Short-run exchange rate uncertainty in Latin America

This paper to obtain an ex ante measure of exchange rate uncertainty in 11 Latin American countries. As a preliminary issue, the purchasing power parity (PPP) condition is tested using Engle and Granger two-step procedure and Johansen method. The argument is that exchange rate uncertainty could be lower if PPP holds in the long run. The expected exchange rate uncertainty is estimated according to an extended version of the autoregressive, conditionally heteroscedastic (ARCH) model. The results show that the ARCH adjusment produces more efficient estimates in seven countries and that the acceptance of PPP has little effect on exchange rate uncertainty.     

Does Taste Beat Food Safety? Evidence From the “Pêra Rocha” Case in Portugal

Nowadays, fresh fruits such as pears are differentiated by cultivars, origins, and appearances, as well as by companies' production and processing methods. We may now observe many denominations of origin, retailers,' and private labels in order to signal the differentiation to the consumers, who are often willing to pay large price premiums for products with specific attributes. In this article, we used an experimental auction to assess how information on quality attributes affects consumers' willingness to pay for different types of pears. The main results show that information on the products' characteristics related to food safety instantly influences consumers' willingness to pay. However, it appears that in the end, sensory intrinsic attributes related to taste beat the guarantee of food safety in driving the buying behaviour.     

Is retention beneficial to low-achieving students? Evidence from Portugal

The role of retention as an educational tool to overcome under-achievement is a hotly debated issue, especially given that the results in the literature are not consensual. The Portuguese case is particularly well suited to study this issue: all students must take standardized national exams at specific grades. Moreover, the available dataset tracks the performance of students over time. Therefore, we are able to measure the impact of students’ retention on their subsequent academic performance since we can control for each student’s initial level of ability at the moment of retention. We use a propensity score matching approach, in which retained and promoted 4th grade students are matched according to their socioeconomic characteristics and the scores obtained in national exams. To address potentially remaining endogeneity biases, we also use the culture of retention at school level as an instrumental variable. The results suggest that in some situations retentions may have on average a positive impact on future achievement. However, in the cases where statistically significant impacts are found, the estimated magnitudes are relatively small. Our results are relevant for countries with high retention rates that are considering alternative educational policies to promote students’ achievement.     

The influence of terrorism risk perception on purchase involvement and safety concern of international travellers

Abstract

Using a sample of 600 international tourists travelling in Portugal, Spain and Italy, this study identifies key issues related with terrorism, risk perception, involvement and safety concerns of international tourists. A structural equation model reveals that tourists are motivated to acquire information about terrorism in the media, revealing attention to and interest in news regarding this topic, which in turn influences directly their risk perception. This risk perception influences directly the tourist’s involvement in trip planning, specifically information seeking before and during the trip. Tourists’ risk perception and involvement finally influences their safety concern. Discussion centres on the implications of this model for both theory and tourism management strategies. Last, recommendations are proposed to tourism service and destination managers and promoters regarding ways to deal with terrorism and tourists’ safety concerns.     

The impact of using non-media information sources on the future use of mass media information sources: The mediating role of expectations fulfillment

An empirical study of 350 tourists reveals that using non-media information sources for planning tourist trips influences expectations fulfillment. The use of non-media information sources also has a direct impact on the future use of mass media information sources for future tourist trip planning, as well as an indirect impact through expectations fulfillment. More specifically, the main determinants of expectations fulfillment of local infrastructure are commercial brochures, travel agents and internet; expectations fulfillment of entertainment structures is affected by institutional brochures, travel agents and the internet; future use of mass media sources is influenced by expectations fulfillment of local infrastructure and entertainment structures; this factor is also influenced by past use of institutional brochures and the internet. Discussion centers on the implications of this model to theory and managerial development of tourism and services strategies. Directions for future research are also presented.     

Determinants of debt: Empirical evidence on firms in the district of Santarém in Portugal

In recent decades, the theme of the capital structure and its determinants has caused some controversy and aroused great interest in the financial domain. Several theories and studies have emerged applying to this domain. This study aims to test the explanatory power of the determinants of debt which have the greatest support in the financial literature, size, growth, business risk, profitability, tangibility and non-debt tax shields and its validity in accordance with the theories of capital structure, on firms in Santarém's district. The sample contains financial data of 6184 firms for the period 2008–2012. The results indicate that firms in Santarém's district in Portugal have a high level of debt, using mainly short-term debt. The growth and profitability have proved to be determinants of debt, confirming the Pecking Order Theory.     

The Impact of Social Norms on Suboptimal Food Consumption: A Solution for Food Waste

Abstract

Consumers seem to have a reduced preference to buy fruits and vegetables with unusual appearance, products with damaged package and close to the expiration date, usually called suboptimal food products. However, this pattern of behavior is an important contributor to food waste levels. Interventions aimed at encouraging the purchase of suboptimal food are scarce, however, needed. Across two studies, we investigated the effect of social norms in driving suboptimal food consumption. Additionally, it was tested if food waste problem awareness is the underlying mechanism in the relationship between social norms and intention to buy suboptimal food. Results show that appeals employing social norms positively affect purchases intentions toward the products. Moreover, food waste problem awareness mediates the effect of social norms on intentions to purchase the product with an unusual appearance. We discuss how social norms can be used to tackle food waste and implications for marketing and policy actions.     

Is Petrobras Options Market Efficient? A Study Using the Delta-Gamma Neutral Strategy

This study aims to verify if the Petrobras options market is efficient in its weak form. For this purpose, this work tries to make profits on a systematic basis through delta-gamma neutral strategies using the firm’s stocks and options. In order to simulate the strategy as it would be used in the real world, we built order books every five minutes considering all buy and sell orders sent for both the underlying asset and its options. We apply the strategy when we observe distortions between implied volatilities extracted from the options. The results show evidence that the Petrobras options market is not efficient, since in 371 day-trade transactions (with an average investment of R$81,000 and an average holding time of one hour and thirteen minutes), 85% of the options strategies were profitable and the average return was 0.49%, which corresponds to more than 1600% of the highest interbank interest rate for the period.