Empirical Specification Research Articles

Atmospheric Correction Inter-comparison eXercise, ACIX-II Land: An assessment of atmospheric correction processors for Landsat 8 and Sentinel-2 over land

The correction of the atmospheric effects on optical satellite images is essential for quantitative and multi-temporal remote sensing applications. In order to study the performance of the state-of-the-art methods in an integrated way, a voluntary and open-access benchmark Atmospheric Correction Inter-comparison eXercise (ACIX) was initiated in 2016 in the frame of Committee on Earth Observation Satellites (CEOS) Working Group on Calibration & Validation (WGCV). The first exercise was extended in a second edition wherein twelve atmospheric correction (AC) processors, a substantially larger testing dataset and additional validation metrics were involved. The sites for the inter-comparison analysis were defined by investigating the full catalogue of the Aerosol Robotic Network (AERONET) sites for coincident measurements with satellites' overpass. Although there were more than one hundred sites for Copernicus Sentinel-2 and Landsat 8 acquisitions, the analysis presented in this paper concerns only the common matchups amongst all processors, reducing the number to 79 and 62 sites respectively. Aerosol Optical Depth (AOD) and Water Vapour (WV) retrievals were consequently validated based on the available AERONET observations. The processors mostly succeeded in retrieving AOD for relatively light to medium aerosol loading (AOD < 0.2) with uncertainties <0.08, while the overall uncertainty values were typically 0.23 ± 0.15. Better performances were observed for WV retrievals with >90% of the results falling within the suggested empirical specifications and with the Root Mean Square Error (RMSE) being mostly <0.25 g/cm2. Regarding Surface Reflectance (SR) validation two main approaches were followed. For the first one, a simulated SR reference dataset was computed over all of the test sites by using the 6SV (Second Simulation of the Satellite Signal in the Solar Spectrum vector code) full radiative transfer modelling (RTM) and AERONET measurements for the required aerosol variables and water vapour content. The performance assessment demonstrated that the retrievals were not biased for most of the bands. The uncertainties ranged from approximately 0.003 to 0.01 (excluding B01) for the best performing processors in both sensors' analyses. For the second one, measurements from the radiometric calibration network RadCalNet over La Crau (France) and Gobabeb (Namibia) were involved in the validation. The performance of the processors was in general consistent across all bands for both sensors and with low standard deviations (<0.04) between on-site and estimated surface reflectance. Overall, our study provides a good insight of AC algorithms' performance to developers and users, pointing out similarities and differences for AOD, WV and SR retrievals. Such validation though still lacks of ground-based measurements of known uncertainty to better assess and characterize the uncertainties in SR retrievals.

Alternative specifications of human capital in production functions

In this paper we argue that some empirical specifications may not be appropriate to estimate accurately the returns to human capital. In particular, we show that the inclusion in aggregate production functions of the ratio of skilled labor force over total labor force as a proxy for human capital may not be a good way to control for the heterogeneity of labor.

Does the mixed‐ownership reform improve the productivity of state‐owned enterprises? Evidence from companies listed in Chinese stock

AbstractThe Chinese government initiated a new round of state‐owned enterprise (SOE) reform in 2015 to improve SOE's performance with a focus on introducing multiple ownership shareholders and strategic partners, known as the mixed‐ownership reform (MOR). This paper examines the policy effectiveness of the current MOR, an ongoing quasi‐experiment, for listed SOEs’ productivity from 2011 to 2019 using a time‐varying difference‐in‐difference (DID) approach. Overall, the total factor productivity (TFP) of SOEs selected as pilots by the government improved significantly by 14.57% after the reform compared to other SOEs, providing evidence for the positive role of the current MOR. This positive impact is prolonged and tends to increase in the post‐reform years. A series of robustness checks show that our empirical specification satisfies the basic assumptions of DID and our findings are robust. By comparing the two reform strategies in the MOR, we find that the restructuring and reorganization plan is the primary channel driving TFP growth, showing a 0.4% improvement after the reform, rather than the employee stock ownership plan. We also investigate the impact of MOR on other financial and non‐financial indicators, but we only find a significant increase in the profitability of SOEs’ assets.

