Contracts under Wage Compression: A Case of Beneficial Collusion

This paper considers a principal-agent model with adverse selection and limited wage discrimination. Under wage compression, an agent may have an incentive to free ride on other agents by manipulating his private information. When collusion among the agents is not possible, the principal distorts the output schedule to reduce information rent associated with the free-riding opportunity. Under collusion, however, the principal can reduce the information rent by inducing side contracts among the agents, thus partly removing the distortion in the output schedule. We show that side contracts among the agents take place in equilibrium and that the prospect of collusion is beneficial.     

Empirical prediction intervals revisited

Empirical prediction intervals are constructed based on the distribution of previous out-of-sample forecast errors. Given historical data, a sample of such forecast errors is generated by successively applying a chosen point forecasting model to a sequence of fixed windows of past observations and recording the associated deviations of the model predictions from the actual observations out-of-sample. The suitable quantiles of the distribution of these forecast errors are then used along with the point forecast made by the selected model to construct an empirical prediction interval. This paper re-examines the properties of the empirical prediction interval. Specifically, we provide conditions for its asymptotic validity, evaluate its small sample performance and discuss its limitations.     

Substituting and Complementing Models of Economic Development in East Asia

This paper assesses the relative merits and demerits of different East Asian models by placing them in a historical perspective. It re-interprets Gerschenkron's model of late industrialization, and extends it to compare East Asian economies in view of substituting and complementing models. It then explains divergent performances among East Asian economies from the late 1990s by examining the different challenges they faced as their economies became mature and more fully open to forces of globalization. In conclusion, the paper discusses the applicability of the East Asian models for today's developing countries.     

A retrospective on the state of international advertising research in advertising,communication, and marketing journals: 1963–2014

Scanning from the earliest to the recent literature on international advertising research, this study aimed to provide a more comprehensive and detailed picture of the research trends and patterns across the advertising, marketing, and communication disciplines over the past half century. Findings exhibit continuous growth in terms of the quantity of international advertising studies. While theoretical foundations need to be further solidified and elaborated, methodological and statistical rigors have been increasingly underpinned in international advertising research. Further, this study recognized authorial and institutional productivity, and influential articles in the field of international advertising research. The finding indicates that scholarly endeavors are necessary for diversity of countries studied in future research.     

Socio-technical analysis of Korea's broadband convergence network: Big plans,big projects,big prospects?

The goal of this study is to investigate the policy objectives of the broadband convergence network (BcN) and the realization of objectives. The Korean government launched the BcN project with the objective of converting Korea into an information society with ubiquitous broadband convergence for the advancement of growth and productivity. Based on content analysis of the policy documents and the literature related to BcN, this paper draws on the socio-technical framework for interpreting the data. Findings in this study suggest that, despite excellent technological innovation and proactive drive, uncertainty still remains with respect to how the BcN has evolved and its impact on the new telecom ecology to date.     

A reflection on analytical work in marketing: Three points of consensus

This article presents three points of consensus about game-theoretic work in marketing: First, equilibrium analysis is necessary for studying situations that have strategic interactions. In many cases, empirical examination of these strategic scenarios is difficult or impossible, at least without the guidance of an equilibrium model. Second, more general models are not necessarily ??better,?? because institutional details matter. Thus, the appropriate compromise between generality and specificity depends on the scope of the research question. Finally, there should be a two-way road between theory and empirics??theory is necessary to interpret empirical results, while empirical findings should guide theoretical modeling choices.     

Government Size and Stochastic Growth

This paper analyses the effects of the size of government on economic growth in a stochastic endogenous growth model involving the supply‐side effect and demand‐side effect produced by government spending. We show that a rise in the government spending affects economic growth through three channels, including the crowding‐out effect, the spin‐off effect and the resource mobilisation effect. We demonstrate that there exists an optimal size of government that maximises the economic growth rate.     

Stock price responses to the eco-points programme for electrical household appliances: evidence from Japan

This article examines the Japanese government’s ‘Project for Green Consumer Electronics to Promote Business through the Use of Eco-points’ and its economic impact on consumer electronics firms’ stock prices. There has been little research on the economic effect of this project. In order to achieve our aim, we employ event study methodology. Our results show that stock prices responded positively to programme adoption, thereby indicating that the programme had positive effects on the related firms’ performance. The results also show that the programme’s economic effects gradually decreased over each subsequent programme extension. This probably occurred because the programme targeted durable goods, which consumers do not replace frequently.     

Effects of China's Structural Change on the Exports of East Asian Economies

The Chinese economy is slowing down and is in the midst of a structural transformation from export‐led and investment‐led growth to domestic demand‐led and consumption‐led growth. While there are widespread concerns among China's trading partners about the effect of the slowdown in China's growth on their exports, China's structural changes are also likely to have a significant impact: for example, China will import fewer machines and more cosmetics. The central objective of the present paper is to empirically examine the effect of China's structural transformation on the exports of East Asian economies, which have close trade linkages with China. We find that economies that have failed to increase the share of consumption goods in their exports to China have suffered larger declines in their quantities of exports to China. In addition, economies that have suffered losses in their shares of China's parts and components imports have faced reductions in their shares in China's total imports.