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1 – 10 of 300We test the determinacy properties of the standard and financial-sector-augmented Taylor rules in a new Keynesian model with a presence of banking activities. We extend the basic…
Abstract
We test the determinacy properties of the standard and financial-sector-augmented Taylor rules in a new Keynesian model with a presence of banking activities. We extend the basic fully rational environment to the setting with heterogeneous expectations. We observe that the benefits from extra financial targeting are limited. Financial targeting, if well designed, can compensate for the improper output-gap targeting through the financial-production channel. The analysis demonstrates however possible threats resulting from the misspecification of the augmented rule. A determinate mix of output-gap and inflation weights can turn indeterminate if compensated by too extreme financial targeting. The results are robust to the presence of heterogeneous expectations.
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The purpose of this paper is to investigate a novel generalised grey target decision method (GGTDM) with index and weight involving mixed attribute values.
Abstract
Purpose
The purpose of this paper is to investigate a novel generalised grey target decision method (GGTDM) with index and weight involving mixed attribute values.
Design/methodology/approach
The mixed attribute values are transformed into binary connection numbers and also comprised of two-tuple (determinacy, uncertainty) numbers to fulfil the decision-making task. The proposed method constructs the weight function to convert the mixed attribute-based weights into the certain number-based weights and determines the alternatives ranking by the comprehensive weighted Gini–Simpson indices (CWGSIs).
Findings
The result of decision making regarding the numerical example by the proposed approach is somewhat different from that obtained by the reported vector-based method. The reasons for this are threefold: the decision-making bases are different, the target centre indices are determined by different mechanisms and certain number-based weights are calculated in different ways.
Research limitations/implications
The proposed method ranks an alternative based on the Gini–Simpson index, as derived from the viewpoint of measuring the uncertainty (heterogeneity): however, the vector-based GGTDM makes a decision based on proximity, as is the case when measuring the similarities between index vectors.
Practical implications
The proposed approach is admissible to solving mixed attribute-based decision making especially for alternative indices and attribute weights containing both uncertain numbers.
Originality/value
The proposed method provides a new perspective on measuring the difference of alternatives to the target centre via the CWGSI: the CWGSI is obtained by relying on the pseudo-probabilities achieved by the ratios of the alternative indices to the target centre indices. It also builds a weight function converting the mixed attribute-based weights into certain number-based weights. This method provides a framework that should be tested in terms of its effective decision making using real data and an actual problem.
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This paper analyzes variations in the effects of monetary and fiscal shocks on responses of macroeconomic variables, determinacy region, and welfare costs due to changes in trend…
Abstract
Purpose
This paper analyzes variations in the effects of monetary and fiscal shocks on responses of macroeconomic variables, determinacy region, and welfare costs due to changes in trend inflation.
Design/methodology/approach
The authors develop the New-Keynesian model, in which the central banks can employ either nominal interest rate (IR rule) or money supply (MS rule) to conduct monetary policies. They also use their capital and recurrent spending budgets to conduct fiscal policies. By using the simulated method of moment (SMM) for parameter estimation, the authors characterize Vietnam's economy during 1996Q1–2015Q1.
Findings
The results report that consequences of monetary policy and fiscal policy shocks become more serious if there is a rise in trend inflation. Furthermore, the money supply might not be an effective instrument, and using the government budget for recurrent spending produces severe consequences in the high-trend inflation economy.
Practical implications
This paper's findings are critical for economists and monetary and fiscal authorities in effectively designing both the monetary and fiscal policies in confronting the shift in the inflation targets.
Originality/value
This is the first paper that examines the effects of trend inflation on the monetary and fiscal policy implementation in the case of Vietnam.
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Tiziana Assenza, Michele Berardi and Domenico Delli Gatti
Should the central bank target asset price inflation? In their 1999 paper Bernanke and Gertler claimed that price stability and financial stability are “mutually consistent…
Abstract
Should the central bank target asset price inflation? In their 1999 paper Bernanke and Gertler claimed that price stability and financial stability are “mutually consistent objectives” in a flexible inflation targeting regime which “dictates that central banks … should not respond to changes in asset prices.” This conclusion is straightforward within their framework in which asset price inflation shows up as a factor “augmenting” the IS curve. In this chapter, we pursue a different modeling strategy so that, in the end, asset price dynamics will be incorporated into the NK Phillips curve. We put ourselves, therefore, in the best position to obtain a significant stabilizing role for asset price targeting. It turns out, however, that inflation volatility is higher in the asset price targeting case. After all, therefore, targeting asset prices may not be a good idea.
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Jinshan Ma, Di Tian and Jinmeng Yue
This paper is to propose a novel generalized grey target decision method (GGTDM) with index and weight both containing mixed types of data.
Abstract
Purpose
This paper is to propose a novel generalized grey target decision method (GGTDM) with index and weight both containing mixed types of data.
