nep-ino New Economics Papers
on Innovation
Issue of 2018‒09‒24
twenty papers chosen by
Uwe Cantner
University of Jena

  1. What pathways lead to frugal innovation? Some insights on modes & routines of frugal, technical inventions based on an analysis of patent data in German auto components industry By Tiwari, Rajnish; Bergmann, Stephan
  2. Supporting an Innovation Agenda for the Western Balkans - Tools and Methodologies By Andonova Elena; Boden Mark; Cetl Vlado; Diukanova Olga; Dosso Mafini; Dusart Jean; Gkotsis Petros; Gnamus Ales; Kleibrink Alexander; Kotsev Alexander; Lavalle Carlo; Mandras Giovanni; Matusiak Monika; Radovanovic Nikola; Rainoldi Alessandro; Slavcheva Milena; Veskovic Miroslav; Hollanders Hugo; Ndubuisi Gideon; Owusu Solomon; Radosevic Slavo
  3. Taxation and Innovation in the 20th Century By Ufuk Akcigit; John Grigsby; Tom Nicholas; Stefanie Stantcheva
  4. Success factor analysis of the regional innovation-supporting facilities in Korea By Young-Hyun Jin; Chang-Dae Park
  5. Good practices for smart specialisation in energy By Javier GOMEZ; Isabelle Seigneur; Claire Nauwelaers
  6. Standing on the Shoulders of Dwarfs: Dominant Firms and Innovation Incentives By Cabral, Luís M B
  7. Ten-year evolution of EU industrial R&D in the global context By Pietro Moncada-Paterno-Castello; Hector Hernandez
  8. Prices under Innovation: Evidence from Manufacturing Firms By Jaumandreu, Jordi; Lin, Shuheng
  9. Obstacles For Academic Entrepreneurship in Turkey By Mehmet Basar
  10. Innovators and Innovations in High Quality Wines of Argentina By Julio Elías; Gustavo Ferro
  11. Living Labs from Open Innovation Approach: a Systematic Literature Review By Julián Andrés Galindo Yepes; Edna Bravo Ibarra
  12. The Race for an Artificial General Intelligence: Implications for Public Policy By Naudé, Wim; Dimitri, Nicola
  13. The European Index of Digital Entrepreneurship Systems By Erkko Autio; Laszlo Szerb; Eva Komlosi; Monika Tiszberger
  14. Soft power of frugal innovation and its potential role in India's emergence as a global lead market for affordable excellence By Tiwari, Rajnish; Prabhu, Jaideep
  15. The Implications of Financial Innovation for Capital Markets and Household Welfare By Buss, Adrian; Uppal, Raman; Vilkov, Grigory
  16. The evaluation of the Italian “Start-up Act” By Carlo Menon; Timothy DeStefano; Francesco Manaresi; Giovanni Soggia; Pietro Santoleri
  17. Does Regulation Hurt Innovation in Animal Pharma? The Case of New Animal Antibiotics By Clancy, Matthew S.; Sneeringer, Stacy E.
  18. Determinants of successful product innovations in the German food industry By Kerssenbrock, Patricia; Hartmann, Monika; Hirsch, Stefan
  19. Markets for Financial Innovation By Ana Babus; Kinda Hachem
  20. Industrial R&D continued to grow substantially in 2017 By Petros Gkotsis; Hector Hernandez; Antonio Vezzani

  1. By: Tiwari, Rajnish; Bergmann, Stephan
    Abstract: Frugal innovations, i.e. affordable products and services with appropriately good quality, are getting increasingly important for securing long-term competitiveness in both, the developing world and in industry nations. Nevertheless, ensuring actual implementation of technology-driven frugal inventions remains an under-researched area. This study investigates modes and routines employed by techno-entrepreneurs from industry nations when innovating frugally. The study is based on the patent data of seven auto component sector firms from Germany with a documented history of contributing cost-effective solutions to frugal vehicles. With the help of a keyword analysis we identify the role of frugality in (patented) technical inventions. Select case studies of frugal inventions show that cost effectiveness and environmental sustainability can be often achieved by simplification of design and production process, as well as by eliminating avoidable complexity, e.g. through standardization. The study shows that frugal inventions in the investigated firms are often driven by individual inventors, while potentials of open global innovation networks are under-utilized. Furthermore, the study shows that frugality can (only) be achieved by a holistic approach that encompasses the entire value chain, including logistics and waste management. The results are potentially beneficial for techno-entrepreneurs across industry sectors and product domains.
