Periodically expanding discounted debt: a threat to fiscal policy sustainability?

This paper models the behaviour of discounted US debt using a Markov‐switching time series model. The significance of modelling fiscal policy within this framework derives from the implications it has for long‐term sustainability. The two‐regime framework used in this paper identifies periods where the present value of US Federal debt is expanding versus periods when it is collapsing. Using an updated data series from Hamilton and Flavin ( 1986 ), a test is conducted to establish if the expanding periods pose a threat to the long‐run sustainability of fiscal policy. For the USA, it is found that they do not. Copyright © 2005 John Wiley & Sons, Ltd.     

Equilibrium Selection and Stability for the Groves Ledyard Mechanism

In their seminal paper Groves and Ledyard (1976) construct a balanced incentive compatible mechanism that solves the free rider problem. In subsequent research, Bergstrom, Simon, and Titus (1983) prove that there exist numerous asymmetric equilibria in addition to the symmetric equilibrium. In the present paper, we explicitly solve for the additional equilibria and use computational experiments to examine the structure and stability of the set of equilibria of the Groves Ledyard Mechanism. We find that all of the equilibria found by Berstrom, Simon, and Titus are unstable and that for a high level of the punishment parameter these equilibria do not exist. Further, we find that there exists an additional boundary equilibrium for each of the equilibria found by Bergstrom, Simon, and Titus. The boundary equilibria are all stable.     

Segregating genetically modified and nongenetically modified corn in a marketing channel

The adoption of GM corn in the United States depends on many factors including segregation costs, which have minor impacts on aggregate welfare. Because the demand for nonGM corn is small relative to its supply, no premium for nonGM corn can be generated in excess of the segregation costs. An outward shift in the supply of corn resulting from the adoption of GM varieties has a greater impact on aggregate welfare than do the segregation costs required to satisfy the GM-free demand. A 10% increase in the aggregate supply of GM corn increases aggregate welfare by more than US $250 million. However, nonadopters of GM corn lose while adopters can gain or lose depending on the nature of the aggregate demand curve for US corn.     

Congressional Memberships as Political Advertising: Evidence from the U.S. Senate

The present article analyzes signaling by elected officials of moderate or centrist legislative behavior from a benefits/costs perspective. To do so, we provide statistical evidence regarding the tendency of senators to join the U.S. Senate Centrist Coalition, a congressional membership organization of moderate legislators. We find that changes in party loyalty, perhaps due to changes in constituent preferences, and U.S. Senate tenure are both important determinants of membership in the Centrist Coalition. Tests also point out that freshman senators are more likely than more senior senators to seek membership as a form of information provision.     

Consumer ethnocentrism in a developing economy: A preliminary investigation

The attitudes of consumers from a developing economy toward ethnocentrism were assessed in this exploratory study of 123 respondents from Nigeria. The results indicate that consumers hold varying views of ethnocentric behavior. While recognizing the possibility of negative economic consequences for the importing nation, consumers are reluctant to endorse strong measures against imports. This is especially true for products that may be difficult to produce locally or those that offer a distinctly higher level of quality. Contrastingly, consumers appear to support public activity that encourages a spirit of international business cooperation. An exporting nation's social, political, and religious philosophies appear to have minimal impact upon the demand for its products. © 1995 John Wiley & Sons, Inc.     

Standards and innovation: US public/private partnerships to support technology-based economic growth

This paper examines how strategic alliances to create and use standards affect economic growth and development. The explanation of the link from standards to economic growth and development is through the effects of standards on the incentives to perform industrial research and development (R&D). We examine product standards, metrology traceable to national and international standards, and regulatory standards to address negative externalities. The paper develops a theoretical explanation for the link from standards to growth, survey/interview-guides to gather information from industrial R&D experts about the explanation, and case-study evidence about the explanation. We discuss the standard-setting process and explain that it entails strategic alliances among firms and with government involvement. Case studies of R&D projects in firms and in a national laboratory support the belief that standards implemented via strategic alliances leverage economic growth and development.     

Generating new product ideas: An initial investigation of the role of market information and organizational characteristics

Although product innovation is widely recognized as crucial to the success of organizations, the literature still contains certain gaps that limit our understanding of successful product innovation. These gaps include a lack of research employing a decompositional approach (i,e., analysis of the drivers at each stage of the process) to studying product innovation and a related lack of research investigating the effect of organizational characteristics on specific stages of the product innovation process. The authors attempt to close these gaps by developing and testing a model examining the moderating effects of organizational characteristics on the relationship between the amount of market information gathered and the number of new product ideas generated by work groups in organizations. The study findings provide insights into the types of organizational structure and climate characteristics that can have an impact on the relationship between amount of market information and new product idea generation. Lisa C. Troy is an assistant professor of marketing at Utah State University. She earned her Ph.D. from Texas A&M University. Her research interests include product innovation management, environmental marketing, and international marketing management. Her work has appeared in theJournal of the Academy of Marketing Science and theJournal of Marketing. David M. Szymanski is the Al and Marion Withers Research Fellow and Director, Center for Retailing Studies in the Lowry Mays College and Graduate School of Business at Texas A&M University. His research interests are in the areas of applied meta-analysis, marketing strategy, personal selling and sales management, product innovation, and retail strategy. Representative research has appeared in theJournal of the Academy of Marketing Science, theJournal of Marketing, theJournal of Marketing Research, theJournal of Personal Selling and Sales Management, and theJournal of Retailing. P. Rajan Varadarajan is a professor of marketing and the Jenna and Calvin R. Guest professor of business administration at Texas A&M University. His research interests are in the areas of corporate, business, and marketing strategy. His research has been published in theJournal of Marketing, theJournal of the Academy of Marketing Science, theAcademy of Management Journal, theStrategic Management Journal, Sloan Management Review, California Management Review, Business Horizons, and other journals.     

Tourism Services Exports and Economic Growth in Barbados

This article investigated the relationship between tourism and economic growth in Barbados from 1974–2004 using the techniques of multivariate cointegration, causality testing, and innovation accounting. Findings reveal the existence of a long-run relationship between tourist activity and economic growth. However, the nature of the directional relationship and the importance of the real exchange rate as an important determinant appear to be dependent on how output is specified and the statistical techniques employed. Still, our results provide justification for the Government of Barbados' objective of investing in its tourism industry as a means of stimulating growth over the long term. As there is an indication that forward and backward linkages are not as fully developed as they could be, and initiatives should also be put in place to foster stronger linkages between the tourism industry and other sectors, such as agriculture, food and beverage, and transportation. It is recommended, though, that policymakers do not over-rely on tourism for economic growth and that they pay greater attention to other industries given the tourism industry's capricious nature.