Numerical studies on rebar-concrete interactions of RC members under impact and explosion

In order to reproduce the dynamic behaviors of RC structures under intensive loadings, e.g., impact and blast, more realistically and accurately, the dynamic interactions between the embedded rebar and concrete matrix are studied numerically. Firstly, the validations of the concrete model and corresponding parameters are verified by comparing with the available empirical formulae, related specification and tests results. Secondly, based on the calibrated concrete model, the applicability of seven interaction methods in program LS-DYNA and relevant parameters are verified and determined by simulating the pull-out and three-point flexural tests. Finally, concerning four typical intensive loading scenarios, i.e., low- and high-velocity impacts, short- and long-duration blast loadings, the simulated results such as the deflection, instantaneous crack, damage evolution and distribution derived by adopting different approaches are compared and evaluated. It demonstrates that, (i) concerning above-mentioned scenarios, the dynamic bond-slip behavior has the most significant influence on the dynamic response of the RC member under high-velocity perforation scenario, and more desirable results can be obtained without considering the bond-slip behavior under the deformable projectile high-velocity impact and long-duration explosion; (ii) for the considered scenarios, the CBISF method considering bond-slip behavior is recommended for RC member exhibiting bending failure mode under low-velocity impact, hard missile high-velocity impact, and short-duration explosion; the perfect-bond CBISP and SN approaches are suggested for the deformable missile impact and long-duration explosion conditions, respectively. The present study can provide helpful references in the numerically evaluation and design of impact and blast resistant structures.

The elusive curse of natural resources on happiness

A few recent studies attempt to extend the resource curse into subjective well-being. This nascent literature provided evidence supporting the existence of the resource curse in happiness outcomes. However, this finding may suffer from endogeneity problems. This study corrects endogeneity problems of all included independent variables using the dynamic panel model framework and the system generalized method of moments estimator that overcomes weak and proliferation of instruments and corrects for the downward biased standard errors of the coefficient estimates. Utilizing a large panel of 112 countries over the 2006–2019 period, we find that the adverse effects of resource rents in aggregate and disaggregate (including oil rents) on happiness are not supported by the data. These findings are immune to extensive robustness checks and alternative empirical specifications. Natural resources appear to be neither a curse nor a blessing in subjective well-being.

Evaluating the determinative factors driving patents and foreign technologies acquisitions in Visegrád countries

PurposeThis paper aims to empirically examine the factors driving the acquisition of patents and foreign technologies in 2,198 firms spanning multiple industries in Visegrád countries.Design/methodology/approachTo fulfil the research objectives, the authors used the binary logistic regression models for the empirical specifications to analyse the various hypotheses to ascertain the factors contributing to patents, foreign technologies and international quality certificate acquisitions in Visegrád countries.FindingsThe results show that technological innovations, in-house and external research and development, intense competition from the informal sector and external knowledge search positively influence firms to acquire patents, foreign technologies and international quality certificates. The study further showed that certain firm characteristics, such as size, having a board of directors, female top managers and top managers’ experience, positively influenced firms’ ability to obtain patents, foreign technologies and international quality certificates.Originality/valueThe authors provide new insights into understanding the factors contributing to international technological linkages in the context of transitional countries such as the Visegrád four group. The authors have shown that international technology linkages through foreign technology licences and international quality certifications are vital for innovations in transition economies.

