Abstract

The paper examines whether common ownership along supply chains (i.e., vertical shareholding) is associated with better firm performance during supply chain shock. We find that supplier-customer dyads with vertical shareholding report higher combined monthly returns since the outbreak of the COVID-19 pandemic. The dedicated common investors have the most positive effects, followed by the common quasi-indexers.

Introduction

As overlapping institutional ownership becomes more prevalent, it has been heatedly debated whether it plays a positive role in market competition and corporate governance (e.g., Azar et al., 2018; Edmans et al., 2019; Schmalz 2021; Koch et al., 2021; Bebchuk and Hirst 2022). Most studies focus on its effects on industry rivals (i.e., horizontal shareholding). Compared to industry rivals, firms along the supply chain network have more collaborative and interdependent relationships. Hence, overlapping institutional ownership of supplier-customer dyads (i.e., vertical shareholding)1 may have distinct effects, especially in response to disruptive events that could jeopardize collaboration.

We utilize the COVID-19 pandemic as an exogenous supply chain shock to investigate whether vertical shareholding is associated with stock performance. Supply chain disruptions can be devastating to both upstream and downstream firms (e.g., Carvalho et al., 2021) and significantly exacerbate interfirm conflicts as opportunism and information asymmetry increase. Economic theories predict that cross-ownership can address inherent interfirm conflicts, such as the holdup problem (e.g., Klein et al., 1978; Grossman and Hart 1986). Institutional investors simultaneously holding shares of economically connected firms have incentives to prevent either contracting party from making a move that will hurt the value of their portfolios. Hence, they can influence the management of both upstream and downstream firms and thereby encourage information sharing and balance the bargaining power in supply chain contract renegotiations. For example, institutional investors can influence the supplier firms to prioritize the co-owned customer firms during supply shortages (Sheffi 2020).

Conclusion

We show that supply chain dyads with vertical shareholding have significantly better aggregate stock market performance since the COVID-19 pandemic. The effects vary with the incentives of common institutional shareholders. To our knowledge, we are one of the first empirical studies to show that vertical shareholding mitigates negative consequences of supply chain shocks. Our evidence sheds light on the debates over the roles common institutional investors play in interfirm relationships and supply chain risk management.

Abstract

As innovative technologies spread, the role of means of interaction with customers in the digital environment is growing. Virtual reality technologies are becoming one of the most promising tools for significantly expanding customer interaction in the context of digital transformation. The purpose of this article is to analyze the brand strategies of the leading companies and show the possibilities of using virtual reality technology and the concept of the metaverse for brand formation and promotion. We also aim to assess the prospects and formulate recommendations on the use of the digital environment in brand management strategies. To achieve the set goal, several tasks were completed. The authors analyzed the experience of using the digital environment for interacting with customers and studied the influence of VR, AR, MR, and XR technologies on brand management. Additionally, the possibilities of using the metaverse concept for brand management was defined. In this work, general scientific theoretical and empirical research methods were applied. The study furthers the theoretical foundations of brand management in the digital environment via innovative branding technologies that support an increase in the competitive performance of companies.

Introduction

As information and communication technologies develop, the digital environment forces enterprises to rethink their strategic goals, transforming both the business itself and the methods of doing business. The use of digital technologies in marketing offers completely new value propositions and ways to promote the business [1].

Traditionally, promotion (communicative mix), as an element of marketing mix, combines various types of marketing communications, including advertising, direct marketing, public relations, etc. They are used to inform the target audience about the merits of a product, service, brand, or idea. Promotion is aimed at generating interest, raising awareness, increasing sales, or building brand loyalty [2]. The development of digital technologies has changed almost all the classic communication instruments and ways of obtaining information. Social networks, instant messengers, video hosting (e.g., YouTube, TikTok), and video conferencing tools (e.g., Zoom, Discord) are becoming more popular. Print media, TV, and radio channels are going digital and introducing online versions.

Conclusions

The analysis of the brand strategies of the leading companies showed quite ample opportunities for using the technologies of virtual, augmented, and mixed reality and the concept of the metaverse for the formation and promotion of brands.

New technologies and platforms, growing connections between communication channels, force companies to constantly seek and summarize best practices, working with customers and other stakeholders through various communication systems.

Branding in a virtual environment can often be challenging, but the benefits far outweigh the drawbacks. Therefore, virtual branding opportunities should be used to the maximum to gain competitive advantages.

