State‐Dependent Forward Guidance and the Problem of Inconsistent Announcements

Forward guidance can be provided as an unconditional promise, i.e. commitment to a specific low policy rate. Alternatively, the promise may include an escape clause, i.e. a condition defining the state of the economy under which the central bank would not keep such a low rate and, instead, it would revert to setting policy under discretion. The escape clause can be expressed as a threshold in terms of a specific variable. The present paper shows that, when such a threshold is expressed in terms of an endogenous variable (e.g. output, inflation), there are cases where it becomes impossible for the central bank to act in a way that is consistent with its promise. Consistency imposes limits on the policy rate that can be set since reverting immediately to the optimal discretionary rate can be incompatible with exceeding the threshold.     

Investigating the diversifying or hedging nexus of cannabis cryptocurrencies with major digital currencies

Decisions in Economics and Finance - This paper sets out to explore the nexus between cryptocurrencies connected to cannabis production and the three highest capitalization digital currencies....     

A new take on voice: the influence of BlackRock’s ‘Dear CEO’ letters

Review of Accounting Studies - Abstract We examine whether broad-based public engagement by institutional investors influences the behavior of portfolio firms. We investigate this question in the...     

A study of the relationships among sensory experience,emotion, and buying behavior in coffeehouse chains

Studies that simultaneously explore the effects of sensory experience on consumer emotions and behavior are rare. This paper builds a model of buying behavior based on sensory experience, 570 valid questionnaires were obtained from coffeehouse customers. Using structural equation modeling and multiple regression analysis, this paper validates the concept model and verifies that sensory experience is a significant antecedent to buying behavior. This study indicates that certain sensory experiences significantly influence emotion. Emotion also plays a mediating role in the relationship between sensory experience and behavioral intentions. The findings are theoretically and practically profound as they address the relationships among sensory experience, consumer emotions, behavioral intentions, and buying behavior, as well as explore how the five senses affect emotions and buying behavior. This paper concludes by indicating managerial implications and research limitations.     

Is the Retail Gasoline Market Local or National?

This paper studies the effect of station density on prices in the retail gasoline market in the Czech Republic. We estimate the impact of the number of competing stations in various driving-distance ranges around each station on prices. We find that station density has a negative effect on prices; the effect decreases with distance and is statistically significant up to six kilometers. This suggests that the retail gasoline market is local rather than national.     

Reciprocal value sharing in manufacturer-retailer relationships: the case of new product introductions

Prior literature examined reciprocity in the context of value creation. However, research has yet to examine whether reciprocity exists in value sharing. To address this gap, the authors examine retailer’s reciprocal value sharing with its manufacturer in relation to new product introductions. The authors test, via a survey of retail managers, whether reciprocal value sharing is influenced by an interaction of manufacturer’s prior new product success with innovativeness of a manufacturer’s products and the frequency of new product introduction. The results indicate that a retailer’s reciprocal value sharing is greater when the manufacturer historically launched successful new products, and that this effect is decreased with the innovativeness of a manufacturer’s products but increased with the frequency of new product introduction.