The importance of research teams with diverse backgrounds: Research collaboration in the Journal of Productivity Analysis

Journal of Productivity Analysis - The Journal of Productivity Analysis (JPA) is a pioneering academic journal that aims to develop new methodologies for efficiency and productivity measurement and...     

Yield curve risks in currency carry forwards

We provide empirical evidence that cross-country yield curve gaps (parallel gap, twist gap, and butterfly gap) are predictive to the expected currency carry premiums using currency forward contracts. We find that the expected currency gains are more notable as these yield curve risk factors at time t indicate short-term bond prices of investment currencies to go up (positive parallel movement, negative twist, and positive butterfly). We also find carry gains are more sensitively affected by cross-country monetary shocks than currency-country inflation pressures and business cycles. Our findings support that cross-country yield curve risk premiums still exist even after considering transaction costs.     

Class struggle and economic fluctuations: VAR analysis of the post-war US economy

Building on Marx’s insights in Chapter 25, Volume I of Capital, an augmented version of the cyclical profit squeeze (CPS) theory offers a plausible explanation of macroeconomic fluctuations under capitalism. The pattern of dynamic interactions that emerges from a 3-variable (profit share, unemployment rate and nonresidential fixed investment) vector autoregression estimated with quarterly data for the postwar U.S. economy is consistent with the CPS theory for the regulated (1949Q4--1975Q1) as well as for the neoliberal periods (starting in 1980 or in 1985). Hence, the CPS mechanism seems to be in operation even under neoliberalism.     

The Role of Chonsei as a Price Protector in the Korean Housing Market

In this study, we investigate whether ‘Chonsei,’ the distinctive type of housing contract system in Korea, has a favorable impact on house prices during a market downturn. We show the mechanism in which Chonsei prevents a sharp drop in house prices based on sellers’ loss aversion behavior. Moreover, using data on the Seoul condominium (i.e. apartment) market during the 2006–2017 period, we find that Chonsei prices have a negative impact on the housing trade volume in a market recession. This finding is consistent with our argument that loss aversion behavior appears with regard to the rise in Chonsei prices and thereby Chonsei functions as a price protector in the Korean housing market.     

The effect of job stress on the quality of life of commercial pilots: Testing the mediating effects of mindfulness and job satisfaction

The commercial pilots responsible for aircraft and passenger safety are exposed to various environmental job stresses. This study investigates the relationship between job stress and the quality of life of commercial pilots, and examines the mediating effects of mindfulness and job satisfaction in the relationship between job stress and quality of life. The results show that the job stress aced by commercial pilots has a negative impact on quality of life, and that mindfulness and job satisfaction partially mediates this stress. However, despite the mediating effects of mindfulness and job satisfaction, there is a need for a way to reduce job stress more directly. These results indicate the need for various strategies, including direct and indirect methods, to reduce job stress among commercial pilots, as this is directly related to safety.     

A simple continuous measure of credit risk

This paper introduces a simple parameterization for the risk-neutral default probability distributions for risky firms that are easily computed from quoted bond prices. The corresponding expected times to default have a particularly simple form and are proposed as a measure for credit risk. Being continuous in nature, times to default provide a much finer measure of risk than those provided by ratings agencies. Comparison with the ratings provided by Moody's and the distance to default measures calculated using the Merton [Merton, R. (1974). On the pricing of corporate debt: the risk structure of interest rates. Journal of Finance, 2(2), 449-470] model shows that the highest rank correlation is found between the proposed time to default measure and Moody's ratings.     

A Dynamic Approach to Population Change in Central Cities and Their Suburbs, 1980–1990

A bstract .   With the growing concern over the causal relationship between crime and population change, this study readdresses the importance of economic organization in studying population change in a metropolitan area. This study investigates the dynamic influences of internal and external factors on population change in either central cities or their suburbs. The units of analysis in this study are the 142 U.S. central cities and their suburban rings of Metropolitan Statistical Areas (MSAs) in 1980 and 1990. Two change models (semi-difference and mixed-difference models) are used to predict population change. The results demonstrate that population change in one territory of a metropolitan area is affected by crime and employment opportunity in both locations of a metropolitan area.     

Recreationists’ Constraints Negotiation Process for Continual Leisure Engagement

Unlike prospective participants with desire for initial participation, current participants are likely to have different interest in habitual leisure engagement from participation itself. Accordingly, they may respond to the effects of leisure constraints differently in order to progress toward a higher level of leisure involvement. This study aims to construct a theoretical framework that demonstrates how diverse components of current participants’ constraints negotiation process are conceptually connected to each other. Study results suggest that different negotiation strategies help current participants adjust their willingness to participate in the activity more frequently. Results also denote that the three dimensions of leisure constraints are differently associated with cognitive negotiation strategies, and commitment plays an important role in promoting the use of negotiation strategies to mitigate current participants’ perception of leisure constraints.     

The Globalization Strategy of Daewoo Motor Company

This paper aims to add to the existing body of literature on multinational enterprise (MNE) by addressing the dynamic aspect of emerging market MNEs. Emerging market MNEs can follow non-sequential and non-linear internationalization process. The paper presents the globalization strategy of Daewoo Motor Company as a case study.