What drives idiosyncratic volatility over time?

We document the patterns of market-wide and firm-specific volatility in the Portuguese stock market over the 1991–2005 period and test several explanations for the behavior of firm-level idiosyncratic volatility. Unlike previous studies we find no evidence of a statistically significant rise in firm-specific volatility. On the contrary, the ratio of firm-specific risk to total risk slightly decreases. We show that this result stems from new listings of large privatized companies that display lower firm-specific risk. Our findings are consistent with the idea that changes in idiosyncratic volatility are related to changes in the composition of the market.

Agglomeration and labour productivity in Spain over the long term

This paper analyses the relationship between spatial density of economic activity and interregional differences in the productivity of industrial labour in Spain during the period 1860–1999. In the spirit of Ciccone and Hall (Am Econ Rev 86:54–70, 1996) and Ciccone (Eur Econ Rev 46:213–227, 2002), we analyse the evolution of this relationship over the long term in Spain. Using data on the period 1860–1999 we show the existence of an agglomeration effect linking the density of economic activity with labour productivity in the industry. This effect was present since the beginning of the industrialisation process in the middle of the nineteenth century but has been decreasing over time. Our results show that doubling employment density raises average labour productivity in the industrial sector by between 3 and 5% in all periods analysed, with the exception of the last segment from the twentieth century. Hence, we find significant evidence of agglomeration effects. However, these effects seem to have been falling sharply from the mid-nineteenth century until late in the twentieth century, and there appears to be no positive evidence of agglomeration effects in industry in the period 1985–1999. This result could be explained by an important increase in the congestion effects in large industrial metropolitan areas that would have compensated the centripetal or agglomeration forces at work. Furthermore, this result is also consistent with the evidence of a dispersion of industrial activity in Spain during the last decades.

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Explaining the Reactions of Swiss Municipalities to The ‘Amalgamation Wave’: At the crossroad of institutional,economic and political pressures

Abstract

Public sector organizations are simultaneously subject to three types of environmental pressure: institutional, economic and political. How do these pressures influence the strategic behaviour of public organizations when confronted with efficiency-oriented reforms? We focus on the strategic behaviour of Swiss municipalities facing the amalgamation wave: a reform characterized by a strong economic rationale. Results confirm that the success of reforms depends not only on its matching with economic underpinnings. It is also necessary to take the political leadership and the responsibility of reform implementation.     

Segmentation by benefits sought: the case of rural tourism in Madeira

Rural tourism has been promoted as an effective catalyst for growth in rural areas severely hit by the rural structuring process. However, with regard to islands, rural tourism has been mainly advertised and promoted as a counterpoint to mass tourism. While in most Western countries rural tourism has been in place for decades, islands have been pursuing a rural tourism agenda only since the 1990s. Consequently, we face a dearth of research regarding motivation factors that attract tourists to the rural hinterland on islands. The purpose of this study is to segment and profile rural tourists based on benefits sought in order to gain a better understanding of the current demand trends. The data collection procedure were based on a self-administered survey applied to a sample of 180 tourists, and four clusters were identified. The relaxer cluster which comprises individuals attracted by opportunities to relax and recharge batteries, are the most dominant, suggesting that the sector mimics, to a large extent, the main tourism market. This is a problematic outcome because the sector is failing to attract a more diverse and wealthy clientele. Due attention should also be paid to other clusters. The ruralist segment values relaxation in natural segments to escape from daily routine, the ‘want it all segment’ is composed of tourists interested in all kind of activities and the family-oriented cluster is mainly interested in socialising with the family. Implications of our preliminary conclusions for theory and practice are discussed.     

Enrolling in Higher Education: The Impact of Regional Mobility and Public-Private Substitution Effects

Abstract:

In this article, we study the enrollment decision of candidates to Portuguese public Higher Education Institutions (HEIs). We classify candidates according to their revealed preference for regional mobility and measure the impact of their mobility status on the likelihood of enrollment. For instance, candidates succeeding to be placed in their home district are about fourteen percentage points more likely to enroll than those pushed away. We also show that distance deters enrollments, even for candidates that reveal a preference for migrating. Finally, we measure the impact of the availability of private sector alternatives in the home district on the likelihood of enrollment and show that their existence reduces the likelihood of enrollment by up to nine percentage points.     

The demand-boost theory of exclusive dealing

This article unifies various approaches to the analysis of exclusive dealing that so far have been regarded as distinct. The common element of these approaches is that firms depart from efficient pricing, raising marginal prices above marginal costs. We show that with distorted prices, exclusive dealing can be directly profitable and anticompetitive provided that the dominant firm enjoys a competitive advantage over rivals. The dominant firm gains directly, rather than in the future, or in adjacent markets, thanks to the boost in demand it enjoys when buyers sign exclusive contracts. We discuss the implication of the theory for antitrust policy.     

To wind a skein into a ball: exploring the concept and measures of public network performance

Since Provan and Milward’s article in 1995, a wide variety of conceptualizations and measures of network performance has been proposed. The lack of consensus among scholars generated a confusing landscape. In an attempt to wind a skein into a ball, our paper aims to synthesize the conceptualizations and measures of network performance proposed by the existing literature and explore their statistical and theoretical relationships. Structural equation modelling techniques were used for this purpose.     

Impact of responsive and proactive market orientation on SME performance: The moderating role of economic crisis perception

This study examines the relationship between market orientation (MO) and the performance of small and medium‐sized enterprises (SMEs) within the context of economic crisis. It distinguishes between two levels of MO: responsive market orientation (RMO) and proactive market orientation (PMO). Data were collected on a sample of 300 SME. Findings indicate that SMEs, confronted with an economic downturn, use a MO approach that is both proactive and responsive, and reveal the moderator effect of the SME manager's perception of an economic crisis on PMO/RMO–performance. Research and practical implications are discussed. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Project management for new product development

This article examines the intersection of the project management body of knowledge with new product development (NPD). The area under examination is the development of consumer products that have a significant engineering production content. It is concluded that the project management method, with its structured task definition and software tools, is generally useful for managing NPD projects. However, in some areas, project management incompletely meets the needs of NPD. Specifically, NPD is characterized by complex interrelated activities and large uncertainties about precisely which solution path will be taken, such that the full scope of the project can often not be anticipated beforehand. The article identifies that more research is required to validate the stage‐gate and lean project management methods. Whereas cost is the primary focus in project management, with NPD there is a need to consider both cost and income (from product sales) in making strategic decisions. Communication and human resource management are important factors in NPD success, but existing project management perspectives have little to say about the social and behavioral aspects, such as organizational culture, team dynamics, and leadership styles, especially not for NPD. Current project management practices are very much based on “output control” (targets, appraisal, rewards, management by objectives), which the human resource management literature identifies as inhibiting innovation. There is also likely to exist an intersection, as yet poorly understood, between project management and knowledge management, particularly for innovation processes such as NPD. For practitioners, the main message is that the project management method provides a basic, but imperfect, tool for managing NPD. The relevance for researchers is that gaps have been identified in the project management method as it is currently applied to NPD. Several places are identified where further research is required to (a) better understand the causality between factors (e.g., human resource management) and project success and (b) adapt project management methods to better serve the NPD process.