Endogenous product versus process innovation and a firm’s propensity to export

This article provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful market entry in models of creative destruction and Schumpeterian growth. Process innovation helps securing a firm’s market position given the characteristics of its product supply. Both modes of innovation are expected to raise a firm’s propensity to export. According to new trade theory, we conjecture that product innovation is relatively more important in that regard. We investigate these hypotheses in a rich survey panel data set with information about new innovations of either type. With a set of indicators regarding innovation motives and impediments and continuous variables at the firm and industry level at hand, we may determine the probability of launching new innovations and their impact on export propensity at the firm level through a double treatment approach.     

It’s a matter of congruence: How interpersonal identification between sales managers and salespersons shapes sales success

In recent years, marketing research and practice have recognized the importance of managing frontline employees’ identification. However, investigations so far have focused on identification at the collective level of the self, such as organizational identification, thereby largely neglecting important interpersonal identification processes at the relational level. Using a large-scale dataset comprising information from sales managers and salespeople as well as company data on customer satisfaction and sales performance, the authors make a first attempt to address this neglect by exploring important phenomena of interpersonal identification in the sales manager–salesperson dyad. Results show that initial increases in the level of identification congruence between sales managers and their respective salespeople yield positive incremental effects on sales performance and customer satisfaction. Findings also show that interpersonal over-identification and identification incongruence are negatively related to both outcomes. Results demonstrate how sales managers could mitigate these negative effects.     

Becoming a belly dancer: gender,the life course and the beginnings of a serious leisure career

Serious leisure careers have a beginning, middle and end, yet few studies examine the beginning stage of leisure careers dominated by women. Drawing from interviews with male and female belly dancers in the USA, this study examines how people join serious leisure activities. Results show that both men and women were interested in dance, arts and history, had personal ties to belly dance, and wanted an enjoyable form of exercise to match their capabilities when they entered the world of belly dance. Unlike men, the women in this study also experienced major life transitions, such as diminishing familial responsibilities, job and school issues, moving and shifting relationships. These findings have implications for the gendered nature of serious leisure.     

Will the EU-ETS instigate airline network reconfigurations?

Based on the proposal of the European Commission on including the aviation sector into the European Emission Trading Scheme, a route-based analysis is conducted simulating cost and demand implications for selected airlines. For a scenario of €20/tons CO₂, results indicate that the EU-ETS CO₂-based cost increases for the airlines are between €9 and €27 per route and therefore, as an individual factor, are not high enough to instigate major route reconfigurations among European airlines.     

Financing Capacity in the Bottleneck Model

It is well known that, for a congestible facility with constant long-run average cost, the revenue from the unconstrained optimal congestion charge (set so that each individual faces the marginal (social) cost of a use) exactly covers the cost of optimal capacity. In the context of Vickrey′s bottleneck model of morning rush-hour auto congestion, this paper investigates under what circumstances the first-best pricing and investment rules apply when both the time variation of the congestion charge is constrained and users differ in unobservable characteristics so that the same congestion charge must be applied to heterogeneous users.     

Bureaucratic privilege as an issue in Chinese politics

Since December 1978, social policy in China has followed a more openly elitist direction than in any period since 1949. The conservative drift in many policies is unmistakable, but in one respect there is concern — Party opposition to the rapid growth of bureaucratic privilege and abuse of political position. Mao had struck harshly at non-Party intellectuals, urban entrepreneurs, scientists and politically inactive youth. These groups are part of the social base for the new top leadership. A set of demobilizing reforms and purges aimed to route the radical leaders have been ordered by the Deng faction to intimidate their followers, as well as to discredit the mass-campaign style of work in order to replace it with orthodox Party-state structures. Some resistance has followed, but the increasing privatization of the economy created an absolutely larger petty-bourgeoisie which formed a new social layer supporting Deng. Generous back-pay and compensation for those weeded out by the Cultural Revolution gave a material basis for new inequalities. Upper-class communists were once again able to organize privileged, elitist education for their progeny. Finally, economic policy, including the new tolerance of patriotic Hong Kong capitalists, gave a new lease of life to entrepreneurs, some with foreign ties. A coalition of Party bureaucrats, civil servants, academics and businessmen has little time for socialist egalitarianism and Mao's radicalism.     

Asset pricing with unforeseen contingencies

We investigate an economy of heterogeneous agents that cannot specify all exogenous welfare-relevant events and consequently view the impact of unforeseen contingencies as utility shocks. In this setting we characterize an appropriate market equilibrium concept when securities can trade only on demand- and price-contingent events. We establish the existence of an equilibrium for a class of parametric models in which aggregating taste shocks across agents can lead to nonconsumption pricing factors. To fit the stylized facts, (i) non consumption factors must dominate the pricing kernel and contribute to the variation of the wealth-consumption ratio, (ii) markets must be incomplete and the set of claims that are traded endogenously determined, (iii) agents’ preferences with respect to unforeseen contingencies must be non-expected utility, and, (iv) although non-consumption pricing factors can be conditionally uncorrelated with aggregate consumption shocks, they must be correlated with shocks to expected consumption growth.     

A new look at the two-mode problem

This paper considers the second-best policy problem that arises when auto travel is priced below its marginal cost and there is a substitute mass transit mode. We analyze the problem by combining a model of a rail line based on Kraus and Yoshida (J. Urban Econ. 51 (2002) 170) with the highway bottleneck model. The model involves a transit authority which optimizes, in addition to the fare, two dimensions of transit capacity. These are (1) the number of train units serving the route and (2) the capacity of an individual train unit. Under a very weak condition, second-best optimality involves expanding both dimensions of transit capacity. The larger percentage effect is on train capacity.