Dynamic response of bank-intermediated trade finance to a global liquidity shock

This paper investigates the bank-level responses of a bank-intermediated instrument of trade finance to a negative global liquidity shock in Korea. Using a factor-augmented vector autoregression approach, the results show that there exists significant heterogeneity in bank-level trade-finance responses to a global liquidity shock. In addition, we find that the source of the heterogeneity is the bank-level foreign currency liquidity condition; banks with a better foreign currency liquidity condition may dampen the negative impact of a global liquidity shock on trade-finance.     

The effects of power on consumers’ evaluation of a luxury brand's corporate social responsibility

This paper examines how power affects consumers’ responses to corporate social responsibility (CSR) initiatives of luxury brands. The results of three studies show that high‐power individuals evaluated a luxury brand's CSR campaign more positively than low‐power individuals. High‐power individuals viewed CSR activities as being more fluent than low‐power individuals. This study further demonstrates that power influences consumers’ responses to nonluxury brand's CSR activities. Low‐power individuals, who are more receptive to warmth, evaluated nonluxury brand's CSR more favorably rather than high‐power individuals.     

Consequences of a green image of drone food delivery services: The moderating role of gender and age

Drone food delivery services play a significant role in protecting the environment, because the services are operated by batteries that can be charged with electricity. Therefore, this study tried to examine a green image in the context of drone food delivery services. More specifically, this study proposed that a green image of drone food delivery services plays an important role in the formation of attitude toward using the services. In addition, it was hypothesized that the attitude has a positive influence on behavioral intentions including intentions to use, word‐of‐mouth intentions, and willingness to pay more. Lastly, the moderating role of gender and age was proposed during the theory‐building process. A theoretical model, which included 12 hypotheses, was developed and tested using a total of 427 samples collected in Korea. The data analysis results showed that a green image of drone food delivery services has a positive influence on attitude toward using the services, which in turn positively affects three subdimensions of behavioral intentions. Furthermore, gender and age played partly as a moderator. The current paper was the first to study the green image of drone food delivery services, so the findings of this study mean a lot to the theoretical aspect.     

Linking of U.S. monetary policy and exchange rates to world soybean markets

The linkage between macroeconomic policies and agricultural commodity trade has become an important research issue of agricultural economists. This paper investigates the macroeconomic linkage of soybean trade competition between the exporting countries of the United States, Brazil, and Argentina in the EC-12 and Japan import markets. It is argued that U.S. monetary growth may have important impacts on the competitive position of U.S. soybean exports through exchange rates. Two relationships are investigated: (a) the effects of U.S. monetary growth on the agricultural trade weighted exchange rates, and (b) the responsiveness of agricultural commodity prices and U.S. exports to exchange rate movements. Results indicate that a weak dollar increases imports of soybeans and soymeal significantly which serves to increase the equilibrium world price and increase both U.S. and Brazil/Argentina exports in the long run. However, during periods of more expansionary U.S. monetary policy there is little evidence of significant increases in market share position for U.S. soybeans and soymeal in world markets.     

韩中金融合作的现况与今后课题

韩国与中国之间的金融合作是具有很大发展空间的一个领域。但是近年来两国一直比较重视产业合作而忽视了金融合作。特别是在1997年韩国金融危机之前,韩中两国之间的金融合作一直没有引起关注。以亚洲金融危机为契机,无论是直接受到危机影响的韩国,还是间接受到危机影响的中国,都开始认识到了防止危机再次爆发以及合作的必要性。由于中国的金融市场处于不完全开放状态,因此虽然可以很容易地阻止传染途径,但是依然不能够完全摆脱金融危机的影响。韩国与中国的金融合作可以说是在克服亚洲金融危机的过程中,在多边合作的框架内进行的,而ASEAN+…     

Technical innovation and 3.5 mobile phone generation: Lessons from Korea

In 1996, the Korean mobile communication market was the first in the world to commercialize the code division multiple access (CDMA). Since then, the voice-based mobile phone market has continued to grow and has now reached near saturation. Having recognized the potential of the mobile data service as a new source of profit, telecommunication operators are scrambling to evolve 3.5 generation (3.5G) technology in order to lead market competition. Recently, the Korean 3.5G mobile telecom market has faced stiff competition from CDMA-based EVDO Rev.A and global system for mobile telecommunications (GSM)-based high-speed downlink packet access (HSDPA). In addition, the world's first wireless LAN-based wireless broadband internet (WiBro) service was commercialized in June, 2006. This paper reviews the current status of the 3.5G technology and analyzes the service standardization strategies from the viewpoint of technological evolutions. This paper also suggests implications for Korea's specific circumstances where different mobile telecom technologies complement and compete with one another. Korea's experiences may serve as important lessons for other countries or operators who try to introduce the 3G and look beyond mobile telecom technologies.     

Production-location decision and free entry oligopoly: A correction

This paper shows that there is no interior solution in Mai–Hwang's 1992 oligopolistic location model with free entry when the production function exhibits constant or decreasing returns to scale. The comparative static results of the impact of a demand change on the location decision only apply to the case where the production function exhibits increasing returns to scale. It re-examines the impact of a demand change on the location decision of an oligopolistic firm and corrects the propositions derived by [C.C. Mai, H. Hwang, Production-location decision and free entry oligopoly, Journal of Urban Economics 33 (1992) 252–271. Reprinted in: M.L. Greenhut, G. Norman (Eds.), The Economics of Location, vol. I: Location Theory, Edward Elgar, Aldershot, 1995].     

The Measurement of Consumption Efficiency Considering the Discrete Choice of Consumers

In this study we propose a mathematical definition of the consumption efficiency of multi-attribute products in the price–quality space. A new model, the discrete Range Adjusted Measure (RAM) model, is suggested as an empirical tool to measure the level of consumption efficiency. We further discuss the effect of consumption efficiency on the innovation incentive. Empirical work is made for the mobile phone market. We expect that the consumption efficiency concept will contribute to the extension of the traditional framework of production efficiency analysis on the one hand and to the understanding of the nature of innovation in a technology-intensive market on the other hand.JEL Classification: C67, D11, D12, D21     

Hedging Housing Risk*

An unusually rich source of data on housing prices in Stockholm is used to analyze the investment implications of housing choices. This empirical analysis derives market-wide price and return series for housing investment during a 13-year period, and it also provides estimates of the individual-specific, idiosyncratic, variation in housing returns. Because the idiosyncratic component follows an autocorrelated process, the analysis of portfolio choice is dependent upon the holding period. We analyze the composition of household investment portfolios containing housing, common stocks, stocks in real estate holding companies, bonds, and t-bills. For short holding periods, the efficient portfolio contains essentially no housing. For longer periods, low-risk portfolios contain 15 to 50 percent housing. These results suggest that there are large potential gains from policies or institutions that would permit households to hedge their lumpy investments in housing. We estimate the potential value of hedges in reducing risk to households, yet yielding the same investment returns. The value is surprisingly large, especially to poorer homeowners.     

The Volatility and Price Sensitivities of Managerial Stock Option Portfolios and Corporate Hedging

We use estimates of the Black–Scholes sensitivity of managers' stock option portfolios to stock return volatility and the sensitivity of managers' stock and stock option portfolios to stock price to test the relationship between managers' risk preferences and hedging activities. We find that as the sensitivity of managers' stock and stock option portfolios to stock price increases, firms tend to hedge more. However, as the sensitivity of managers' stock option portfolios to stock return volatility increases, firms tend to hedge less.