The Trade-Off between Quantity and Quality in Family Fertility Decision: Evidence from China's Family Planning Policy

Based on the Chinese General Social Survey 2006 and 2008 data, this paper assesses the influence of the family planning policy on the qualitative development of children using education attainment and individual income of only children versus children with siblings as parameters. Our results show the following: (1) only children are better-educated than their counterparts with siblings; (2) only children earn higher income in comparison to their counterparts with siblings; (3) the income and education gaps between girls with and without siblings are greater than those between boys; (4) the education gaps between only children and children with siblings are greater for those born in the 1970s, but the income difference between only children and children with siblings is only significant for those born in the 1980s; and (5) the income and education gaps between only children and children with siblings are higher in urban regions. Results indicate that families with only one child invest more resources in children’s quality under the family planning policy, which is consistent with the “quantity–quality trade-off” theory proposed by Gary Becker.     

Modeling the flight departure delay using survival analysis in South Korea

The air transportation industry in South Korea has been growing since the 2000s. Although the number of air passengers has continuously increased, the flight delay rate has fluctuated from year to year. In this study, a survival analysis was conducted to compare each flight delay in terms of airport/time slot and to evaluate the actual impacts of major variables on flight delays. We performed multiple analyses using survival analysis methodologies, including the Kaplan–Meier estimator, log-rank test, and Cox proportional hazards model. In particular, we applied a turnaround buffer as a key variable in Cox proportional hazards model analysis. The survival curve showed that more international flights departed earlier than scheduled or with minimal delay than domestic flights. However, international flights tended to have more long-term delays. The log-rank test indicated that international flights had a wider distribution of delay times than domestic flights. In the Cox proportional hazards analysis, under the condition in which the actual flight turnaround time was less than 120 min, the results indicated that the longer the actual turnaround buffer was, the less frequently the delays occurred. By using these analyses, we could numerically verify the actual delay trends in South Korea. The results can be used as fundamental resources for political and economic decision-making processes in the aviation industry.     

Statistical arbitrage with optimal causal paths on high-frequency data of the S&P 500

This paper develops the optimal causal path algorithm and applies it within a fully-fledged statistical arbitrage framework to minute-by-minute data of the S&P 500 constituents from 1998 to 2015. Specifically, the algorithm efficiently determines the optimal non-linear mapping and the corresponding lead–lag structure between two time series. Afterwards, this study explores the use of optimal causal paths as a means for identifying promising stock pairs and for generating buy and sell signals. For this purpose, the established trading strategy exploits information about the leading stock to predict future returns of the following stock. The value-add of the proposed framework is assessed by benchmarking it with variants relying on classic similarity measures and a buy-and-hold investment in the S&P 500 index. In the empirical back-testing study, the trading algorithm generates statistically and economically significant returns of 54.98% p.a. and an annualized Sharpe ratio of 3.57 after transaction costs. Returns are well superior to the benchmark approaches and do not load on any common sources of systematic risk. The strategy outperforms in the context of cryptocurrencies even in recent times due to the fact that stock returns contain substantial information about the future bitcoin returns.     

How feasible is regional integration for reconciling land use conflicts across the urban–rural interface? Evidence from Beijing–Tianjin–Hebei metropolitan region in China

Competition among different uses for land is becoming acute under the process of urbanization, and conflicts related to this competition are becoming more frequent and more complex. This article presents a methodology for confronting this issue. By applying an integrated framework, we explore the implicit role of the Beijing–Tianjin–Hebei Regional Integration (BRI) policy in land use conflicts by focusing on the urban-rural interface, and try to address the research question: “How feasible is BRI for reconciling land use conflicts across the urban-rural interface?” An original structure of the analysis is developed based on the identification of three types of conflicts, namely, conflicts over land use structure, conflicts over land conversion and conflicts over landscape pattern. According to the interactions and relationships among these conflicts, we define broad categories of land use conflict areas. Indeed, these conflicts are all related to the unplanned use of agricultural land reserves, which competes with other more immediate uses, and the over-exploitation of land resources caused by unsustainable urban practices. This policy is clearly a critical objective for optimizing the land use structure. It, however, fails to reconcile the conflicts over land conversion and landscape pattern, especially for considerable agricultural land conversion to non-agricultural uses, and low-density development pattern with mixed residential and industrial land uses. Hence, alternative strategies involving public participation, spatial equity, rural revitalization, land-use system reform, and new type of urbanization, can be identified as viable solutions for land use conflict management, which may be complementary to regional integration. The findings of our paper may also contribute to the policy debate on BRI concerning land use planning and regional sustainability.     

