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In regressions using a semi-logarithmic functional form that include a dummy variable, Kennedy (1981) showed that instead of interpreting the dummy coefficient directly, one needs to “correct” it to estimate the percentage effect of the dummy variable on the dependent variable. In the context of an antitrust application, we show that when using a dummy variable to estimate the overcharge as a percentage of the actual price, one should not apply the correction proposed by Kennedy because doing so will lead to an overcharge estimate with a larger bias.

This essay is a review of the recent literature on the methodology of economics, with a focus on three broad trends that have defined the core lines of research within the discipline during the last two decades. These trends are: (a) the philosophical analysis of economic modelling and economic explanation; (b) the epistemology of causal inference, evidence diversity and evidence-based policy and (c) the investigation of the methodological underpinnings and public policy implications of behavioural economics. The final output is inevitably not exhaustive, yet it aims at offering a fair taste of some of the most representative questions in the field on which many philosophers, methodologists and social scientists have recently been placing a great deal of intellectual effort. The topics and references compiled in this review should serve at least as safe introductions to some of the central research questions in the philosophy and methodology of economics.

Conventional economic and management theories explain that business groups facing market liberalization policy reforms (i.e., competitive shocks) would have incentives to reduce corporate portfolios and increase internationalization. We empirically examine the strategic responses of Argentine business groups and, through an inductive theory building process, propose refinements to this theory. We argue that such a strategy process is moderated not only by differences in market forces set out by policy reforms across different economic segments but also by the path dependency of resources and capabilities as well as management decision‐making style of individual business groups. We discuss implications for theory and practice.

At the centre of recent reforms relating to Scottish teacher education is the report of a large-scale review, ‘Teaching Scotland's Future’ (Donaldson, 2011). This chapter provides a critical overview of one aspect of the review, namely partnership. Two key agendas underpinned the 50 recommendations contained in the Donaldson Report: the development and strengthening of partnership between universities, local authorities and schools; and, the modernisation and ‘re-invigoration’ of teacher professionalism. In ‘Teaching Scotland's Future’ it was argued that both of these are required for the development of ‘high quality’ teachers through initial teacher education. The report positioned teaching as an intellectual occupation, highlighting the complexity involved, making clear that teacher preparation should remain within the context of higher education.

Although the key messages from ‘Teaching Scotland's Future’ received support from across the education sector, the extent to which they have been achieved in practice remains unclear. We will explore the extent to which this key text has been translated into current initial teacher education provision through results from the Measuring Quality in Initial Teacher Education (MQuITE) Project and the ways in which partnership was experienced in post-Donaldson working. Through this partnership working will be examined in Scotland. The chapter will conclude by considering where we are now, and some final thoughts will be presented about the role that ‘Teaching Scotland's Future’ can play in a changing partnership policy landscape.

The purpose of this paper is to examine how job engagement affects the experience of workplace aggression and the related outcomes. Job engagement is introduced as a context variable for the stressor-strain model to explain differences for targets of workplace aggression.

A survey was conducted with a sample of 492 North American working adults from a large variety of industries and jobs.

Consistent with the hypotheses, fear and anger mediate the relationship between workplace aggression and strain. Job engagement moderated the relationship between workplace aggression and anger, such that aggression related to anger only for those employees who were engaged in their job. These data are consistent with the suggestion that engagement may create vulnerability for employees.

In this study, the authors highlight the need to include contextual factors that may explain differences in impact of workplace aggression and employee wellness.

While practitioners may seek to increase job engagement, there appears to be a greater cost should there be workplace aggression. Thus, the key implication for practitioners is the importance of prevention of workplace aggression.

With this study, the authors illustrate how job engagement may have a “dark side” for individuals. While previous research has shown that job engagement helps protect employee wellness, others show engagement decreases after incidents of workplace aggression. The authors suggest those who are engaged and targeted will experience worse outcomes. Also, the authors examine the role of anger for targets of workplace aggression as it relates to fear and strain in this study.

