Quantitative Easing Forever? Financialisation and the Institutional Legitimacy of the Federal Reserve’s Unconventional Monetary Policy

Scholars of financialisation have argued that the emergence of finance-led grow regimes requires new instruments for effective conduct of economic policy. In this scholarship, central banks have been seen as the most promising actors to utilise one of the most synergetic policies, the maintenance of high and stable prices of financial assets. Since the financial crisis of 2007–8, central banks of the developed world have adopted various unconventional monetary policy measures that serve this function. But will these unconventional measures become institutionally legitimate and institutionalised as conventional practice, as suggested necessary by scholars of financialisation? In this paper, we answer to this question by studying the institutional legitimation of the Federal Reserve’s Quantiative Easing (QE) programmes. We argue that the QE programmes have been legitimated successfully but with institutional legitimation strategies, which cause institutional pressures that question the potential of QE from becoming a regular policy instrument and practice.     

Cultural embeddedness in supply networks

Recent studies on structural and relational embeddedness suggest that favorable position and connections in supply networks benefit a firm. While fruitful, this focus misses the motivations that prompt firms to take economic action in the first place. Understanding cultural embeddedness provides insight into why individuals and firms behave as they do and how their behavior can influence network structure. Contrary to the belief that firms act solely for profit and growth, we note that cultural contents such as values, social issues and political ideologies explain firms’ motives and guide their economic activities. We explore the role of cultural embeddedness through a grounded study of Country Natural Beef, a sustainability-oriented agricultural cooperative in the western United States. This supply network demonstrates strongly competing cultural claims among its members as well as a unique institutionalized culture. Cultural interactions at the node and network levels explain the functioning of and changes to the network. Through interviews, analysis of archival information and direct observation of pivotal events over a period of 5 years, we unpack cultural embeddedness and take an incremental step toward a theory of cultural embeddedness in cooperative supply networks.     

HUMANITARIAN CRISES AND ADOLESCENT WELL-BEING: KNOWLEDGE,GAPS, AND PROSPECTS

Adolescence constitutes the second and final window of human growth and a period of specific vulnerabilities, such as early pregnancy, early marriage, HIV infection, suicide, violence, alcohol, and drugs. Only a limited body of research investigates the effects of humanitarian crises on the human capital and well-being of adolescents. The evidence focuses on the short-term effects of conflict and, to a lesser extent, natural disasters on education, physical health, and nutrition, but not on mental health. Most analyses examine the situations of individuals exposed in utero and young childhood, but rarely during adolescence. Typically missing are robust empirical identification strategies and estimates on heterogeneous effects across age or gender. The lack of quality data and challenges in defining adolescence, establishing causality, or ensuring ethical research explain the knowledge gaps. Possible ways to expand the evidence base include mixing georeferenced data on individual location with georeferenced data on crises, sharpening quasi-experimental analytical techniques, and reconsidering the current timing of demographic data collection, now spanning 4- or 5-year intervals. The failure to make such adjustments will end by ignoring specific vulnerabilities among adolescents and render sustainable progress in well-being globally, narrowing inequalities, and guaranteeing human rights to all more difficult to achieve.     

Policy lessons from spatiotemporal enrollment patterns of payment for ecosystem service programs in Argentina

Payment for ecosystem services schemes (PES) are lauded as a market-based solution to curtail deforestation and restore degraded ecosystems. However, PES programs often fail to conserve sites under strong long-term deforestation pressures. Underperformance, in part, is likely due to adverse selection. Spatial adverse selection occurs when landowners are more likely to enroll parcels with low deforestation pressure than parcels with high deforestation pressure. Temporal adverse selection arises when parcels are enrolled for short time periods. In both cases, financial resources are allocated without having a sizeable impact on long-term land use change. Improving program performance to overcome these shortcomings requires understanding attributes of landowners and their parcels across large scales to identify spatial and temporal enrollment patterns that drive adverse selection. In this paper, we examine these patterns in Argentina’s PES program in Chaco forest, a global deforestation hotspot. Our study area covers 252,319 km². Results from multinomial logistic regression models showed that large parcels of enrolled land and parcels owned by absentee landowners exhibit greater evidence of spatiotemporal adverse selection than smaller parcels or parcels owned by local landowners. Furthermore, parcels managed under land use plans for conservation and restoration are more likely to be associated with adverse selection than parcels managed for financial returns such as harvest of non-timber forest products, silviculture, and silvopasture. However, prior to recommending that PES programs focus on land uses with higher potential earnings, a greater understanding is needed of the degree to which these land uses meet ecological and biodiversity goals of PES programs. We suggest that increased spatial targeting of enrollment, along with enrollment of local landowners and further incentives for land uses that support conservation and restoration, could promote long-term conservation of forest lands.     