ABSTRACT
Taking a firm perspective, this study investigates cooperation in a destination network in a mountain village in Norway. 51 organizations participated in a survey, indicating their main cooperation partners and assessing the value of each cooperation in terms of ten intermediary benefits (increased sales, reduced costs, etc.) and two ultimate outcomes (business results, destination development). Firms perceived a cooperation to contribute to business results if the cooperation had led to increased sales or made the firm more resilient to market fluctuations. Firms perceived a cooperation to contribute to destination development if the cooperation had led to new knowledge, improved customer satisfaction, and hat not simply helped improve operations. The findings demonstrate the interconnectedness of intermediate and ultimate relationship outcomes on firm and destination level. The study contributes to a more comprehensive understanding of network relations, relevant to the literature on relational benefits and destination development.
Introduction
Firms expand their boundaries and engage in external relationships to achieve benefits that will increase firm performance (Giuliani, 2013; Parmigiani & Rivera-Santos, 2011). Each firm participates in several cooperative dyads, and for any given dyad, several relationship outcomes can be distinguished. Some of these contribute to increased revenues, for example by enabling the focal firm to develop new products, enter new markets or increase sales to existing customers. Others may help a firm reduce costs, for example by enabling it to negotiate shorter delivery times with suppliers and thereby reduce inventory.

Highlights

Abstract

Keywords

1. Introduction

2. Design(erly) thinking in the academic field of design

3. Design thinking (DT) in the context of management

4. Design, design thinking (DT) and management

CRediT authorship contribution statement

Declaration of competing interest

Appendix A. Supplementary data

Research Data

References

Abstract

The adoption of design thinking (DT) as content or methodology for management education has increased. Despite the recognizable potentials of it, this paper argues the need to explain the nature of DT as a distinctive approach and aims to elaborate on a critical appraisal of DT in management education. In order to accomplish it, specific objectives are pursued: (1) to contrast the understanding of design (erly) thinking in the academic field of design with an understanding of DT within management, and (2) to understand the fundamental arguments for the approximation between design and management education, the antecedents of this movement and the ontological and epistemological implications of it in the research and professional training in the scope of management. Finally, the text recapitulates the possibilities opened up by the critical appraisal of DT and indicates the need to advance the discussions on the integration between theory and practice in management education.

1- Introduction

2- Price effects of FTAs

3- The estimation results

4- Conclusion

References

Abstract

Most previous studies have examined extensively the economic effects of free trade agreements (FTAs) such as their effects on economic growth, income distribution across industries, price competitiveness for international trade, trade volume, and the price of a commodity, but not very much on inflation rates. This study empirically estimates how much FTAs affect domestic inflation rates. From the cross-country panel data analysis of 34 OECD countries over the period 1980-2014, the expansion of FTAs shows a significant negative effect on the Consumer Price Index inflation, which is more apparent than the traditionally used openness measure. The inflation reduction effect is more significant in countries with a low level of openness than those with a high level of openness.

Introduction

In recent decades, the inflation rates have been low in the OECD countries. In the 1980s, the average inflation rate of OECD countries was 10.6 percent, but it declined to 7.3 percent in the 1990s, 3.1 percent in the 2000s, and 1.8 percent in the 2010s.1 The reasons for this decline in consumer price inflation are likely to include various country-specific structural factors and external factors such as international commodity prices, crude oil prices, and low inflationary pressure from the slowdown of the world economy after the global financial crisis. Some argue that the expansion of low-priced Chinese exports produced with cheap labor may have contributed to the stabilization of global prices.2 Expansion of foreign trade means relatively low-priced imports of overseas goods, which stabilize domestic prices. The institutional change that has made a decisive contribution to the expansion of such trade is the proliferation of free trade agreements (FTAs). The main contents of bilateral or multilateral FTAs include the reduction of tariff rates and the easing or elimination of trade barriers, which could directly reduce the price of imported goods and contribute to the stabilization of consumer prices if imports were expanded. This study attempts to estimate quantitatively how much the expansion of FTAs, separately from the effect of international trade on inflation rates, affected the domestic consumer price inflation rate. The objective of this study is to analyze how much the expansion of FTAs affects the inflation rate of each country based on the panel data analysis of 34 OECD countries for 1980–2014. We examine how much additional FTAs have affected the inflation rate in addition to the effect of international trade on domestic inflation, which has traditionally been focused. This study will not only be an empirical study of one aspect of the benefits of the FTA, but it will also have an implication for predicting the future trend of inflation rate by examining quantitatively how much the inflation rate stabilizes down due to the FTA expansion. This paper is organized as follows. Section 2 examines the previous studies on the economic effects or the price stabilization effects of FTAs.

