Aggregate infrastructure capital stock and long-run growth: Evidence from Finnish data

In this paper, Bayesian methods and the Finnish aggregate infrastructure capital series from 1860 to 2003 are used to explore how government infrastructure policy affects long-run output growth. We use Finnish data, since to the best of our knowledge the Finnish land and water construction investments series is the best available sufficiently long time series on aggregate infrastructure investments. The Finnish data provide strong and robust evidence indicating that permanent changes in government infrastructure policy have permanent effects on the growth rate of output.     

Market structure and the efficiency of European insurance companies: A stochastic frontier analysis

This paper is motivated by the progressive liberalisation of the European insurance market in recent years. It uses stochastic frontier analysis to estimate Flexible Fourier cost functions for European insurance companies. Separate frontiers are estimated for life, non-life and composite companies. We adopt a maximum likelihood approach to estimation in which the variance of both one-sided and two-sided error terms is modelled jointly with the frontiers. This approach allows us to simultaneously control for the impact of heteroskedasticity on the estimation of scale economies as well as estimating the effect of firm size and market structure on X-inefficiency. The study draws on Standard & Poor’s Eurothesys data set of financial reports for the period 1995 to 2001. This provides technical and non-technical accounts at year-end for life, non-life and composite insurance businesses in 14 major European countries. Our estimates suggest that over this period most European insurers were operating under conditions of decreasing costs (increasing returns to scale), and that company size and domestic market share were significant factors determining X-inefficiency. Larger firms, and those with high market shares, tend to have higher levels of cost inefficiency.     

The evolution of growth intentions: Toward a cognition-based model

This research examines the relationship between growth intentions, cognitive style, and perceived competitive conditions, with a focus on whether and why intentions change over time. Drawing on qualitative data from a sample of 30 entrepreneurs over a five-year span, we find that entrepreneurs' cognitive style moderates the relationship between perceptions of the competitive environment and growth intentions. Entrepreneurs with differing cognitive styles vary in their approaches toward formulating and revising growth intentions. Relative to analytic entrepreneurs that exhibit greater stability in their intentions, holistic entrepreneurs are prone to greater variations in growth intentions. The findings have implications for future research, practice, public policy, and entrepreneurship training and development.     

Testing the Moderation Effect of Hotel Ambience on the Relationships Among Social Comparison,Affect, Satisfaction,and Behavioral Intentions

This study incorporated the social service environment in the hotel guest affect–satisfaction–behavioral intention model in order to elucidate the effect of social comparison on consumption-based affect by factoring in the moderation effect of hotel ambience on relationships. Structural equation modeling of survey data from hotel guests revealed that social comparison significantly influences hotel guests’ affect, and that affect has a critical role in inducing satisfaction and behavioral intentions. Hotel ambience moderates the model’s relationships – high ambience strengthens the relationships more so than low ambience. Results affirm the inclusion of social environments in predicting hotel guest experiences and shed light on managerial implications for bettering service provision.     

Using influence strategies to reduce marketing channel opportunism: The moderating effect of relational norms

In an empirical study of the North American lodging industry, we investigate the efficacy of influence strategies for managing opportunism in marketing channels. We posit that the effects of influence strategies upon opportunism are moderated by the extent to which relational norms characterize the channel exchange. The results support this moderating effect. In particular, we find that relational norms have an asymmetrical effect across coercive and noncoercive influence strategies. With high relational norms in the relationship, a channel member’s use of noncoercive influence strongly limits partner opportunism whereas the use of coercive influence exacerbates partner opportunism. In contrast, noncoercive influence intensifies and coercive influence mitigates partner opportunism under conditions of low relational norms. These findings offer first insights for curbing opportunism in marketing channel relationships with the simultaneous use of different socialization mechanisms. The authors acknowledge support for this study from the summer research program of the Cornell University School of Hotel Administration and the two hotel companies we studied and thank Reed Fisher for help with the data collection.     

Big Five Factors of Personality and Tourists' Internet Search Behavior

This study aimed at relating tourists' Internet search behaviors and the Big Five Factors (BFF) of personality to identify personality items that better predict tourists' Internet search behaviors. Survey data from domestic tourists to a metropolitan city in South Korea was used to empirically examine the relationships. Results indicate that travel information sought through the Internet vary with the BFF with the exception of extraversion, and the Internet channels used for travel information search also varied with the BFF with the exception of conscientiousness. The Internet is more widely used as a source of travel information but less for travel purchases. The results also suggest that the responses to some BFF items can substantially improve the predictability of tourists' Internet search behaviors. Implications for the use of the BFF in designing travel information systems are addressed.     

The economic effects of health care systems on national economies: an input-output analysis of Slovenia

This paper estimates the size of the economic impact generated by the Slovenian health care sector on the national economy in the 2009–2014 period. The study separately calculates output, income, employment, value-added and import multipliers for the Slovenian health care sector based on input-output analysis covering 49 sectors. Initially, values of simple output multipliers for all years are estimated. When the re-circulation of final demand through households is added to the direct and indirect economic effects, the values of total output multipliers considerably exceeds 2. The results suggest that an additional million EUR of final demand in the health care sector will, based on different scenarios, increase the total employment by 20 to 30 units. Moreover, the type II employment multipliers imply that under the best-case scenario one employee in the health care sector creates an additional 0.7 unit of employment in remaining structures of the observed economy. Stability evaluation of the derived multipliers suggests that the domestic health care sector may reduce volatilities in production, income and employment and consequently act as an important shock absorber in the economy.