Understanding homophily of service failure within the hotel guest cycle: Applying NLP-aspect-based sentiment analysis to the hospitality industry

Online complaints have become increasingly influential on the purchasing behavior of customers in recent years. In an effort analyze large quantities of textual complaints and detail the various aspects of them, Aspect-Based Sentiment Analysis was looked to as an ideal framework to take on the task. This study set out to synthesize specific service failure items and categorize them into the groupings related to the hotel guest cycle and the corresponding operations, then compare the patterns of expression used by Asian and Non-Asian guests as the related their hotel experiences. A total of 390,236 online complaint terms posted about 353 hotels in the UK by hotel guests from 63 nations were manually derived from TripAdvisor for analysis. With consideration given to the homophily theory, we posited that Asian and non-Asian guests would exhibit similarities and differences with respect to the service failures they encountered when presented with various items of service. The results confirmed this as Asian guests were shown to encounter more service failures with respect to the engineering segment of operations (e.g. hotel room equipment issues), while non-Asian guests encountered more service failures on the housekeeping end of operations (e.g. toilets, public areas, cleanliness, and bedding). By organizing the failures according the four stages of the guest cycle, it was observed that approximately 80% of the service failures occurred during the occupancy period. This study contributes to the existing literature on hotel guest satisfaction both with respect to the methodology it uses and the new findings it presents on differences in perceptions of service failures members among different cultures.     

玉米临时储备粮收购政策引发的问题及建议--以吉林省德惠市玉米临储粮情况为例

玉米临时储备粮收购政策扭曲了市场价格，由于临储粮收购价高于市场价格，黑、吉、辽、内蒙古等四省区玉米积压严重。本文以实地调研为基础，建设性地提出以市场机制为前提，实行价补分开，增加农田水利建设等政策建议。     

Renewable energy and low-carbon policy spillover effects on natural gas demand

Recent legislation intended to increase the use of renewable energy sources and lower the amount of carbon dioxide emissions from energy has changed the structure of energy markets. The effect of these policies on carbon-intensive fuel sources is rather obvious. For natural gas, though, the effect is not immediately clear. This letter uses a structural model of natural gas demand to uncover whether these policies have led to increased demand because natural gas is a relatively clean source of energy that couples well with renewables or if these policies have crowded out natural gas on net.     

The response of U.S. natural gas futures and spot prices to storage change surprises: Fundamental information and the effect of escalating physical gas production

We study the behavior of U.S. natural gas futures and spot prices on and around the weekly announcements by the U.S. Energy Information Administration of the amount of natural gas in storage. We identify an inverse empirical relation between changes in futures prices and surprises in the change in natural gas in storage and that this relation is not driven by the absolute size of the surprise. The evidence also indicates prices react first in the futures market for natural gas with that information then flowing to the spot market. Post 2005, corresponding to a period of significant increases in the production of natural gas in the United States, the response of prices to storage surprises was larger in absolute value. No evidence is found of economically meaningful reactions to the surprise other than on the date the storage news is released. The results demonstrate the importance of fundamental information in the formation of natural gas prices.     

On the timing of political regime changes in resource-dependent economies

We consider a resource-dependent economy initially ruled by the elite. The transition from the autocratic to a more democratic regime takes place only if the citizens decide to revolt against the elite. The occurrence of a revolution primarily depends on the autocratic regime vulnerability and the level of inequalities, both being driven by the elite׳s redistribution and repression policies. First, we show that when a political transition is inevitable, the elite choose the maximum rate of redistribution to lengthen their period in office. Second, we find that the duration of the autocratic regime is linked to resource abundance, and how it relates to the elite׳s policies. More resources lead to a shorter reign of a redistributive regime, which may not be the case of a repressive regime. Finally, we interpret the Arab spring sequence in light of our findings.     

Trust, reputation and relationships in grazing rights markets: An experimental economic study

Trust is frequently a requirement for economic exchanges and the management of natural resources. Providing public information on past actions can promote trust through the formation of reputations. We developed an economic experiment to test whether a formal reputation mechanism could facilitate trusting relationships in the tradable grazing rights markets. Providing information to create formal public reputations for market participants did not increase the overall efficiency of the market. However, it did result in greater equality of income between partners, suggesting that participants showed more concern for their partners when they knew they would be rated. Even with public reputation information, bilateral relationships remained central to the market. Market failures in existing grazing rights markets may be better addressed by measures to increase communication between partners rather than simply relying on a formal reputation mechanism.