Unintended environmental benefits of crop insurance: Nitrogen and phosphorus in water bodies

Agricultural policies without explicit environmental goals can indirectly affect the natural environment through its effect on farmer input use behavior. For example, the highly-subsidized crop insurance program in the United States (US), while developed to protect farmers against yield and revenue risks, also has the potential to influence fertilizer and land use decisions, which can then impact the extent of excess nitrogen and phosphorus that can run-off and pollute nearby water bodies. This study utilizes county-level panel data from 1989-2015 to directly evaluate the impact of crop insurance participation on nitrogen and phosphorus concentration in waterways. Results from linear panel fixed effects (FE) models suggest that counties with higher crop insurance participation tend to have lower nitrogen concentrations in its water bodies, but the effects are small. In contrast, we do not find a consistent statistically significant crop insurance effect on phosphorus concentrations. Findings based on alternative estimation techniques and other empirical specifications generally support our baseline FE model results. We posit that the modest crop insurance effects may be due to two competing mechanisms — the moral hazard effect of crop insurance (i.e., reducing fertilizer use), being counteracted by the incentive to bring in riskier crops or marginal land to production (i.e., increasing fertilizer use).

Effects of Split-Rate Taxation on Tax Base

Municipalities debating land value taxation or split-rate taxation need empirical evidence to understand how the transition of property tax regimes will affect their tax base. Using a valuable dataset on split-rate taxation from municipalities in Pennsylvania, this article empirically estimates the impacts of split-rate taxation on real estate market values and land values. The estimated impact of switching from conventional property taxation to split-rate taxation on aggregate market values is significantly positive, but the average impact from changing split-rate tax parameters during the sample period is smaller depending on the empirical specification and the sample used. In addition, the impacts vary across property types. Commercial properties appear to benefit more from split-rate taxation compared to residential and industrial uses. The Pennsylvania experience also suggests that split-rate taxes have a negative impact on land values during the sample period, but it does not appear that land values would drastically fall. The findings have important policy implications.

Household energy transition and social status: evidence from large-scale heating renovation in China

Clean, low-carbon energy transition has been a global trend in pursuing climate mitigation and sustainable development, with residential heating being an essential component. Despite its substantial climate, environmental, and health benefits, the social impacts of residential energy transition are insufficiently understood. Based on a difference-in-differences design, we identify the causal effects of a large-scale clean heating policy on public perceptions of their social status in northern China. We find substantial improvement in individuals’ social status immediately following the heating renovation, which is robust over a set of empirical specifications but diminishes in the long term. The transition benefited not only those directly experiencing renovation but also others in the same areas. The improved social status was driven by perception of higher income and bettered health condition. The findings indicate a sustainable and inclusive transition of clean heating, and call for additional measures to maximize its social benefits.

Empirical Study About ODA Effects on Job Creation

Purpose – This study empirically investigates the effects of Official Development Assistance (ODA) on the economic activities of private actors in recipient countries. As a proxy for the economic activities of private actors, we utilize the job creation activities of foreign subsidiaries in recipient countries. The foreign subsidiaries provide a foundation for economic development by creating paying jobs. That is, if ODA has been successfully transferred to foreign subsidiaries, then these foreign subsidiaries should help economic growth and help create a boom in the local market by providing jobs. These jobs eventually lead to the achievement of the primary aims of foreign aid, including poverty reduction. Thus, this study empirically examines the relationship between ODA and the number of jobs created by foreign subsidiaries in recipient countries. Design/methodology – This is the first study to examine the effects of the ODA on the job creation of foreign subsidiaries because it has been hard to obtain internal information related to the employment status of foreign subsidiaries. Fortunately, we have a unique panel dataset provided by the Export- Import Bank of Korea (KEXIM) for 2006 to 2013. In terms of the empirical specification, we use the generalized least squares (GLS) method. The panel GLS estimator allows us to have an efficient estimation that overcomes the limitations of the panel data. It employs assumptions about the heteroscedasticity between the panels and makes an autocorrelation of the error term within each panel. Findings – We find that ODA influences job creation in foreign subsidiaries. In particular, we found that ODA creates more jobs in sales than in managerial or production positions. This study also shows that the effect of the ODA on the foreign subsidiaries’ job creation activities depend on the purpose of the ODA. By examining ODA effects on the foreign subsidiaries’ economic activities (e.g., job creation), this study fills a gap in the current literature. Originality/value – Existing studies that focus on the ODA effect have either a macroeconomic point or a microeconomic point of view. However, both approaches do not explain how well foreign aid has influenced private economic actors of recipient countries. In essence, previous researchers found it difficult to obtain the necessary data for internal employment status from foreign subsidiaries. However, thanks to the Korea Export-Import Bank, this study shows that ODA indeed influences the job creation activities of foreign subsidiaries even after controlling for other factors such as FDI, GDP growth rate, employment rate, household expenditure, mother firms’ share, etc. By doing so, we can examine how ODA influences the job creation of foreign subsidiaries, which might help economic development and reduce the amount of poverty in recipient countries.

