Housing Market and Current Account Imbalances in the International Economy

This paper presents a two‐sector, two‐country model showing that inflation in the housing market, a low personal savings rate, and a construction investment boom can contribute to a large current account deficit. In the model, demand by a group of households in the domestic country is constrained by the availability of collateral. This implies more procyclical debt capacity because constrained households can borrow against the increase in the value of their houses during an expansion. A higher degree of financial liberalization and development helps constrained households reach higher loan‐to‐value ratios, thus relaxing their borrowing constraints. The resulting higher net worth and lower need for savings imply a worsening current account.     

Efficiency in banking services: a comparative analysis of Internet-primary and branching banks in the US

This paper investigates the provision of financial services by banks as a two-stage production process involving three different basic activities. The first stage includes service activities, while the second stage comprises both investment-related and risk management activities. Financial services performance is assessed in terms of service efficiency and investment and risk management efficiency for years 2002–2010. The major empirical findings are that the Internet-primary bank is more efficient than most branching banks in deposit-raising activities, but with regard to investment and risk management activities, there are many brick-and-mortar banks that match the online bank performance.     

How can domestic households become part of the solution to England's recycling problems?

A waste disposal problem of looming proportions, coupled with a lack of sufficient public engagement in the preferred alternative to disposal, which is recycling, continues to perplex English policy‐makers. Based on both a literature review across a wide range of disciplines and a national survey of consumer attitudes towards their own participation in recycling, this paper finds that past efforts at increasing recycling have been based on an implied model of consumer recycling behaviour that is not supported by what happens in practice. By disentangling thinking about recycling behaviour from academic thinking about green consumerism, the paper considers the waste and recycling problem from a different angle. It suggests that research on the personal values of people who recycle could be utilized in marketing communications that show these values being fulfilled by recycling. Focusing greater marketing attention on people who already claim to recycle, and helping them through better communication and improved practical help, could achieve much higher levels of reclaimed materials. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Are all the parts there everywhere? Facet job satisfaction in the United States and the Philippines

The relationship of satisfaction with the “parts” or facets of the job to the “whole” of global job satisfaction and to intention to quit differed between samples of employees from financial firms in the United States of America (USA) and the Philippines. In contrast with research using commonly accepted sets of facet satisfactions developed in the USA, our results showed that additional extrinsic facets improved the explanation of outcomes in the Philippines, but not in the USA. In addition, extending past research, satisfaction with intrinsic job facets explained outcomes better in the USA than in the Philippines, and job dissatisfaction had a stronger relationship with turnover intentions in the USA than in the Philippines. Implications for the measurement of facet satisfactions, and for international management research and practice in the Philippines are discussed.     

Effects of decoupling on the mean and variability of output

The influence of inputs on output risk in the context of agriculturalproduction decisions taken by non-risk neutral agents has beenignored by previous research assessing the effects of decoupledincome support payments in a deterministic world or risk-neutralframework. We study the impacts of decoupled payments on inputuse and on output mean and variance. Our theoretical frameworkfor studying agricultural producers' responses to lump sum paymentsallows for both output and price uncertainty and economic agents'risk attitudes. Results show the importance, in a non-risk neutralscenario, of considering the influence that economic agentshave on the stochastic component of output through input use.Our empirical application uses Kansas farm-level data to illustratethe model.     

The sustainability–profitability trade-off in tourism: can it be overcome?

This paper answers key questions about personal and industry decision-making in implementing sustainable tourism. Being environmentally friendly is typically associated with sacrifice, including sacrifice of comfort (e.g. walking rather than driving), sacrifice of time (e.g. recycling garbage) or sacrifice of money (e.g. buying more expensive locally grown vegetables). Consequently, the tourism industry perceives sustainable tourism as a sacrificial touristic niche, one that is associated with additional cost but appears to attract customers who do not spend enough money to compensate for the extra effort. This paper explores a perceived trade-off between minimising environmental damage and maximising revenue, by finding market segments that are environmentally friendly and have high expenditures. An online survey was made of 1003 Australian domestic tourists. Results indicate that tourist segments vary significantly in terms of their environmental impacts and vacation expenditure. Six segments were identified. Two market segments, containing 40% of the total market, that leave small environmental footprints while maintaining high expenditure were found, indicating that market segmentation when coupled with marketing/demarketing policies can be used as a strategy complementary to the development of destination-based initiatives to reduce the environmental impact of tourism.     

Teacher well-being and innovation with information and communication technologies; proposal for a structural model

The fundamental objective of the study presented in this article is to formulate a theoretical model with an empirical base that identifies the factors associated with the well-being of teachers, when they tackle processes of educational innovation mediated by the use of the information and communication technologies (ICT). Subjective well-being is an area of study of social psychology linked to the studies into “happiness” or “satisfaction with life” and constitutes an increasingly broad theoretical body. A questionnaire was produced, based on the scientific foundations that support the proposed model, and its validity and reliability have been established. The population and sample is made up of 322 teachers from non university centres that carry out innovative experiences with ICT in four Regions of Spain. The results obtained confirm five latent variables that explain the teacher well-being associated with innovation practices in ICT: (1) values/projects, (2) motivation, (3) competences, (4) satisfaction and (5) emotions. An explanatory structural model of teacher well-being is empirically validated. These findings could be of interest in identifying and promoting the relevant keys that help to improve the emotional states of working teachers.     

Business motivation and informational needs in internationalization

We focus on an analysis of entrepreneurs’ motivation in business internationalization. Following on from the Regulatory Focus Theory, two differing approaches emerge: promotion (PMF) and prevention (PVF). PMF entrepreneurs approach internationalization spurred by their own motivation as opposed to PVF entrepreneurs who engage in internationalization motivated by the competitive environment. We propose that entrepreneurs’ motivational orientation depends on their prior international experience relating to business internationalization. Moreover, an internationalization strategy requires information regarding markets, barriers and support programmes. Entrepreneurs’ motivational orientation also impacts their informational concerns and alertness to informative stimuli. For the empirical application, we assess the opinions of entrepreneurs working in the Spanish natural stone sector. Findings reveal that entrepreneurs’ motivational orientation with regard to international opportunities changes as they gain experience, which at the same time alters their alertness and their informational concerns.     

FACTOR REALLOCATION COSTS AND TESTS OF THE HECKSCHER-OHLIN TRADE THEORY

The Heckscher-Ohlin-Samuelson (HOS) theory of international trade, a basic long-run microeconomic model in which adaptation occurs through the costless reallocation of factors between industries, performs poorly. Most attempts to improve the fit of the model have introduced productivity variations across countries. This article considers another source of error: the assumption of perfect factor mobility. Factors are neither perfectly mobile between industries, but neither are they perfectly industry-specific. Factors can be reallocated between industries, but at a cost. In previous work a measure of adjustment costs due to factor specificity were estimated in a two-period model of a firm's input allocation decision. These estimates are used in this article to test international trade models. Two contributions are made. First, factor reallocation costs explain 2–3% of the “missing trade” noted by Trefler. Second, the estimated country productivity differences vary considerably from the actual differences measured in this paper. In contrast to Trefler's finding that inclusion of estimated productivity differences improved the fit of HOS, when measured productivity differences are used in this paper, HOS performs almost as poorly as in its original specification. My findings highlight the inappropriateness of using HOS as a short-run explanation of trade.