Speculative hyperinflations and currency substitution

We propose a rational expectations framework for understanding speculative hyperinflations that end in response to ‘orthodox’ stabilization programs. Motivated by a strong degree of hysteresis in the stock of real balances after the end of hyperinflations, we provide a cash-and-credit model in which the money demand exhibits persistence because individuals can establish long-lasting credit relationships. We use the model to show that if hysteresis in real balances is possible then a fiscal–monetary reform that successfully stops a speculative hyperinflation may fail to prevent it. We argue that speculative hyperinflationary equilibria are consistent with some key stylized facts observed in extreme hyperinflations.     

Can the North–South trade regime explain intra- and inter-country productivity differences?

The literature identifies North–South disparities in Total Factor Productivity (TFP), which, in turn, justify the bulk of international income differences. By building a dynamic, general equilibrium model of North–South technological-knowledge diffusion with scale-invariant growth, we extend the literature in several directions: (i) growth is driven by Schumpeterian R&D and by high and low-skilled human-capital accumulation; (ii) three trade regimes are considered; (iii) sectoral and aggregate TFP measures are computed; (iv) the extent to which the North–South trade regime explains intra-country TFP and inter-country TFP differences is evaluated. In particular, the results suggest that intra-country TFP differences increase and inter-country TFP differences fall when countries are more interdependent.     

The effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

Social signaling and interorganizational relationships: Lessons learned from the professional sports industry

In today’s connected economy, interorganizational relationships are increasingly important. Whether government-to-government, political party-to-political party, business-to-business, department-to-department, or some other interorganizational pairing, these relationships can provide organizations with signals used to identify and better respond to changes in their environment and in their interorganizational relationships. This enables astute organizations to not only understand how others will interpret the social signals they send, but also to shape those signals in ways that will improve their interorganizational relationships. We illustrate this herein, using the public and readily recognizable relationships involved with labor relations in the professional sports industry. We show how social signals can explain the way organizations change and adapt to their environments, and how these changes send messages to related organizations. Finally, we provide a set of recommended advice for managers based on this case analysis.     

The "New" Stability and Growth Pact: More Flexible,Less Stupid?

The doubts and criticisms with regard to the fiscal discipline imposed by the Stability and Growth Pact (SGP) have been many and varied, and the SGP was revised as a result. The following paper evaluates the changes contained in the "new" SGP by considering the properties for ideal fiscal rules put forward by Kopits and Symansky. The analysis points towards a clear increase in flexibility together with the probable emergence of new enforcement problems. In this context, the need for new improvements within the European framework for the definition and implementation of national fiscal policies is discussed.     

Alienation in corporate America: Fact or fable?

Using NORC annual survey data, the authors selected 21 questions describing respondent attitudes toward job, life in general, and financial status. Respondents were catigorized as management, white collar, blue collar, and those not affiliated with business organizations. Attitudes were compared across the four occupational groups. Little dissatisfaction was found in any but the blue collar group. Management as a group, and men as well as women managers showed high levels of satisfaction, with few significant differences found in responses by men and women. This study does not support the earlier finding of widespread alienation in business firms.Charles B. Sannders is Professor of Business Administration at the University of Connecticut. He has written numerous articles which have been published in various management journals.Hugh M. O'Neill and Oscar W. Jensen are Assistant Professors of Business Administration at the University of Connecticut and the Fairfield University, respectively. Both have written several articles, published in management journals.     

Innovation Economy,Productive Public Expenditure and Economic Growth

Multidisciplinary innovation is the main engine of growth for an increasing number of economies. Innovation requires the participation of and interaction between all economic agents. It also requires public spending on education, research and infrastructures. Our main goal is to emphasize the government's role in a growing innovation economy. Developing a non‐scale, idea‐based, one‐sector growth model with complementarities and productive public expenditure, we analyse theoretically the growth effects of an increase in productive public expenditure, which we find positive in the short, medium and long run.     

Analytical derivation and behavioral interpretation of a model combining trip generation and distribution

The disjointedness of the planning sequence of trip generation and trip distribution is the main subject of this paper. We approach this disjointedness problem by analyzing the central properties of the independently discovered balancing methods of trip-distribution models in relation to two critical issues. First, in the current planning sequence, it is usual to start by forecasting how many trips will begin (production) and end (attraction) in each zone. This forecasting is done by estimating the production of trips independently from the attraction of trips and vice versa, and then forcing some mechanical balance of total trips being generated in the urban system. Second, in the same planning sequence, the output of this trip-generation process is the input to the next one (trip-distribution process): forecasting the matrix that describes the number of trips between each pair of zones. This forecasting is done in general by updating an equivalent obsolete matrix that was obtained from an origin-and-destination survey. The updating is generally accomplished by adjusting the outdated matrix with the so-called balancing factors. It is the purpose of this paper to support the balancing-factors approach in forecasting trip-distribution matrices with a methodological interpretation and to explain behaviorally the balancing factors; and in the process, to show the spatial interaction between trip production and attraction and the emerging need for simultaneous specification and estimation of the whole trip-generation process.