Measuring the rate of protection with index numbers

Two approaches to measuring the rate of protection in binary comparisons, involving use of Fisher's Ideal Index, are proposed. One is relevant to measuring ‘discrimination’ in tariffs and the other is relevant to measuring a ‘composition effect’.     

Searching for the natural rate of interest: a euro area perspective

A time-varying natural rate of interest is estimated for the euro area using a multivariate unobserved components model. The problem of aggregating interest rate data for the pre-EMU period is directly addressed, and a simple method is proposed in order to adjust the risk premia in the interest rate data prior to 1999. We show that, for the pre-EMU period, using risk-unadjusted policy rates leads to periods of high risk premia being erroneously taken as monetary policy replies to the output gap; in contrast, using risk-adjusted policy rates yields an estimate of the reaction of monetary policy to the output gap corresponding approximately to an increase of 40 basis points for a 1%positive deviation of output from potential output. A positive deviation of inflation from its trend of 1%is estimated to have triggered an approximately 1.2%increase in short-term interest rates.     

Religiosity,borrower gender and loan losses in microfinance institutions: a global evidence

We examine the impact of religious beliefs on loan repayments in 770 microfinance institutions (MFIs) across 65 countries over the period 2006–2018. We find robust evidence of a negative relationship between religiosity and loan losses in MFIs. We also find that the relationship between religiosity and loan losses is stronger for MFIs in Protestant-dominated countries than in Catholic-dominated countries. Moreover, religiosity improves the operational self-sufficiency of MFIs through a reduction in loan losses. We find that religiosity does not improve the loan repayment behaviour of women borrowers, but it reduces the loan size per borrower. Overall, our evidence suggests that although religiosity reduces loan losses through religiosity-induced lender-risk aversion, it does not improve the loan repayment behaviour of borrowers. We also use several approaches to evaluate our results to the effects of endogeneity.

     

Promoting shared health care decision making using the analytic hierarchy process

Recent developments in medical technology and bioethics have led to a shift in the traditional framework of physician–patient responsibility in health care decision making. Patients are increasingly participating in serious health care decisions, resulting in a “shared decision-making model“ that both patients and their doctors agree is a significant improvement over the traditional system in which a doctor served as the primary decision maker. However, patients are finding they need to develop strategies that allow them to understand and evaluate their health care options in a clear manner. T.L. Saaty’s “Analytic Hierarchy Process” (AHP) is a decision methodology that has been successfully applied to a wide variety of situations and has great potential as a methodology for improved shared health care decision making. This paper reports the results of an experimental use of AHP as a tool to facilitate shared decision making for two specific health care populations. Both groups of patients were deciding amongst their options in terms of two important elective health care procedures: estrogen replacement therapy and cosmetic eyelid surgery. After using AHP, the majority of both patients and physicians agreed that this technique improved physician–patient communication, thus greatly assisting shared health care decisions. When considering other criteria in addition to physician–patient communication, including the entire physician–patient relationship, the patients felt that AHP was preferable to the conventional doctor-patient mode of decision making.     

East Meets West: A Meta-Analytic Investigation of Cultural Variations in Idealism and Relativism

Ethics position theory (EPT) maintains that individuals’ personal moral philosophies influence their judgments, actions, and emotions in ethically intense situations. The theory, when describing these moral viewpoints, stresses two dimensions: idealism (concern for benign outcomes) and relativism (skepticism with regards to inviolate moral principles). Variations in idealism and relativism across countries were examined via a meta-analysis of studies that assessed these two aspects of moral thought using the ethics position questionnaire (EPQ; Forsyth, Journal of Personality and Social Psychology 39, 175–184, 1980). This review identified 139 samples drawn from 29 different countries, for a total sample of 30,230 respondents, and concluded that (a) levels of idealism and relativism vary across regions of the world in predictable ways; (b) an exceptionist ethic is more common in Western countries, subjectivism and situationism in Eastern countries, and absolutism and situationism in Middle Eastern countries; and (c) a nation’s ethics position predicted that country’s location on previously documented cultural dimensions, such as individualism and avoidance of uncertainty (Hofstede, Culture’s Consequences: International Differences in Work-Related Values, 1980). Limitations in these methods and concerns about the validity of these cross-cultural conclusions are noted, as are suggestions for further research using the EPQ.     

Listing Specialization and Pricing Precision

This paper investigates the relationship between property pricing precision (deviation from an expected property value) and specialization in the listing process by agents. It is hypothesized that financially constrained, risk-averse sellers prefer finer gradations of pricing precision, i.e., less deviation from expected property value, and that a set of agents will rise to meet this preference. The findings in this work indicate that agents specializing in listing properties increase pricing precision. The contributions of this work are twofold: (a) it provides a unique and heretofore uninvestigated metric as its dependent variable, thus allowing for further investigation into the brokerage intermediation process beyond the scope of price and marketing time, and (b) it provides an identifiable agent trait that can allow for a better matching of sellers’ preferences with agents’ abilities.     

Professional Development for Cross-Border Managers: New Growth Opportunities for Executive Education

The need of business enterprises for professionals trained for the challenges of cross-border assignments will increase exponentially through the decade. Business schools will be hard pressed to deliver programs with the scope, scale, and effectiveness necessary to address the unique competencies required for cross-cultural understanding and communication, and the complexity of global business operations. This article reviews the existing literature in order to identify the competencies that are needed by global managers and the training approaches that can successfully build those competencies. A template of 10 criteria that should be addressed by training programs for cross-border professionals is proposed and applied to a sample of business schools that currently offer executive programs. Although there are good examples of programs that meet one or more of the 10 criteria, most business schools will be required to expand and to innovate their programs in order to meet the projected demand for training.