The single supervision mechanism and contagion between bank and sovereign risk

Journal of Regulatory Economics - The objective of this article is to analyse how the Single Supervision Mechanism (SSM), the first pillar of the European Banking Union, affects contagion between...     

Affective Effects of Offering Options on Persuasiveness of Fear Appeals

Research on fear level and options available for consumers to reduce their level of threat was undertaken to determine what effect these variables have on attitudes, purchase intentions, and emotions besides fear. Using an experimental design, it was found that higher levels of fear induce elevated levels of anger and disgust. There was also a positive correlation between fear and positive attitudes and purchase intention, but only in cases where more options were offered. This suggests that if advertisers want to induce a high level of fear in audiences, offering multiple options to reduce fear can lead to more positive attitudes and purchase intention.     

Further econometric evidence on the extent and sources of cost savings in competitively tendered contracts

Empirical Economics - By estimating a flexible nonlinear regression model of savings on an original dataset of service procurements conducted by the Spanish Armed Forces, this paper provides robust...     

On dynamic programming with unbounded returns

Summary. Some economic models like those of endogenous growth motivate the analysis of a class of recursive models sharing the property that the return function is not bounded along feasible paths. We consider a strategy of proof which allows to deal with many unbounded recursive models exploiting bounds to the rates of growth rather than to the levels.     

Regulatory Capital Charges for Too‐Connected‐to‐Fail Institutions: A Practical Proposal

The recent financial crisis has highlighted once more that interconnectedness in the financial system is a major source of systemic risk. I suggest a practical way to levy regulatory capital charges based on the degree of interconnectedness among financial institutions. Namely, the charges are based on the institution's incremental contribution to systemic risk based on a risk budgeting approach. The imposition of such capital charges could go a long way towards internalizing the negative externalities associated with too‐connected‐to‐fail institutions and providing managerial incentives to strengthen an institution's solvency position, and avoid too much homogeneity and excessive reliance on the same counterparties in the financial industry.     

The determinants of more responsible restaurant food choice in Poland

In the context of emerging markets, restaurant food choice needs to be better architected in order to minimise the negative societal and environmental implications. For effective consumer choice architecture, the determinants of restaurant food choice need to be first established. This study explores the determinants of restaurant food choice in Poland, a transitional economy in East-Central Europe with a rapidly growing pattern of out-of-home food consumption. It finds that the low level of public environmental awareness in Poland translates into low consumer recognition of the environmental implications of restaurant food choice. Although customer preference for locally produced and organic food is recorded, this preference is not associated with public environmental awareness, but attributed to possible media effect. In contrast, the level of public awareness of the health repercussions of restaurant food choice is higher in Poland, especially among younger consumers, which is reflected in the desire to see the nutritional and calorific values of food to be displayed on restaurant menus. Implications for policy-making and hospitality management are discussed.     

Regulative Distance,Cultural Distance,Host Country Risk,and the Choice of Subsidiary Activity: Evidence from Brazilian Multinationals

This study examines the relationship between regulative distance, cultural distance, and host country risk, as well as the choice of production or distribution activities by emerging country multinationals when establishing a subsidiary abroad. The study uses a sample of 280 subsidiaries of 133 Brazilian firms in 39 countries. Binary logistic regression was used to test the research hypotheses. The impact of regulative distance on the decision on subsidiary activity follows the predictions in the literature. However, findings on cultural distance and host country risk showed an inverted sign, suggesting that Brazilian firms tend to establish production facilities in countries with higher cultural distance and higher cultural risk.     

The Effects of Monetary Policy in the Euro Area

This paper presents evidence on the monetary transmission processin the euro area, based on macroeconomic data and on micro dataon banks. According to the estimations of macro vector autoregressionand macroeconometric models, a monetary policy tightening significantlyreduces output and—after a time lag—also prices.The effect on output is temporary, while that on prices is permanent.Clear patterns of significant asymmetries in the monetary policyeffects across countries do not emerge. The estimations basedon micro data on banks show that the main factor that determinesthe average bank's response to monetary policy is its degreeof liquidity: the lower its share of liquid assets in totalassets, the more strongly does a bank reduce its lending inresponse to a monetary tightening. Bank size does not emergeas an important factor for a bank's reaction to monetary policy.These results hold for virtually all member countries of theEuropean Monetary Union, despite the differences in their bankingsystems.     

Tourism Destination Image and Motivations: The Spanish Perspective of Mexico

ABSTRACT

The notion that a tourist has about a certain destination is conditioned by his vision of it, and this behavior is the result of his perceptions (Baloglu &; McCleary, 1999 Baloglu, S. and McCleary, K. W. 1999. A model of destination image formation. Annals of Tourism Research, 26(4): 868–897. [Crossref], [Web of Science ®] , [Google Scholar]; Goodrich, 1978 Goodrich, J. N. 1978. The relationship between preferences for and perceptions of vacation destinations: Application of a choice model. Journal of Travel Research, 17(2): 8–13. [Crossref] , [Google Scholar]). The outcome of this information assessment process is currently known as destination image (Milman &; Pizam, 1995 Milman, A. and Pizam, A. 1995. The role of awareness and familiarity with a destination: The central Florida case. Journal of Travel Research, 33(3): 21–27. [Crossref] , [Google Scholar]). Based on the model of Baloglu and McCleary (1999 Baloglu, S. and McCleary, K. W. 1999. A model of destination image formation. Annals of Tourism Research, 26(4): 868–897. [Crossref], [Web of Science ®] , [Google Scholar]) we propose a model which explains the process of destination image formation. For testing this model, we have gathered information from residents in Spain, with Mexico as a destination. For this task, a covariance analysis was estimated by maximum likelihood with EQS.