The lag relationship between wholesale and consumer prices: An application of the Hatanaka-Wallace procedure

This paper examines the lag distribution relating wholesale to consumer price changes. Sims' causality test indicates a one-sided lag structure. Following Hatanaka and Wallace, parameters of the lag distribution which can be estimated with relatively high precision are emphasized. Thus, our concern is with the sum of coefficients and the first four moments of the distribution. Short-run effects are estimated from lag moments using Pearson's method for equating moments. As a smoothness prior, a Beta distribution in the lag weights is suggested. Tests for bias due to missing components in the wholesale price index indicate little is lost because of misspecification.     

Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent

This paper investigates the mediating effect of learning intent in transforming local suppliers’ potential absorptive capacity into realized absorptive capacity and its impact on exploitative and exploratory innovation. Using survey data from 155 auto parts manufacturers in Pakistan, we find that local firms’ realized absorptive capacity enables them to develop both exploitative and exploratory innovations. The findings further suggest that local suppliers’ learning intent mediates the relationship between potential and realized absorptive capacity which in turn lead to both types of innovation. In the context of the emerging economy of Pakistan, local suppliers’ absorptive capacity is found to be critically important in spurring exploitative and exploratory innovation, but learning intent enables realized absorptive capacity and thus in conjunction with realized absorptive capacity supports innovation. Consequently, there would be a strong case for policy intervention to assist emerging economy firms in building their absorptive capacity and strengthening their learning intent as a route for promoting innovation and improving their value added position in the global value chains of multinational enterprises.     

Evaluating drug cost per responder and number needed to treat associated with lixisenatide on top of glargine when compared to rapid-acting insulin intensification regimens on top of glargine,in patients with type 2 diabetes in the UK,Italy, and Spain

Objectives: This study investigated the cost per responder and number needed to treat (NNT) in type 2 diabetes mellitus (T2DM) patients for lixisenatide compared to insulin intensification regimens using composite endpoints in the UK, Italy, and Spain.

Methods: Efficacy and safety outcomes were obtained from GetGoal Duo-2, a 26-week phase 3 trial comparing lixisenatide vs insulin glulisine (IG) once daily (QD) and three times daily (TID). Response at week 26 was extrapolated to 52 weeks, assuming a maintained treatment effect, based on long-term evidence in other T2DM populations. Responders were defined using composite end-points, based on an HbA1c threshold and/or no weight gain and/or no hypoglycemia. The HbA1c threshold was varied in sensitivity analyses. Annual treatment costs were estimated in euros (1 GBP?=?1.26 EUR), including drug acquisition and resource use costs. Cost per responder was computed by dividing annual treatment costs per patient by the proportion of responders.

Results: Lixisenatide was associated with the lowest cost per responder for all composite end-points that included a weight-related component. For the main composite end-point of HbA1c ≤7.5% AND no weight gain AND no symptomatic hypoglycemia, cost per responder results were: UK: 6,867€, 8,746€, and 12,410€; Italy: 7,057€, 9,160€, and 12,844€; Spain: 8,370€, 11,365€, and 17,038€, for lixisenatide, IG QD, and TID, respectively. The NNT analysis showed that, for every 6.85 and 5.86 patients treated with lixisenatide, there was approximately one additional responder compared to IG QD and TID, respectively.

Limitations: A limitation of the clinical inputs is the lack of 52-week trial data from GetGoal Duo-2, which led to the assumption of a maintained treatment effect from week 26 to 52.

Conclusions: This analysis suggests lixisenatide is an efficient economic resource allocation in the UK, Italy, and Spain.     

Enhancing Student Competency and Employability in International Business Through Master’s Dissertations

A core component of International Business (IB) postgraduate programs around the world is the master’s dissertation, which requires students to produce a written document, typically around 20,000 words in length, based on empirical research. While the dissertation is given considerable importance in such programs, often accounting for more than a quarter of a candidate’s final grade, the effectiveness of the dissertation in delivering outcomes remains largely unknown. This article addresses this shortcoming by providing an empirical understanding of the perceived usefulness and value of master’s-level dissertations and evaluating their impact on the personal and intellectual development of students. Findings demonstrate the unique ability of the dissertation to enhance student employability, both for scientifically interested and deep learners as well as for functional learners.     

