Post Bretton Woods deviations from purchasing power parity in G7 exchange rates—an empirical exploration

Exchange rates have deviated substantially and idiosyncratically from purchasing power parity (PPP) since the breakdown of Bretton Woods. In this paper, a model incorporating both traditional PPP and financial market variables is constructed and tested on the US dollar's six G7 exchange rates during the floating rate era. Empirical tests show that the model's common set of variables—with consistent signs—can explain the divergent behavior of G7 exchange rates during 1973.2–90.2. Idiosyncracies are reflected in different subsets of the model's variables entering significantly into each exchange rate's regression; the existence of stable relationships is demonstrated by the equations' co-integration.     

An Anatomy of Price Dynamics in Illiquid Markets: Analysis and Evidence from Local Housing Markets

This research analyzes the dynamic properties of the difference equation that arises when markets exhibit serial correlation and mean reversion. We identify the correlation and reversion parameters for which prices will overshoot equilibrium ("cycles") and/or diverge permanently from equilibrium. We then estimate the serial correlation and mean reversion coefficients from a large panel data set of 62 metro areas from 1979 to 1995 conditional on a set of economic variables that proxy for information costs, supply costs and expectations. Serial correlation is higher in metro areas with higher real incomes, population growth and real construction costs. Mean reversion is greater in large metro areas and faster growing cities with lower construction costs. The average fitted values for mean reversion and serial correlation lie in the convergent oscillatory region, but specific observations fall in both the damped and oscillatory regions and in both the convergent and divergent regions. Thus, the dynamic properties of housing markets are specific to the given time and location being considered.     

The differential effects of CEO narcissism and hubris on corporate social responsibility

Research Summary: While prior studies have predominantly shown that CEO narcissism and hubris exhibit similar effects on various strategic decisions and outcomes, this study aims to explore the mechanisms underlying how narcissistic versus hubristic CEOs affect their firms differently. Specifically, we investigate how peer influence moderates the CEO narcissism/hubris—corporate social responsibility (CSR). With a sample of S&P 1500 firms for 2003–2010, we find that the positive relationship between CEO narcissism and CSR is strengthened (weakened) when board‐interlocked peer firms invest less (more) intensively in CSR than a CEO's own firm; the negative relationship between CEO hubris and CSR is strengthened when peer firms are engaged in less CSR than a CEO's own firm. Managerial Summary: Some CEOs are more narcissistic while others may be more hubristic, but these two groups of CEOs hold different attitudes toward the extent to which their firms should engage in corporate social responsibility (CSR). Our findings with a large sample of U.S. publically listed firms suggest that narcissistic CEOs care more about CSR, but hubristic CEOs care less. Interestingly, when narcissistic CEOs observe their peer firms engaging in more or less CSR than their own firms, they tend to respond in an opposite manner; in contrast, hubristic CEOs will only engage in even less CSR when their peers also do not emphasize CSR. Our findings point to a fundamental difference between CEO narcissism and hubris in terms of how they affect firms' CSR decisions based on their social comparison with peer firms.     

In Defense of 'Unbridled' Freedom of Contract

A bstract . The doctrine of freedom of contract, viz. , that each person should have the liberty to enter into and the right to insist on the fulfillment of any rights-respecting contract , is defined and defended as an implication of a Lockean emphasis on natural rights. This natural rights perspective requires the rejection of all collective social goal theories, e.g., utilitarianism , and the rejection of objections to freedom of contract which proceed from such theories. Four specific objections to freedom of contract, each of which appears to flow from an individualistic emphasis on freedom and rights , are considered. But each of these is dismissed either for misconceiving the nature of freedom or for involving an underlying appeal to some implausible social goal theory.     

Locating farmers’ markets with an incorporation of spatio-temporal variation

The recent drive among consumers to purchase fresh, healthy and environmentally friendly food has brought about a renewed interest in farmers’ markets. However, ensuring the success of a farmers’ market is not an easy task. Unlike general grocery stores, farmers’ markets often have very limited hours of service and are distributed sparsely in space. Both spatial and temporal constraints that people experience in their daily lives limit their accessibility to a farmers’ market. This research incorporates such constraints in the service provision planning of farmers’ markets. In particular, two models are proposed to select locations and the associated service schedules for a fixed number of farmers’ markets. A case study is conducted in Tucson, Arizona to demonstrate the merits of the new approach.     

Consumer concern,knowledge and attitude towards counterfeit apparel products

The purpose of this paper was to explore the relationship of three variables (concern with apparel industry issues, knowledge about counterfeiting and attitude towards counterfeit apparel products) with consumer willingness towards paying a premium for non‐counterfeit goods. The intent of the research was to develop a theoretically based foundation from which educators and apparel industry leaders can develop policy regarding counterfeit goods. Will consumer concern and knowledge influence the behavioural intent of paying more for non‐counterfeit goods? We surveyed 244 undergraduate students within a fashion and apparel programme at a large Midwestern university. In this study, willingness to pay more for non‐counterfeit goods increased directly with greater concern, knowledge and attitude towards counterfeit apparel goods.