The effect of distribution channels on mutual fund flows

The Morningstar fund rating has been reported to affect mutual fund flows in the US markets. This paper finds that flow patterns in Finnish bank-managed funds are significantly different from the patterns in the US. Specifically, non-bank funds attract flows in a manner similar to the US markets, that is Morningstar ratings affect fund flows. In contrast, Finnish bank-managed funds do not exhibit the same relationship between star ratings and flows. The results suggest that in Finland, five-star Morningstar ratings are not regarded as highly as in the US, where good performance attracts significantly higher flows. More significantly, our findings demonstrate the importance of banks' distribution channels in the Finnish financial market.     

Did bank distress stifle innovation during the Great Depression?

We find a negative relationship between bank distress and the level, quality and trajectory of firm-level innovation during the Great Depression, particularly for R&D firms operating in capital intensive industries. However, we also show that because a sufficient number of R&D intensive firms were located in counties with lower levels of bank distress, or were operating in less capital intensive industries, the negative effects were mitigated in aggregate. Although Depression era bank distress was associated with the stifling of innovation, our results also help to explain why technological development was still robust following one of the largest shocks in the history of the U.S. banking system.     

Agricultural sustainability of small-scale farms in Lacluta,Timor Leste

Despite the trend of dwindling productivity, tribal people of the Chittagong Hill Tracts (CHT) still practise shifting cultivation as a dominant hill farming system to support their livelihood. Drawing on an empirical study in Khagrachari district of the CHT, this research examined how far the production from present shifting cultivation supports the tribal people's livelihood and what alternative livelihood strategies they have adopted for subsistence by using data on input/output and income/expenditures, and analysing current government policies. The findings showed that productivity declined markedly, yields were almost equal to input values and farmers experienced food shortages for at least two to six months in a year. To make a living, farmers have adopted new occupations such as wage labour, animal husbandry, cultivation of annual monocrops and extraction and selling of forest products. Policy analysis indicates that previous policies were unable to reduce shifting cultivation intensity or improve tribal people's livelihoods or the region's forest resources. Reorientation of government policies, easy access to institutional support and the active participation of local people in development intervention are of the utmost importance in order to find alternative land uses for sustainable hill farming, to improve the farmer's living standards and to conserve forests and protect watersheds.     

Stabilization Effects of Narrative-based Monetary Policy in Jamaica

The study constructs a monetary policy indicator (MPI) from monetary policy documents and the actions of the Bank of Jamaica and Ministry of Finance and Economic Planning, and uses it to estimate four variants of an analytical narrative-vector error correction model (AN-VECM) with cointegration as the identifying restriction. In AN-VECMs 1 and 2, the cointegration is estimated in level form with respective short-term interest rate and the MPI as regressands. The first difference forms of respective models are re-estimated in AN-VECMs 3 and 4. The results are mixed, with AN-VECM 1 yielding the least results. However, in all cases, the impulse response functions indicate that the MPI yields slightly superior results in both AN-VECMs 2 and 4. A positive shock in the MPI produces price and exchange rate results which are consistent with a priori expectations from economic theory, and mixed liquidity effect and real output results. Thus, the MPI provides an important policy tool alternative for policymakers in small open economies to consider in the implementation of monetary policy.     

The urban–rural divide,regional disaggregation and the convergence of crime

Potential regional variation in crime rates has been recognized as an issue of clear importance given its implications for the development and evaluation of theories of criminal activity, determining the appropriate level of disaggregation at which to undertake empirical analyses of crime and whether crime fighting policies should be constructed at a national or local level. Consequently, a literature has evolved examining the similarities in US regional crime rates and whether a national trend exists or is emerging. The present article extends the recent research into the emergence of a national trend by considering convergence in alternative classifications of crime using a data set subject to a higher degree of disaggregation than considered hitherto. The results obtained overturn previous findings obtained using more highly aggregated data, indicating the detection of convergence to be dependent upon the level of disaggregation considered. In addition, the extent of convergence detected is shown to vary across classifications of criminal activity and reflect anecdotally noted changes in the evolution of crime at a national level. The implications of the observed regional variation in crime for the urban–rural divide and theoretical, empirical and policy analyses are noted.     

Labor force participation and the discouraged worker effect

This article analyzes labor force participation with particular reference to the discouraged worker effect. Discouraged workers are those who will search for work when the labor market is tight but do not search for work when the labor market is slack because they consider their chances of finding a suitable job too low. The theoretical point of departure is a search model where the worker evaluates the expected utility of searching for work and decides to participate in the labor market if the expected utility of search exceeds the utility of not working. From this framework, we derive an empirical model for the probability that the worker will be out of the labor force, unemployed, or employed. The model is estimated on a sample of married and cohabitating women in Norway covering the period from 1988 to 2008. The results show that the discouraged worker effect is substantial. On average, about one-third of those who are out of the labor force are discouraged, according to our analysis.     

