Performance of conditional Wald tests in IV regression with weak instruments

We compare the powers of five tests of the coefficient on a single endogenous regressor in instrumental variables regression. Following Moreira [2003, A conditional likelihood ratio test for structural models. Econometrica 71, 1027–1048], all tests are implemented using critical values that depend on a statistic which is sufficient under the null hypothesis for the (unknown) concentration parameter, so these conditional tests are asymptotically valid under weak instrument asymptotics. Four of the tests are based on k-class Wald statistics (two-stage least squares, LIML, Fuller's [Some properties of a modification of the limited information estimator. Econometrica 45, 939–953], and bias-adjusted TSLS); the fifth is Moreira's (2003) conditional likelihood ratio (CLR) test. The heretofore unstudied conditional Wald (CW) tests are found to perform poorly, compared to the CLR test: in many cases, the CW tests have almost no power against a wide range of alternatives. Our analysis is facilitated by a new algorithm, presented here, for the computation of the asymptotic conditional p-value of the CLR test.     

Measuring customer equity and managing the customer asset: an explanatory study in the Australian hotels

Although there are a range of conceptual and theoretical studies about customer equity (CE) measurement and management in the literature, there are few empirical studies where these two concepts are examined together. This paper focuses on the need for a more synthesised approach and addresses calls for more research into this specific area of marketing management. A conceptual framework was developed that synthesises both customer lifetime value and customer relationship management from a customer equity management (CEM) perspective. The framework was used to empirically examine how four CE strategies, together with a firm’s use of the two types of customer data (aggregated and disaggregated), impact on CEM outcomes. Data were collected from 114 hotel managers in Australia and analysed through a decision tree methodology. The results show that hotels are utilising their CE strategies for acquisition purposes more than retention purposes (customer asset management), which overall appears to satisfice more than maximise their hotel’s capacity in achieving effective CE outcomes. The study’s contribution to theory is through empirically testing a framework that combines two discrete theoretical concepts in one study to provide insights to guide future research.     

Corruption in Asia Pacific business organizations: insights on causes,conditions, consequences and treatment

ABSTRACT

In the wake of the 1997 Asian financial crisis a wave of articles and commentaries focused increasingly on the so-called ‘dark side’ of Asian business. At the forefront of these lay investigations into the deleterious effects of corruption on economic development, business performance and international investor confidence. In subsequent years, due in part to converging pressures for universal corporate standards, the flow of research declined on the (implicit) assumption that corruption was a decreasing problem as new generations of Asian managers assimilated ‘Western’ values and practices. However, despite continuing admonishments and initiatives, the effects of corrupt practice at all levels remains as entrenched and as serious as ever. Blending micro and macro-level analysis along with both conceptual and empirical investigations, this collection offers some of the most recent frameworks and findings to explain the causes, conditions, consequences and treatment of corruption in 21^st century Asia.     

From Territorial Cohesion to Regional Spatial Justice: The Well-Being of Future Generations Act in Wales

The European Union's flagship Cohesion Policy faces evidence of dubious economic effectiveness and growing political and philosophical critiques of the very ideals of furthering European integration. This article examines ambitions for territorial cohesion as they have been operationalized through regional development in Wales. We argue that a potential alternative to the failed realization of territorial cohesion lies in the principles of spatial justice. While territorial cohesion has typically emphasized the redistribution of funds to ‘lagging’ regions, spatial justice, as we define it, is premised upon enabling regions to assert their own capacity to act and pursue positive visions of regional futures, consider the implications of space and scale for the achievement of justice, and define well-being, development and the ‘good life’ in ways that reflect regional priorities. We examine three ways in which recent political discourses and policy mechanisms in Wales resonate with these ideals. We focus on attempts to envision a progressive Welsh future, develop alternative spaces and scales of governance, and redefine and pluralize understandings of progress and well-being. The article concludes by reflecting on the practical and conceptual implications of rescaling spatial justice to regional contexts.     

Accounting for geographical variance in the union satisfaction gap

Evidence of spatial variance in the relationship between trade union membership and job satisfaction is limited. Using three nationally representative data sets, we examine lower levels of satisfaction among union members and considers how this relationship varies geographically across the nations and regions of Great Britain. The analysis demonstrates that the union satisfaction gap can largely be accounted for by relative characteristics of union members and the jobs that they hold. However, there is evidence of geographical variance. The union satisfaction gap is generally found to be highest within Scotland and North of England. Despite high levels of union membership, evidence of a union satisfaction gap in Wales is relatively weak. These differences relate to differences in the perceptions of industrial relations among employees across these areas, which appear to be related to geographical variance in worker heterogeneity.     

Developing country debt: implications for agricultural trade

There has been a sharp decline in the rate of economic growth in many developing countries in the 1980s compared with the 1970s. Reduced availability of external finance following the international debt crisis has been identified as one of the most important factors responsible for this decline. At the same time there has been a slowdown in the rate of growth of food imports to these countries, particularly to the highly indepted ones. The focus in the paper is on the implications for international agricultural commodity markets of a dept write-off in developing countries. To analyse these implications a world agricultural trade model is used. Specifically, the analysis covers the effect of existing debt on the permanent incomes of developing debtor countries and developed creditor countries, and hence the effect on agricultural commodity markets. The results indicate that, if the debts of the developing countries were written off, prices would improve in consequence of the resulting rise in their permanent incomes. If the debt write-off also led to growth in developing countries returning to the levels prevalent before the debt crisis, the improvements in world prices would be likely to be much larger.