Energy productivity and greenhouse gas emission intensity in Dutch dairy farms: A Hicks–Moorsteen by‐production approach under non‐convexity and convexity with equivalence results

AbstractThe agricultural sector is currently confronted with the challenge to reduce greenhouse gas (GHG) emissions, whilst maintaining or increasing production. Energy‐saving technologies are often proposed as a partial solution, but the evidence on their ability to reduce GHG emissions remains mixed. Production economics provides methodological tools to analyse the nexus of agricultural production, energy use and GHG emissions. Convexity is predominantly maintained in agricultural production economics, despite various theoretical and empirical reasons to question it. Employing non‐convex and convex frontier frameworks, this contribution evaluates energy productivity change (the ratio of aggregate output change to energy use change) and GHG emission intensity change (the ratio of GHG emission change to polluting input change) using Hicks‐Moorsteen productivity formulations. We consider GHG emissions as by‐products of the production process by using a multi‐equation model. Given our empirical specification, non‐convex and convex Hicks‐Moorsteen indices can coincide under certain circumstances, which leads to a series of theoretical equivalence results. The empirical application focuses on 1,510 observations of Dutch dairy farms for the period of 2010–2019. The results show a positive association between energy productivity change and GHG emission intensity change, which calls into question the potential of on‐farm, energy‐efficiency‐increasing measures to reduce GHG emission intensity.

Conceptualising and Measuring Leadership Autonomy in Contemporary Party Organisations

At a time when party politics is becoming increasingly personalised, conventional wisdom argues that the party leaders’ power in organisations is on the rise. However, scholarship has not yet provided a thorough and systematic analysis of the role of party leaders that offers theoretical and empirical specification. The aim of this article is to provide an analytical framework for the study of party leadership by examining the concept of leadership autonomy and its components. This new conceptualisation is then applied to a number of different parties across Western Europe, showing how leadership autonomy varies across countries and different party organisations. The conclusion sets out the implications for party change and highlights the importance of placing the leaders’ role at the centre of the empirical analysis of political parties.

Consistency of micro- and macro-level data on global value chains: Evidence from selected European countries

This study investigates the degree of consistency and fungibility of micro and macro sources of global value chain (GVC) data. We combine two datasets for selected European countries over the period 2001–2014: the European Union-European Firms in a Global Economy (EU-EFIGE) firm-level dataset (integrated with panel balance sheet data from Amadeus) and the World Input–Output Database (WIOD) at the country and sectoral level. Although the two datasets come from different sources and are based on different assumptions, we find that (i) the WIOD-based country and sectoral GVC indicators are positively correlated with firm-level proxies based on EFIGE data; and (ii) the GVC indicators from both sources are positively correlated with firm-level labor productivity. These outcomes are robust to various empirical tests and specifications, as well as to controlling for firm, sector, and country heterogeneity. Our results hold relevance for scholars by demonstrating that the available inter-country input–output (ICIO) data can be used to compensate for the scarcity of firm-level data for evidence-based GVC analyses. • We contribute to the applied literature by making methodological advances in GVC data use. • We combine the available micro and macro GVC data for four European countries. • We demonstrate that GVC measures computed from the two data sources are highly consistent. • We advocate utilizing the available ICIO data sources for evidence-based GVC analyses.

