The moderating role of nationality on destination experience

ABSTRACT

Differences in tourists’ cultural values are significant factors in their product and service choices, yet they have generally been neglected in the literature. Therefore, this study examined how tourists’ nationalities influence their perceptions of service quality, affective image perceptions, and revisiting intentions. Activities were found to be more determinant on a destination’s affective image for Russian tourists, whereas accommodation, hospitality, and language communication services had a larger effect on German tourists.     

Money and capital

The effects of money (anticipated inflation) on capital formation is a classic issue in macroeconomics. Previous papers adopt reduced-form approaches, putting money in the utility function, or imposing cash in advance, but using otherwise frictionless models. We follow instead a literature that tries to be explicit about the frictions making money essential. This introduces new elements, including a two-sector structure with centralized and decentralized markets, stochastic trading opportunities, and bargaining. These elements matter quantitatively and numerical results differ from findings in the reduced-form literature. The analysis also reduces a gap between microfounded monetary economics and mainstream macro.     

Efficiency and risk in commercial banking: empirical evidence from East Asian countries

This paper analyses the effects of off-balance sheet (OBS) activities and various types of risks on the cost and profit efficiencies of banks in seven East Asian countries between 2001 and 2008. Cost and profit efficiency scores are estimated using the data envelopment analysis approach. The results of this analysis are then used to identify the impact of OBS activities and risk exposures on cost and profit efficiencies using a Tobit regression. Bank insolvency risk (as measured by z-scores) is positively related to profit efficiency, while interest sensitivity, size, equity to total assets and OBS exposures all impact on cost efficiency. The analysis of the impact of input and output slacks illustrates that in around 1 in 5 cases banks’ cost efficiency can be improved by adjusting the former variables, whereas in only around 1 in 100 cases a similar outcome is possible for profit efficiency.     

Differences in business undergraduate perceptions by preferred classroom learning environment

Online education continues to grow at business schools. The authors compared undergraduate business student perceptions across three different classroom learning delivery environments: online, hybrid, and face to face. Based on the survey responses using two independent samples, the authors' analyses found that students who preferred online delivery perceived higher timely graduation and were more likely to recommend online or hybrid courses, whereas students' perceptions of persistence and institutional commitment were not related to classroom learning delivery preference.     

MONEY,SEARCH, AND BUSINESS CYCLES*

Monetary models that specify explicit frictions to generate money demand have been developed over the last 20 years and have been used to address many questions. In this article, I investigate the short‐run properties of a particular model considering a number of versions based on some modeling choices. All versions feature flexible prices. I find that in many aspects, both real and nominal, the model resembles other, more reduced‐form models. Some variations of the model come closer to matching some key nominal facts than a reduced‐form model. The model also generates counter cyclical markups, in line with the data.     

Emerging Market Business Cycles: Recent Advances

Higher variability of consumption relative to output and strong countercyclicality of the trade balance are important regularities of emerging market business cycles. This paper surveys the recent advances in the literature with a goal to understanding the main drivers of these regularities. The literature suggests that trend shocks or countercyclical interest rate shocks are useful modeling tools, but these shocks need to be amplified through inherent frictions to capture these two regularities with realistic calibrations. Informational frictions in expectation formation and search-matching frictions in the labor market appear to provide powerful amplification to trend shocks and countercyclical interest rate shocks, respectively.     

Are asset price guarantees useful for preventing Sudden Stops?: A quantitative investigation of the globalization hazard-moral hazard tradeoff

An implication of the globalization hazard hypothesis is that ‘Sudden Stops’ caused by global financial frictions could be prevented by offering foreign investors price guarantees on emerging markets assets. These guarantees create a tradeoff, however, because they weaken globalization hazard while creating international moral hazard. We study this tradeoff using a quantitative, equilibrium asset-pricing model. Without guarantees, margin calls and trading costs cause Sudden Stops driven by a Fisherian deflation. Price guarantees prevent this deflation by propping up foreign demand for assets. The effectiveness of price guarantees, their distortions on asset markets, and their welfare implications depend critically on whether the guarantees are contingent on debt levels and on the price elasticity of foreign demand for domestic assets.