Role Of Sophistication Research Articles

Economic complexity, natural resources and economic progress in the era of sustainable development: Findings in the context of resource deployment challenges

In recent years discussion on natural resource curse goes beyond the growth measure to incorporate other development measures of which economic complexity forms a major part. To gauge how natural resource exploitation is determined, researchers and policy makers explore the major determinants of resource curse. Surprisingly, the discussion on the role of economic sophistication in impacting natural resources continues to be scant. Against the backdrop of the perceived gap, this study explores the association between economic complexity and natural resources. This study used linear and non-linear model specifications to explore the impact of economic complexity (ECI) on the natural resource utilization (mineral resources) for ten Newly Industrialized Countries (NICS). In addition to economic complexity, economic growth, human capital, foreign direct investment, and population density were used as control variables in this study. We hypothesize that the relationship between ECI and natural resource rent may have an inverted’ U′ shape, depending on the technological sophistication and complexity of the economic processes. The panel data spans the years 1975–2020. Novel estimation techniques, including cross-sectional dependence tests, panel unit root tests, and cointegration tests, were used in this study. To achieve robust inferences, the long-run estimation was performed using panel Quantile regression, pooled OLS, and System GMM. The research findings support the existence of the inverted ‘U' shaped across natural resource rent and economic complexity. The Dumitrescu and Hurlin, panel causality tests confirm bidirectional causality links across economic complexity and rent on natural resources, mineral resources, human capital, and population density. These findings urge policymakers to recommend comprehensive economic and natural resource deployment policies to achieve sustainability.

Apples to apples, fighters to submarines: comparative analysis of conventional capability-based signalling capacity through technologically weighted state arsenal indexing

Abstract In this article, I propose a new contribution to the field of comparative analysis of state conventional military capabilities. First, I review perspectives of other scholars on the merits of comparing capabilities, arguing that the most accessible insights lie in evaluating the signals sent by state arsenals rather than in predicting conflict outcomes judging from state armament. Second, I present the Conventional Firepower Potential Indexing (CFPI) method and demonstrate that coding for tactical role and degree of technological sophistication enables previously unfeasible estimative comparisons of deterrent signalling value. Finally, I apply CFPI analysis to the conventional arsenals of the United States and the four states named in that country’s most recent National Defense Strategy (China, Russia, North Korea and Iran), deriving conclusions that would be elusive without accessible comparative analysis.

Editorial—The truth is out there: The psychology of conspiracy theories and how to counter them

Editorial—The truth is out there: The psychology of conspiracy theories and how to counter them

Fund flows and performance: New evidence from retail and institutional SRI mutual funds

In this paper we provide a comprehensive analysis of the performance of US SRI mutual funds as well as its relation to the flow of new money that those funds experience in the context of investors sophistication. In particular, we compare the performance of SRI funds with their conventional peers, matched by both managers and characteristics criteria, using several performance measures. We investigate the role of investors sophistication and its influence on the flow-performance and performance-flow relations within the retail and institutional SRI fund shareclasses. For the analysis of the flow-performance relation we use portfolio approach along with monotonic relation test, while the shape of the flow-performance relation is studied using piecewise linear panel regressions. For the performance-flow relation, the flow and unexpected flow portfolios are formed and their risk-adjusted performance is evaluated. We find that SRI mutual fund sector earns positive abnormal returns before expenses and retail SRI funds outperform their institutional peers both, before and after fees. No differences in performance when we consider SRI and conventional funds run by the same management companies. Moreover, we find a positive flow-performance relation which is convex for retail SRI funds but no convexity is found for the institutional ones. We cannot confirm the smart money effect for retail SRI funds, instead we find a dumb money effect for SRI institutional funds. Our paper provides new insights into the role of the investors sophistication for those relations in the presence of sustainability preferences.

The Role of Dual Nationality, Financial System Sophistication and Cryptocurrency in Money Laundering

Water always finds its way" so do the money launderers, who are always successful in finding new ways of committing the crime. This study primarily aims to identify opportunities that launderers are exploiting to whitewash their black money. Dual nationality (DN), financial system sophistication (FSS), and cryptocurrency legal status (CCLS) are the advanced opportunities being used by launders to clean their funds. Some studies highlight the link between cryptocurrency and money laundering, but the role of dual nationality and financial system sophistication in money laundering is still a less addressed phenomenon (Ebeke, 2011) and (T. P. and J. Walker, 2011). The objective of this study is to explore the role of these three variables in money laundering by making improvements to the original version of the Walker model. The study's theoretical model was developed by borrowing justifications from Rational Choice Theory (RCT). For quantitative analysis, FGLS was employed over strongly balanced panel datasets. The final dataset of the study was prepared by gathering secondary data from 177 countries for 11 years (2009-2019). The study has found that overall, financial system sophistication is an important factor in choosing a laundering centre around the globe. However, Pakistani launderers do not perceive FSS as an attractive element for laundering their black money. In contrast, dual nationality was identified as a significant element in money laundering from Pakistan to other countries. However, the aspect of cryptocurrency legal status was found to be a significant attractive element for both national and international launders. The findings of the study guide policymakers and practitioners in strengthening the anti-money laundering strategy.