    Keywords: Frugal Innovation,Techno-entrepreneurship,Frugal Invention,Patent Analysis,Auto Components,Germany,Simplification
    Date: 2018
  2. By: Andonova Elena; Boden Mark; Cetl Vlado; Diukanova Olga; Dosso Mafini; Dusart Jean; Gkotsis Petros; Gnamus Ales; Kleibrink Alexander; Kotsev Alexander; Lavalle Carlo; Mandras Giovanni; Matusiak Monika (European Commission - JRC); Radovanovic Nikola; Rainoldi Alessandro; Slavcheva Milena; Veskovic Miroslav; Hollanders Hugo; Ndubuisi Gideon; Owusu Solomon; Radosevic Slavo
    Abstract: The Western Balkan region has significantly improved in terms of innovation performance in the last ten years. However, in catching up with other European regions, the focus of innovation efforts should be enhanced. Exports are still far more focused on medium- and low-technology products. Innovative efforts mostly accommodate traditionally strong sectors, which do not necessarily reflect the ideal competitiveness paths for economies in the region. Although some Western Balkan economies record increases in patent activity, patent intensity in the region is still low, while, on the other hand, scientific publication production displays a stable growth trend. While Western Balkan economies are at different stages in the formation of research and innovation (R&I) policy governance systems, national research and innovation policy frameworks are continuously being improved. The enhancement of governance in the area of R&I came as the result of increased capacity building activities in the region, as well as of the real needs emerging as a result of social and economic transformation. On the other hand, R&I systems in the Western Balkan economies need to continue shifting their focus towards businesses to provide better balance between public and private sector orientation. The Joint Research Centre of the European Commission is committed to supporting the shift in innovation policies and improvement of R&I efforts and governance in the Western Balkan economies through a number of tools and activities, allowing policy instruments to be matched with the specific needs of the economy. This approach seeks efficient governance mechanisms for R&I policy by reaching out to the business sector and other important actors of the innovation ecosystem. It determines sustainable development directions for economies and ensures the continuity of policy monitoring and evaluation cycles. This ambitious challenge is translated into four specific lines of activity: (i) the application of the smart specialisation methodology to design and implement innovation strategies; (ii) capacity-building activities for technology transfer, in particular through specialised workshops, tools and instruments specifically designed to assist the academic institutions in the regional economies; (iii) support to transnational collaboration and linkages in the context of EU macro-regional strategies; and (iv) data quality enhancement. The analysis of the development potential of the Western Balkan region in terms of economic, innovative and scientific capabilities in this report is supported with the good practices addressing specific challenges in the region.
    Keywords: Western Balkans, innovation policy, smart specialisation, enlargement
    Date: 2018–04
  3. By: Ufuk Akcigit; John Grigsby; Tom Nicholas; Stefanie Stantcheva
    Abstract: This paper studies the effect of corporate and personal taxes on innovation in the United States over the twentieth century. We use three new datasets: a panel of the universe of inventors who patent since 1920; a dataset of the employment, location and patents of firms active in R&D since 1921; and a historical state-level corporate tax database since 1900, which we link to an existing database on state-level personal income taxes. Our analysis focuses on the impact of taxes on individual inventors and firms (the micro level) and on states over time (the macro level). We propose several identification strategies, all of which yield consistent results: i) OLS with fixed effects, including inventor and state-times-year fixed effects, which make use of differences between tax brackets within a state-year cell and which absorb heterogeneity and contemporaneous changes in economic conditions; ii) an instrumental variable approach, which predicts changes in an individual or firm's total tax rate with changes in the federal tax rate only; iii) a border county strategy, which exploits tax variation across neighboring counties in different states. We find that taxes matter for innovation: higher personal and corporate income taxes negatively affect the quantity, quality, and location of inventive activity at the macro and micro levels. At the macro level, cross-state spillovers or business-stealing from one state to another are important, but do not account for all of the effect. Agglomeration effects from local innovation clusters tend to weaken responsiveness to taxation. Corporate inventors respond more strongly to taxes than their non-corporate counterparts.
