The Effects of Youth Job Seeker Allowance in South Korea

The severity of youth unemployment in South Korea has prompted the government to implement various preventive measures such as employment services and vocational training. Local governments implemented a Youth Job Seeker Allowance in 2016 as a new form of support, which was adopted by the central government in 2017. This study examines the impact of the Youth Job Seeker Allowance in South Korea on employment. It finds that the allowance had a positive effect on employment; recipients of the allowance have a higher probability of being employed. However, recipients took longer to obtain employment than non-recipients, corroborating previous studies that unemployment benefits lengthen the duration of unemployment. But, recipients of the allowance have more time to look for quality work. Therefore, although the Youth Job Seeker Allowance has the effect of demotivating recipients from looking for employment, its limited duration of three months obliges them to engage in job search activities. The study has implications for the introduction of Youth Job Seeker Allowance systems to support job search activities.     

Measuring the time‐varying effects of fiscal policy on private saving in the process of financial integration

This paper investigates the effects of fiscal policy, measured as the extent to which private saving is offset by public saving, in the process of international financial integration. Using extensive panel data for 87 countries over the period 1970–2010, we find that the dynamics for the saving offset are highly nonlinear and time‐varying. While the saving offset has gradually declined in line with rapid financial integration in advanced economies, it has remained broadly stable in less financially integrated emerging and developing economies. This implies that the negative wealth effects of fiscal policy in advanced economies have been smaller owing to higher financial integration, which could help governments reduce their debt burdens through the well‐anchored domestic interest rates at the world level.     

Deep learning in finance and banking: A literature review and classification

Deep learning has been widely applied in computer vision, natural language processing, and audio-visual recognition. The overwhelming success of deep learning as a data processing technique has sparked the interest of the research community. Given the proliferation of Fintech in recent years, the use of deep learning in finance and banking services has become prevalent. However, a detailed survey of the applications of deep learning in finance and banking is lacking in the existing literature. This study surveys and analyzes the literature on the application of deep learning models in the key finance and banking domains to provide a systematic evaluation of the model preprocessing, input data, and model evaluation. Finally, we discuss three aspects that could affect the outcomes of financial deep learning models. This study provides academics and practitioners with insight and direction on the state-of-the-art of the application of deep learning models in finance and banking.     

The effect of service quality on trust and commitment varying across generations

We examine the effect of service quality on consumer trust and commitment in the context of obtaining a financial loan and how these relationships vary across different generational cohorts. We find that the service quality offered by a loan officer has a significant effect on consumer trust towards a financial institution, which in turn influences consumer commitment to a financial institution for a future transaction. We also find that relative strengths of a few paths in the model differ across different age cohorts, indicating some generational variability in the relationship between service quality, trust and commitment.     

Budget traveler accommodation satisfaction: The case of Yogwans during the 2002 FIFA World Cup Korea/Japan

The preference attributes of budget-conscious travelers have been researched in detail, since the budget segment is important to the hotel industry. Special events, where budget-conscious travelers are major patrons and a huge volume of rooms is needed for a specific period, require accommodation alternatives. Yogwans, Korean-style hotels, have historically been utilized as such an accommodation alternative during special events in Korea. This study of the 2002 World Cup found that budget-conscious travelers were generally not highly satisfied with yogwans. Using a factor analysis technique, this study also identified five factors that were considered important for choosing to stay at yogwans. Finally, multiple regression analysis was then applied to examine the relative importance of each of these factors in influencing the overall satisfaction level of yogwan use. In order of importance, room quality, external quality, value, staff service quality, and accessibility were significant factors in determining the overall satisfaction level of yogwans. This study recommends that accommodation alternatives for budget-conscious travelers should match the needs of specific customers during special events by considering the unique attributes of the event and classifying attributes into fixed and variable categories.     

Evidence of a stock market wealth effect using household level data

Using the household level data of urban households in Korea, this paper presents evidence for a statistically significant stock market wealth effect for the highest income bracket households who typically hold a large share of corporate stock.     

A study on the relationship between technology diffusion and new product diffusion

This study investigates the relationship between “technology diffusion” and “new product diffusion”. We define “technology diffusion” as a knowledge spillover process, which is represented by patent citation, and “new product diffusion” as the spread of a new product that has been developed by the application of patented technology. To investigate the relationship between the two types of diffusion, we use patent citation data of code division multiple access (CDMA) technology and market sales data of mobile phones in South Korea for the analysis. The results show that the diffusion of technology through patent citation could be successfully explained by empirical analysis, for which the Bass diffusion model was used. Moreover, we can find out if technology diffusion can be the leading indicator of a new product's diffusion before its launching; in other words, before the commercialization of the patent.     

Household wealth accumulation and portfolio choices in Korea

This paper constructs a quantitative lifecycle model with uninsurable labor income and housing return risk to investigate how Korean households make saving and portfolio decisions. The model not only incorporates the special roles housing plays in the portfolio of households: collateral, a source of service flows, as well as a source of potential capital gains or losses, but also adds to existing models of wealth accumulation some unique institutional features present in Korea, namely the rental system (‘chonsae’) and the lack of a mortgage system. When the model is calibrated to match the Korean economy, several key features of the data are better able to be reproduced. The paper also analyzes the role of institutional features by comparing several alternative housing market arrangements to assess their impact on wealth accumulation, portfolio choices, and homeownership. A 10 percentage points reduction in down-payment requirement is associated with approximately 1 percentage point increase in the aggregate homeownership ratio in Korea. Lower down-payment also increases the fraction of aggregate wealth held in housing assets but lowers aggregate net worth with mixed demographic implications.     

Consequences of psychological benefits of using eco-friendly services in the context of drone food delivery services

ABSTRACT

This study examined the importance of psychological benefits of using eco-friendly services in the context of drone food delivery services. Based on the theoretical relationships between the conceptual constructs, a research model was developed and then assessed using data collected from 397 samples in Korea. The data analysis results showed that the three sub-dimensions of psychological benefits (i.e. warm glow, self-expressive benefits, and nature experiences) play an important role in the formation of positive and negative anticipated emotions. Furthermore, the positive and negative anticipated emotions had a significant influence on desire, which in turn positively affects intentions to use.     

How complex are networks playing repeated games?

Summary. This paper examines implications of complexity cost in implementing repeated game strategies through networks with finitely many classifiers. A network consists of individual classifiers that summarize the history of repeated play according to a weighted sum of the empirical frequency of the outcomes of the stage game, and a decision unit that chooses an action in each period based on the summaries of the classifiers. Each player maximizes his long run average payoff, while minimizing the complexity cost of implementing his strategy through a network, measured by its number of classifiers. We examine locally stable equilibria where the selected networks are robust against small perturbations. In any locally stable equilibrium, no player uses a network with more than a single classifier. Moreover, the set of locally stable equilibrium payoff vectors lies on two line segments in the payoff space of the stage game. Received: May 9, 1997; revised version: November 18, 1997