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This chapter analyzes the empirical relationship between the pricesetting/consumption behavior and the sources of persistence in inflation and output. First, a small-scale New-Keynesian model (NKM) is examined using the method of moment and maximum likelihood estimators with US data from 1960 to 2007. Then a formal test is used to compare the fit of two competing specifications in the New-Keynesian Phillips Curve (NKPC) and the IS equation, that is, backward- and forward-looking behavior. Accordingly, the inclusion of a lagged term in the NKPC and the IS equation improves the fit of the model while offsetting the influence of inherited and extrinsic persistence; it is shown that intrinsic persistence plays a major role in approximating inflation and output dynamics for the Great Inflation period. However, the null hypothesis cannot be rejected at the 5% level for the Great Moderation period, that is, the NKM with purely forward-looking behavior and its hybrid variant are equivalent. Monte Carlo experiments investigate the validity of chosen moment conditions and the finite sample properties of the chosen estimation methods. Finally, the empirical performance of the formal test is discussed along the lines of the Akaike's and the Bayesian information criterion.

The purpose of this paper is to evaluate threshold effects in the persistence of South African aggregate inflation data.

The conventional approach for assessing the degree of persistence within an inflation process is via its integration properties. This study makes use of univariate threshold autoregressive (TAR) models and associated unit root testing procedures to investigate the integration properties of the inflation data. Out‐of‐sample forecasts are further performed for the TAR models and their linear counterparts.

The empirical results confirm threshold effects in the persistence of all employed aggregated measures of inflation, whereas such asymmetric effects are ambiguous for disaggregated inflation measures. None of the observed series is found to be stationary in their levels. The out‐of‐sample forecasts for all TAR models outperform their linear counterparts.

Given the scope of the study, the empirical analysis provides insight with concern to the performance of inflation subsequent to the adoption of the inflation target regime in South Africa. Of particular interest are the low persistence levels observed at inflation rates of below 4.7 and 4.4 percent for core and CPI inflation, respectively, as both these aggregated measures of inflation play an essential role in guiding monetary policy conduct within the economy. The overall findings imply that on an aggregate level, the South African Reserve Bank's (SARB's) current inflation target of 3‐6 percent encompasses a non‐stationary inflation range and thus proves to be restrictive on monetary policy conduct.

The paper fills in an important gap in the academic literature by evaluating asymmetric effects in the integration properties of inflation, at both aggregated and disaggregated levels, for the exclusive case of South Africa.

Small to mid-sized enterprises (SMEs) are underrepresented in market orientation and internet-related research. Yet, marketing-related issues represent some of the most important problems for SMEs. The purpose of this paper is to explain why SMEs use the internet in business processes and to explore the relationship between market orientation and internet usage.

The study amalgamates the technology acceptance model, the motivation model and the integrated model of technology acceptance into one model. Hypotheses are tested with survey data from Belgian SMEs using partial least squares.

One of the findings is that intrinsic and extrinsic motivation are positively significantly related to internet usage intention. No significant relationships were found between behavioural norms and perceived ease of use and between perceived ease of use and the intention to use the internet.

Managerial implications include that SME-internet training providers should focus on methods to increase the user’s perceived enjoyment (intrinsic motivation) instead of emphasizing the perceived ease of use of the internet.

Researchers as well as practitioners have stressed the gains from implementing market-orientated strategies in firms. Together with the prominence of studies about patterns and characteristics of internet usage, this calls for studies that integrate these two streams of literature. The study shows in what way market orientation is related to the capability to use internet to a firm’s long term advantage. Up till now the relationship between market orientation and internet use has hardly received attention.

Past research about workplace promotion has focussed on factors that shape employees’ perceptions for promotion. Yet, we still know little about how such undesirable factors as the fear of success (henceforth FoS) syndrome and perceived workplace discrimination affect perceived promotion and even less so how this relationship is mediated by self-efficacy and intrinsic motivation. The purpose of this paper is to propose a conceptual framework integrating these factors.

A structural equation modelling procedure was employed to empirically test the model using data collected from employees in wide-ranging Israeli industries (n=553).

The path model indicates that initially, FoS and perceived discrimination negatively affect perceived chances of promotion. When however, self-efficacy and intrinsic motivation mediate this relationship, subjects perceive their promotion chances positively.

Self-efficacy and intrinsic motivation may be employed to attenuate the potentially adverse effects of FoS and discrimination effects.

FoS and perceived workplace discrimination are common phenomena, yet the authors show that they may be mitigated by heightened self-efficacy and amplified intrinsic motivation that help in sustaining perceived workplace promotion.

The purpose of this paper is to report on a sequential three-stage analysis of inflation persistence using monthly data from 11 inflation targeting (IT) countries and, for comparison, the USA, a non-IT country with a history of credible monetary policy.

First, the authors estimate inflation persistence in a rolling-window fractional-integration setting using the semiparametric estimator suggested by Phillips (2007). Second, the authors use tests for unknown structural breaks as a means to identify effects of the regime switch and the global financial crisis on inflation persistence. The authors use the sequences of estimated persistence measures from the first stage as dependent variables in the Bai and Perron (2003) structural break tests. Finally, the authors reapply the Phillips (2007) estimator to the subsamples defined by the breaks.

Four countries (Canada, Iceland, Mexico, and South Korea) experience a structural break in inflation persistence that coincide with the implementation of the IT regime, and three IT countries (Sweden, Switzerland, and the UK), as well as the USA experience a structural break in inflation persistence that coincides with the global financial crisis.

