Asian University Rankings in International and Development Economics: An Application of Zipf's Law

This paper ranks Asian universities in two related economics fields: international economics and development economics. A key finding is that new latecomers rank atop the two specialty areas of economics. The results of the university ranking also establish that Zipf's law applies to research-based school ranks.     

How consumers use product reviews in the purchase decision process

This paper uses individual level data to examine the influence of product reviews in different stages of the consumer’s purchase decision process. Specifically, a two-stage model consisting of consideration set formation and choice is posited, where the consumer can incorporate information from product reviews in each stage. The model is estimated using an online panel survey about hotel choice. We find that (1) consumers use product reviews more in the consideration set stage and less in the choice stage, (2) Bayesian updating of prior perceived quality better explains how consumers use product reviews compared to two competing updating methods, and (3) the monetary value of a unit increase in the mean of product reviews is computed. Our results suggest that managers should make product review information (their number, average, and variance) available from the beginning of the search process and encourage satisfied customers to write reviews.     

On Indeterminacy and Growth under Progressive Taxation and Utility‐Generating Government Spending

We examine the theoretical interrelations between progressive income taxation and macroeconomic (in)stability in an otherwise standard one‐sector AK model of endogenous growth with utility‐generating government purchases of goods and services. In sharp contrast to traditional Keynesian‐type stabilization policies, progressive taxation operates like an automatic destabilizer that generates equilibrium indeterminacy and belief‐driven fluctuations in our endogenously growing macroeconomy. Unlike the no‐sustained‐growth counterpart, this instability result is obtained regardless of (i) the degree of the public‐spending preference externality and (ii) whether private and public consumption expenditures are substitutes, complements or additively separable in the household's utility function.     

Trade liberalization, heterogeneous firms and the soft budget constraint

We analyze the interaction between the soft budget constraint (SBC) and international trade by placing Segal’s (1998) SBC model within Melitz’s (2003) framework of international trade with heterogeneous monopolistically competitive firms. As in Segal’s model, SBC may result in moral hazard. The opening to international trade adds another sort of inefficiency. Some firms that would have become exporters in the absence of SBC choose to apply low effort and not export in order to extract a subsidy from the government. This effect takes place when the trade costs are sufficiently low. Overall, however, trade liberalization reduces inefficiencies generated by SBC. The number of firms subject to moral hazard SBC decreases, aggregate effort level increases and aggregate profits lost due to SBC-induced sub-optimal effort decline as trade costs decrease.     

Effect of Restaurant Patrons' Regret and Disappointment on Dissatisfaction and Behavioral Intention

The objective of this study is to investigate the relationship among regret/disappointment, dissatisfaction, and behavioral intention in service failure situations at a restaurant. Even though there is a consensus regarding the positive relationship between regret/disappointment and customer dissatisfaction, unclear results still exist regarding the relationship between regret/disappointment and different types of behavioral intention. Thus, the present study attempts to clarify these fuzzy relationships. Specifically, this study aims to enhance understanding of the influence of regret and disappointment on behavioral intention (switching/negative WOM). The findings suggest that both regret and disappointment are significant determinants of customer dissatisfaction and switching/negative WOM. Further, the study results indicate that regret is an important predictor of switching intention, whereas disappointment is an important determinant of negative WOM. Finally, based on these findings, managerial implications for restaurant managers are discussed.     

College students’ and Mechanical Turk workers’ environmental factors while completing online surveys

Few studies have investigated the environmental factors of participants completing online self-report surveys, such as the presence of others and engagement in multitasking. The current study examined the environmental factors of 1023 participants drawn from two popular convenience populations—college students (n?=?512) and Mechanical Turk workers (n?=?511). All participants completed online measures of computer self-efficacy, the five-factor model of personality, and social desirability, as well as a questionnaire about their environment and activities when completing the measures. The two samples differed in terms of environmental factors, with college students significantly more likely to report: (1) being in a location other than their place of residence, (2) interacting with others, (3) being interrupted, (4) engaging in multitasking, (5) being under the influence of alcohol or other substances, and (6) completing the study using a laptop computer. The presence of others interacted with sample to predict personality and social desirability scores. Additionally, both presence of others and engaging in multitasking predicted longer completion time.

     

The effect of the Money Market Mutual Fund Liquidity Facility (MMLF) on corporate short-term borrowing costs

In this article, I study the effect of the Money Market Fund Liquidity Facility (MMLF) on corporate short-term borrowing costs. Although MMLF loans accept a broader range of collateral acquired from money market funds (MMFs) than Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) loans, their higher loan rates could make the intervention less effective. I find the average yield has decreased by 20–24 basis points. The yield-decreasing effects of the MMLF are stronger for securities issued by eligible non-US firms, non-asset-backed commercial paper securities that are newly accepted as collateral under the MMLF, and securities held by affiliated MMFs. However, I do not find an additional yield-decreasing effect of the MMLF on lower rated securities or nonfinancial sector securities. After the implementation of the MMLF, domestic MMFs seem to increase the weight of nonfinancial sector securities, which helps them achieve a higher return.     

How to maintain sustainable consumer behaviours: A systematic review and future research agenda

Maintaining sustainable consumer behaviours is necessary for both mitigating environmental problems and the success of sustainable businesses. However, to date, the focus is mainly on the motivation-adoption link (i.e., how to motivate sustainable consumer behaviours) rather than the adoption-continuance link (i.e., how to maintain those behaviours). This study addresses the link between sustainability adoption and continuance, through a structured literature review. Specifically, this study synthesizes what is (and is not) known about the post-adoption (continuance) stage of the sustainable consumer journey, by reviewing and integrating the results of 87 articles. This review has three key outcomes. First, it elaborates on the importance and distinction of the continuance stage, which is predicted by a set of different and ‘evolving’ factors, compared with motivation and initial adoption. Second, the key components of the continuance stage are identified and grouped under (I) post-adoption cognitive perceptions, (II) emotional outcomes, and (III) subsequent behavioural patterns of (dis)continuance, spillover, advocacy, loyalty and habit formation. Third, this study introduces the concept of sustainable consumer behaviour continuity and discusses theoretical relationships in a conceptual framework. Finally, this review identifies knowledge gaps and provides research directions as well as implications for theory and practice.     

Spatiotemporal analysis of Korean ginseng farm productivity

Journal of Productivity Analysis - The past two decades has seen new methodological debates on the identification of production function. Olley and Pakes (J Polit Econ 101(6):1149–1164,...     

A note on increased probability of loss and the demand for insurance

It is shown that the effect of increased probability of loss on the demand for insurance depends on whether both insured and insurer are aware of the change. When both insurer and insured share the same beliefs about the probability of loss (symmetric information), an increase in the loss probability may lead risk-averse agents to demandless insurance.