultural heritage tourism in Dar es Salaam City. Data collection was through questionnaires, focus group discussions, observations, and key informant interviews. Findings indicated that most of the existing potential sites were not known as cultural heritage tourism sites such that they were regarded like any other normal places in the city. Available public awareness strategies (except a few) were ineffective and inaccessible. One could then wonder how available cultural heritage assets may be made known and attract others to take part. The study calls for public awareness strategies to improve knowledge on available cultural heritage assets to the general public, a measure, which will positively enhance accessibility to cultural heritage assets, improve goodwill as well as cooperation to tourists and improve ethics of their care. Such undertakings eventually will lead to sustainable cultural heritage tourism growth.     

Modelling bullying propagation in Spain: a quantitative and qualitative approach

Bullying in schools can be defined as a category of aggressive behaviour with an imbalance of power, and aggression event is repeated over time. Bullying occurs as a social process in nature, and takes place in groups. Attacks are mostly unprovoked, and can be physical or verbal, direct or indirect. This paper focuses on modelling the propagation of bullying in the Spanish school population aged [12, 18] during the period July 2015–January 2020, and on identifying and quantifying its main drivers. Thus, a population dynamics model is built to forecast and quantify the magnitude of the bullying problem in Spain over the July 2015–January 2020 period by taking into account qualitative and quantitative factors; e.g., demography, economy, socio-cultural behaviour, consumption of drugs and alcohol, social contagion and technology. The study provides recommendations to reduce and prevent the growth of this social problem, but to also mitigate a correlated problem, such as intimate partner violence among adults. In fact one of the main utilities of the built model is that new policies can be simulated and allow their effects to be seen.     

Are French consumers ready to pay a premium for eco‐labeled seafood products? A contingent valuation estimation with heterogeneous anchoring

Could the future French eco‐label for fresh seafood products find its place in the French market? This study employs a contingent valuation method to estimate French consumers’ willingness‐to‐pay (WTP) for eco‐labeled fresh seafood products. We exploit original data from a survey carried out in 2010, where 626 participants responded to a double‐bounded dichotomous choice model, through an ascending or descending bid system. Controlling for shift and anchoring effects in random effect probit models, we significantly improve estimation of WTP and its determinants for the three species studied (monkfish, lobster, sole), in particular when using heterogeneous anchoring. We show that WTP is positively correlated to respondents’ income, and also to their environmental concern, to living alone, to living far from the coast, and to trusting NGOs or public institutions more than producer organizations to implement an eco‐label. We also show that the mean price premiums do not differ between species. Finally, on average, the maximum premium consumers accepted to pay is approximately 10% of the product price.     

Testing for ARCH in the presence of additive outliers

In this paper we investigate the properties of the Lagrange Multiplier [LM] test for autoregressive conditional heteroscedasticity (ARCH) and generalized ARCH (GARCH) in the presence of additive outliers (AOs). We show analytically that both the asymptotic size and power are adversely affected if AOs are neglected: the test rejects the null hypothesis of homoscedasticity too often when it is in fact true, while the test has difficulty detecting genuine GARCH effects. Several Monte Carlo experiments show that these phenomena occur in small samples as well. We design and implement a robust test, which has better size and power properties than the conventional test in the presence of AOs. We apply the tests to a number of US macroeconomic time series, which illustrates the dangers involved when nonrobust tests for ARCH are routinely applied as diagnostic tests for misspecification. Copyright © 1999 John Wiley & Sons, Ltd.     

Portfolio Choice and Asset Prices: The Importance of Entrepreneurial Risk

Using cross-sectional data from the SCF and Tax Model, we show that entrepreneurial income risk has a significant influence on portfolio choice and asset prices. We find that households with high and variable business income hold less wealth in stocks than other similarly wealthy households, although they constitute a significant fraction of the stockholding population. Similarly for nonentrepreneurs, holding stock in the firm where one works reduces the portfolio share of other common stocks. Finally, we show that adding proprietary income to a linear asset pricing model improves its performance over a similar model that includes only wage income.