Design/methodology/approach
The decision-making steps of the proposed approach are as follows. First, all mixed attribute values of alternatives and weights are transformed into binary connection numbers and also comprised two-tuple (determinacy, uncertainty) numbers. Then, the two-tuple (determinacy, uncertainty) numbers of target center indices are calculated. Next, the certain weights are determined by the Gini–Simpson (G–S) index-based method. Following this, the comprehensive-weighted Kullback–Leibler distances (CWKLDs) of all alternatives and the target center are obtained. Finally, the alternative ranking relies on the CWKLD considering the smaller value as the better option.
Findings
The certain weights determined by the improved Gini–Simpson index (IGSI) based method are more accurate in compared with that by the proximity-based method and the weight function method. The discrimination ability of alternatives ranking of the proposed approach is stronger than that of the compared comprehensive-weighted proximity (CWP) based method and comprehensive-weighted Gini–Simpson index (CWGSI) based method.
Research limitations/implications
The proposed method fulfills the decision-making task relying on CWKLD, which solves the uncertain measurement from the viewpoint of entropy.
Originality/value
The proposed approach adopts the IGSI to transform uncertain weights into certain ones and takes the CWKLD as the basis for the decision-making.
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Zhengyuan Wang, Swinder Janda and C.P. Rao
Attempts to highlight differences among market segments of dental care customers in terms of the various attributes that determine which dental practitioner they patronize. The…
Abstract
Attempts to highlight differences among market segments of dental care customers in terms of the various attributes that determine which dental practitioner they patronize. The market segments are defined based on usage rate. Data were collected from a nationwide sample of 460 consumers in the USA. Using a determinant attribute approach, eight attributes were first isolated from the total set of 18 dental service attributes considered. Finds these eight attributes to be determinant factors in consumer choice of a general dental practitioner. They included quality of service, professional competence, reputation, personality and attitude of dentist, attitude of support personnel, waiting time before treatment, availability of emergency services, and fee charged for services. Multiple discriminant analysis was then performed to find out which determinant attributes are relevant for each of the three usage segments. Indicates that the three market segments differ in terms of the determinant attributes considered while patronizing a general dental practitioner. These findings have significant managerial implications for dental practitioners.
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Sandra McPherson, Osman Suliman and Osama Sweidan
The purpose of this paper is to examine the extent to which a flexible exchange rate system is able to function given a least developed economy where financial markets are…
Abstract
Purpose
The purpose of this paper is to examine the extent to which a flexible exchange rate system is able to function given a least developed economy where financial markets are inactive and economic growth is low.
Design/methodology/approach
A theoretical general equilibrium model is developed to examine the determinacy of a flexible exchange rate system on a small open market economy on the verge of subsistence. Using data from Sudan, an empirical analysis is conducted to find support for the theoretical results.
Findings
The theoretical analysis finds that in economies on the verge of subsistence with inactive financial markets, a flexible exchange rate system is indeterminate and thus will not work. In support of the theoretical results, the empirical analysis indicates that the financial deepening of an economy has a significant positive impact on the determinacy of the exchange rate.
Research limitations/implications
The robustness of the empirical results would be strengthened by examining the significance of financial deepening on exchange rates for additional economies with a large subsistence sector beyond Sudan.
Practical implications
A policy recommendation for economies on the verge of subsistence such as Sudan is to develop their financial institutions in order to increase their competitiveness in the exchange rate market. Moreover, future empirical studies on the impact of exchange rate changes should include monetary variables in order to reflect the degree of an economy's financial market advancement.
Originality/value
The paper illustrates that under conditions of subsistence, general equilibrium models of devaluation are determinant only when supply functions are based on absolute prices and not relative prices.
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This paper aims to problematize the idea that organizations can be understood as written text. Most of the work done in narrative analysis for organizational studies (OS) relies…
Abstract
Purpose
This paper aims to problematize the idea that organizations can be understood as written text. Most of the work done in narrative analysis for organizational studies (OS) relies on an interpretation of narrative which is anchored to the formalist/structuralist tradition. The aim is to review the exiting literature and propose an alternative understanding of the phenomena. In particular, the paper will argue that text analysis should be complemented with analysis of the experience of the people involved in the studied processes. The reductionist character of structural analysis cannot fit the complexity and uniqueness of the everyday life in organizations.
Design/methodology/approach
The approach is ethnographic research methodology. Data were collected during long unstructured interviews and daily informal conversations. Brochures, newsletter publications from the bank and archival information were also analyzed.
Findings
Storytelling in the bank studied shows a constant movement between two poles: the stabilizing forms of social determinacy and the destabilizing forms of experience.
Originality/value
To incorporate the dimension of experience into narrative research for OS and bringing the phenomenological sensitivity of the studies of everyday life into the management field.
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