Bank systemic risk: An analysis of the sovereign rating ceiling policy and rating downgrades

AbstractWe investigate the impact that the sovereign ceiling policy has on financial stability. In the event of a sovereign rating downgrade, we find that the rating agencies' sovereign ceiling policy leads to a disproportionate downgrade of the most creditworthy financial institutions in the economy and results in increased systemic risk. This asymmetric variation in bank ratings also impairs equity growth that further exacerbates bank insolvency. Our results are robust to several matching techniques, such as propensity score matching and entropy balancing, falsification tests, subsample analyses, alternative empirical proxies and model specifications.

Comment on “How Inequality Affects Trust in Institutions: Evidence from Indonesia”

Suryahadi et al. (2022) address the challenging task of identifying how income inequality affects trust in others, organizations, and institutions through a cross-section analysis of Indonesia. As previous studies have suggested, the extent of trust is considered an important factor for economic development, for example, by reducing transaction costs. This has led many social scientists to analyze the determinants of trust, but few studies have shed light on the impact of inequality on trust (Gustavsson & Jordahl, 2008; Barone & Mocetti, 2016). The importance of the topic seems to be even greater under the current Covid-19 pandemic. It has been noted that low trust in governments may lead to vaccine hesitancy (SAGE Working Group on Vaccine Hesitancy, 2014), which might have lowered the coverage of Covid-19 vaccination in many countries. In order to identify the effects of income inequality on various aspects of trust, Suryahadi et al. construct an impressive dataset comprising various surveys, such as the World Value Survey, the National Socioeconomic Survey (Susenas), Village Census (PODES), and village-level data on estimated poverty and inequality (PovertyMap). Using the informative dataset, Suryahadi et al. reveal statistically significant negative correlations between district-level inequality and trust in political and state institutions. On the other hand, they also find that higher village-level inequality has a negative effect on trust in strangers. The estimation results are intuitively consistent, and Suryahadi et al. provide a useful perspective on the relationship between inequality and trust in Indonesia, though there appear to be some issues that still need to be cleared up. First, their cross-section analysis might induce an endogeneity problem. Suryahadi et al. employ ordinary least squares results with reference to endogeneity test outcomes (Suryahadi et al.'s table A.2), which depend on the assumption that their instrumental variable is valid and strong. As Suryahadi et al. are cautious about the results of their analysis, I am still afraid that the inequality variables correlate with the error term (endogeneity). For example, I am concerned that Suryahadi et al. do not control for ethnic diversity among villages in the empirical specifications, while ethnic heterogeneity displays a strong negative correlation with the extent to which people trust each other (Gustavsson & Jordahl, 2008; Jordahl, 2009). Second, in line with the literature, Suryahadi et al. assume that respondents are well acquainted with the objective level of income inequality in their districts and villages. In other words, this means that the subjective perception of inequality is supposed to coincide with, or at least be proportional to, the objective inequality index, but it seems questionable to make such a simple assumption. Hu (2017) suggests that objective inequality and subjective inequality are not correlated and shows a statistically significant nonlinear relationship between subjective inequality and general trust. Third, linked to the above comment, it appears that there is room for consideration as to which inequality index is appropriate for the analysis. Previous studies have used inequality indices such as the percentile ratio, top income shares, and the standard deviation of logs in addition to the Gini coefficient, and it is suggested that the estimation results may be sensitive to the choice of indicators (Gustavsson & Jordahl, 2008). If such alternative inequality indices are available for Indonesia, it may be worth trying them to check the robustness of the estimation results. Fourth, Suryahadi et al. show that while Indonesia's Gini ratio increased at the national level in the 2000s, trust in government organizations and institutions remained flat or increased slightly over the same period (Suryahadi et al.'s figure 3). This simple relationship between disparity and trust seen in the time series data seems to contrast with the results of their cross-sectional analysis, which shows a negative correlation between inequality and trust. It would be useful if Suryahadi et al. could explain the reason for this. Fifth, in contrast to Zmerli and Castillo (2015) who explore Latin American cases, Suryahadi et al. find a negative correlation between higher inequality and trust in the central government rather than trust in political parties (Suryahadi et al.'s figure 5). This may be brought about by differences in model specifications, but it would be helpful if Suryahadi et al. can elaborate on the possible reason behind the differences. Finally, one of their main challenges for the future will be the search for another appropriate instrumental variable that will allow them to reveal causal relationships between inequality and trust. The information-rich dataset they have constructed will make it possible to identify the causal inference and contribute to the literature.