How and when entrepreneurs’ passion lead to firms’ radical innovation: moderated mediation model

ABSTRACT

The extant literature affirms that passion is important for entrepreneurs’ success. However, the related studies have failed to explain how and when entrepreneurial passion (EP) affects firms’ radical innovation (RI). The current study explores the connections between EP and firms’ RI and mediation of exploratory learning (EL) in this relationship. Moreover, we investigate the moderating role of the Zhong–Yong thinking (ZYT) of Chinese entrepreneurs. Findings from 310 new Chinese enterprises demonstrate that EP directly influences RI and indirectly through EL. ZYT of entrepreneurs can likewise reinforce the connection between their EP and RI via EL. Lastly, we discuss the theoretical and practical implications of our findings.     

Predator–prey dynamics in general equilibrium and the role of trade

We examine the implications of trade in an economy with two interrelated natural resources, focusing on the case of a simple predator–prey relationship. We derive a three-sector general equilibrium model where production functions are linked via the ecological dynamics of the natural system. Under autarky, this economy exhibits a steady-state equilibrium that overexploits the prey stock, reducing the linked predator population and overall welfare in the absence of harvesting controls. When two economies engage in trade, differences in the dynamics of the two resource systems can become the basis for comparative advantage. In this case, the predator–prey relationship leads to a source of comparative advantage in harvesting prey for a country with a lower autarky steady-state proportion of predators to prey. This feature has not been noticed in the literature and leads to a counterintuitive implication: free trade can help conserve predator and prey stocks in the country with the higher autarkic steady-state proportion of predators to prey. To illustrate the relevance of our analytic findings, we present the stylized empirical example of the effect of Chinook salmon imports on killer whale populations.     

The integration of international financial markets: an attempt to quantify contagion in an input–output-type analysis

ABSTRACT

The increasing integration of international financial markets means that credit defaults in one country have to be covered by creditors in other countries. If the principle of creditor liability were applied systematically, the financial losses incurred by the financial institution that provided the credit and is thus directly affected by the default would be ‘passed on’ through its domestic and foreign shareholders and debt holders, as well as their creditors, to the original savers. In this paper, this contagion effect will be estimated by taking international capital linkages into account. Analogously to an input–output analysis of inter-industry linkages, savings used for investments in one country are traced back to the countries from which the funds originated. This also reveals the important role of international financial centers, which essentially serve as distributors of investment risks, while the financial losses are ultimately borne by larger countries with higher levels of savings.     

Linking resources to career satisfaction through work–family enrichment

Using the work–family enrichment (WFE) model and social exchange theory as the theoretical underpinnings, our study investigates WFE as a mediator of the effects of material resources (i.e. salary, job security) as well as psychological resources (i.e. self-esteem) on career satisfaction. Our study gathered data from frontline employees (FLEs) in small- and medium-sized hotels in Delhi, the capital city of India, and gauged the aforementioned relationships through partial least squares structural equation modelling. The results suggest that FLEs’ satisfaction with salary and job security needs fosters WFE that in turn gives rise to satisfaction with their career in the organisation. The results also suggest that FLEs’ satisfaction with esteem needs stimulates WFE that in turn engenders career satisfaction. We discuss theoretical and practical implications of the empirical findings in the paper.     

The picture of luxury: A comprehensive examination of college student consumers' relationship with luxury brands

This study examines college student consumers' relationship with luxury brands through two studies. Study 1 analyzes collages to determine what represents luxury to them, how consumers perceive their relationships with luxury, and who they are as luxury consumers. Study 2 analyzes qualitative interviews to validate the findings of Study 1 and to add further insights. Results of Study 1 suggest that college student consumers represent a vibrant segment in the luxury market. These consumers perceive a wide variety of products and brands as meeting their luxury needs. They are currently interested in luxury and their potential will only increase as their incomes do. Results of Study 2 confirms their views of luxury and emphasizes the critical roles social media, peers, and family play in influencing college student consumers' luxury consumption and provide insights for how to build an emotional bond with them. Luxury marketers can build brand relationships with college student consumers by offering them entry-level products as they are current luxury consumers and see their consumption expanding in the future. Given that college student consumers are both vulnerable and savvy in recognizing when they are being manipulated, caution needs to be taken in approaching this segment in relationship-building efforts.     

Firm-level export duration: The importance of market-specific ownership linkages

This paper explores the impact of a firm's market-specific ownership linkages and trade complementarities on different dimensions of its exporting longevity. Unlike previous studies that were mostly based on country-product-level data, this paper uses transaction-level trade data on the population of firms in Slovenia in the 2002–11 period, matched with detailed origin/direction of inward/outward FDI information to determine a firm's integration in international production networks. Our results indicate that firm's bilateral inward and outward FDI flows with an export-destination country have a strong positive effect on a firm's export survival in that market. Importance of market-specific ownership linkages for export duration is exclusively driven by intermediate goods which suggests prolonged export duration through production network involvement. However, the perseverance effect of bilateral FDI ties on export spells has been weakened during the crisis period. We find pronounced market- and product-related trade complementarities as either exporting or importing experience with the relevant market/product substantially improves the chances of a product–market export spell continuing. Finally, the risk of exports termination is lower for a firm's core export products.