Bruce E. Hansen and Jeffrey S. Racine
Classical unit root tests are known to suffer from potentially crippling size distortions, and a range of procedures have been proposed to attenuate this problem, including the…
Abstract
Classical unit root tests are known to suffer from potentially crippling size distortions, and a range of procedures have been proposed to attenuate this problem, including the use of bootstrap procedures. It is also known that the estimating equation’s functional form can affect the outcome of the test, and various model selection procedures have been proposed to overcome this limitation. In this chapter, the authors adopt a model averaging procedure to deal with model uncertainty at the testing stage. In addition, the authors leverage an automatic model-free dependent bootstrap procedure where the null is imposed by simple differencing (the block length is automatically determined using recent developments for bootstrapping dependent processes). Monte Carlo simulations indicate that this approach exhibits the lowest size distortions among its peers in settings that confound existing approaches, while it has superior power relative to those peers whose size distortions do not preclude their general use. The proposed approach is fully automatic, and there are no nuisance parameters that have to be set by the user, which ought to appeal to practitioners.
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Panayiotis F. Diamandis, Anastassios A. Drakos and Georgios P. Kouretas
The purpose of this paper is to provide an extensive review of the monetary model of exchange rate determination which is the main theoretical framework on analyzing exchange rate…
Abstract
Purpose
The purpose of this paper is to provide an extensive review of the monetary model of exchange rate determination which is the main theoretical framework on analyzing exchange rate behavior over the last 40 years. Furthermore, we test the flexible price monetarist variant and the sticky price Keynesian variant of the monetary model. We conduct our analysis employing a sample of 14 advanced economies using annual data spanning the period 1880–2012.
Design/methodology/approach
The theoretical background of the paper relies on the monetary model to the exchange rate determination. We provide a thorough econometric analysis using a battery of unit root and cointegration testing techniques. We test the price-flexible monetarist version and the sticky-price version of the model using annual data from 1880 to 2012 for a group of industrialized countries.
Findings
We provide strong evidence of the existence of a nonlinear relationship between exchange rates and fundamentals. Therefore, we model the time-varying nature of this relationship by allowing for Markov regime switches for the exchange rate regimes. Modeling exchange rates within this context can be motivated by the fact that the change in regime should be considered as a random event and not predictable. These results show that linearity is rejected in favor of an MS-VECM specification which forms statistically an adequate representation of the data. Two regimes are implied by the model; the one of the estimated regimes describes the monetary model whereas the other matches in most cases the constant coefficient model with wrong signs. Furthermore it is shown that depending on the nominal exchange rate regime in operation, the adjustment to the long run implied by the monetary model of the exchange rate determination came either from the exchange rate or from the monetary fundamentals. Moreover, based on a Regime Classification Measure, we showed that our chosen Markov-switching specification performed well in distinguishing between the two regimes for all cases. Finally, it is shown that fundamentals are not only significant within each regime but are also significant for the switches between the two regimes.
Practical implications
The results are of interest to practitioners and policy makers since understanding the evolution and determination of exchange rates is of crucial importance. Furthermore, our results are linked to forecasting performance of exchange rate models.
Originality/value
The present analysis extends previous analyses on exchange rate determination and it provides further support in favor of the monetary model as a long-run framework to understand the evolution of exchange rates.
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Mumin Dayan, Poh Yen Ng and Dirk De Clercq
To extend family business research, this article proposes and tests a curvilinear relationship between social ties and family firm innovation, with the firm's market orientation…
Abstract
Purpose
To extend family business research, this article proposes and tests a curvilinear relationship between social ties and family firm innovation, with the firm's market orientation and transgenerational intent as moderators.
Design/methodology/approach
Representatives from a sample of 150 family firms in the United Arab Emirates completed self-administered questionnaires. Regression analyses on the collected data test the conceptual model and proposed hypotheses.
Findings
The empirical study reveals an inverted U-shaped relationship, such that a high market orientation mitigates the diminishing returns of social ties on enhancing family firm innovation. Similarly, at high levels of transgenerational intent, family firm innovation increases due to social ties, instead of exhibiting diminishing returns.
Originality/value
These results help explain contradictory outcomes previously attributed to social ties and offer clear guidelines for how family firms can leverage these ties more effectively to enhance their own innovation.
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Philipp E. Boksberger and Torsten von Bartenwerffer
For tourism, significant research has been conducted in industry‐specific marketing. Basically, the topic of discussion is the effectiveness and efficiency of the marketing of…
Abstract
For tourism, significant research has been conducted in industry‐specific marketing. Basically, the topic of discussion is the effectiveness and efficiency of the marketing of destinations. As marketing segmentation is one of the most critical parts of any marketing strategy, the authors believe that a customer segmentation by motivations via an activity‐based approach will increase the destination's marketing impact. This study aims to backtrack travel motivations from tourist behaviour which can be observed i.e. the activities they performed. The idea is to find out which motivations to target marketingwise that attract tourists who in turn fit the destination's attraction potential, and activity‐offering competencies. In order to test the hypothesis, a contingency analysis was employed using data from the Swiss travel market. By exploiting the linkage between motivations and activities, the authors have found 34 significant activities, 15 of which can be exclusively linked to a traveller motivation.
