Testing Part of a DSGE Model by Indirect Inference

We propose a way of testing a subset of equations of a DSGE model. The test draws on statistical inference for limited information models and the use of indirect inference to test DSGE models. Using the numerical small sample distribution of our test for two subsets of equations of the Smets–Wouters model we show that the test has accurate size and good power in small samples, and better power than using asymptotic distribution theory. In a test of the Smets–Wouters model on US Great Moderation data, we reject the specification of the wage‐price but not the expenditure sector. This points to the wage‐price sector as the source of overall model rejection.     

Factor Heterogeneity,Factor Market Imperfection and Trade

This paper develops a tractable model of examining how factor heterogeneity and imperfect factor market interact for determining a pattern of trade. Institution plays a crucial role for the interaction. In my work, firm productivity is defined as a composition of factor productivity and technology. Thus, input selection should affect the pattern of Melitz’s intra-industry allocation due to the incurring transaction cost. For a simple model, I assume two factors (labor and capital) and two sectors, which are relatively less institution-dependent and relatively more institution-dependent. When the economy is open, effect of the transaction cost on income distribution is more drastic for an institutionally underdeveloped country. Depending on institutional quality, the economic openness reallocates resource across countries through job creation or job destruction. The job turnovers redistribute income between heterogeneous labors within countries. The income redistribution is catalyzed by international mobility of capital. As a result, income disparity is widened between the institutionally developed country and the institutionally underdeveloped country. This paper can contribute to the literature of institution and international trade.     

Unfolding the impact of leadership and management on sustainability performance: Green and lean practices and guanxi as the dual mediators

This study aims to empirically evaluate the predictors that influence sustainability performance among manufacturing firms. Leadership and management, green and lean practices, and guanxi were examined to determine whether these predictors are directly and/or indirectly affecting sustainability performance; 160 valid responses were collected and partial-least-squares-structural-equation-modeling (PLS-SEM) was used to analyze the data. The results showed that leadership and management positively influenced green and lean practices and green and lean practices positively influenced sustainability performance. Leadership and management also positively influenced guanxi. Interestingly, leadership and management and guanxi do not exert a significant direct influence on sustainability performance. The findings contributed to the development of the resource-based-view theory further by empirically exploring the significance of leadership and management coupled with green and lean practices as competencies and capability to drive sustainability performance. The testing of the dual mediators' effects further added value to this study.     

It is not just about paying your dues: Impact of generational cohort on active and passive union participation

The lack of a validated measure of active–passive union participation and a dearth of research into the relationship between generational cohort and union participation challenge union leaders to develop policies and practices to facilitate union renewal. We address these issues by (a) developing a multidimensional measure of union participation that captures both active and passive components, (b) using structural equation modelling to validate the measure within a nomological framework, and (c) investigating the impact of generational cohort on all paths in our framework. Data from members of a large American union confirm that generational cohort influences how union members participate in their union. The two‐factor measure developed in this study facilitates research into antecedents and outcomes of passive and active union participation. Our findings should also prove useful to unions seeking to increase participation within their membership, academics researching unions and generational cohort, and human resource practitioners operating in unionised environments.     

Alternative balanced scorecards built from paradigm models in strategic HRM and employment/industrial relations and used to measure the state of employment relations and HR system performance across U.S. workplaces

This paper constructs alternative balanced scorecards based on high‐performance work system (HPWS) and employment relations system (ERS) models. The models are depicted and compared in diagrams and used as framework skeletons for building separate HPWS and ERS scorecards, intended to provide a detailed data picture of the operational health and performance of an organization's employment/HR system and its operations, processes, and inputs/outputs. The scorecards are filled in with nationally representative data from 2,000+ U.S. workplaces using more than 50 employment/HR indicators, as reported by separate panels of managers and employees. The indicators for each workplace are aggregated into an overall HR/employment system score, ranked from low‐to‐high, and graphed as frequency distributions. These distributions provide a unique snapshot picture of the mean and dispersion of the state of employment relations and HR system performance for companies across the United State. They also reveal that “models matter” since the HPWS and ERS scorecards provide distinctly different evaluation assessments.     

Allegations of Sexual Misconduct: A View from the Observation Deck of Power Distance Belief

Journal of Business Ethics - We seek to understand how third-party observers respond to allegations of sexual transgressions, whether their responses vary and if so why, how they determine...     

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.     

Time series copulas for heteroskedastic data

We propose parametric copulas that capture serial dependence in stationary heteroskedastic time series. We suggest copulas for first‐order Markov series, and then extend them to higher orders and multivariate series. We derive the copula of a volatility proxy, based on which we propose new measures of volatility dependence, including co‐movement and spillover in multivariate series. In general, these depend upon the marginal distributions of the series. Using exchange rate returns, we show that the resulting copula models can capture their marginal distributions more accurately than univariate and multivariate generalized autoregressive conditional heteroskedasticity models, and produce more accurate value‐at‐risk forecasts.     

The Moderating Effects of Status-Consumption Motive and Age in the Relationship between CSR Advertising Appeal Type and Purchase Intentions

The primary purpose of this study was to examine factors that influence the effectiveness of benefit appeal types (i.e., help-other vs. help-self) in Corporate Social Responsibility advertising. To that end, we designed and administered a between-subjects experiment where participants viewed one of the two CSR advertisements crafted with help-self and help-other benefit appeals. Results provided evidence supporting the moderating effects of status-consumption motives and age on purchasing intentions. Additional analysis suggested consumers younger than 48 years old were more likely to be persuaded by a help-other ad appeal when they didn't have strong desires for status consumption. Results were discussed in light of the self-concept theory and value-expressive framework in CSR advertising.