    JEL: H24 H25 H31 J61 O31 O32 O33
    Date: 2018–09
  4. By: Young-Hyun Jin (Korea Institute of S&T Evaluation and Planning (KISTEP)); Chang-Dae Park (Korea Institute of S&T Evaluation and Planning (KISTEP))
    Abstract: Korean government has established innovation-supporting facilities in the outside of national capital region. The so-called ?Regional R&D Centers? are equipped with R&D equipment and aim to support R&D activities of the small and medium sized enterprises in the nearby regional industry cluster. Since 2006, more than 582 facilities have been established using more than 10 billion USD. However, there are many debates on the efficacy of the regional R&D centers. In this study, we analyzed the success factors of the selected regional R&D centers using DEA and tobit regression. To measure the efficiency of the regional R&D centers using DEA, we selected budget invested, man-power and operation duration as the input variables and the number companies who utilized the facilities, number of utilization and awareness among the cluster as the output variables. The results showed that the efficiency of the regional R&D centers depends on the types of the host institute of the regional R&D center. We tested the relationship between the efficiency measured by DEA and factors in the planning and operation stages of the centers and environmental factors like GRDP. The tobit analysis showed that the number of partner institutes has strong positive influence to the efficiency in all the efficiency models. The location and support of operational expenses also showed positive influence in some models. The policy implication as well as detailed analysis procedure and results will be discussed in the presentation.
    Keywords: regional innovation-supporting facility, DEA, tobit regression, success factor analysis
    Date: 2018–06
  5. By: Javier GOMEZ (European Commission - JRC); Isabelle Seigneur (European Commission - JRC); Claire Nauwelaers (Independent expert)
    Abstract: The EU Member States and regions are currently implementing the priorities of their Research and Innovation Strategies for Smart Specialisation and their investments in sustainable energy from European Structural and Investment Funds under Thematic Objectives 4 and 7. This working paper is part of the policy support provided by the Smart Specialisation Platform on Energy (S3PEnergy) to EU regions and Member States in the implementation phase of their Smart Specialisation Strategies. In order to guide their work, the S3PEnergy has elaborated an inductive approach to identify good examples on smart specialisation and energy priorities implementation and on the use of Cohesion Policy funds for sustainable energy. The paper is organised in three main sections. The first describes a method for the identification of good practices, including the definition of a good practice in the frame of smart specialisation and energy, and the criteria used to identify good examples (under three categories: necessary, relevant and optional criteria). The second section elaborates a pilot exercise to put in practice this methodology and includes an initial catalogue of 11 demonstration cases of good practices. The third section draws the main lessons learnt from this pilot exercise whereas the conclusion provides insights to practitioners of smart specialisation.
    Keywords: smart specialisation, good practices, energy,innovation
    Date: 2018–08
  6. By: Cabral, Luís M B
    Abstract: We develop a dynamic innovation model with three important features: (a) asymmetry between large and small firms ("giants" and "dwarfs"); (b) technology transfer by acquisition; and (c) the distinction between radical innovation (compete for the market) and incremental innovation (compete within the market). We provide conditions such that (a) greater asymmetry between giant and dwarfs decreases incremental innovation but increases radical innovation; and (b) allowing for technology transfer increases incremental innovation but decreases radical innovation. These results have several policy implications, including: (a) with weak markets for technology, a soft antitrust policy toward dominant firms leads to an increase in radical innovation but a decrease in incremental innovation; (b) a merger policy that restricts the acquisition of fringe firms by dominant firms leads to lower incremental innovation rates and higher radical innovation rates; © the effect of IP protection on innovation is mixed: by increasing the prize from patenting, it increases incremental innovation; but, by improving the market for technology, it reduces the rate of radical innovation.
