Background and Overview

Estimating a DSGE model for Japan in a data-rich environment

Dynamic factor models and dynamic stochastic general equilibrium (DSGE) models are widely used for empirical research in macroeconomics. The empirical factor literature argues that the co-movement of large panels of macroeconomic and financial data can be captured by relatively few common unobserved factors. Similarly, the dynamics in DSGE models are often governed by a handful of state variables and exogenous processes such as preference and/or technology shocks. Boivin and Giannoni(2006) combine a DSGE and a factor model into a data-rich DSGE model, in which DSGE states are factors and factor dynamics are subject to DSGE model implied restrictions. We compare a data-richDSGE model with a standard New Keynesian core to an empirical dynamic factor model by estimating both on a rich panel of U.S. macroeconomic and financial data compiled by Stock and Watson (2008).We find that the spaces spanned by the empirical factors and by the data-rich DSGE model states are very close. This proximity allows us to propagate monetary policy and technology innovations in an otherwise non-structural dynamic factor model to obtain predictions for many more series than just a handful of traditional macro variables, including measures of real activity, price indices, labor market indicators, interest rate spreads, money and credit stocks, and exchange rates.

Sources of Purchasing Power Disparities between the G3 Economies

We introduce an information provision experiment into a standard dynamic rational inattention model. We derive analytical results about how the treatment effect varies with characteristics of the environment and the individual. We use these results to discuss findings in the empirical literature on information provision experiments that can be explained by rational inattention of survey respondents and what this interpretation implies about behavior outside the survey. (JEL C90, D83, D91)

A mechanical-magnetic-electro bidirectional coupled dynamic model of a composite cantilever with magnetostrictive shunt damper is established, and the system's transfer functions and a key impedance impact factor are derived. For shunt vibration damping, H2 optimization criterion and the Nelder-Mead search method are used to obtain the optimal parameters of three circuits: resistance shunt (RS), capacitance shunt (CS), and resistance-CS (RCS). Comparisons between the calculated and measured results show that the proposed model can accurately describe the transmissibility vibration frequency responses of the system under RS and CS, and can predict the changing laws of the resonant frequency and the resonant peak with the shunt impedance. It is found that the RCS with negative shunt resistance can provide the peak attenuation rate 90.78%, which is higher than 70.44% of CS and 53.29% of RS, and has wider frequency broadband and faster vibration damping performances than CS and RS.

Business organizations have noticed that the actions of social responsibility are increasingly necessary, both to provide guidelines for strategic planning as to compose marketing strategies aligned with the thinking of consumers. That really brings to light the importance of furthering the discussion on the meaning of these business activities, which are already part of everyday society focused on the market. This article presents a theoretical and empirical research, exploratory in nature, aiming to verify that with the initiatives of social responsibility, mainly in the business bias, there is a new generation of social space for collaboration, which staff members of society can develop projects and goals, for the benefit of society. In theoretical research, the paper presents the vision of authors who discuss key points for understanding these social spaces for collaboration. In empirical research, which was conducted in case study, the collection and analysis of data took place from the documentary research in projects of social responsibility of a forest-based company, with operations in Santa Catarina and Parana, and the interviews with stakeholders of that organization. The results show that social spaces of collaboration are generated by the actions of corporate social responsibility, allowing greater rapprochement between the sectors of society and ensuring a place for the construction of good initiatives, towards sustainable development.

Estimated dynamic stochastic equilibrium (DSGE) models are now widely used for empirical research in macroeconomics as well as for quantitative policy analysis and forecasting at central banks around the world. This paper reviews recent advances in the estimation and evaluation of DSGE models, discusses current challenges, and provides avenues for future research.

The concept of traditional Chinese medicine has different connotations and extensions in different historical periods. This paper examines the formation and development of the concept of traditional Chinese medicine in the perspective of history, theory and empirical research, and explores the internal connection among different medical systems and between medicine and other disciplines. It attempts to re-define the connotation and extension of the concept of traditional Chinese medicine in the context of the new era, provide references for building the medical community of the Chinese nation and promote the standardization of Chinese medicine terminology, advance the cross-disciplinary construction and establishing a new medical system with the characteristics of openness and tolerance, in order to provide the solution, wisdom and power of traditional Chinese medicine for global health in the process of building a community of human health.

Alliances are subject to many scholarly inquiries in international relations and peace research because they are major instruments of foreign and security policies. Since the early work on alliances produced by the Correlates of War (COW) project, there have been significant advances in conceptual, theoretical, and empirical alliance research. New typologies and data permit us to differentiate more thoroughly among a variety of alliance objectives and functions. Furthermore, there has been new theoretical and empirical research on alliance formation, alliance configuration/polarization, effects of alliances on military conflict, connections between alliances and trade, and the economics of alliances. Providing new theoretical approaches, data, and empirical evidence on alliances, this special issue includes articles that address alliance formation, alliance polarization, alliances and democratization, trade among allies, regional economic institutions with alliance obligations, and defense industrial policies of military alliances. The articles in this issue extend our understanding of alliances past the traditional realist balance-of-power framework and encourage further testing and refinement of older alliance arguments and extensions to new theoretical developments.