1- Introduction and overview

2- Literature review

3- Methods

4- Findings

5- Discussion

References

Abstract

This research note reports upon the first survey of household sector innovation in China. Compared to previous survey studies we add two first-of-kind variables and related findings. First, we include data on individual income, a resource-related antecedent of household sector innovation. We find that higher individual incomes are strongly associated with increased frequency of both household sector innovation and innovation diffusion. When we combine personal income effects with the positive impact of educational levels and technical training (both competence-related antecedents), it appears that increases in national development are associated with increases in household sector innovation – a very useful public policy finding. Second, in this survey we included household sector innovations motivated by personal need and additional motivations related to learning, fun, helping others and selling/commercialization. This has a major impact on estimated household sector innovation frequencies – raising them by a factor of approximately 1.4. Reanalysis of data obtained in two earlier national surveys suggests that similar adjustment factors hold in those nations too. This finding shows that prior surveys have significantly underestimated household innovation. For many research purposes, such as national accounting, the total amount and value of household sector innovation is what is of interest, independent of motivations that may drive the activity.

Introduction and overview

A household sector innovation is defined as a functionally novel product, service or process developed by consumers at private cost (von Hippel, 2017: 1). In contrast to the business or government sectors, the household sector is the consuming population of the economy, in a word all of us, all consumers, “all resident households, with each household comprising one individual or a group of individuals” (OECD, 2013: 44). Household production entails the “production of goods and services by members of a household, for their own consumption, using their own capital and their own unpaid labor” (Ironmonger, 2000: 3). Household sector innovation, therefore, is a form of household production. At the time of this writing, surveys of household sector innovation have been carried out in nine countries, showing that, in aggregate, tens of millions of individuals in these nations spend tens of billions of dollars annually developing and improving consumer products. In the study of household sector innovation in China we report upon here, we add two new important findings to the learnings from previous surveys and studies. First, in the China survey we collect data on the income of household sector innovators. Previous studies have investigated competencerelated indicators of consumers’ innovation ability, including education level and technical education and work experience (von Hippel, Ogawa and de Jong, 2011). Income, we suggest, adds an important resourcerelated dimension. Our analyses show that income is strongly related to levels of household sector innovation. Individuals at the highest income levels measured in China are 4 to 5 times more likely to innovate. In addition, we find that income is positively related to the likelihood of diffusion of household sector innovations. Specifically, at high incomes the odds of diffusion to peers more than double, while the odds of commercial diffusion are 15 times higher relative to those in the lowest income categories. When we combine the effect of income with previously-documented variables found significantly associated with household sector innovation (education level and technical work experience) a general picture emerges that the frequency and diffusion of household sector innovation is likely to increase along with global trends towards increased education and income.

1- Introduction

2- Pilot study

3- Main study

4- General discussion

5- Author statement

References

Abstract

The present research included two field studies investigating, firstly, the effects of round and angular typefaces on taste expectations and, secondly, how such expectations may have downstream effects on naturalistic consumer choice. A taste experiment conducted at a science festival asked participants (N = 125) to rate the expected and actual sweetness and sourness of beer served from plastic cups labelled with either angular or round typeface. Effects of typeface were found on both taste expectations and perceived taste, but in opposite directions; participants rated the expected sourness of a beer as higher in the round (vs. angular) typeface condition, whereas they rated perceived sourness as lower in the round compared to the angular typeface condition. A follow-up field study conducted at a beer bar tested whether different typefaces on a beer board would affect actual beer choices. Data consisted of beer transactions (N = 1,952) and included the monetary amount, and the specific style, and size of beer purchased. The results showed that average transaction amount was lower in the round (vs. angular) typeface condition, and that customers purchased more sour beer options in this condition. These findings support a crossmodal compensation account, and suggest that round typefaces could increase choices of contrasting sour products. Hence, marketers may want to consider how typefaces can either enhance or diminish certain tastes.