THE CONTRIBUTION OF FINANCIAL DEVELOPMENT TO FORMALIZATION THROUGH ECONOMIC GROWTH: EVIDENCE FROM CROSS-COUNTRY DATA

The aim of the paper is to formulate empirical specification models to examine whether financial development stimulates economic growth and encourages formalization. Cross-country data analysis of 140 sample countries during the period from 2000 to 2018 were utilized, together with new indexes of financial development. The income decomposition method and the two-step estimation approach, together with the multiple linear regression with interactions effect, were employed as empirical methods. It was found that financial development can lower informal self-employment through economic growth. Financial development also contributes to economic growth. Therefore, development of financial markets and financial institutions should be an alternative policy to control informal employment.

Spatial–Temporal Correlation between the Tourist Hotel Industry and Town Spatial Morphology: The Case of Phoenix Ancient Town, China

Despite the recognition of the correlation between the tourism industry and a town’s spatial morphology, there is a dearth of rigorous empirical specifications to examine it. This study uses geographic information system (GIS) tools and space syntax analysis to explore whether the tourist hotel industry and a town’s spatial morphology are consistent or if they have different spatial distributions. From a sample of Phoenix Ancient Town, China, our analysis shows the following results: First, there is a spatial correlation between the tourist hotel industry and urban spatial morphology, which is significantly related to tourist attraction distribution and traffic accessibility. Second, the spatial evolution of the tourist hotel industry and a town’s spatial morphology shows different characteristics in different periods. Third, the impact of the tourist hotel industry on a town’s spatial morphology is gradually decreasing as new business buildings arise. The analysis is theoretically important as it enriches the methodologies for analyzing the correlation between the tourist hotel industry and a town’s spatial morphology. It is important for government planners as it provides useful information for formulating territorial spatial planning.

Sebuah Perbandingan Perlindungan Hukum Terhadap Korban Tindak Pidana Terorisme di Indonesia dan India

