Wage and Price Rigidity in a Monetary Union

We extend irrelevance results of sticky prices and fixed exchange rates to environments with sticky wages. Provided payroll taxes can be used with the same flexibility as monetary policy, then sticky wages are irrelevant for both optimal allocations and policies in response to shocks. This is the case also under fixed exchange rates or in a monetary union.     

Environmental Mutual Funds: Financial Performance and Managerial Abilities

For 15 years, former assistant football coach Jerry Sandusky used his Penn State University perquisites to lure young and fatherless boys by offering them special access to one of the most revered football programs in the country. He repeatedly used the football locker room as a space to groom, molest, and rape his victims. In February 2001, an eye-witness alerted Penn State’s top leaders that Sandusky was caught sexually assaulting a young boy in the showers. Instead of taking swift action against Sandusky, leaders began a cover-up that is considered one of the worst scandals in sports history. While public outcry has focused on the leaders’ silence, we focus on the talk that occurred within the organization by key personnel. Drawing from court documents and internal investigative reports, we examine two euphemism clusters that unfolded in the scandal. The first cluster comprises reporting euphemisms, in which personnel used coded language to report the assault up the chain of command. The second cluster comprises responding euphemisms, in which Penn State’s top leaders relied on an innocuous, but patently false, interpretation of earlier euphemisms as a decision-making framework to chart their course of (in)action. We use this case to demonstrate how euphemistic language impairs ethical decision-making, particularly by framing meaning and visibility of acts, encouraging mindless processing of moral considerations, and providing a shield against psychological and material consequences. Further, we argue that euphemism may serve as a disguised retort to critical upward communication in organizations.     

Climate Change and Financial Performance in Times of Crisis

Over the past years there has been a debate on the relationship between the environmental and financial performance of businesses, but researchers have not reached any agreement. This research attempts to explore this relationship, especially as in recent years there has been controversy about how this relationship has been affected by the global economic crisis. Taking into account that successfully limiting global climate change to safe levels in the long term is likely to require connecting climate change policies to sustainable development strategies, this paper focuses on the performance of environmental policies. We used a sample of 855 international companies in sectors of intensive greenhouse gas/CO₂ emissions. Specifically, we used data from the Forbes Global 2000 Index and Carbon Disclosure Project data from 2006 to 2009. The data analysis was performed using panel data methodology. The results obtained show that in times of economic crisis, the synergy between environmental and financial performance is higher, meaning that companies must continue to invest in sustainable projects in order to enhance relations with their stakeholders, leading to higher economic profits. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

‘We (don’t) know how you feel’ – a comparative study of automated vs. manual analysis of social media conversations

Abstract

The ever-growing volume of brand-related conversations on social media platforms has captivated the attention of academics and practitioners, as the analysis of those conversations promises to offer unparalleled insight into consumers’ emotions. This article takes a step back from the hype, and investigates the vulnerabilities related to the analysis of social media data concerning consumers’ sentiment. A review of the literature indicates that the form, focus, source and context of the communication may negatively impact on the analyst’s ability to identify sentiment polarity and emotional state. Likewise, the selection of analytical tool, the creation of codes, and the classification of the data, adversely affect the researcher’s ability to accurately assess the sentiment expressed in a social media conversation. Our study of Twitter conversations about coffee shows low levels of agreement between manual and automated analysis, which is of grave concern given the popularity of the latter in consumer research.     

Trip Cultural Activities and Tourism Expenditure in Emerging Urban‐cultural Destinations

Although tourism expenditure is determined by different factors, the literature has not analysed the extent to which trip cultural activities affect tourism expenditure in the destination. The focus of this paper is a microeconomic analysis performed in 14 emerging urban‐cultural destinations in Andalusia (Spain). The results confirm that there are activities related to cultural visits, attendance at events or gastronomic activities that determine tourism expenditure. These results guide the implementation of specific actions by the policy‐makers in these destinations aimed at increasing the economic impact of tourism, based on the creation of high value‐added tourism products to overcome their mere dependence on built heritage. Copyright © 2015 John Wiley & Sons, Ltd.     

Managing complexity： A problem of chaos in fisheries policy

This work intends to present chaos theory （and dynamical systems such as the theories of complexity）, in terms of interpretation of ecological phenomena. The chaos theory applied in the context of ecological systems, especially in the context of fisheries has allowed the recognition of the relevance of this kind of theories to explain fishing phenomena and fisheries policies. It has permitted new advances in the study of marine systems, contributing to the preservation of fish stocks. This paper deals with the way how to manage fisheries taking chaos in account of the problem.     

Informal employment in developing countries : Opportunity or last resort?

There is an ongoing debate among researchers and policy makers, whether informal sector employment is a result of competitive market forces or labor market segmentation. More recently it has been argued that none of the two theories sufficiently explains informal employment, but that the informal sector shows a heterogenous structure. For some workers the informal sector is an attractive employment opportunity, whereas for others - rationed out of the formal sector - the informal sector is a strategy of last resort. To test the empirical relevance of this hypothesis we formulate an econometric model which allows for several unobserved segments within the informal sector and apply it to the urban labor market in Côte d'Ivoire.     

Commonality in the LME aluminum and copper volatility processes through a FIGARCH lens

Dynamic representation of spot and three‐month aluminum and copper volatilities is considered. Aluminum and copper are the two most important metals traded in the London Metal Exchange. They share common business cycle factors and are traded under identical contract specifications. The bivariate FIGARCH model, which allows parsimonious representation of long memory volatility processes, is applied. The results show that spot and three‐month aluminum and copper volatilities follow long memory processes, that they exhibit a common degree of fractional integration and that the processes are symmetric. However, there is no evidence that the processes are fractionally cointegrated. This high degree of commonality may result from the common LME trading process. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:935–962, 2008     

Polychoric versus Pearson correlations in exploratory and confirmatory factor analysis of ordinal variables

Given that the use of Likert scales is increasingly common in the field of social research it is necessary to determine which methodology is the most suitable for analysing the data obtained; although, given the categorization of these scales, the results should be treated as ordinal data it is often the case that they are analysed using techniques designed for cardinal measures. One of the most widely used techniques for studying the construct validity of data is factor analysis, whether exploratory or confirmatory, and this method uses correlation matrices (generally Pearson) to obtain factor solutions. In this context, and by means of simulation studies, we aim to illustrate the advantages of using polychoric rather than Pearson correlations, taking into account that the latter require quantitative variables measured in intervals, and that the relationship between these variables has to be monotonic. The results show that the solutions obtained using polychoric correlations provide a more accurate reproduction of the measurement model used to generate the data.