Do sunspot numbers cause global temperatures? Evidence from a frequency domain causality test

This article applies the causality test in the frequency domain, developed by Breitung and Candelon (2006), to analyse whether sunspot numbers (used as a partial approximation to solar irradiance) cause global temperatures, using monthly data covering the time period 1880:1–2013:9. While standard time domain Granger causality test fails to reject the null hypothesis that sunspot numbers do not cause global temperatures for both full and sub-samples (identified based on tests of structural breaks), the frequency domain causality test detects predictability for both the full-sample and the last sub-sample at short (2–2.6 months) and long (10.3 months and above) cycle lengths, respectively. Our results highlight the importance of analysing causality using the frequency domain test, which, unlike the time domain Granger causality test, allows us to decompose causality by different time horizons, and hence, could detect predictability at certain cycle lengths even when the time domain causality test might fail to pick up any causality. Further, given the widespread discussion in the literature, those results for the full-sample causality, irrespective of whether it is in time or frequency domains, cannot be relied upon when there are structural breaks present, and one needs to draw inference regarding causality from the sub-samples, we can conclude that there has been an emergence of causality running from sunspot numbers to global temperatures only recently at cycle length of 10.3 months and above.     

Convergence of greenhouse gas emissions among G7 countries

The convergence of air pollutants is a major concern for policymakers since all the countries pursue the goal of allocating the emissions equally internationally in the future. Hence, the examination of the existence of convergence is important for the climate change protection of the earth. In this article, greenhouse gas (GHG) emissions convergence among the G7 countries for the period between 1990 and 2011 is examined using the pairwise testing technique proposed by that aims to analyse probabilistic convergence across a large number of cross-sectional units. Next, we proceed with multivariate tests for stability and the existence of unit roots. Finally, the analysis is complemented by the use of the panel stationarity test accounting for structural changes as proposed by Carrion-i-Silvestre et al. (2005) test. Overall, the results do not confirm the hypothesis of convergence for the countries in question, although, more recently, the countries have shown a small decline in their GHG emissions.     

Monetary Policy Reaction Functions of the TICKs: A Quantile Regression Approach

This study investigates how Taiwan, India, China, and Korea (TICKs) set interest rates in the context of policy reaction functions using a quantile-based approach. Our results indicate the tendency of a milder response to inflation at low interest rates and greater response at higher quantiles of interest rates, where inflation is presumably higher than desired for China and South Korea. While the response to inflation over the quantiles is significant for India, yet the Taylor principle is less likely to hold. For Taiwan, the results imply that another instrument is employed to deal with its official managed floating currency.     

Blind man's bluff: The ethics of quantity surcharges

Empirical evidence, including a recent field study in Northwest Indiana, indicates that supermarkets and other retail merchants frequently incorporate quantity surcharges in their product pricing strategy. Retailers impose surcharges by charging higher unit prices for products packaged in a larger quantity than smaller quantity of the same goods and brand. The purpose of this article is to examine the business ethics of such pricing strategy in light of empirical findings, existing government regulations, factors that motivate quantity surcharges and prevailing consumer perceptions.Omprakash K. Gupta is an Associate Professor of Management in the Division of Business & Economics at Indiana University Northwest. His research interests are in Operations Management, Management Science, Mathematical Modeling of Business Systems and Business Ethics. He has published several articles in national and international journals. He has also reviewed papers for many journals and edited special issues.Anna S. Rominger is an attorney, a mediator, and an Assistant Professor of Business Administration in the Division of Business & Economics at Indiana University Northwest. Her research interests are negotiation, alternative dispute resolutions, labor management relations, business ethics and professional liability. She has published articles in several of these areas.     

Improving R&D/Marketing relations: R&D's perspective

Abstract
Successful product innovation hinges on close R&D/marketing relationships, especially in technology-based organizations. However, there is evidence that linkage problems are common and when they are not overcome failure is the usual result.
R&D's perspective on what R&D, marketing and senior management can do to improve their relationship with marketing is presented. The recommendations are based on suggestions from R&D directors involved in new product development efforts in 83 technology-based companies. Also presented is how the need for integration has changed over time and where it is going in the future.     

Robust row-column designs for complete diallel cross experiments

This paper investigates the robustness of variance-balanced row-column designs for complete diallel cross experiments for estimating the comparisons among the general combining ability parameters against the loss of observations. A necessary and sufficient condition of robustness as per connectedness criterion is obtained. The robustness of optimal row-column designs of Gupta and Choi (1998) has been investigated for the loss of any m(≥1) observations in a column and for the loss of any two observations in the design. The study of robustness has also been conducted as per A-efficiency criterion.