Nonlinear and Asymmetric Exchange Rate Pass-Through to Consumer Prices In Nigeria: Evidence from a Smooth Transition Auto-regressive Model (Published)
This paper examines the nonlinearities and asymmetries in the exchange rate pass-through (ERPT) to consumer prices in Nigeria using quarterly time-series data from 1986 to 2013 and the nonlinear smooth transition autoregressive (STAR) method. The standard literature assumes linearity and symmetry in the ERPT to consumer prices in developing counties, despite the importance and presence of potential asymmetries and nonlinearities which are generated by the presence of various factors such as menu costs, capacity constraints, market share objectives and production switching. This study develops a partial equilibrium microeconomic mark-up model to investigate asymmetric and nonlinear behaviour in the ERPT. The study confirms the presence of nonlinear ERPTs due to different inflation levels. The results also show asymmetric ERPTs in the appreciation and depreciation of exchange rates. The magnitude of the ERPT also depends on the size of the exchange rate change. The ERPT is higher during depreciation than during the appreciation episodes of the Naira. Nonlinearity is more prevalent during the high inflationary period of the 1990s than in other periods. The policy implication of the results is that the government, despite temptations to do so, should avoid the devaluation of the Naira during high inflation periods to reduce the impact on consumer prices and the associated costs.
Deceptive Marketing Communication and Student Enrollment Decisions in Private Higher Education Institutions (PHEIS) In Cameroon (Published)
The University Reforms in the early 90s in Cameroon set the stage for private interests, driven by economic gains to invest in the Higher Education Sector. One of the outcomes of this move is the prevalence of misleading marketing communications that seek to attract and influence university enrollees. Focusing exclusively on alumni these private university institutions, this paper employs snowball sampling of six hundred subjects and a logistics regression technique to gauge the true influence of deceptive marketing communication on students’ decisions to enroll in PHEIs. The findings reveal that, although 93.5 percent of alumni admit to have been deceived to enroll in their respective alma maters (PHEIs), there is no inferential evidence that student enrollment decisions are induced by deceptive marketing communication.
Tunisian Labor Market and Regional Heterogeneity: Application OF PSTR Model (Published)
This paper is devoted to investigating the matching process for Tunisia using desaggregated data by assuming that the rising of the unemployment rate result from regional disparities which yield variation of matching efficiencies across regions. Since most econometric aspects of spatial heterogeneity can be handled by means of the standard panel data methods, we focus our discussion on the new technique :Panel Smooth Transition Regression models (PSTR). The distinction is that we can compute regional specific sensibilities for 23 regions over the period 1984-2004. Given this objective, we consider three structural factors that allow to explain the regional imbalances. Contrary to the previous econometric techniques of the matching theory, estimates of the coefficients depend, of three transition variables. The results show that women insertion, the qualification share and population density significantly contribute to explain the asymmetry of the matching process across regions. Our main conclusion is that the hiring in Tunisia is driven essentially by the stock of vacancies about is the region. The willingness of job seekers, obviously, remains low, although it is different between regions and seems relatively important in urban zones.
This paper presents new teaching materials on business e-negotiation subject through the development of two-party role play simulation plus detailed instructions and teaching notes regarding an internet domain sales process. The case was designed with the purpose to understand how important is anchoring in negotiations where the asymmetry of information is the non-written rule of the game and the improvement of writing skills when negotiating. The role play simulation is designed to: (a) provide negotiation teachers with educational tools and new insights about how to deal with asymmetry of information in business e-negotiations (b) enhance students’ skills on mutual gains approach, value creation, joint fact findings, consensus building and (c) provoke debates in classroom regarding to e-negotiations.