On the Independent Roles of Cognitive & Political Sophistication: Variation Across Attitudinal Objects

AbstractPeople are motivated to maintain consistency between importantly held identities, preferences, and judgments. In political contexts, motivated reasoning can help explain a wide range of political phenomena, including extremism, polarization, and misperceptions. However, recent findings in psychology have challenged this account. These perspectives emphasize the role of cognitive sophistication (e.g., analytical reasoning, numerical literacy) in political attitudes, but differ in terms of whether it is expected to attenuate or exacerbate politically motivated reasoning and belief in conspiracy theories. Yet prior investigations have not examined the relative and independent effects of both political and cognitive sophistication. Using data from two samples, including one sampled to approximate representativeness in the U.S., we demonstrate that both types of sophistication have independent and (at times) countervailing effects on belief in COVID‐19 conspiracy theories and other political attitudes. Our results are critical for theories of cognitive sophistication, political cognition, and attitudes, and the psychology of conspiracy theories.

Understanding factual belief polarization: the role of trust, political sophistication, and affective polarization

Political opponents are often divided not only in their attitudes (i.e., ideological polarization) and their feelings toward each other (i.e., affective polarization), but also in their factual perceptions of reality (i.e., factual belief polarization). This paper describes factual belief polarization in the Netherlands around three core issues. Furthermore, this paper examines who are most susceptible to this type of polarization. Analyses on the 2021 Dutch Parliamentary Election Study reveal that citizens hold different perceptions than their political opponents about income inequality, immigration, and climate change. This type of polarization is strongest among citizens who have hostile feelings toward their political opponents and, paradoxically, among those who are highly educated and interested in politics. Trust in epistemic authorities did not mitigate factual belief polarization, perhaps because this trust has itself become politicized. These findings underline that factual belief polarization constitutes a core pillar of political polarization, alongside ideological and affective polarization.

Boosting innovation performance through big data analytics: An empirical investigation on the role of firm agility

While past studies proposed the role of big data analytics (BDA) as one of the primary pathways to business value creation, current knowledge on the link between BDA and innovation performance remains limited. In this regard, this study intends to fill this research gap by developing a theoretical framework for understanding how and under which mechanisms BDA influences innovation performance. Firm agility (conceptualised as sensing agility, decision-making agility and acting agility) is used in this research as the mediator between BDA and innovation performance. Besides, this research conceptualises two moderating variables: data-driven culture and BDA team sophistication. This study employs partial least squares (PLS) to test and validate the proposed hypotheses using survey data of 185 firms. The results show that firm agility significantly mediates the link between BDA use and innovation performance. Besides, the results suggest that data-driven culture moderates the relation between sensing agility and decision-making agility. This research also supports the moderating role of BDA team sophistication on the link between BDA use and sensing agility.

Modern Forms of Populism and Social Policies: Personal Values, Populist Attitudes, and Ingroup Definitions in Support of Left-Wing and Right-Wing Welfare Policies in Italy

We analyzed the relationship between modern forms of populism and citizen support for exclusive welfare policies and proposals, and we focused on support for left-wing- and right-wing-oriented welfare policies enacted or proposed during the Lega Nord (LN)–Five Star Movement (FSM) government in Italy (2018–2019). In light of the theoretical perspective of political ideology as motivated by social cognition, we examined citizens’ support for the two policies considering adherence to populist attitudes, agreement on the criteria useful to define ingroup membership, and personal values. We also took into account the role of cognitive sophistication in populism avoidance. A total of 785 Italian adults (F = 56.6; mean age = 35.8) completed an online survey in the summer of 2019 based on the following: support for populist policies and proposals, political ideologies and positioning, personal values, and ingroup boundaries. We used correlation and regression analyses. The results highlight the relationships between populism and political conservatism. Populism was related to the vertical and horizontal borders defining the “people”; cognitive sophistication was not a relevant driver. We identified some facilitating factors that could promote adherence to and support for public policies inspired by the values of the right or of the left, without a true ideological connotation.

Ideologically consistent, but for whom? An empirical assessment of the populism-elitism-pluralism set of attitudes and the moderating role of political sophistication

Scholars who study populism from an ‘ideational approach’ consider populism as a set of ideas based on a moralised anti-establishment thinking and a strong people-centrist view of politics. From this perspective, at a theoretical level, populist attitudes have the following two main contrasts: pluralism and elitism. In this article, we investigate the ideological consistency of the populism-pluralism-elitism set of attitudes among voters. Analysing data from Flanders (N = 1444), we make three main contributions. First, we show that there indeed exists an internally consistent relationship between populism, elitism, and pluralism among voters. Second, we demonstrate that this consistency only holds for the most politically sophisticated citizens. And third, we show that the relationship between populist and elitist attitudes is much more nuanced than often assumed. We show that it is possible to empirically distinguish between ‘expertise elitism’ and ‘anti-populist elitism’, two forms of elitism which relate differently to populist attitudes.