Modelling pharmaceutical price changes in Germany: a function of competition and regulation

In this article, price changes for pharmaceuticals in Germany are modelled as a function of regulation and competition. Changes in the regulatory environment, and in the competitive environment of a product, are taken into account. To follow the hierarchical structure, a four-level random intercept model was constructed. Price changes were allowed to vary randomly between drug classes, between different substances within a drug class, and between different manufacturers of a substance. This study provides evidence that two policy measures – reference pricing and temporary price freezes – succeeded in reducing prices in Germany between January 2004 and June 2006. For off-patent substances – depending on the competition faced by a drug – the effect of competition can be greater than the effect of regulation. The study, therefore, not only demonstrates the importance of competition between and within drug classes, it also provides evidence that generic entry has substantial effects on the prices of branded products.     

We Aren’t So Different After All: Differences and Similarities Between Political Affiliation and Issues of Park Use,Management, and Privatization

Abstract

Many researchers have argued that political polarization has increased dramatically over the past 25 years. This article explores partisan polarization regarding specific issues of state park use, management, and privatization. An online demographically stratified panel survey of New York and Pennsylvania residents was used to examine differences in attitudes toward these issues by political affiliation. Respondents were placed into three categories: Republican, Independent, and Democrat. While significant differences were found among the groups, they were often small and rarely between Democrats and Republicans. The only issues demonstrating clear partisan differences were certain park privatization issues, support for diversity initiatives, support for additional greenways, and support for shale gas development within state parks. The results from this study indicate little partisan polarization of state park issues.     

Motivation Factors of Ecotourists in Ecolodge Accommodation: The Push and Pull Factors

Tourist motivations are important factors in understanding tourist behaviour in relation to destination choice; and motivation relates to the needs, goals and preference of the tourists. Extensive research work on tourist motivation factors has been documented in the tourism literature. However, there seems to be a lack of empirical study on the accommodation sector, in particular ecolodge accommodation. Attention to tourists' motivational factors in the ecolodge accommodation is essential for determining the tourists' choices or needs and tourist behaviour in terms of choosing ecolodge accommodation. Previous studies determine that tourist motivations are influenced by both push and pull forces; and these forces describe how an individual is pushed by motivating variables into making travel decisions and how they are pulled or attracted by destination attributes. This paper reports an exploratory qualitative study on ecotourists' motivation factors in the ecolodge accommodation by adopting pull and push motivation theory. In-depth interviews were conducted with 29 ecotourists who stayed in the two ecolodges in Sukau. The findings reveal that ecotourists are primarily attracted by the destination attributes (natural attractions, wildlife, local lifestyle and eco-activities) where ecolodges are located, which we term pull factors. At the same time, they are also pushed by their social–psychological desire to escape from their routine of normal life (push factors) by visiting ecolodges. This suggests that there are two different motivational forces among the ecotourists; and that ecotourists' motivational factors can be explained by employing “seeking” and “escaping” as motivational dimensions of leisure behaviour (Ross & Iso-Ahola, 1991 Ross, E. L. D. and Iso-Ahola, S. E. 1991. Sightseeing tourists' motivation and satisfaction. Annals of Tourism Research, 18(2): 226–237. [Crossref], [Web of Science ®] , [Google Scholar], Annals of Tourism Research, 18(2) 226–237). The findings seem to inform that ecotourists' choices to stay in the ecolodges in Sukau are strongly influenced by the destination attributes or attractions around the ecolodges and not ecolodge accommodation attributes. The identification of motivational factors in this study provides a clearer account of what actually attracts the ecotourists to stay at ecolodges. It suggests that the marketing strategies for ecolodges should focus more on the destination attractions around the ecolodge accommodation. The ecolodge operators should position their ecolodges based on the unique destination attributes – wildlife and pristine environment – rather than the ecolodge attributes. Similarly, it is important for the ecolodge operators to conserve and protect their surrounding natural resources since these are the main motivational factors for tourists to patronize their ecolodges.     

How did the notional interest deduction affect Belgian SMEs’ capital structure?

The recently introduced risk capital allowance in Belgium, which allows a notional interest deduction (to be denoted NID hereafter) on a firm’s adjusted equity for tax purposes, has mitigated the tax discrepancy between equity and debt financing. To our knowledge, we provide the first empirical study of the extent to which this regulation has resulted in a strengthening of small and medium sized enterprises’ (to be denoted SMEs hereafter) solvency, which was one of its most prominent objectives. Results from logit regressions reveal that the probability of adopting the NID is higher for lowly leveraged SMEs, SMEs without experience with the tax-exempt investment reserve and SMEs with a sound knowledge of the notional interest deduction regulation. Results on the impact of the NID on the capital structure of SMEs based on panel and first differences regressions reveal that this measure did not result in a significant change of SMEs’ leverage. In view of the discussion regarding the optimal tax and legislative framework that governments should put in place (Poutziouris et al., J Small Bus Enterp Dev 6(1):7–25, 1999), these results cast doubt on the risk capital allowance, as it stands now, being the right government instrument to contribute—at least in the short term—to creating a pro-enterprising tax and legislative climate for SMEs. We conclude by providing some general suggestions for improving the effectiveness of the risk capital allowance.