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Peggy M.L. Ng, Tai Ming Wut and Jason K.Y. Chan
Embedded in higher educational settings, work-integrated learning (WIL) is a key reflection to students' perceived employability. The purpose of this study is to explore the…
Abstract
Purpose
Embedded in higher educational settings, work-integrated learning (WIL) is a key reflection to students' perceived employability. The purpose of this study is to explore the antecedents of internal and external perceived employability. The research attempts to test a theoretical model examining the relationships among human capital, work values, career self-management, internal perceived employability and external perceived employability.
Design/methodology/approach
Data were collected from 588 students who have internship experience from two self-financing higher education institutions in Hong Kong. We adopted structural equation modelling (SEM) to test the proposed research hypotheses.
Findings
Results support the idea that human capital and intrinsic work values are significant antecedents of perceived employability. Furthermore, this relationship is fully mediated by career self-management. The implications of the findings for understanding the process through which psychological variables affect an individual's perceived employability are discussed.
Originality/value
Previous studies have extensively examined the effectiveness of WIL in increasing graduates' employability. However, unclear focus has been given to examine psychological attributes, such as human capital, work values and career self-management in WIL. In addition, few researchers have empirically examined the linkages among human capital, work values, career self-management and employability through internships or WIL experiences. Therefore, to bridge these gaps, the present study examines the effect of human capital, work values and career self-management on students' perceived employability when gaining internships or WIL experiences in a higher education setting.
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Shahrokh Nikou, Mark De Reuver and Matin Mahboob Kanafi
Information and digital literacy have recently received much interest, and they are being viewed as critical strategic organisational resources and skills that employees need to…
Abstract
Purpose
Information and digital literacy have recently received much interest, and they are being viewed as critical strategic organisational resources and skills that employees need to obtain in order to function at their workplaces. Yet, the role of employees' literacy seems to be neglected in current literature. This paper aims to explore the roles that information and digital literacy play on the employees' perception in relation to usefulness and ease of use of digital technologies and consequently their intention to use technology in the practices they perform at the workplace.
Design/methodology/approach
This paper builds a conceptual model with key constructs (information literacy and digital literacy) as new antecedents to the technology acceptance model and aims to establish that information literacy and digital literacy are indirect determinants of employees' intention to use digital technologies at the workplace. The data set used in this paper comprises of 121 respondents and structural equation modelling was used.
Findings
The findings reveal that both information literacy and digital literacy have a direct impact on perceived ease of use of technology but not on the perceive usefulness. The findings also show that both literacies have an indirect impact on the intention to use digital technology at work via attitude towards use.
Practical implications
Managers and decision-makers should pay close attention to the literacy levels of their staff. Because literacies are such an important skillset in the digital age, managers and chief information officers may want to start by identifying which work groups or individuals require literacy training and instruction, and then provide specific and relevant training or literacy interventions to help those who lack sufficient literacy.
Originality/value
This is one of the first studies to consider information literacy and digital literacy as new antecedents of the technology acceptance model at the workplace environment.
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The starting‐point of the article is the inconsistency between theestablished practice of acceptance in many cases, of economic policy(i.e. progressive taxation, national…
Abstract
The starting‐point of the article is the inconsistency between the established practice of acceptance in many cases, of economic policy (i.e. progressive taxation, national insurance policies) and the theoretical rejection of interpersonal comparisons of utility who see it as an unscientific value judgement. The inconsistency is explained by identifying three groups of theorists: (1) those who thought of comparability as a value judgement and unacceptable for economic policy considerations (positivists), (2) those who agreed with the positivists, on the normative nature of comparability but accepted it as a basis for economic policy, and (3) those who thought of it as part of a scientific economics. The implication was that, despite the dominance of positivist methodology in other sub‐fields, the historical experience points to the difficulty of applying positivist methodology to the issue of comparability. If the inconsistency is thus due to the inappropriateness of the positivist approach, the only possible solution is the explicit abandonment of this approach at least in matters related to the collective aspects of economics.
Dae Yong Jeong and John Lawler
This paper proposes a new theoretical framework to explain enterprise unionism and conducts the first systematic comparative study of union structure in nine Asian countries. Our…
Abstract
This paper proposes a new theoretical framework to explain enterprise unionism and conducts the first systematic comparative study of union structure in nine Asian countries. Our framework emphasizes political dynamics and the role of the state in labor relations and argues that the initial period of the collective bargaining era constituted a critical juncture (state labor policy) that occurred in distinctive ways in different countries and that these differences played a central role in shaping the different union structures in the following decades. The nine countries are mainly divided into three groups, depending on the type of state labor policy: enforcement of enterprise unionism; centralization/laissez-faire (non-enterprise unionism); and dual unionism/gradual transition (middle-ground). Governmental data were used for the study. A clear correspondence between state labor policy and union structure in each of these groups was found. We believe that our framework significantly enhances our understanding of the Asian cases. Future research should explore the validity of the proposed framework through comparative studies of Latin American cases where enterprise unions have also been observed.