A bootstrap test for jumps in financial economics

An i.i.d. bootstrap is applied for the ratio test of Barndorff-Nielsen and Shephard (2006) for jumps in jump diffusion processes. Asymptotic validity is established for the bootstrap test both under the null of no jump and under the alternative of jumps. Finite sample simulation shows that the bootstrap test has more stable size than the ratio test of Barndorff-Nielsen and Shephard (2006).     

How to manage the intensity of comparison in comparative advertising over time

Despite the popularity of comparative advertising (CA) over the past three decades, few studies have explored how to develop this strategy outside the USA. This study reports the results of experiments conducted in South Korea, a country where CA has rarely been used. Two hundred Korean college students were exposed to fictitious advertisements in which the independent variable of comparison intensity (non-comparative/low/medium/high/increasing) and exposure sequence (first/second/third) were manipulated. The dependent variables of attitude towards the brand and purchase interest assessed advertising effectiveness. Results suggest that the effectiveness of comparative advertising in Korea is improved by increasing the intensity of comparison gradually from indirect (low) to direct (high) over time.     

Effects of Country-of-Manufacture and Brand Image on Korean Consumers' Purchase Intention

ABSTRACT

In this study, a theoretical framework is developed to explain the differential effects of country-of-manufacture (COM) and brand image on the cognitive, affective, and behavioral components of Koreans' consumer decision making. Although effects are product specific, findings, overall, indicate that brand image has a stronger effect than COM on Koreans' perceptions of hybrid global products. Moving the production of an electronic product (TV) to a developing country, however, negatively affected Koreans' evaluation of product performance, prestige (brand and technical), and purchase attitudes. The findings have interesting marketing implications for hybrid global brands and contribute to building a theory of COM.     

Association Ambiguity in Brand Extension

A research method is developed to effectively identify associations that significantly influence the perceived fit of brand extensions. Contrary to extant brand extension studies that mainly focus on the fit of associations, the current study considers the ambiguity of associations. The proposed measure of association ambiguity, defined as the level of uncertainty based on the perceived conflict of a particular association in a brand extension indicated by the similarity and intensity level of perceived association distance to the parent brand and extension category, was tested and validated using several brand extension cases. Identifying an association's level of ambiguity and the magnitude of its impact on the perceived fit will allow advertisers to adjust their advertising messages and increase consumer receptiveness toward brand extensions. Implications for advertising practitioners and future research are discussed.     

Factors affecting successful innovation by content-layer firms in Korea

Technological convergence is changing the division of industries from vertical to horizontal; it has also made user participation easier in information and communication technology industries. To understand this situation, it is necessary to identify the causes of successful innovation. In this research, factors affecting successful innovation by mobile and Internet contents firms were tested from the viewpoint of user-involved innovation. The results show that active user participation in the innovation development process is very important. In addition to being useful to firms, this study points out the need for policies that support users to policy makers.     

The Measurement of Consumption Efficiency Considering the Discrete Choice of Consumers

In this study we propose a mathematical definition of the consumption efficiency of multi-attribute products in the price–quality space. A new model, the discrete Range Adjusted Measure (RAM) model, is suggested as an empirical tool to measure the level of consumption efficiency. We further discuss the effect of consumption efficiency on the innovation incentive. Empirical work is made for the mobile phone market. We expect that the consumption efficiency concept will contribute to the extension of the traditional framework of production efficiency analysis on the one hand and to the understanding of the nature of innovation in a technology-intensive market on the other hand.JEL Classification: C67, D11, D12, D21     

Which Net Capital Flows Matter?

This article classifies extreme net capital flow episodes into four types and analyzes the macroeconomic impacts of each type. First, we find that all types of episodes increased drastically in the 2000s relative to previous years. Second, we conclude that liability-flow-driven episodes have more significant macroeconomic impacts than do asset-flow-driven episodes. Third, we show that only drastic positive net capital flows that were driven by liability flows were associated with a higher probability of banking crises in the 2000s. The results suggest that the detailed classification of extreme net capital flows provides insight into these movements’ macroeconomic impacts and policy implementations.     

Die Außenwirtschaft der UdSSR in der zeit von perestrojka

The study of divided government is one of important fields in public choice theory. American voters split their ballots as if intent on preserving divided party control. The U.S. House of Representatives has consistently been Democratic for much of the twentieth century. As indicated by Sprague, it is theoretically true that a number of significant consequences for partisan control of a legislature are entailed by the unequal distribution of seat safety under conditions of high levels of institutionalization. The problem is how to measure the institutionalization of partisan seat safety in a time‐series. The model proposed by Sprague is somewhat awkward and complicated in measuring it. This paper provides a more plausible model and tests empirical data.     

Conflict technology in cooperation: The group size paradox revisited

This paper studies the implications of punishment‐induced conflict in a public goods game. It shows, under plausible assumptions, how larger group size sometimes enhances punishing behavior in social dilemmas and hence supports higher levels of cooperation. Unlike existing approaches that focus on uncoordinated punishment, I consider punishment as a coordinated activity that may be resisted by those being punished and study the implications of punishment‐induced conflict situations. Developing a conflict model of punishment and combining it with a standard public good game, I show that coordinated punishment can yield the concentration effect of punishment, leading to a larger group advantage; that is, the larger the group, the easier it becomes to organize cooperation. The key idea is that when punishers coordinate their punishment, punishers as a coalition successfully divide defectors and punish each defector one by one. Surprisingly, even when coordination among punishers decays as group size increases, as long as the rate of decaying remains relatively slow the larger group advantage still obtains.     

The Role of Central Government in Tax Competition Between Heterogenous Regions

This paper analyzes the role of central government in a Nash tax competition between two heterogenous regions, which differ in their endowments of two production factors. Regional governments use a source-based unit tax on mobile capital to finance their public service expenditures. The central government employs excise subsidies and lump-sum taxes to induce the two regions to efficient resource allocations. We answer to the question that whether the central government can induce an efficient equilibrium, and investigate the effects of endowments difference on the optimum subsidy rates. We find that there exists a unique tax rate under which the efficiency is achieved. We identify the set of endowment allocations for which the subsidy rate to one region is higher (or lower) than the subsidy rate to the rival. The large poor region receives a higher subsidy than the small rich region, but the subsidy to the small poor region may be higher or lower than that to the large rich region. [H2]