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This chapter makes two modest contributions by shedding light on the shock propagating role of endogenous firm entry in a more transparent way through the lens of frictionless, flexible-price real business cycle (RBC) model. We find that entry moderates rather than amplifies the shock, as production no longer occurs in a frictionless way but through business formation that consumes time and resources. We also resurrect the ability of the standard RBC model in resolving “productivity-hours worked puzzle” should credit barrier facing entry be formalized in the model.

The global slack hypothesis is central to the discussion of the trade-offs that monetary policy faces in an increasingly more integrated world. The workhorse New Open Economy Macro (NOEM) model of Martínez-García and Wynne (2010), which fleshes out this hypothesis, shows how expected future local inflation and global slack affect current local inflation. In this chapter, I propose the use of the orthogonalization method of Aoki (1981) and Fukuda (1993) on the workhorse NOEM model to further decompose local inflation into a global component and an inflation differential component. I find that the log-linearized rational expectations model of Martínez-García and Wynne (2010) can be solved with two separate subsystems to describe each of these two components of inflation.

I estimate the full NOEM model with Bayesian techniques using data for the United States and an aggregate of its 38 largest trading partners from 1980Q1 until 2011Q4. The Bayesian estimation recognizes the parameter uncertainty surrounding the model and calls on the data (inflation and output) to discipline the parameterization. My findings show that the strength of the international spillovers through trade – even in the absence of common shocks – is reflected in the response of global inflation and is incorporated into local inflation dynamics. Furthermore, I find that key features of the economy can have different impacts on global and local inflation – in particular, I show that the parameters that determine the import share and the price-elasticity of trade matter in explaining the inflation differential component but not the global component of inflation.

Open-Economy models are central to the discussion of the trade-offs monetary policy faces in an increasingly more globalized world (e.g., Marínez-García & Wynne, 2010), but bringing them to the data is not without its challenges. Controlling for misspecification bias, we trace the problem of uncertainty surrounding structural parameter estimation in the context of a fully specified New Open Economy Macro (NOEM) model partly to sample size. We suggest that standard macroeconomic time series with a coverage of less than forty years may not be informative enough for some parameters of interest to be recovered with precision. We also illustrate how uncertainty also arises from weak structural identification, irrespective of the sample size. This remains a concern for empirical research and we recommend estimation with simulated observations before using actual data as a way of detecting structural parameters that are prone to weak identification. We also recommend careful evaluation and documentation of the implementation strategy (specially in the selection of observables) as it can have significant effects on the strength of identification of key model parameters.

The phenomenon of the ethnically homogeneous middleman group (EHMG) or ethnic trade network – the Chinese merchants in Southeast Asia, the Gujarati-Indians merchants in East Africa, the Jewish merchants in medieval Europe, etc. – is ubiquitous in stateless societies, pre-industrial and in less-developed economies (Curtin, 1984). Neoclassical (Walrasian) theory of exchange cannot explain the existence of merchants let alone the phenomenon of the EHMG. This is because Neoclassical theory of exchange is a static theory of frictionless, perfectly competitive markets with the Walrasian auctioneer costlessly coordinating the plans of anonymous producers (sellers) and consumers (buyers) so as to achieve equilibrium. There is no role for merchants in the Neoclassical theory of exchange.

• Customers expect retail companies to adapt their strategies to their behaviour, so they should use different channels and devices in interaction;

• Multichannel and omnichannel strategies represent two distinct approaches to managing relationships with the customers;

• The key to developing a successful omnichannel strategy is to integrate channels and touch points that will create a frictionless experience for the customer;

• Introducing omnichannel interaction requires organizational and IT changes within the company.

Customers expect retail companies to adapt their strategies to their behaviour, so they should use different channels and devices in interaction;

Multichannel and omnichannel strategies represent two distinct approaches to managing relationships with the customers;

The key to developing a successful omnichannel strategy is to integrate channels and touch points that will create a frictionless experience for the customer;

Introducing omnichannel interaction requires organizational and IT changes within the company.

Airports and urban developments in their vicinity constitute a highly specialized type of agglomeration based on air connectivity that epitomizes the importance of mobility in the modern service economy. However, in a frictionless world of backyard capitalism and perfect competition, such agglomeration of civil aviation services would not have been necessary. Thus, concepts such as imperfect markets, path dependence, and cumulative causation may be alternatively used to explain the spatial aspects of airport developments. Focusing on “second-nature” concentration, the “new geographical economics” (NGE) literature offers a potential theoretical framework that organizes these concepts into a coherent economic framework. This chapter aims to highlight the unique relevance of the NGE approach in developing an economics-based understanding of the spatial distribution of airports. Drawing from the existing NGE knowledge-base, this conceptual chapter explains that the NGE approach can be adopted as a micro-foundation to show how the spatial aspects of airport development, including core-periphery dynamics of regional disparity and parity, can emerge from economic mechanisms. The chapter concludes with potential implications for airport economics and regional policy, along with the discussion of some of the main critiques of the theory.

The Industry 4.0 revolution (I4.0) brings significant transformations in the travel and tourism industry. Advanced technologies like virtual reality, automation and robotics have paved the way for ‘seamless travel’. The educators are also under pressure to upgrade the curriculum to impart such skills among students, but suitable teaching methods shall also be required. Such practices include event-based education, interdisciplinary collaboration, teamwork, presentation skills and many other adaptative techniques. Hackathons, an essential part of ‘event-based education’, can support the I4.0 paradigm for Industry and academia. This study analyses six hackathons organised by Industry and academic institutions to explore how they contributed to solving the Industry's problems and imparting I4.0 skills among students.