Enhanced Special Drawing Rights: How China Could Contribute to a Reformed International Monetary Architecture

Since the end of the Bretton Woods era, the world has operated on a de facto system of free‐floating exchange rates, with the US dollar as the dominant international currency. The system, characterized by large pro‐cyclical capital flows and chronic imbalances, is inherently unstable, and has contributed to repeated crises, recessions and geopolitical tensions. One potentially “least‐difficult” line of reform would be to allow the evolution of a multi‐currency system, underpinned by an expanded role for Special Drawing Rights (SDRs). Attempts to promote wider use of the SDR have foundered on the liquidity premium. However, for Chinese corporations and institutions, at present restricted in their capital account activities, the SDR liquidity premium would appear less daunting. The Chinese authorities could provide policy encouragement for the use of SDRs by their institutions. This initiative, supported by China's Special Administrative Region Hong Kong, would kick‐start an international SDR ecosystem, and encourage even broader use of SDRs, to the benefit of international monetary stability.     

Equilibrium Effects of Superstition in the Housing Market

We investigate the interaction of product quality differentiation and consumer preference heterogeneity in durable goods markets, focusing on the effects of secondary market liquidity and consumer heterogeneity on equilibrium prices. We build an infinite‐horizon dynamic model of the apartments housing market that captures the above features. Some apartments are considered lucky, and some consumers are superstitious. Lucky apartments are valued more highly than non‐lucky ones only by superstitious consumers. Results show that the difference between the lucky apartment price and the non‐lucky apartment price becomes smaller when the secondary market becomes less liquid and when consumers’ preference heterogeneity becomes more persistent as opposed to time‐varying.     

THE IMPACT OF BODY WEIGHT ON OCCUPATIONAL MOBILITY AND CAREER DEVELOPMENT

This article examines the relationship between individuals' weight and employment decisions over the life cycle. I estimate a dynamic stochastic model of individuals' annual choices of occupation, hours worked, and schooling. Evidence suggests that heavier individuals face higher switching costs when transitioning into white‐collar occupations, earn lower returns to experience in white‐collar occupations, and earn lower wages in socially intensive jobs. I simulate a hypothetical antidiscrimination policy treating obese workers as a protected class. Although such a policy would reduce gaps in occupational attainment, it would have little effect on the observed divergence in wages between obese and nonobese workers.     

Counterproductive work behavior as protest

We suggest that counterproductive work behaviors can be viewed as a form of protest in which organizational members express dissatisfaction with or attempt to resolve injustice within the organization. Incorporating the three key predictors (injustice, identity and instrumentality, [Klandermans, B., (1997). The social psychology of protest. Oxford: Blackwell.]) from the protest literature leads us to propose that counterproductive behaviors can be both individual and collective. Crossing this dimension with concepts of organizational and individual deviance leads to a fourfold classification of counterproductive work behaviors.     

Building the Planning Consensus: The Plan of Chicago,Civic Boosterism,and Urban Reform in Chicago, 1893 to 1915

Since its publication in 1909, Daniel Burnham's Plan of Chicago has been criticized for its lack of attention to social issues and for the failure of subsequent reconstruction projects to live up to the ambition of the plan. These criticisms assume that the Plan of Chicago was insufficiently progressive, or they evaluate the Plan by reference to the successes and failures of subsequent decades of urban reconstruction in Chicago. This article argues that the key to understanding the Plan of Chicago is to place it in its historical context. Burnham's Plan of Chicago was an expression of the tradition of Chicago civic boosterism and earlier city‐building practices as much as it was of the nascent profession of city planning. Finally, while the Plan did neglect housing, poverty, and other social questions, it did possess a social vision based on civic inclusivity, rather than economic inclusivity. The Plan can be read as a reform document based on the assumption that physical environment shapes individual character and social relationships. It assumed the creation of a unified and harmonious physical city would produce a contented and productive citizenry. In short, the Plan of Chicago deployed a transformative vision in the service of conservative goals.     

Does Advertising Overcome Brand Loyalty? Evidence from the Breakfast‐Cereals Market

In differentiated product markets where consumer preferences are characterized by brand loyalty, an important role for advertising may be to overcome brand loyalty by encouraging consumers to switch to less familiar brands. Using a scanner panel dataset of breakfast-cereal purchases, I find evidence consistent with the hypothesis that advertising counteracts the tendencies of brand loyalty toward repeat purchasing. Equivalently, advertising reduces switching costs in this market. Furthermore, counterfactual experiments demonstrate that in markets with brand loyalty, advertising is an attractive and effective option—relative to alternative promotional activities, such as price discounts—of stimulating demand for a brand .     

Odd Prices at Retail Gasoline Stations: Focal Point Pricing and Tacit Collusion

This study empirically investigates the theory that odd‐numbered pricing points can be used as focal points to facilitate tacit collusion. Like other retailers, gasoline stations in the United States disproportionately sell at prices ending in odd digits. I show that station prices are higher and change less frequently in locations using more odd prices (particularly those ending in 5 or 9), even after controlling for other market characteristics. The evidence suggests that the use of pricing points can be an effective mechanism for tacitly coordinating prices, providing an alternative explanation for the widespread use of odd prices in retail markets.