    Date: 2018–08
  7. By: Pietro Moncada-Paterno-Castello (European Commission - JRC); Hector Hernandez (European Commission - JRC)
    Abstract: More than a quarter of the industrial investment in global R&D is made by EU companies. In the last decade EU companies have increased their specialisation in medium-tech sectors, with a significant R&D share increase in the Automobile sector and a decrease in the Aerospace & Defence sector. EU shows an insufficient number of companies and a small number of global players in key (high-tech) sectors such as Biotechnology, Software and IT hardware. Conversely, competing economies are much stronger in these newer high-tech sectors and have maintained and even reinforced such strength. The high-tech innovation-led competitiveness of some countries has benefitted from proactive industrial policies which have supported targeted sectors and markets. Clear examples are those of the USA, South Korea and China. Promising undertakings are proposed by the European Commission to foster industrial competitiveness, innovation and technological leadership, also addressing the EU private investment gap in R&I. Industrial dynamics at company level provide insights into policy strategies to strengthen EU corporate R&D and to improve the competitiveness of innovation-driven industries.
    Keywords: Industrial R&D, EU innovation policy
    Date: 2018–07
  8. By: Jaumandreu, Jordi; Lin, Shuheng
    Abstract: We study how firms' innovations impact prices with endogenous productivity and markup, under imperfect competition and dynamic pricing. Absent innovation, productivity plus markup changes curb price growth to half of variable inputs cost growth. Innovation's additional impact on costs is negatively correlated with markup changes. We detect two prevalent strategies. When marginal cost goes down, firms cash-in innovation by increasing the markups to enlarge profits. When marginal cost goes u firms practice countervailing pricing by decreasing markups. With no innovation aggregate manufacturing price growth had multiplied by 1.4, but innovation without cash-in strategies had multiplied it by 0.8.
    Keywords: Innovation; marginal cost; markup; price indices
    JEL: D43 L11 L16 O31
    Date: 2018–08
  9. By: Mehmet Basar (Anadolu University)
    Abstract: Today, as a result of the knowledge economy, universities are focusing more on creating commercial knowledge along with their primary tasks ? education and research. Increasing demand for university-industry collaboration, universities? new roles in the economic development through technology transfer, and commercialization of knowledge are among the major factors that lead to concepts such as ?entrepreneurial university? and ?academic entrepreneur?. Academic entrepreneurship is actually a wider concept that covers all the efforts and activities toward the commercialization of the scientific research outputs of the universities and their industrial partners.In Turkey, Supreme Council for Science and Technology supports academic entrepreneurship activities and encourages potential academic entrepreneurs through various support mechanisms. However, there are many problems that academic entrepreneurs encounter and this study aims to discuss possible solutions for these problems and obstacles.
    Keywords: Entrepreneurial University, Academic Entrepreneur
    JEL: L26 L31 I00
    Date: 2018–06
  10. By: Julio Elías; Gustavo Ferro
    Abstract: How does the process of applying knowledge to the economy work? How do people innovate? What is inside the innovation black box? Can the process be stylized? We apply an economic approach to creativity which provides a general analytical framework to innovation to answer these questions by distinguishing two types of innovations: conceptual and experimental. The development of quality wines which in Argentina began in the 1990s was a process that involves both types of innovations. We analyze two cases of successful winemakers and we characterize their process of innovations to derive lessons with potential managerial and public policy implications. Resumen: ¿Cómo funciona el proceso de aplicar conocimiento a la economía? ¿Cómo innova la gente? ¿Qué hay dentro de la caja negra de la innovación? ¿Cómo puede estilizarse el proceso? Aplicamos un enfoque económico de la creatividad que provee un marco analítico generalpara responder estas preguntas, distinguiendo dos tipos de innovaciones: conceptuales y experimentales. El desarrollo de los vinos de alta calidad en Argentina comenzó en los 1990s y fue un proceso que tuvo ambos tipos de innovaciones. Analizamos dos casos de bodegueros exitosos y caracterizamos sus procesos de innovación para derivar lecciones con potenciales implicaciones gerenciales y de política pública.
    Keywords: Innovation, Wine industry, Argentina
    JEL: O31 Q13
    Date: 2018–08
  11. By: Julián Andrés Galindo Yepes (Universidad Industrial de Santander - UIS); Edna Bravo Ibarra (Universidad Industrial de Santander - UIS)
    Abstract: This research presents the body of a systematic literature review on Living Labs. Based on a review of the Scopus database and the analysis of the 53 most cited articles, we can be conclude that the research and development of the Living Labs concept has been taken off since 2006 and to date, in terms of quality and academic impact, remains insignificant The review of Living Labs requires to be identified in the scientific literature: 17 definitions, 20 concepts, 4 predecessors, 5 elements, 7 characteristics, 4 types, 4 archetypes, 20 benefits, 3 streams, 3 levels and 17 roles of innovation intermediaries. This study identified three methodologies that allow us to understand the methodological processes for the creation of Living Labs from the quasi-experimental perspective, the innovation phases and the development of the projects-based in ICT. The information contained in this literature review allows us to understand the evolution of the theoretical concept of Living Labs over time, as well as the variables that intervene in the characterization of these innovation ecosystems from the open innovation approach.