In this paper, three implementation and interpretation issues are examined associated with Krueger and Summers' method for calculating inter‐industry wage differentials. The literature tends to report a less than complete set of industry wage differentials, use the wrong standard errors, and misinterpret the meaning of the industry wage differentials. The solution to the first two issues follows from making explicit the restriction that the employment‐weighted average of all industry wage effects is zero, the same restriction that Krueger and Summers are implicitly imposing on industry wage effects. All industries have thus a wage effect relative to an average worker net of any industry effect and correct standard errors are available via the Delta method. Finally, a method is proposed for analysing inter‐industry wage differentials as actual differences between the wage levels expressed in percentage points and not as log points, which is the current misleading standard. The procedure calculates actual average percentage wage differences by industry and avoids the distortion in differences across industries that log point comparisons engender. An application is provided, using the United States Outgoing Rotation Files of the Current Population Survey for 1989 and 1996, and so updates the work by Krueger and Summers.

This chapter provides an overview of the status of applied econometric research in hospitality and tourism management and outlines the econometric toolsets available for quantitative researchers using empirical data from the field. Basic econometric models, cross-sectional models, time-series models, and panel data models are reviewed first, followed by an evaluation of relevant applications. Next, econometric modeling topics that are germane to hospitality and tourism research are discussed, including endogeneity, multi-equation modeling, causal inference modeling, and spatial econometrics. Furthermore, major feasibility issues for applied researchers are examined based on the literature. Lastly, recommendations are offered to promote applied econometric research in hospitality and tourism management.

John Kwoka’s Mergers, Merger Control, and Remedies is a meta-analysis of “retrospective” academic studies of consummated mergers and other horizontal arrangements. Based on this meta-analysis, Kwoka strongly criticizes federal enforcement policies, claiming that the agencies permit far too many anticompetitive mergers to go unchallenged, and are far too willing to accept remedies that fail to prevent a significant loss of competition. Kwoka claims further that this excessive leniency is the culmination of a trend reflecting deliberate policy choices made over the last several decades.

In a forthcoming critique, Vita and Osinski challenge Kwoka’s analysis and his conclusions, identifying serious flaws in the size, construction, and composition of his sample, and in the statistical analysis of the data drawn from that sample. In a published response to Vita and Osinski, Professor Kwoka offers a number of objections and counter-arguments. In this rejoinder, I respond to Professor Kwoka.

The commercial property market is complex, but the literature suggests that simple models can forecast it. To confirm the claim, the purpose of this paper is to assess a set of models to forecast UK commercial property market.

The employs five modelling techniques, including Autoregressive Integrated Moving Average (ARIMA), ARIMA with a vector of an explanatory variable(s) (ARIMAX), Simple Regression (SR), Multiple Regression, and Vector Autoregression (VAR) to model IPD UK All Property Rents Index. The Bank Rate, Construction Orders, Employment, Expenditure, FTSE AS Index, Gross Domestic Product (GDP), and Inflation are all explanatory variables selected for the research.

The modelling results confirm that increased model complexity does not necessarily yield greater forecasting accuracy. The analysis shows that although the more complex VAR specification is amongst the best fitting models, its accuracy in producing out-of-sample forecasts is poorer than of some less complex specifications. The average Theil’s U-value for VAR model is around 0.65, which is higher than that of less complex SR with Expenditure (0.176) or ARIMAX (3,0,3) with GDP (0.31) as an explanatory variable models.

The paper calls analysts to make forecasts more user-friendly, which are easy to use or understand, and for researchers to pay greater attention to the development and improvement of simpler forecasting techniques or simplification of more complex structures.

The paper addresses the issue of complexity in modelling commercial property market. It advocates for simplicity in modelling and forecasting.

This chapter examines how leader–member dyadic communication in the Malaysian workplace operates at the leader–member dyadic level in the context of cultural norms. We propose a model of leader–member dyadic communication based on the cultural norms of budi bicara, which in turn influences the perception of workplace mentoring in Malaysia. The model is tested by using hierarchical multiple regression with data obtained from a sample of 510 employees in three Malaysian organizations. Results show that leader–member dyadic communication in the workplace is linked with the career mentoring perceptions. These findings partially validate our proposed model and provide empirical support for the central roles of communication exchange processes in mentoring.