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Article
Publication date: 17 December 2024

Xinxin Yuan and Kefu Liu

First, we explored the dynamic relationship between the economic and financial cycles under a unified endogenous framework. There is less literature on the relationship between…

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Abstract

Purpose

First, we explored the dynamic relationship between the economic and financial cycles under a unified endogenous framework. There is less literature on the relationship between the financial cycle and the economic cycle endogenously under a unified framework. Our research helps to fill the gap in this area. Second, there is no conclusive evidence on whether the monetary policy framework should take the financial cycle into account. Our findings provide a clear answer and a useful reference for the practice of monetary policy in other countries.

Design/methodology/approach

We incorporate the financial cycle equation based on the traditional new Keynesian model to construct a new Keynesian four-equation model that includes financial factors and further explores the dynamic relationship between the economic cycle and the financial cycle under a unified endogenous framework. We choose the three-stage least squares (3SLS) method for the estimation of the model. Then we utilize a time-varying parameter vector autoregression (TVP-SV-VAR) model incorporating stochastic volatility to explore the mechanism of the dynamic association between the financial cycle and monetary policy in China.

Findings

First, we explored the relationship between the economic cycle and the financial cycle. The results show that the financial cycle has a significant positive impact on the economic cycle, but the economic cycle has a limited effect on the financial cycle. Then, we examine the linkage mechanism between China’s economic cycle, financial cycle and monetary policy. The results show that the response of China’s monetary policy to economic cycle shocks and financial cycle shocks is more significant. Moreover, monetary policy is giving higher and higher weight to the financial cycle.

Originality/value

First, we constructed a new Keynesian four-equation model incorporating financial factors to explore the dynamic relationship between the economic and financial cycles under a unified endogenous framework. There is less literature on the relationship between the financial cycle and the economic cycle endogenously under a unified framework. Our research helps to fill the gap in this area. Second, there is no conclusive evidence on whether the monetary policy framework should take the financial cycle into account. Our findings provide a clear answer and a useful reference for the practice of monetary policy in other countries.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 27 May 2014

Kefu Lao

The purpose of this paper is to explore the mechanism of the influence of consumer innovativeness (CI) on consumer-reasoned green consumption (GC) behavior to understand more…

2700

Abstract

Purpose

The purpose of this paper is to explore the mechanism of the influence of consumer innovativeness (CI) on consumer-reasoned green consumption (GC) behavior to understand more about this behavior and help improve the practice of green marketing.

Design/methodology/approach

To understand more about GC behavior and help to improve the practice of green marketing, this paper tries to explore the mechanism of CI influences on consumer-reasoned GC behavior.

Findings

This study shows that CI has a significant influence on GC behavior. Its mechanism is that CI directly influences consumer attitude, subjective norm (SN) and perceived behavioral control (PBC) of GC, and then further influences GC intention and behavior. The direct influence of GC attitude on intention is not significant, but GC intention is indirectly influenced via SN by attitude. Moreover, male, young, highly educated and high-income consumers have stronger CI; the influence of CI on GC behavior is more significant in male, old, less-educated and low-income consumers.

Research limitations/implications

This research focuses on consumption behaviors which are reasoned and environment condition-constrained only, and its findings cannot be generalized to impulsive consumption behaviors. The influence of CI on impulsive consumption behaviors should be further researched.

Practical implications

Company managers should utilize new technology and design to make green products more innovative and fashionable to attract more customers.

Social implications

Instead of environment protection propaganda and education, society and market supervisors should lay the key point of GC incentive on the draft and implementation of law and regulation.

Originality/value

This research is an initial attempt to establish the relationship between CI and GC behaviors and generate a news research area in green marketing.

Details

Nankai Business Review International, vol. 5 no. 2
Type: Research Article
ISSN: 2040-8749

Keywords

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