Introduction

It has long been recognized that different typefaces have different connotations and associations. One needs to look no further than the internet’s playful disgust for typefaces such as comic sans or papyrus (Oneextrapixel, 2018) to see how people attach emotion and importance to typefaces. On a more serious note, typefaces play an important role in the development of marketing materials and product packaging design, which are often connected to significant financial costs for companies, underlining the importance of choosing the right typeface for products and brands. Certainly, typefaces can affect perception and convey meaning beyond the actual semantic message, so it is not surprising that this design element has received attention in regards to fields such as advertising and product packaging (Childers & Jass, 2002). However, even though typeface is a central part of food-related marketing, advertising, and packaging, research on the effects on taste expectation and perception has only started to gain traction (for a review, see Velasco & Spence, 2019). Indeed, several studies have shown how shapes can elicit certain associations and expectations within the food domain (Velasco et al., 2014), and other studies have revealed how, for instance, expectations play an important role in the actual perceived taste of a product (Piqueras-Fiszman & Spence, 2015).

1- Introduction

2- Theory: Predictions

3- Methods

4- Results

5- Conclusions

References

Abstract

We analyze the effect on inflation of doubling the minimum wage and cutting the value-added tax in half. Annual inflation decreased by 1.8 percentage points, suggesting that the minimum wage increase had a limited or even null effect on prices.

Introduction

Mexico elected a new government in the summer of 2018, in a context of high levels of violence in municipalities on the U.S. border and throughout the country, and of growing antiimmigration rhetoric in the U.S. For these reasons, and also because of concerns about migration from Central American countries, the newly-elected president of Mexico, Andrés Manuel López Obrador, announced his intention to generate better working conditions at the border to reduce incentives to cross to the U.S. The new government implemented a set of place-based policies that went into effect in the bordering municipalities beginning in January 2019. These included doubling the nominal minimum wage, halving the value-added tax (VAT) from 16 to 8 percent, reducing the corporate income tax by one-third, and adjusting the price of energy goods to make them comparable to those in bordering counties in the U.S. This set of policies is one of the boldest recent place-based policies in the world. In this paper, we restrict our analysis to the effects of these policies on inflation, taking advantage of their regional variation to estimate their joint effect. In particular, by using a rich dataset that includes the prices of goods with and without VAT in different cities throughout Mexico, we are able to shed some light on the magnitude of the effect on prices of doubling the minimum wage.

Introduction

Rationale and objectives

Methods

Results

Discussion

Conclusion

References

Abstract

Introduction: Pharmacy education standards include a focus on interprofessional education and communication skills, specifically naming conflict management and patient-centered communication as key areas. This study aimed to explore the association between conflict management style and attitudes toward empathy among first year pharmacy students (P1s) in professional encounters.
Methods: A cross-sectional design was implemented among two cohorts of P1s who completed an online survey including the Thomas–Kilmann Conflict Mode Instrument professional version (TKCI-P) and the Kiersma–Chen Empathy Scale (KCES).
Results: Those scoring higher on the competing mode reported significantly lower attitudes toward empathy (p < 0.05). Those scoring higher on the accommodating mode reported significantly higher attitudes toward empathy (p < 0.05). Some student characteristics, including gender and race, were significantly associated with KCES score and/or TKCI-P mode.
Conclusions: These results suggest that awareness and training in empathy and conflict management should be incorporated in curricular content to support the likelihood of future pharmacists to be effective in their future patient and interprofessional interactions.

Introduction

The Center for the Advancement of Pharmacy Education (CAPE) Educational Outcomes 20131 and the Accreditation Council for Pharmacy Education (ACPE) 2016 Accreditation Standards,2 incorporate a focus on patient-centered and interprofessional communication for pharmacy students. The ACPE Interprofessional Education Standard includes a communication skills component that outlines patient-centered communication and conflict management as key skill areas needed to be prepared for future practice contexts that include advanced care services and interprofessional care teams.2,3 Within patient-centered communication, empathy is an essential component in building trust and relationships between patients and providers.4,5 While empathy is an ambiguous concept that has multiple recognized definitions, a generally accepted definition is the ability to see the world as others see it, understand another’s current feelings, be non-judgmental, and communicate understanding.6–10 Empathy results in stronger patient–provider relationships and has been shown to significantly improve adherence to recommendations,11–15 patient satisfaction,16,17 and clinical outcomes.18 Empathic communication has also led to more accurate diagnosis,19,20 fewer medical errors,21 and greater provider well-being.

