Sustainability impacts of car road pricing: A computable general equilibrium analysis for Austria

Nationwide car road pricing schemes are discussed across Europe. We analyse the impacts of such schemes with respect to environmental, economic and social indicators of sustainability, also quantifying the trade-offs among these three dimensions under different charging principles and revenue recycling options. In our analysis we employ a computable general equilibrium (CGE) approach, develop a modelling structure for private transport and provide detailed empirical analysis for the case of Austria. Regarding the social dimension, it has often been argued that poorer households (and commuters) would have to bear a disproportionate share of the road pricing burden. We find the contrary, i.e. a stronger negative policy impact on richer households, and on a small group of intensive car users. The choice of revenue recycling is able to ameliorate the negative social and economic effects of road pricing, without reversing the desired positive environmental effects. For political feasibility, questions of distributional impacts are most urgent and therefore we address them systematically within a quantitative framework.     

Misleading Consumers with Green Advertising? An Affect–Reason–Involvement Account of Greenwashing Effects in Environmental Advertising

Drawing from the affect–reason–involvement model, we examine how misleading advertising about the environmental features of products, or greenwashing, affects how consumers perceive ads and brands. Using data from two experimental studies with quota-based samples in the United States (N = 486) and Germany (N = 300), we compare nondeceptive claims with two types of claims often used in greenwashing: vague claims and false claims. We also identify the presence of pleasant nature-evoking images and test for interaction effects with two types of environmental involvement: environmental concern and environmental knowledge. Results indicate that while vague claims do not enhance consumers' perceived greenwashing regardless of their environmental knowledge or concern, false claims do, which consequently harms consumers' attitudes toward those ads and brands. In the United States, consumers' environmental knowledge moderates that effect, whereas all consumers in Germany could identify false claims as attempts at greenwashing. Moreover, associating greenwashing claims with nature-evoking images activates an affective persuasive mechanism that appeals to consumers' affinity for nature, which not only positively influences their evaluations of ads and brands but also influences their attitudes toward ads and brands more strongly than perceived greenwashing. In closing, we discuss the theoretical and practical implications of these findings.     

Monetary Policy in Russia: Identifying exchange rate shocks

Russian monetary policy has failed persistently to achieve sustained low inflation, both in absolute terms and relative to the peer group of countries similarly exiting from Soviet-style central planning. This paper explores the reasons for this state of affairs by analysing the kind of monetary policy that has been pursued by the central bank during the period 1995 to 2009. Our contribution is to search for a possible transmission channel between the real interest rate, inflation rate, exchange rate, output growth and foreign reserve growth, after having controlled for the effect of oil price inflation. Using a vector autoregressive model in error-correction form and using sign restrictions methodology, we show that the monetary authorities’ failure to abate double-digit inflation appears to be driven by the policy of exchange rate targeting, as reflected in our identified exchange rate shocks.     

Monetary and financial stability in the euro area: Pro-cyclicality versus trade-off

This paper investigates the nexus between monetary stability and financial stability. We examine, in the experience of EMU between 1994 and 2008, first, the response of the term structure of interest rates, share prices, exchange rates, property price inflation and the deposit–loan ratio of the banking sector (our proxies for financial stability) to changes in the consumer price level and ECB policy rate (our proxies for monetary stability); second, whether and to what extent lower inflation has caused share price stability and how ECB policy rate has reacted to inflation. Using a sign-restriction-based VAR approach, we find that there is a pro-cyclical relationship between monetary and financial stability in the long-run. With a positive inflation shock, we find on average a 2% estimated decline in share prices. This suggests that the interest rate instrument used for inflation targeting is conducive to financial stability.     

Research and Development,Uncertainty, and Analysts’ Forecasts: The Case of IAS 38

This study analyzes the consequences of the capitalization of development expenditures under IAS 38 on analysts’ earnings forecasts. We use unique hand‐collected data in a sample of highly research and development (R&D)‐intensive German‐listed firms over the period 2000–2007. We find that the capitalization of development costs is significantly associated with both higher individual analysts’ forecast errors and forecast dispersion. This suggests that the increasing complexity surrounding the capitalization of development costs negatively impacts forecast accuracy. However, for firms with high underlying environmental uncertainty, forecast errors are negatively associated with capitalized development expenditures. This indicates that the negative impact of increased complexity on forecast accuracy can be outweighed by the information contained in the signals from capitalized development costs when the underlying environmental uncertainty is high. The findings contribute to the ongoing controversial debate on the accounting for self‐generated intangible assets. Our results provide useful insights on the link between capitalization of development costs, environmental uncertainty, and analysts’ forecasts for accounting academics and practitioners alike.     

Counteracting Unemployment in Crises: Non‐Linear Effects of Short‐Time Work Policy*

Short‐time work (STW) is a labor‐market policy that subsidizes working‐time reductions among firms in financial difficulty to prevent lay‐offs. Many OECD countries have used this policy in the Great Recession. In this paper, we show that the effects of STW are strongly time‐dependent and non‐linear over the business cycle. Discretionary STW policy might save up to 0.87 jobs per short‐time worker in deep economic crises. In expansions, the effects are smaller and might turn negative. We disentangle discretionary STW from automatic stabilization in German data using smooth‐transition vector autoregressions.     

The impact of a World Wide Web site visit on brand image in the motor vehicle and mobile telephone industries

During recent years the number of World Wide Web (WWW) sites and visitors has increased very rapidly. WWW site evaluation has focused more on click‐through rates than on brand effects. Nevertheless, there are few studies on the effects of WWW site exposure on brand image. The aim of this research was to illustrate brand association changes after a WWW site visit. More precisely, the paper describes the effect of a forced visit on the global brand image of two bricks‐and‐mortar companies. The results indicate that some positive brand associations increase significantly after the visit and that attitude towards the WWW site has an impact on attitude towards the brand.