The Lack of International Consumption Risk Sharing: Can Inflation Differentials and Trading Costs Help Explain the Puzzle?

The bulk of evidence on the lack of international risk sharing is based on regressions of idiosyncratic consumption growth on idiosyncratic output growth. This paper argues that the results from such regressions obtained from international data are, however, not directly comparable to those based on regional data: the standard practice of running such regressions on international data fails to account for persistent international differentials in consumer prices, whereas—implicitly—most of the literature based on regional data has accounted for these differences. When risk sharing regressions are set up in conceptually the same way in international and regional data sets, the estimated coefficients are also very similar. To explore this result further, we adapt the variance decomposition of Asdrubali et al. (Q J Econ 111:1081–1110, 1996) to allow for deviations from purchasing power parity across countries. While quantity (income and credit) flows are the dominant channel of risk sharing among regions, relative consumption and output price (internal terms of trade) fluctuations account for the bulk of the deviation from the complete markets outcome in international data. To the extent that persistent differences in consumer prices are an indication of goods market segmentation, our findings provide empirical evidence for the proposition by Obstfeld and Rogoff (NBER Macroeconomics Annual 2000, 2000) that segmented international goods markets rather than asset market incompleteness may account for the (apparent) lack of risk sharing between countries.

Low interest rate policy and the use of reserve requirements in emerging markets

This paper sheds light on the link between the interest rate policy in large advanced economies with international funding and reserve currencies (the United States and the euro area) and the use of reserve requirements in emerging markets. Using reserve requirement data for 28 emerging markets from 1998 to 2012, we provide evidence that emerging market central banks tend to raise reserve requirements when interest rates in international funding markets decline or financial inflows accelerate, most likely to preserve financial stability. In contrast, when global liquidity risk rises and funding from the large advanced economies dries up, emerging markets lower reserve requirements.     

Virtual world experimentation: An exploratory study

We explore the scientific potential of virtual worlds for experimental economics in terms of the subject pools and experimental platforms they present. Our results offer tentative, qualified support for virtual world experimentation. Overall, the behaviour of virtual subjects recruited, incentivised and observed within Second Life across a range of five standard experimental games was not found to differ significantly from established standard results. In addition, we identify certain methodological opportunities and challenges which confront virtual world experimenters.     

Unternehmenstheater & ein neues Change Management-Instrument für das Controlling?

Controller sehen sich in ihrer Rolle im Unternehmen einem wachsenden Ver?nderungsdruck ausgesetzt.     

Online banking services: a meta-analytic review and assessment of the impact of antecedents and consequents on satisfaction

This paper provides a meta-analysis of the generalizations in the relationships between the antecedents and consequents of satisfaction with online banking services. In total, 118 observations were analysed, with a sample of 49,607 respondents in 39 published articles from studies indexed in ten databases (Jstor, Emerald, PsycINFO, Taylor & Francis, Elsevier Science Direct, Scopus, ProQuest, SciELO, Google Scholar and EBSCO). Specifically, for the data analysis, we used the correlation coefficient r (plus χ², f test, t test, z test and β values). The results showed that constructs related to uncertainty, as evoked by online devices, system performance, quality of device content and online banking device structures, are significant and positive antecedents of consumer satisfaction. We also found that satisfaction with online banking services promotes trust and loyalty. Finally, we also detected that the relationship between reliability, satisfaction and service quality is stronger among Western banking consumers.     

AN OVERINVESTMENT CYCLE IN CENTRAL AND EASTERN EUROPE?

Prior to the Asian crisis, easy liquidity conditions contributed to credit expansion and overinvestment in the East Asian economies until they were hit by a deep recession. Similarly to the developments in the tiger economies in the 1990s, Central and Eastern European (CEE) grew rapidly from 2001 to 2007, due to foreign capital inflows. But the current global financial turmoil and economic downswing pulled the CEE economies into the maelstrom of the crisis. With the Asian experience in mind, the aim of this paper is to analyze whether overinvestment due to easy liquidity conditions possibly emerged and contributed to the crisis in CEE.     

THE EXPERIMENTAL ECONOMICS OF RELIGION

This paper surveys the experimental economics approach to the study of religion. The field has a place in the context of the scientific study of religion generally and the social psychology of religion in particular, but employs distinct economic methods which promise new and different insights. In particular, certain features of the experimental approach as used by economists such as incentive compatibility are particularly appropriate for studying the effect of religion on individual behaviour. The paper discusses results obtained so far in terms of two roles of religion in shaping individual behaviour, that is, as a social group identifier and as a set of values.     

Environmental Regulations and Plant Exit

A qualitative response model is applied to study the relationship between environmental regulations and plant exit. The data set is Norwegian panel data for establishments in three manufacturing sectors that have high shares of units which have been under strict environmental regulations. In two of the sectors, the estimated exit probability of regulated establishments is, ceteris paribus, only one third of the exit probability of non-regulated establishments. We also find that the probability to change regulation status from being non-regulated to become regulated depends significantly on economic factors. In particular, establishments with weak profitability had the highest probability to come under environmental regulation.     

How Does Consumers' Financial Vulnerability Relate to Positive and Negative Financial Outcomes? The Mediating Role of Individual Psychological Characteristics

Vulnerable consumers are at particular risk of financial detriment due to, for example, low financial literacy or numeracy, high debt, low income, or impactful changes in personal circumstances. We introduce a comprehensive and formative measure of financial vulnerability that integrates these risk factors and is grounded in definitions of vulnerability from financial regulation bodies and government agencies such as the Consumer Financial Protection Bureau. Across three studies of US individuals, we assess the nomological validity of this measure of financial vulnerability through its relationship with positive and negative financial outcomes (e.g., savings levels, paying credit card balances in full each month, being in arrears) as well as relevant psychological characteristics (e.g., personal savings orientation [PSO], money management skills, financial self‐efficacy). Moreover, we examine whether and how these psychological characteristics mediate the relationship between financial vulnerability and financial outcomes. We conclude with an overview of implications for policy makers and business practitioners.