1- Introduction

2- Epistemological issues

3- An exploratory study

4- Implications

References

Abstract

This research note raises the question of the lack of critical appraisal of the asset light model. Its purpose is to trigger an in-depth exploration of the determinants of performance of the implementation of such decision. To explore our argument, we used a longitudinal data design that combines both cross sections and time series to examine the effects of the asset light model on share returns, EBITDA and ROE of six leading U.S corporations over a 16-year period. We found that the model had no impact on financial performance. Our purpose is to a trigger debate within academia and practitioners on when and how the asset light model is a valid option. As well as which type of contract to rely on and how to build a differentiating strategy when implementing the asset light model.

Introduction

This research note raises the question of the lack of critical appraisal of the asset light model. Its purpose is to trigger an in-depth exploration of the determinants of performance of the implementation of such a model. The decision to divest properties and specialize in operations (i.e. the asset light model) has become a widespread practice amongst hotel corporations (Fig. 1) and is often presented as the best fit for the organization (The Economist, 2013; Nair, 2014; Host and Marriott 1994 annual reports). This practice, whose advantages have been widely reported throughout academia, is becoming the new norm (Fig. 1). The near universal acceptance of this model makes the dubious assumption that an asset-light strategy is the best fit, in terms of performance, for every organization in the hospitality industry. This assumption contradicts the fundamental principles of strategy, whereby unique choices (of competencies and positioning) are what drives outperformance (Wernerfelt, 1984, Porter, 1979). Blindly accepting the asset light model as the best option for lodging corporations leads practitioners and academia to overlook strategy fundamentals and ignore the consequences of the model on long-term performance. This blind spot in our approach to the issue prevents us from addressing key questions such as, for instance, how to position the company vis-à-vis differentiation. Unfortunately, the lack of critical appraisal of the model is an obstacle to acquiring this knowledge. Since it is accepted as the best choice for all companies, the asset light model and its effects on long-term performance is the subject of very few papers in tourism and hospitality research. These studies, with the exception of one (Low et al., 2015), converge to confirm that the model is beneficial to corporate performance, which begs the question: How can just one divestment model be beneficial to the performance of all companies? Not to mention that companies implement it to different degrees, so what are the contingent variables which moderate the effects? Why are some companies more successful in generating superior performance than others after the implementation of the asset light choice? It appears that academia and executives are wearing blinders when it comes to this model. We hope that this research note will trigger more discussion for a more critical view of the asset light decision with a view to providing valuable insights for both academia and corporate practices.

Theories of social exchange and social identity are extensively introduced to explain the motivation to share online. However, the first step to be social or identified in an online community is to have a profile name because online status and reputation should be assigned to an owner. The effect of profile name on online sharing is rarely explored in the literature, which is crucial in understanding the initial impulse of online sharing. We select a unique platform that enables users to use a profile name or remain anonymous and collect 2,109,555 reviews. Two main findings are drawn from our big data analysis. (1) Users who provide profile names are more involved in online sharing: they write longer text and upload more photos in comparison with anonymous users. (2) Users with profile names gain more recognition from peers. This study concludes by presenting the theoretical and managerial implications of these findings.

Introduction

Hotel booking sites provide beneficial platforms for users to obtain information from peers and post reviews after their experiences (Chan et al., 2017). However, sharing one’s experience online is voluntary and requires effort to write text and upload photos (Liu et al., 2018). What motivates users to share online remains a major research question. Prior studies have drawn on social exchange and social identity theories to explain the motivation to contribute online (Forman et al., 2008; Luo et al., 2017). These motivations include information exchange (Xiang and Gretzel, 2010), self-enhancement (Yoo and Gretzel, 2008), and sense of belonging (Cantallops and Salvi, 2014). Research in online contexts has suggested that self-verification plays an important role in shaping online behavior (Forman et al., 2008). The first step to be social or identified in an online community is to have a profile name because status, reputation, and social identity should be assigned to an owner. Compared with anonymous users, users with profile names are more concerned about their status and reputation in the community which can be obtained from their online contributions. Furthermore, voluntary contributions from users with profile names could be more salient owing to their higher sense of belonging in the community. Therefore, it is expected that users with profile names are more involved in online sharing in comparison with anonymous users. The pursuit of status and reputation makes users with profile names pay more attention on the quality of their contributions, hence reviews posted by users with profile names could be more thorough and informative. In addition, readers would trust reviews posted by users with profile names more than anonymous users (Forman et al., 2008). Thus, it is expected that users with profile names are more recognized than anonymous users in an online community.

