New Phillips curve under alternative production technologies for Canada, the United States, and the Euro area

This paper shows that alternative production technologies imply two modifications to the New Phillips Curve (NPC): A specific ‘strategic complementarity parameter’ that affects the relationship between real marginal cost and inflation and a specific modification to the labour share measure of real marginal cost. Estimates of average duration of nominal price stickiness obtained conditional on the strategic complementarity parameter are substantially smaller, and therefore more plausible, relative to when this parameter is ignored. Modifications to the marginal cost measure alone have little effect on the NPC estimates. The empirical fit of the NPC under alternative production technologies is similar.     

Auctions in bankruptcy

This paper examines whether mandatory auctions promote the efficient restructuring of distressed firms relative to a reorganization-based bankruptcy system such as Chapter 11. Under a mandatory auction system, aggressive bidding by a coalition of incumbent management and pre-bankruptcy creditors may deter outside bidders, may result in the coalition paying more than its valuation to acquire the firm, and may result in assets remaining in a lower value use. In a reorganization-based bankruptcy system, management's voluntary choice to seek an auction conveys information about the coalition's valuation, which facilitates competition. Our model shows that a reorganization-based bankruptcy system that encourages, but does not mandate auctions, can actually increase the likelihood that an outside bidder enters and the assets of the bankrupt firm are redeployed.     

A symposium on Understanding Society,the UK Household Longitudinal Study: introduction

Understanding Society, the UK Household Longitudinal Study began in 2009, and built on and incorporated its predecessor the British Household Panel Survey. It is the largest survey of its kind in the world and provides rich opportunities for economic research and policy analysis. In this introduction to a symposium on Understanding Society, we review the main features of the study, how it is conducted, and evidence on data quality. We also discuss past and potential uses in economic research.     

Linking Processes and Dynamic Capabilities of International SMEs: The Mediating Effect of International Entrepreneurial Orientation

Previous research on the internationalization of small and medium‐sized enterprises (SMEs) has highlighted the role of knowledge and learning about foreign markets. However, empirical results on the performance implications of foreign market scanning and planning have been mixed. Following the dynamic capability perspective, we argue that SMEs can capitalize on scanning and planning processes because of their international entrepreneurial orientation. We test our hypotheses with a sample of 604 established SMEs and find that entrepreneurial orientation completely mediates the relationship between scanning and planning and international performance. Moreover, the results implicate a bidirectional relationship between processes and international entrepreneurial orientation.     

The Underlying Mechanisms of Multiscreening Effects

Multiscreening, a relatively new form of media multitasking in which people use multiple screens simultaneously, has implications for the effects of persuasive messages due to limited cognitive capacities of people and concurrent modalities of the screens (i.e., both visual). The aim of the study is to examine underlying mechanisms (i.e., recognition, counterarguing, and enjoyment) of the effect of multiscreening on evaluative outcomes (i.e., brand attitude, message attitude, and purchase intention). The experiment (N = 182) showed that both recognition and counterarguing are underlying mechanisms of the effect of multiscreening on evaluative outcomes. Multiscreening has a negative effect on evaluative outcomes by recognition and a positive effect on evaluative outcomes by counterarguing.     

Use values and exchange values in Marx’s extended reproduction schemes

Abstract

Marx-Engels’ numerical illustrations of the extended reproduction suggest that a two-sector economy reaches a balanced growth path, from the second period onwards. We explain this surprising result and show that for technical reasons, disproportions between sectors can prevent the system from reproducing itself. But, in Marx’s reproduction schemes, such a crisis is not only due to purely technical factors and one must wonder what role is played by the relative price in the reproduction of the system. The answer is given by comparing two models having a similar structure but quite different rules for the determination of the relative price. In Marx’s model, the price is given by the labour values and thus, it is exogenously fixed. We contrast Marx’s analysis with an endogenous price model in which the price depends on the conditions of the accumulation of capital. The Appendices point out the complete accordance of Engels’ corrections with Marx’s model and Marx’s unfruitful quest for a balanced growth path as a tool for the analysis of crises.     

Distillery marketing and the visitor experience: a case study of Scottish malt whisky distilleries

Since the 1960s, visitor tours of Scottish malt whisky distilleries have been used by whisky companies to promote their products. The original concept of the visitor as passive observer has evolved to include the notion of visitor as VIP guest in three special interest attractions—connoisseur tours, whisky schools and the Classic Malts Cruise. A value‐attainment construct based on a means–end chain progression is used to illustrate the linkage between distillery attributes and the enhancement of higher values in visitors in the three attractions. Service quality is suggested as a key component of the attractions' success. Copyright © 2007 John Wiley & Sons, Ltd.     

Switches and fake switches in methods of production

It has long been recognised that Sraffa's analysis of the choiceof methods in joint production cannot be sustained, so thatpost-Sraffian economists have abandoned it. The paper returnsto Sraffa's own approach and identifies two characteristic elements:methodologically, it is of a ‘dynamic’ nature (itconsiders a potential move of the rate of profits) and, analytically,the switch-points are the common intersection of several wage–profitcurves. An internal critique consists in showing the existenceof fake switches, which are at the intersection of two wage–profitcurves but, unexpectedly, are not switch-points.     

Transparency and Liquidity: A Controlled Experiment on Corporate Bonds

This article reports the results of an experiment designed toassess the impact of last-sale trade reporting on the liquidityof BBB corporate bonds. Overall, adding transparency has eithera neutral or a positive effect on liquidity. Increased transparencyis not associated with greater trading volume. Except for verylarge trades, spreads on newly transparent bonds decline relativeto bonds that experience no transparency change. However, wefind no effect on spreads for very infrequently traded bonds.The observed decrease in transaction costs is consistent withinvestors’ ability to negotiate better terms of tradeonce they have access to broader bond-pricing data. (JEL codes:G14, G18, G23, G24, G28)     

How Related Multiscreening Could Positively Affect Advertising Outcomes

The use of multiple screens, also known as multiscreening, is assumed to have detrimental consequences for advertising outcomes. However, many people are engaging in this form of media multitasking on a daily basis. Therefore, it is important to focus on how to improve the effectiveness of advertisements when multiscreening. The aim of this study is to examine a key facilitator of advertising effects when multiscreening, namely task relevance. In two separate experiments—an online study (n = 280) and a laboratory (n = 185) study—we showed that people who engage in related multiscreening have better brand memory and more positive brand attitudes than people who engage in unrelated multiscreening via attention and subsequent program involvement. The results of the current study contribute to our understanding of multiscreening and advertising effects by showing that multiscreening does not always have to be detrimental to advertising effects. Furthermore, this study is unique because it combines two methodological approaches of multiscreening research.