The authors find that in most cases the estimates of inflation persistence switch from mean-reversion nonstationarity to mean-reversion stationarity.

Monetary policy implications differ between pre- and post-global financial crisis.

Global financial crisis affected the persistence of inflation rates.

First paper to consider the effect of the global financial crisis on inflation persistence.

The service recovery literature provides little guidance to firms on how users of self-service technology (SST) perceive assistance provided by human and non-human service agents following a service obstacle. This research responds by addressing two important research questions about SST recovery: (1) how are perceptions of assistance provided following a service obstacle influenced by a customer's psychological needs? and (2) does supporting the psychological needs of customers positively impact continuance intentions following a service obstacle?

Data are collected to address the research questions via five experiments that explore how assistance provided by a non-human (vs human vs no assistance) service agent contributes to perceptions of psychological support and continuance intentions following a service obstacle while volitionally using SST.

The results show that while users of SST would prefer to do so without an obstacle requiring intervention of a service agent, if assistance is required then the psychological need support elicited from a non-human service agent was vital to an effective recovery. Further, the findings highlight some boundary conditions for this relationship, with the impact of customer perceived need support on continuance intentions found to be sensitive to fit between the task and assistance provided and the complexity of the task being completed.

Much of the prior service recovery literature has emphasized the different types of tactics that can be used (e.g. apologizing, monetary compensation and explaining what happened), failing to appreciate the role of different types of service agents or the underlying psychological process that explain the relative merit of such tactics. The present research shows that for these tactics to influence continuance intentions, they must be provided by a relevant service agent and support a customer's psychological need for autonomy, competence and relatedness. The hypothesized impact of psychological need support on continuance intentions was also observed to be contingent upon the fit between the task and the type of assistance provided, where the level of task complexity attenuated this fit.

In the fashion of Martin (2012), we develop an innovative application to a standard, well-grounded methodology to investigate resilience in two critical dimensions: recovery and resistance. Our novel approach allows us to investigate the resilience performance to the 2008 financial crisis within countries of this macro-region according to their shock isolation and absorptive capacities.

By individually estimating six open economy DSGE models within the Central Europe and Baltic macro-region, we identify the business-cycle-volatility drivers for each country. Then, we use the outcome of our six estimates to conduct a principal component analysis to determine structural common characteristics required to explain economic resilience in the CEB macro-region.

In terms of resilience, Central European economies exhibit quite similar paths in terms of recovery, meaning they have similar economic structures. By contrast, Baltic countries behave differently, being outliers in opposite extreme positions. The contrary occurs for resistance: Baltic countries share a similar ranking, whereas Central European economies exhibit substantial differences.

It is important to acknowledge that a limitation of the analysis is that we explicitly consider each country as a stand-alone open economy which are subject to stochastic disturbances. Precisely, we do not model trade or other interactions across countries within the CEB region and with the rest of the world. Consequently, spillover effects in the aftermath of the shock are not accounted for.

We estimate the relative vulnerability or sensitivity of economies within the macro-region to disturbances and disruptions (resistance) and the speed and extent of recovery from such a disruption or recession (recovery). First, we built two different kinds of measures of resilience by aggregating the estimated parameters through non-centered and centered principal component analysis. Then, we use our model to investigate the relation between financial shock and the economic resilience across the region. The approach can be applied to several case studies, parsimoniously.

The aim of this paper is to examine the usefulness of the stimulus-organism-response (S-O-R) model for systematizing and further exploring the knowledge of the role of entrepreneurship education (EE) in fostering students' entrepreneurial mindset (EM). Current research studying the EM in an educational setting often fails to conceptualize this mindset and its attributes rigorously and to include epistemological considerations regarding how the authors can know whether a person has developed an EM or not.

The authors test the S-O-R model by combining it with a critical realist approach to develop a conceptual model for understanding the EM and its development in an educational setting.

The authors identify eight psychological constructs that represent markers of the EM. The authors further surface the multi-causal characteristic of learning in EE. The authors' model cannot be applied to detect causal relationships, but it is useful in exploring potential causal tendencies and plausible explanations of the mechanisms and circumstances of EE, which may, in concert, potentially foster the psychological attributes associated with an EM.

The paper addresses the often-overlooked epistemological considerations related to how the authors can know anything about psychological and theoretical constructs, such as the EM. A conscious discussion about how the authors can develop knowledge and insight about the EM and how individuals develop it is critical to justify a continued focus on the EM in EE.

The purpose of this study is to focus deeply on the short term to explain the relative long-term evolution of the Argentinian economy in the long and the short term.

The study of the long-term evolution of the Argentine economy and identifying the moment in which it began to lose ground compared to other developed economies, such as Australia and Canada, constitutes the central axis of the historiography of this country. However, an additional problem presented by the Argentine economy is its high volatility. For this reason, the long term should be influenced by the short term, an issue that requires a more detailed study of the cyclical behavior and a deep analysis of the relationship between the long and the short term.

The results obtained point to a cyclical development that influences the long-term evolution and, therefore, explains Argentina’s convergence process with Australia and Canada. Frequent deep busts and short booms characterize the Argentine cycle, offsetting its long-term growth potential.

Although the long term has been profusely studied in Argentina, the short term has not been analyzed to the same extent, which is surprising given the extreme volatility of this economy (Prebisch, 1950). The studies performed on economic cycles have always been partial, disconnected from the long term and carried out without much technical rigor.