Cross-sectional dependence robust block bootstrap panel unit root tests

In this paper we consider the issue of unit root testing in cross-sectionally dependent panels. We consider panels that may be characterized by various forms of cross-sectional dependence including (but not exclusive to) the popular common factor framework. We consider block bootstrap versions of the group-mean (Im et al., 2003) and the pooled (Levin et al., 2002) unit root coefficient DF tests for panel data, originally proposed for a setting of no cross-sectional dependence beyond a common time effect. The tests, suited for testing for unit roots in the observed data, can be easily implemented as no specification or estimation of the dependence structure is required. Asymptotic properties of the tests are derived for T going to infinity and N finite. Asymptotic validity of the bootstrap tests is established in very general settings, including the presence of common factors and cointegration across units. Properties under the alternative hypothesis are also considered. In a Monte Carlo simulation, the bootstrap tests are found to have rejection frequencies that are much closer to nominal size than the rejection frequencies for the corresponding asymptotic tests. The power properties of the bootstrap tests appear to be similar to those of the asymptotic tests.     

Permanent-transitory Decomposition in Var Models With Cointegration and Common Cycles

In this paper we derive permanent-transitory decompositions of non-stationary multiple times series generated by (r)nite order Gaussian VAR(p) models with both cointegration and serial correlation common features. We extend existing analyses to the two classes of reduced rank structures discussed in Hecq, Palm and Urbain (1998). Using the corresponding state space representation of cointegrated VAR models in vector error correction form we show how decomposition can be obtained even in the case where the number of common feature and cointegration vectors are not equal to the number of variables. As empirical analysis of US business fluctuations shows the practical relevance of the approach we propose.     

Gamifying employer branding: An integrating framework and research propositions for a new HRM approach in the digitized economy

The digital age calls for digital HRM approaches, as the “digitized” workforce confronts companies with changing requirements regarding their human resource practices. Most importantly, companies need to build strong employer brands to attract, motivate, and retain employees. One promising approach to employer branding in the digital age is to gamify companies' employer branding activities by means of serious games (i.e., digital games with an educational purpose). Both serious games and employer branding share the key characteristic of facilitating learning to create knowledge. Despite existing research on employer branding and serious games in separate streams, virtually no research addresses their relationship, albeit its strong relevance for researchers and practitioners alike. The authors discuss both domains and their relation, propose a conceptual framework building on a novel learning-based extension of the affective events theory, and derive directions for future research to advance the understanding of gamifying employer branding in the digitized economy.     

Does consumer knowledge affect consumer responses to advertised reference price claims?

As expected, internal reference prices (IRPs) and purchase intentions for two product categories (microwave ovens and disposable razors) differed according to whether consumers possessed a high or low level of consumer knowledge about the product in this factorial design experiment. Contrary to theory and expectations, neither internal reference points nor purchase intentions were affected by exposure to comparative price advertisements. Students were used as subjects in a before-after procedure with approximately two weeks between pre- and postmeasures of IRPs and purchase intentions. Postmeasures were taken immediately after exposure to ads containing three levels of advertised reference prices. t tests indicated differences between high and low knowledge group IRP means before ad exposure. However, no ANOVA differences were detected in change in IRP or purchase intention scores after ad exposure. © 1994 John Wiley & Sons, Inc.     

The Decision Usefulness of Financial Accounting Measurement Concepts: Evidence from an Online Survey of Professional Investors and their Advisors

In their current framework project, the IASB and the FASB identify decision usefulness as the objective of financial reporting. Unfortunately, accounting research has neither yet come up with an undisputed measure of decision usefulness, nor with a satisfying method to rank competing measurement concepts, such as fair value or historical cost, with regard to their relative decision usefulness. Thus, assessing the decision usefulness of different accounting measurement concepts ultimately poses an empirical question. We provide evidence to this question by surveying an important user group, namely professional investors and their advisors, about their opinions on the decision usefulness of different accounting measurement concepts. We find that our respondents clearly differentiate between mark-to-market and mark-to-model fair values. While they consistently rank mark-to-market fair values as most decision-useful, they generally rank mark-to-model fair values as least decision-useful. In addition, the ranking differs across asset classes.     

Keynesian Dominance in Crisis Therapy

The 1930s’ debate about the short-run Keynesian response to crisis and Hayek's critique of its long-run consequences has significant contemporary parallels. This article examines, from a historical perspective, the Keynes–Hayek debate by considering the development of Keynesian economic theory, its ascension and application during financially sound times, the Hayekian critique, the monetary counter-revolution, and the Keynesian renaissance in the wake of the global financial crisis. It is shown that Keynesian fiscal measures prevail over the Hayekian approach in the midst of a crisis leading to rising inflation and public debt, depressed long-run growth and a new crisis.