Intrapersonal Emotional Responses to the Inquiry and Advocacy Modes of Interaction: A Psychophysiological Study

In negotiations and group decision making we can use two characteristically different interaction modes: inquiry and advocacy. Inquiry refers to an interested and explorative interaction mode, and advocacy to an assertive and narrow mode. Although these modes have been studied in organizational behavior literature, the intrapersonal emotional responses to the inquiry and advocacy modes remain yet unexplored. We explored intrapersonal emotions by facial electromyography and skin conductance responses and by emotional empathy self-reports. The subjects were prompted to adopt the two modes in hypothetical encounters with another person. We found that Duchenne smiles were specific to the inquiry mode, that emotional arousal showed specificity to the expressions, and that emotional empathy predicts expressiveness in the inquiry treatment. We discuss the implications of these results to the use of the interaction modes and the related possibilities of influencing group interaction by influencing one’s own internal emotional state in group decisions.     

Changes in Investors' Market Attention and Near-Term Stock Market Returns

We use Google Search volume to track changes investors' positive and negative market attention. Our results support the hypothesis that this information reflects investors' optimistic and pessimistic anticipation and can be used to predict near-term future returns. We find that changes in negative search term volume of “market crash” and “bear market” and changes in positive search term volume “market rally” explain near-term stock returns. Changes in investors' attention are partly related to past stock market returns, implying that investors are prone to pay attention to possible price reversals. These measures of market attention are potential gauges of investor sentiment.     

Inflation, Price Level and Hybrid Rules under Inflation Uncertainty

The performance and robustness of optimised interest rate rules are analysed in a New Keynesian model estimated for the euro area economy. In particular, we examine the properties of rules responding to inflation, the price level, or a combination of the two (a hybrid rule). All the rules also respond to the output gap. The optimal hybrid rule is only marginally superior when there is no model uncertainty. When there is uncertainty about the degree of inflation persistence, the inflation rule is the most robust rule and the performance of the other two rules deteriorates. However, all the rules perform well if the true degree of inflation persistence turns out to be less than policymakers’ estimate.     

Hog producer income losses under contagious animal disease restrictions

Eradication measures of a contagious animal disease may force farmers to keep ready-to-slaughter animals on the farm. As feeding heavy animals may reduce carcass quality and farmer income, farmers can adjust their feeding policy in order to decrease losses from delayed slaughter. The problem is interesting also from society's point of view because eradication measures can affect a large number of farms when a single farm is infected. A dynamic programming model is developed to study optimal hog feeding strategies when the timing of slaughter is restricted. The model takes into account carcass quality, its effects on timing of slaughter under given prices, and animal density on the farm. The results show that farmers suffer substantial losses due to delayed slaughter, and can minimize the losses by reducing energy feeding. The results give information on designing compensation schemes so that all farmers have economic incentives to implement preferred eradication policy.     

Geographical focus in emerging markets and hedge fund performance

Emerging market hedge funds are an asset class which does not seem to outperform the market benchmarks. We hypothesize that the poor aggregate performance may be due to lack of focus of these funds. Our results suggest that a portfolio of emerging market hedge funds, which have geographical focuses, outperform their underlying stock markets. Hedge funds which focus on Eastern Europe appear to have the best outperformance. However, we also find that the performance of all emerging market hedge funds has reduced after the start of the 2008 Crisis.     

Conflicting limits to growth in sustainable tourism

Sustainability has emerged as an important field of research with an emphasis on studying tourism impacts and defining the limits of growth in tourism. However, the conceptual foundation of sustainability and the limits to growth have been perceived as vague and their implementation in tourism operations has emerged as a difficult task. This research note aims to present two different perspectives on sustainability by utilizing an experimental pilot example (yellow-eyed penguins) to demonstrate how different theoretical conceptualizations are manifested in nature-based tourism operations.     

Policy-makers’ perceptions of the tourism–climate change nexus: Policy needs and constraints in Botswana

Tourism is a key sector for most southern African economies endowed with unique natural capital, and the industry is increasingly being used for socio-economic development and diversification of national economies in the region. However, it has become clearly evident that the natural capital upon which the sector depends is highly vulnerable to climate change. This has created urgent governmental needs to take action through policy formulation and implementation. The paper uses in-depth interviews to determine Botswana policy-makers’ perceptions of climate change and tourism with the aim of determining policy needs and constraints. The results reveal that the policy-makers do see climate change as a concern requiring urgent establishment of relevant policy. However, they foresee inadequate information as well as uncertainties surrounding the impacts of climate change on the natural capital. This may hamper the formulation and effective implementation of such a policy.     

Integrating tourism to rural development and planning in the developing world

In the past few decades, rural areas have experienced major socioeconomic changes. Due to modernisation and deepening globalisation, the economic and employment potential of many traditional livelihoods has decreased. Currently tourism is increasingly seen as a relevant tool for addressing rural problems in developing countries and tourism is actively used for economic diversification and opening up new ways to generate income and employment. However, many development models, such as integrated rural tourism (IRT) with emphasis on co-planning, learning and participation, originate from the Global North. This calls for careful considerations when such models are applied to the Global South's rural contexts. This research note discusses some of the key challenges of rural tourism development, especially related to the integration of the tourism industry and rural communities in developing countries, and overviews the applicability and conditions of the IRT framework as a potential approach for rural tourism development in the developing world.     

Inflation Volatility and Forecast Accuracy

We examine the statistical properties of inflation in a sample of inflation‐targeting (IT) and non‐IT countries. It is hard to distinguish in which monetary regime inflation is less volatile. Inflation became easier to forecast in both groups of countries after the introduction of IT. The improvement was greater for IT countries, but forecast errors remain smaller for non‐IT countries. Our analysis is based on a stochastic volatility model proposed by Stock and Watson and its novel modification. Forecasts from the modified model are generally superior to both simple benchmarks and the original Stock and Watson model.