We explore the relevance of honest signalling theory to the evolution of aposematism. We begin with a general consideration of models of signal stability, with a focus on the Zahavian costly signalling framework. Next, we review early models of signalling in the context of aposematism (some that are consistent and some inconsistent with costly honest signalling). We focus on controversies surrounding the idea that aposematic signals are handicaps in a Zahavian framework. Then, we discuss how the alignment of interests between signaller and predator influences the evolution of aposematism, highlight the distinction between qualitative and quantitative honesty and review theory and research relevant to these categories. We also review recent theoretical treatments of the evolution of aposematism that have focused on honest signalling as well as empirical research on a variety of organisms, including invertebrates and frogs. Finally, we discuss future directions for empirical and theoretical research in this area.

The capacity of firms to extract value from data is evolving into a matter of strategic importance in an increasingly digitized world. This paper utilizes a systematic literature review to examine the complex interplay between data culture and the adaption of business analytics, in different contexts of organizations. Although data-driven technologies are nearly ubiquitous, many firms still struggle to develop a cohesive culture to meaningfully integrate analytics. The study's objectives are to (1) bring together the existing literature on data culture and adaption of business analytics, (2) examine the influences of enablers and barriers such as leadership, digital maturity, and data literacy, and (3) establish theoretical frameworks and possible research gaps for future studies. In this study, were systematic - examining peer-reviewed journals and conference proceedings and academic databases such as Scopus, IEEE, SSRN, etc. Narrative synthesis and thematic analysis were used to address the influences of organizational, technological, environmental, and human resources and capital factors along established models; Technology-Organization-Environment (TOE), Dynamic Capabilities Theory, and the Diffusion of Innovations (DOI) theory. Research findings support strong leadership support, organizational cross-member collaboration, accessibility to data, and analytics competence will create critical factors in the successful adoption of business analytics. Our findings also indicate that resistance to change, skills deficit, and strategic misalignment are accompanying challenges. The review identifies a number of gaps in empirical research across specific industries, calling for multidisciplinary, longitudinal research that integrates behavioral and technological component. Actionable strategic implications are made for managers, IT professional, and human resource leaders to assist with cultural change within a data focused organization. Finally, the paper emphasizes that developing a balanced and inclusive data culture will assist organizations in leveraging benefits of business analytics, and creating a competitive advantage in the digital age.

Executive Overview This symposium provides a new perspective for strategic human resource management (SHRM) scholarship by expanding the contexts in which this scholarship has typically been framed. In the first paper, Kaufman evaluates SHRM scholarship within the United States from a historical and cross-disciplinary context. The second paper, by Festing, discusses the concept and practice of SHRM in Germany, a dominant economic power among developed nations and Europe. Liang, Marler, and Cui focus on China and examine how strategic human resource management is unfolding in a turbulent but hugely influential emerging economy. In describing strategic human resource management practices across these broader macro contexts, the papers in this symposium provide new directions for future theoretical and empirical research on SHRM.

Investigating the Drivers of International Comovement in Real Financial Asset Returns

If time and effort are required to accurately ascertain the lifetime value of energy efficiency for a durable good, consumers might rationally ignore energy efficiency. This paper argues that such inattention may be rational in the market for automobiles and home appliances. To do so, it develops a heuristic model of a consumer's decision problem when purchasing an energy consuming durable good in which uncertainty about each good's energy efficiency can be resolved via costly effort. The model indicates under what conditions the consumer will be less likely to undertake this effort. The empirical portion of the paper argues that energy efficiency is often not pivotal to choice. This, along with a simulation of the automobile market, suggests that returns to paying attention to energy may be modest, and analysis of the information readily available to consumers suggests that the costs of being fully informed may be substantial. The paper discusses the implications of rational inattention for public policy and for empirical research on the energy paradox.

Decisions take time, and the time taken to reach a decision is likely to be informative about the cost of more precise judgments. We formalize this insight in the context of a dynamic model of optimal evidence accumulation. We provide conditions under which the resulting belief dynamics resemble either diffusion processes or processes with large jumps. We then demonstrate that the state-contingent choice probabilities predicted by our model are identical to those predicted by a static rational inattention model, providing a micro-foundation for such models. In the diffusion case, our model provides a normative foundation for a variant of the drift-diffusion model from mathematical psychology.