1- Introduction

2- Data and estimation strategy

3- Results

4- Conclusion

References

Abstract

This study examines the role of high frequency trading in price discovery and efficiency in the FTSE100 index tick changes. We find that there is no random walk when investors extract information at a millisecond to a second.

Introduction

In the last 30 years fast paced technological advancements and their rapid uptake in equity markets have markedly increased the importance of high frequency trading (HFT). Sahalia and Saglam (2014) show that HFT represents between 40 and 70% of the trading volume in the US and slightly less in the Canadian, European and Australian markets. As HFT may prevent all market participants from having equal access to information, there have been ongoing debates regarding its impact on making stock markets inefficient.1 Theoretical arguments and empirical evidence indicate many supposed benefits of HFT and algorithmic trading (AT), such as decrease in bid ask spread and transaction cost for equity investors (Jones, 2013; O’Hara, 2015), price discovery and efficiency (Hendershott, 2012), quality and liquidity Linton and Mahmoodzadeh (2018). In contrast, evidence also shows that HFT might contribute negatively to the development of stock markets; for instance, the May 6, 2010 flash clash and the October 15, 2014 bond market flash. This suggests that HFT may play a role in price instability and market volatility. It is therefore important to have a better understanding of the role of HFT with regard to price discovery and efficiency.

We employ real-time data available to the US monetary policy makers to estimate a Taylor rule augmented with a measure of financial uncertainty over the period 1969–2008. We find evidence in favor of a systematic response to financial uncertainty over and above that to expected inflation, output gap, and output growth. However, this evidence regards the Greenspan–Bernanke period only. Focusing on this period, the “risk-management” approach is found to be responsible for monetary policy easings for up to 75 basis points of the federal funds rate.

Introduction

“[…] The Federal Reserve’s experiences over the past two decades make it clear that uncertainty is not just a pervasive feature of the monetary policy landscape; it is the defining characteristic of that landscape. […] the conduct of monetary policy in the United States has come to involve, at its core, crucial elements of risk management’’. Greenspan (2004) Does the Federal Reserve act as a risk-manager? The quote by Former Federal Reserve’s chairman Alan Greenspan points to a positive answer. This paper provides empirical support to this view by quantifying the implications of this ‘‘risk management’’ approach for the federal funds rate. We do so by estimating a Taylor rule augmented with a measure of financial uncertainty over the period 1969M1–2008M10, and by computing the ‘‘riskmanagement-driven policy rate gap’’. This gap measures the difference between the actual policy rate and the counterfactual policy rate that would have been observed had the Federal Reserve not acted as a ‘‘risk manager’’, i.e., had it not reacted to fluctuations in financial uncertainty. Our estimates focus on the entire sample as well as on subsamples identified by changes of the Federal Reserve’s chairman to take into account possible breaks in policymakers’ preferences both over risk management and over inflation and output stabilization (Clarida et al., 2000; Lubik and Schorfheide, 2004; Castelnuovo and Fanelli, 2015; Boivin and Giannoni, 2006; Castelnuovo and Surico, 2010). Importantly, we employ data available in real-time to the Federal Open Market Committee, which is crucial to correctly characterize monetary policy decisions by the Federal Reserve (Orphanides, 2001, 2002; Coibion and Gorodnichenko, 2011, 2012; Gnabo and Moccero, 2015). We find significant evidence in favor of a systematic monetary policy response to movements in financial uncertainty. However, this evidence is limited to the Great Moderation period characterized by the lead of Greenspan and Bernanke. The GreenspanBernanke risk management approach is associated to a looser monetary policy with respect to the one the Federal Reserve would have implemented had it not reacted to financial uncertainty directly. The estimated median value of the ‘‘risk-management-driven’’ policy rate gap is 30 basis points, which is approximately a standard policy rate move. However, in correspondence to well-identified historical events (Black Monday, 2008 credit crunch), such a gap is estimated to be three times as large due to the higher realizations of financial uncertainty. Many empirical proxies of uncertainty have recently been proposed by the literature (for a survey, see Bloom, 2014).