    Keywords: Living Labs ? Open Innovation ? Literature Review - Innovation
    JEL: O31 O32
    Date: 2018–06
  12. By: Naudé, Wim (Maastricht University); Dimitri, Nicola (University of Siena)
    Abstract: An arms race for an artificial general intelligence (AGI) would be detrimental for and even pose an existential threat to humanity if it results in an unfriendly AGI. In this paper an all-pay contest model is developed to derive implications for public policy to avoid such an outcome. It is established that in a winner-takes all race, where players must invest in R&D, only the most competitive teams will participate. Given the difficulty of AGI the number of competing teams is unlikely ever to be very large. It is also established that the intention of teams competing in an AGI race, as well as the possibility of an intermediate prize is important in determining the quality of the eventual AGI. The possibility of an intermediate prize will raise quality of research but also the probability of finding the dominant AGI application and hence will make public control more urgent. It is recommended that the danger of an unfriendly AGI can be reduced by taxing AI and by using public procurement. This would reduce the pay-off of contestants, raise the amount of R&D needed to compete, and coordinate and incentivize co-operation, all outcomes that will help alleviate the control and political problems in AI. Future research is needed to elaborate the design of systems of public procurement of AI innovation and for appropriately adjusting the legal frameworks underpinning high-tech innovation, in particular dealing with patents created by AI.
    Keywords: artificial intelligence, innovation, technology, public policy
    JEL: O33 O38 O14 O15 H57
    Date: 2018–08
  13. By: Erkko Autio (Imperial College London); Laszlo Szerb (University of Pecs); Eva Komlosi (University of Pecs); Monika Tiszberger (University of Pecs)
    Abstract: During the last decade digitisation has transformed the character of entrepreneurial activities as for both the entrepreneurial opportunities and the practices to pursue them. In this context, to ensure that the new productivity potential is fully deployed to the benefits of economic growth and societal welfare, policymakers need adequate metrics to monitor digital entrepreneurship. The measurement challenge of the digital entrepreneurship lays in the pervasive nature of the phenomenon itself that cannot be captured by count-based measures of individual-level entrepreneurial action. Therefore it becomes important to monitor the conditions which set the business context of entrepreneurs in the different EU countries. The European Index of Digital Entrepreneurship Systems (EIDES) addresses the measurement challenge by appraising the framework and systemic conditions for 1. stand-up, 2. start-up, and 3. scale-up activities in the EU28 countries. Furthermore, the EIDES also attempts to disentangle the digital component of the just-mentioned entrepreneurial conditions and stages of development.
    Keywords: entrepreneurial ecosystem, digital entrepreneurship, startups, innovation, high-growth companies, policy support to innovation
    Date: 2018–09
  14. By: Tiwari, Rajnish; Prabhu, Jaideep
    Abstract: The phenomenon of frugal innovation, as characterized by "affordable excellence", is experiencing increasing acceptance by business leaders, policy makers and scholars around the world. Frugal products, services and technologies strive to radically increase affordability while significantly reducing their environmental footprint through careful and prudent use of resources. It is expected that frugal solutions will be increasingly necessary in both the developed and developing world to ensure social inclusion, environmental sustainability and continued economic growth. Traditionally, frugality has been regarded as a social virtue in India and the socio-cultural context of the country provides a fertile environment for the development of frugal products and services. Not surprisingly, considerable research shows that discussions of frugal innovations have been closely associated with India. This concept has now begun to spread to other developing and industrialized nations. A primary objective of this conceptual paper is to showcase how frugal innovations emanating from India have found acceptance in other corners of the world and why they contribute to India's soft power on a global stage. We argue that frugal innovations can potentially provide a useful medium for a benevolent power that aims to promote peaceful coexistence, inclusive growth and prosperity around the world. Indian firms and policymakers should not become complacent about their existing businesses and fail to comprehend the importance of frugal innovation. They would be well advised to retain their focus on creating customer value and avoid falling prey to the dominant logic of potentially wasteful, unsustainable and exclusive innovation approaches. Instead of focusing on delivering "more for more for few" they should rather continue to focus on delivering "more for less for many". The demand for affordable and sustainable excellence is sure to grow globally and India can establish itself as a global soft power in the process.