Tourism and the Southeast Asian Crises of 1997 and 1998: A View from Singapore

Singapore has historically stood out as an economic anomaly among countries in the developing world.Its per capita income was higher than most industrialised countries, its government was relatively uncorrupt, and despite the economic difficulties experienced throughout Asia starting in 1997,it was still rated as one of the safest places in the world for investments. Starting in 1997 and extending through 1998, Singapore was hit by three major crises: the currency turmoil affecting its neighbours (especially Thailand, Indonesia and Malaysia); the El Niño-driven forest fires on Borneo and Sumatra that filled Singapore’s air with brown smoke; and the political and social crises in Malaysia and Indonesia. These three crises brought international, intra-regional and domestic tourism in Southeast Asia to a near stand still. Singapore received some benefits from these problems as currency from neighbouring countries flew into Singapore in search of a safe haven, thereby supporting the Singapore dollar, and ethnic Chinese and others flew to Singapore to escape both the choking smoke from forest fires and the political unrest in Indonesia, and filled Singapore’s hotels. Singapore weathered the varied crises quite well, and ultimately Singapore may emerge in an even stronger position as the economic powerhouse of Southeast Asia.     

Do consumption expenditures depend on the household’s relative position in the income distribution?

Even though the permanent income and relative income hypotheses have been introduced in past research to explain consumer behaviour, no previous attempt was undertaken to integrate them in one model. In this article, the hypotheses were synthesized into a single model. The model was empirically tested using data from the 1996 Canadian Family Expenditure Survey. The results indicate that household consumption behaviour is generally explained by both hypotheses when integrated into one model, contrary to previously treating them as mutually exclusive hypotheses.     

Farm mechanization on an otherwise ‘featureless’ plain: tractors on the Northern Great Plains and immigration policy of the 1920s

The 1920s marked the beginning of the diffusion of the gasoline tractor in North American agriculture. The tractor was a labor-saving technology by virtue of its speed of operation, reducing labor input per acre. During the same decade, immigration policies of the USA and Canada diverged sharply. While the USA implemented immigration quotas, Canada admitted large flows of Eastern Europeans, provided their destination was the Prairie West. With the essentially homogeneous nature of the plain on either side of the international border, this divergence in policy sets up a natural experiment that allows us to test the effects of different changes in labor supply on the adoption of labor-saving agricultural technology. We show that although Canadian farmers had earlier adopted tractors at the same rate as farmers in the USA, the relatively slower rate of adoption of the tractor on the Canadian Prairies following the policy divergence can be attributed to Canada’s shift to a more open immigration policy. We conclude that changes to macro-policies can have unexpected consequences as illustrated by this example of tractor diffusion.     

Upstream internationalization process: Roles of social capital in creating exploratory capability and market performance

This paper investigates to what extent resource governance of international ventures affects dynamic capability and market performance in the high-tech firms’ internationalization process. We examine the non-equity-based international network collaborations of high-tech firms as forms of strategic resource seeking within the internationalization process. Within the context of upstream technology collaborations by international software and hardware firms, this paper proposes and empirically examines the impact of resource governance mechanisms (i.e. trust-building and behavioral monitoring) on the exploratory capabilities of firms. The findings indicate that building trust in the internationalization process of network ventures contributes to the firm-level exploratory capabilities and, in turn, market performance. Furthermore, this paper tests the moderating effects of structural capital on the capability–performance relationship. The relationship is stronger when network relationships existed before the inception of the international technology alliance. We also find a negative moderating effect from the existence of an actual alliance and from network duration on the relationship between exploratory capability and market performance. To this end, the longevity of the alliance may not always be something firms should aim for. The paper highlights the criticality of relational and structural capital in the internationalization process and the importance of exploratory capability for creating radical innovation in high-tech industries.