Terrorism is a crime that is a major threat to the maintenance of every country that poses a danger to security, world peace, and harms the welfare of society. This is inseparable from the suffering of victims of crimes who need legal protection from the state. The purpose of this study is to compare forms of legal protection in the normative and empirical settings given to victims of criminal acts in Indonesia and India. This study uses a qualitative research method with an empirical juridical approach and descriptive analytical research specifications. The research was conducted at the National Counter-Terrorism Agency, Jakarta and the India Center for Victimology and Psychological Studies, New Delhi. The data used include primary data and secondary data. Methods of collecting data through interviews and literature study. The data obtained is processed by data reduction, data display, data categorization. Presentation of data in the form of narrative text descriptions, with qualitative analysis methods. The results of the study indicate that the legal protection of victims of criminal acts in both countries has its advantages and disadvantages, as for legal protection that requires further attention regarding medical assistance, another matter is that the rights of victims of past crimes are limited to 22 June 2021. whereas in India it will not harm the victim. Meanwhile, there are factors that hinder the legal protection of victims of criminal acts in Indonesia and India, seen from (1) the legal substance, namely the Government Regulation of Law no. 5 of 2018 does not yet exist while in India there is no specific regulation regarding psychological and psychosocial rehabilitation, (2) the law is the lack of human resources (HR) in the National Counter-Terrorism Agency (BNPT) while in India there is a shortage of human resources at the National Investigation Agency (NIA) , and (3) legal culture, namely the existence of differences between related differences in India, the lack of legal knowledge of the people regarding their rights.&#x0D; Terrorism is a crime that is a major threat to the maintenance of every country that poses a danger to security, world peace, and harms the welfare of society. This is inseparable from the suffering of victims of crimes who need legal protection from the state. The purpose of this study is to compare forms of legal protection in the normative and empirical settings given to victims of criminal acts in Indonesia and India. This study uses a qualitative research method with an empirical juridical approach and descriptive analytical research specifications. The research was conducted at the National Counter-Terrorism Agency, Jakarta and the India Center for Victimology and Psychological Studies, New Delhi. The data used include primary data and secondary data. Methods of collecting data through interviews and literature study. The data obtained is processed by data reduction, data display, data categorization. Presentation of data in the form of narrative text descriptions, with qualitative analysis methods. The results of the study indicate that the legal protection of victims of criminal acts in both countries has its advantages and disadvantages, as for legal protection that requires further attention regarding medical assistance, another matter is that the rights of victims of past crimes are limited to 22 June 2021. whereas in India it will not harm the victim. Meanwhile, there are factors that hinder the legal protection of victims of criminal acts in Indonesia and India, seen from (1) the legal substance, namely the Government Regulation of Law no. 5 of 2018 does not yet exist while in India there is no specific regulation regarding psychological and psychosocial rehabilitation, (2) the law is the lack of human resources (HR) in the National Counter-Terrorism Agency (BNPT) while in India there is a shortage of human resources at the National Investigation Agency (NIA) , and (3) legal culture, namely the existence of differences between related differences in India, the lack of legal knowledge of the people regarding their rights.

Another look at banks as lenders of first resort: evidence from the COVID-19 crisis

Purpose This study aims to provide a fresh look at banks as lenders in and extending past the COVID-19 crisis, with a particular focus on examining the results of recent work by Lei et al. (2020). Design/methodology/approach The authors’ replication, as well as the original paper, uses a fixed-effects model on panel data. The authors discuss issues regarding data sources as well as use an array of panel data robustness checks to help ascertain an appropriate empirical specification for continued research of this type. Findings The authors show that the results of Lei et al. (2020) are sensitive to the data source, as well as the construction of the standard errors in their regression framework, with an appropriate specification uncovered through panel data statistical tests. The authors also provide some extensions to the original work by including interacted fixed-effects models and extending the sample period from 2020Q1 to 2021Q1, noting some changes in results. Originality/value The authors provide novel results on banks’ lending constraints both at the onset of the COVID-19 pandemic and shortly thereafter. The study also provides an empirical framework for future studies conducted on similar panel data sets.

Competence transfer in virtual realities: Can virtual reality bring products and services together?

The virtual and real worlds of work are increasingly merging through digital transformation. This also applies to products and services. Virtual Reality (VR) with all its learning opportunities is a promising technology to improve workflows and enable transparency between different departments and organizations. This transparency is particularly important when it comes to preventing potentially dangerous work situations. We investigate weaknesses in competence transfer processes between computer-aided designers and service employees connected in a hybrid value chain. On the one hand, designers receive only little feedback, hence are missing necessary evaluation to adjust their designs to empirical specifications. On the other hand, service employees, therefore, work with sometimes impractical machine designs which makes their work on-site unergonomic, dangerous, and more difficult. We present a design science-driven, empirical approach to provide enhanced competence transfer with the help of VR. Thereby, we evaluate a self-developed VR demonstrator with an iterative approach consisting of 60 qualitative interviews. The developed VR demonstrator supports interorganizational sharing of (tacit) knowledge by enabling designers to take the service perspective and ensuring collaboration across organizational boundaries. By intentionally using VR technology as an interruption to the work, the design can be viewed from a service perspective and evaluated for occupational safety and health issues. The work process improvements achieved by the VR demonstrator enable early consideration of design issues that are particularly relevant to safety, thus ensuring greater occupational safety and health protection in the processes for service employees.