    Keywords: Frugal Innovation,Lead Markets,Resource-constrained Innovation,Reverse Innovation,Soft Power,Frugality,Culture
    Date: 2018
  15. By: Buss, Adrian; Uppal, Raman; Vilkov, Grigory
    Abstract: Our objective is to understand how financial innovation affects investors' optimal asset-allocation decisions and the economic mechanisms through which these decisions influence financial markets, welfare, and wealth inequality. We show that when some investors, such as households, are less confident than other investors about the dynamics of the new asset made available by financial innovation, but learn over time, many ''intuitive'' results are reversed: financial innovation increases the return volatility and risk premium of the new asset along with volatilities of investors' portfolios. Despite the increase in volatilities, financial innovation improves the welfare of all investors but worsens wealth inequality because experienced investors benefit more from it.
    Keywords: Bayesian Learning; differences in beliefs; household finance; household portfolio choice; parameter uncertainty; recursive utility; Wealth Inequality
    JEL: D53 G11 G12
    Date: 2018–08
  16. By: Carlo Menon; Timothy DeStefano; Francesco Manaresi; Giovanni Soggia; Pietro Santoleri
    Abstract: The report provides an independent and comprehensive evaluation of the economic and social impact of the Italian policy framework for innovative start-ups, also known as the “Start-up Act”, first introduced by the Decree-law 179 in 2012. The policy aims at creating a more favourable environment for small innovative start-ups through a number of complementary instruments, including “fast-track” and zero cost incorporation, simplified insolvency procedures, tax incentives for equity investments, and a public guarantee scheme for bank credit. While the report focuses only on Italy, the “Start-up Act” can be seen as a very useful “laboratory” to inform policies for innovative entrepreneurship across OECD member countries. The evaluation highlights that the impact of the policy on beneficiary firms has been positive overall, but that complementary policy actions in other areas are required in order to further realise the full potential of Italian innovative start-ups.
    Date: 2018–09–26
  17. By: Clancy, Matthew S.; Sneeringer, Stacy E.
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Health Economics and Policy
    Date: 2017–07–03
  18. By: Kerssenbrock, Patricia; Hartmann, Monika; Hirsch, Stefan
    Keywords: Industrial Organization, Agribusiness, Research Methods/Statistical Methods
    Date: 2017–07–03
  19. By: Ana Babus (Washington University in St. Louis); Kinda Hachem (University of Chicago)
    Abstract: Regulators have pushed for centralized trading as a way to increase transparency following the recent financial crisis. However, the nature of the security being traded may change when the market structure in which it trades is forced to change. In this paper, we develop a model to explore interactions between market formation and the design of new financial securities. Our results rationalize why debt contracts are frequently traded in over-the-counter markets whereas equity is typically traded on exchanges. We also find that regulations promoting universally larger markets can reduce investor welfare by reducing the production of securities with less variable payoffs.
    Date: 2018
  20. By: Petros Gkotsis (European Commission - JRC); Hector Hernandez (European Commission - JRC); Antonio Vezzani (European Commission - JRC)
    Abstract: R&D funded by the business sector increased in the EU by 5.6%, below the 6.1% global rate and the US R&D growth (7.2%). The worldwide growth of industrial R&D in 2017 is slightly higher than that recorded in 2016. This growth is largely driven by ICT and health industries. As in previous years, the industrial R&D growth in the EU is led by Germany, with France showing a stronger R&D increase compared to the previous year. In the EU, R&D inflows and outflows for Health industries were nearly equivalent in 2017 (€9.6bn versus €9.4bn) and showed a significant positive trend with respect to 2016.
    Keywords: Business R&D, Industry, Estimates
    Date: 2018–07

This nep-ino issue is ©2018 by Uwe Cantner. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.