Inflation, asset prices, and the term structure of interest rates in monetary economics

This article offers a tractable monetary asset pricing model.In monetary economies, the price level, inflation, asset prices,and the real and nominal interest rates have to be determinedsimultaneously and in relation to each other. This link allowsus to relate in closed form each of the dependent entities tothe underlying real and monetary variables. Among other featuresof such economies, inflation can be partially nonmonetary andthe real and nominal term structures can depend on fundamentallydifferent risk factors. In one extreme, the process followedby the real term structure is independent of that followed byits nominal counterpart.     

Entwickeln sich wirtschaftswissenschaftliche Forschung und Politikberatung auseinander?

Most German economists show strong patterns of professional specialisation. In their work, they either focus on basic research or on policy consultancy. The evidence provided by Haucap und Mödl has been used to question work incentives in academia. The suggestion to change work incentives, however, is not supported by Richter, who rather calls into question the German tradition of research funding. He argues that Germany should devote more competitive funding to research projects and less to institutions. Schmidt et al. explore the question the other way around: do policy consultants publish in top journals? They conclude that they do. Güth/Kliemt show how precarious and limited our (technologically useful) knowledge is. The discussion of alternative policies among economic experts should be used to tease out the controversial arguments to allow for better informed political judgements. Wagner/Fratzscher take a historical view, showing that when modern economic research (and economic research institutes) apply a more pluralistic paradigm than that which prevailed in Germany for a long period after the Second World War, economic research will automatically have a more significant impact on politics, since policy advisors will produce more varied advice with the potential for realisation. Koll also claims that policy advice must not be based on a single supply-side oriented mainstream point of view. By drawing lessons from the crisis, economics must identify a new mainstream providing reliable guidance and policy advice.     

Reformbedarf bei der steuerlichen Berücksichtigung von Kinderbetreuungskosten

In Germany, parents’ taxable income base is reduced by the costs of childcare. The way this is done at the moment is not suitable: for some parents, the income tax deduction is too high, while for others it is too low. The actual tax regulations concerning childcare costs do not support the ability-to-pay principle. This paper discusses how the costs of children and childcare should be treated for tax purposes and which reforms would improve the fairness of the tax treatment of taxpayers with children compared to the tax treatment of taxpayers without children.     

Rhetoric versus Reality: the Privatisation of Telekom Malaysia

Telekonl Malaysia (TM) was floated as a private enterprise in 1990 as part of the country's overall privatisation programme. The programme included the usual privatisation goals of competition, reduced state involvement, growth and efficiency, but also a redistributional goal to enhance the Bumiputra community. This paper discusses whether the Malaysian government has been able to reconcile all its stated objectives, and suggests that the Bumiputra redistributional goal has been favoured at the expense of the other objectives. It is concluded that the privatisation of TM was cosmetic and that the government has used TM to implement its strategy, mainly through internal control of its corporate affairs, which runs contrary to the most widely accepted views of privatisation.     

Global Consistency Versus Local Responsiveness: Deutsche Telekom's Human Resource Management Strategies in Central and Eastern Europe

This article analyses the competing demands faced by Deutsche Telekom for global consistency and local responsiveness as it attempted to coordinate its human resource management strategies across its Eastern European subsidiaries. It considers the degree to which the former economic and political histories of Eastern Europe continue to influence and/or constrain multinational corporation strategies and practices in the post-2000 era. Institutional path dependency, strategic international human resource management, and international industrial relations theories are used to assist in analyzing the data. The study concludes that managerial constraints associated with the historical and economic legacies of these former socialist countries are rapidly declining, thereby allowing multinational firms to implement “Western-style” human resource management strategies. It further suggests that industrial relations institutions at the European Union level, rather than individual country level, have the greatest potential to impact on international human resource management strategies in the region. Multinational corporations should therefore engage in more-integrated strategic international human resource management and international industrial relations approaches.     

Search Engine Advertising Adoption and Utilization: An Empirical Investigation of Inflectional Factors

Search engine advertising (SEA) is a prominent source of revenue for search engine companies, and also a solution for businesses to promote their visibility on the web. However, there is little academic research available about the factors and the extent to which they may influence businesses’ decision to adopt SEA. Building on Theory of Planned Behavior, Technology Acceptance Model, and Unified Theory of Acceptance and Use of Technology, this study develops a context-specific model for understanding the factors that influence the decision of businesses to use SEA. Using structural equation modeling and survey data collected from 142 businesses, this research finds that the intention of businesses to use SEA is directly influenced by four factors: (i) attitude toward SEA, (ii) subjective norms, (iii) perceived control over SEA, and (iv) perceived benefits of SEA in terms of increasing web traffic, increasing sales and creating awareness. Furthermore, the research we discover six additional factors that have an indirect influence: (i) trust in search engines, (ii) perceived risk of SEA, (iii) ability to manage keywords and bids, (iv) ability to analyze and monitor outcomes, (v) advertising expertise, and (vi) using external experts.     

Millennials’ ethical ideology effects on responses to alcohol advertisements: The role of strength of ethnic identification and ethical appraisal of the ad

Abstract

In an extension of generational theory, the present research argues that ethical ideology (i.e. idealism vs. relativism) impacts attitude toward the ad (A_ad), attitude toward the brand (A_brand), and purchase intention (PI). Additionally, this research examines how this relationship is mediated by the ethical appraisal of the ad and moderated by the level of ethnic identification (i.e. high vs. low). The results of this experiment provide additional evidence in support of generational theory which states that each generational cohort holds distinct ethical ideologies. Furthermore, this study identifies differences in the participants’ responses to alcohol ads resulting from their personal values (i.e. in this study we focus on strength of ethnic identification).     

Exploring communication differences between women and men sales representatives in a relationship selling context

The purpose of this exploratory research is to investigate the different styles of communication used by women and men sales representatives in relationship selling. An analysis of in-depth interviews revealed that the language used by women sales representatives is more conducive to building customer trust and more suggestive of relationship selling behaviour than the language used by their male counterparts. That women sales representatives may draw upon nurturing language and behaviour learned in developing other relationships (wife, mother, daughter, sister or friend) to build customer relationships is consistent with role theory and supports a theoretical explanation for the lower levels of role conflict surprisingly reported by women sales representatives in previous research. The results suggest that in a relationship selling task, marketing managers should consider using sales representatives with a 'feminine' style for sales jobs requiring extensive customer relationships. Directions for future research are also suggested.