Perceived risk and information search. A systematic meta-analysis of the empirical evidence

Does high perceived risk really induce intensive information search? A systematic meta-analysis of 100 empirical findings showing 51 contradictory results, raises severe doubts. For convenience goods, perceived risk usually seems to remain below the tolerated threshold. For complex goods, information search turns out to be only one among several risk-reducing instruments. The findings are also influenced by the extent, type, and validity of risk measurement, and by the operationalization of information search, but measurement problems alone cannot explain the contradictory evidence. Alternative theoretical concepts are proposed and implications for marketing and consumer policy are discussed.     

Fiscal Policy and Economic Growth

This paper surveys the literature on fiscal policy and economic growth. We present a unifying framework for the analysis of long run growth implications of government expenditures and revenues. We find that several tax rates and expenditure categories exhibit a direct impact on the growth rate of the economy. In a creative synthesis we have assigned the relevant literature to the twelve introduced policy variables. Due to the equivalence of some policy variables we are left with six degrees of freedom, where we need four to internalize the model's intrinsic externalities, leaving two instruments to conduct short run fiscal policy.     

Regulating the environment: Changing from constraint to gentle coercion

This article examines the changes in regulatory practices which have taken place in Denmark over the last twenty years. Danish environmental policy has been subject to several rounds of regulatory reform, aimed at streamlining existing regulation and making it more effective. Several new policy instruments have in this process been added to the regulatory repertoire, increasing the flexibility of the regulatory system. The strategic approach to the development and implementation of environmental policy, adopted by the Danish government, marks a change of regulatory regime, i.e. a change in the way environmental problems are perceived and in the choice of instruments to remedy these problems. The article argues that this is the result of the regulatory learning processes, and that the emerging regulatory regime, based on cooperation, represents a different way of harnessing the market forces than traditionally advocated. The article concludes that this regulatory regime opens up for a more systemic approach to preventing pollution.     

Existence and stability of rational expectation-equilibria in a simple overlapping generation model

We consider a simple overlapping generation model with outside money and one consumption good. For a big class of preference relations, it is shown that globally no self-fulfilling expectation exists (except the trivial one) if the information set contains only past and present prices. Even locally, positive results can be obtained for homothetic preferences only. To get asymptotic stability this class must be restricted again: The elasticity of substitution must be very small. The implications of this are very negative: A Learning process can never reach rationality.     

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The division of innovative labour: when does customer codevelopment contribute to firm innovation performance?

ABSTRACT

Innovative firms often involve customers in their product development to drive innovation outcomes. However, few have empirically examined how this division of innovative labour affects innovation performance. Drawing on prior studies and the knowledge-based theory of the firm, we theorise conditions under which customer codevelopment benefits innovation performance. By examining panel data from Swiss firms, we provide the first empirical account of the performance effects of customer codevelopment based on a large-scale survey sample. We find that a firm's absorptive capacity reinforces the relationship between customer codevelopment and innovation performance. We elaborate on the implications of these findings for the literatures on customer codevelopment and open innovation.     

A study of multiple-output production functions: Klein's railroad study revisited

Using two sets of U.S. railroad data with two outputs and three inputs, we estimated production function parameters via the system of derived input demand functions, and via the dual cost function. The results indicate increasing returns to scale, and a violation of required convexity for the production function.     

Regionalisation and regionalism in world trade

The growing importance of regional integration, particularly in the Triad of Western Europe, North America and the Asia-Pacific region, is not always regarded as positive, but is also criticized because of the dangers involved for free world trade. What effects on world trade are to be expected? Can the new world trade order limit the possible risks?