Virtual Atmosphere: The Effect of Pleasure,Arousal, and Delight on Word-of-Mouth

This study investigates the effect of virtual atmospheric cues on emotions and word-of-mouth and also analyzes the differences between the perceptions of male and female participants relative to the online environment. Questionnaires were given to students in higher education and senior university students. The main findings suggest that pleasure is the most effective emotion to lead to a positive word-of-mouth for both genders. Women are more willing to say positive words to others than men. Women are also more influenced by the delight and pleasure, whereas men are influenced only by pleasure.     

CAPE VERDE: THE CASE FOR EUROISATION

After a decade of a successful peg to the euro, the authorities of Cape Verde are considering the official euroisation of the country. For an ex ante economic evaluation of such a move, this paper assesses whether Cape Verde fulfills key economic criteria devised by the optimum currency areas literature, using as benchmark the comparable records of the 27 European Union (EU) countries. The answer is positive. Overall, we find that Cape Verde is not less suited for euroisation than some of the current euro area members and most of the remaining members of the EU.     

The effects of nutritional labels on obesity

This study examines the relationship between nutritional label use and obesity using switching regression. Results for treatment effect show that nutritional labels play a role in reducing obesity among users of nutritional labels, notably among women. The average body mass index (BMI) for men who read nutritional labels is 0.12 point lower than men who do not read them, while women who are users of nutritional labels have 1.49 points lower BMI than women who do not read labels. These findings imply that health education campaigns can employ nutritional labels as one of the instruments for reducing obesity.     

The Invisible Side of Political Parties: The Case of the PCdoB

The young Latin American democracies have been structuring their political parties for day-to-day management. In this context, it is important to understand how such structures could be affected by the so-called invisible side of organizations, which are composed of networks of relationships between elected politicians and then relationships between these and external militant groups, which can greatly influence the candidates’ performance and the very dynamics of the party. This article seeks to unravel some of these dimensions. We select for analysis the case of the PCdoB (Communist Party of Brazil), in the Metropolitan Region of Belo Horizonte, state of Minas Gerais, Brazil. The results show the nature of the embeddedness of these actors in the political system, highlighting weaknesses and possibilities.     

Optimal Diversification: Reconciling Theory and Evidence

In this paper we show that the main empirical findings about firm diversification and performance are consistent with the maximization of shareholder value. In our model, diversification allows a firm to explore better productive opportunities while taking advantage of synergies. By explicitly linking the diversification strategies of the firm to differences in size and productivity, our model provides a natural laboratory to investigate several aspects of the relationship between diversification and performance. Specifically, we show that our model can rationalize the evidence on the diversification discount ( Lang and Stulz (1994) ) and the documented relation between diversification and productivity ( Schoar (2002) ).     

Do consumers perceive benefits from the implementation of a EU mandatory nutritional labelling program?

This paper examines consumers’ knowledge about nutritional labels (i.e., nutritional panel), use of nutritional labels, and perceived benefits from a mandatory nutritional labeling program. Using data from a pilot study conducted in a Spanish city and a three-equation multivariate probit model, our results suggest that individuals who suffer some health problems related to food intake are more knowledgeable about nutritional labels. Further, those who are more knowledgeable about nutritional labels are more likely to use nutritional labels, and nutritional label users are more likely to consider mandatory nutritional labeling as beneficial. Perceived usefulness of the information provided by nutritional labels as well as the amount of presented information affect consumer perceptions about whether or not mandatory nutritional labeling would be beneficial.     

Firm non‐market capabilities and the effect of supranational institutional safeguards on the location choice of international investments

Research Summary : We investigate the extent to which firms rely on supranational institutional safeguards versus their non‐market capabilities to offset the risks of investing abroad. We argue that firms with non‐market capabilities are insensitive to supranational institutional safeguards when choosing the location of their international investments. We show that supranational agreements between an investor's home and host nation, operationalized as bilateral investment treaties (BITs), increase the likelihood of investment, but there is substantial firm heterogeneity with respect to this relationship. Firms with various forms of non‐market capabilities are not sensitive to BITs, whereas other firms are more likely to invest under BITs. We advance the understanding of how firm non‐market capabilities can substitute for supranational institutional arrangements in addressing risks associated with host country institutional weaknesses. Managerial Summary : The risk of expropriation is one of the main concerns companies have when investing abroad. Because of this, many countries implement bilateral investment treaties (BITs) to safeguard foreign investments, alleviate foreign investor concerns, and promote investments. We show that only those companies without political competence or political connections favor countries with BITs when choosing where to invest. Companies with political competence or political connections, on the other hand, ignore BITs and apparently rely on their ability to influence governments whenever their foreign investments face expropriation threats. As a result, politically connected or competent companies can enter markets most of their competitors lacking these capabilities shy away from. They can, therefore, do business in environments in which they face less competition.     

Enhanced GM foods: Are consumers ready to pay for the potential benefits of biotechnology?

The present study analyzes and compares willingness to pay estimates for different genetic modifications in a tomato plant. Results suggest that consumers are ready to pay the highest premiums for modifications which increase the tomato flavor or enhance the nutritional value. However, these premiums are still fairly small, reflecting the general difficulty of opening new markets for products that consumers may perceive as not completely safe.     

Cost of doing business index in Latin America

Quality & Quantity - The World Bank's Ease of Doing Business Index (EDBI) has been widely used in analyzes of attracting investments and formulating public policies. Despite its importance...     

Fiscal discipline and exchange rates: Does politics matter?

We look at the effect of exchange rate regimes on fiscal discipline, taking into account the effect of underlying political conditions. We present a model where strong politics (defined as policymakers facing longer political horizon and higher cohesion) are associated with better fiscal performance, but fixed exchange rates may revert this result and lead to less fiscal discipline. We confirm these hypotheses through regression analysis performed on a panel sample covering 79 countries from 1975 to 2012. Our empirical results also show that the positive effect of strong politics on fiscal discipline is not enough to counter the negative impact of being at/moving to fixed exchange rates. Our results are robust to a number of sensitivity checks, including the use of different estimators, alternative proxies for fiscal discipline and sub-sample analysis.