Level-k reasoning in school choice

Boston Mechanism (BM) and Deferred Acceptance (DA) are two competing algorithms in school choice. BM is manipulable whereas DA encourages truth-telling. Recognizing heterogeneous sophistication of students, we use the level-k model to analyze students' strategies under BM in a complete information environment with strict school priorities. Because students tend to manipulate first choice under BM, we characterize the first choice reported by students at all possible sophistication levels. In a general framework we show that BM is no less efficient than DA, and in two specific belief settings we further show that it is as if students run DA in their minds when they make level-k reasoning under BM. We compare the relation between sophistication and welfare under BM in the two belief settings to emphasize the role of high sophistication and correct belief. We also compare our results with Nash equilibrium analysis.

Village Development Planning in The Digital Era: The Role and Interest of Stakeholders in Kotaagung, Tanggamus Regency

This study aims to describe the planning process of village development in the digital era, focusing on the dynamics of stakeholder roles and interests. From descriptive qualitative research methods, village development planning in the digital era flows under the Ministry of Home Affairs Regulation No. 114/2014 and Law No. 6 of 2014. Furthermore, the dynamics of the planning process are more flexible with the role of media and technology sophistication. In the digital era, the village development planning process, especially in Kotaagung Sub-district villages, Tanggamus Regency, Lampung, is swift, which cuts bureaucracy and stagnated planning stages. Moreover, invitations to the village deliberations are conveyed in writing, a process that only fulfills administrative matters for archiving. Massive invitations are delivered through the devices of stakeholders deemed essential to be presented to determine development priorities. The dynamics of stakeholder and media are seen from the movement and correlation of roles, interests, and influences. That shows stakeholders are the main subject in village development planning in today's digital era. Therefore, the Village needs to respond to the changing times by planning and implementing the system with digitization in a systematic and applicable manner.
 Keywords: Development Planning; Village Development; Development Digitization

Facilitators of intergenerational similarity in social and political attitudes: the role of discussion, sophistication, attitudinal homogeneity, and gender

While parents remain key socializing agents for political attitudes of adolescents, we observe that parent–child similarity in these attitudes is less substantial than initially theorized and seems to vary across studies and type of attitude. We hypothesize that social learning mechanisms explain differences in the strength of parent–child similarity. To assess this proposition, we compare the moderating power of political discussion, political sophistication, parental homogeneity, and gender using data from the Belgian Parent–Child Socialization Study 2013 (N = 1943 families). Our results demonstrate that parents and children resemble in their political and social attitudes and that this similarity is stronger for concrete and socially salient attitudes and reinforced by frequency in political discussion. Results also indicate that social learning practices, or at least the ones considered in this study, are not necessary conditions (anymore) for parent–child correspondence. Frequency of cue-giving in the form of direct communication is important to internalize parental attitudes but political sophistication and consistency in cue-giving less so. Parents and children correspond even in the absence of optimal social learning conditions which suggests that informal learning and observation of parental behavior are crucial to consider as well.

Foreign Direct Investment, Product Sophistication, and the Demand for Skilled and Unskilled Labor in Chilean Manufacturing

This paper uses plant-level data from the manufacturing sector of Chile for the period 1995–2007 to analyse the existence of spillover effects from foreign direct investment (FDI) and the role of product sophistication on the demand for skilled and unskilled labour. We find that the presence of multinational corporations increases the demand for highly skilled labour while it decreases the demand for unskilled labour on firms located in the same industry and region, and also on firms located in the same region but operating in different industries. Those effects are more substantial for firms producing less sophisticated products suggesting that, at least for the case of Chile, lower levels of sophistication can make it easier for local firms to learn from multinational corporations. We also find that the spillover effects are more important for plants that are small in size and for those that do not participate in international markets as either exporters or importers. This paper contributes to the literature by showing that product sophistication can have a significant effect on the magnitude of FDI spillovers on the demand for both skilled and unskilled labour.

Logic in analytic philosophy: a quantitative analysis

Using quantitative methods, we investigate the role of logic in analytic philosophy from 1941 to 2010. In particular, a corpus of five journals publishing analytic philosophy is assessed and evaluated against three main criteria: the presence of logic, its role and level of technical sophistication. The analysis reveals that (1) logic is not present at all in nearly three-quarters of the corpus, (2) the instrumental role of logic prevails over the non-instrumental ones, and (3) the level of technical sophistication increases in time, although it remains relatively low. These results are used to challenge the view, widespread among analytic philosophers and labeled here “prevailing view”, that logic is a widely used and highly sophisticated method to analyze philosophical problems.

Do Cryptocurrencies Have Fundamental Values?

This paper studies the role of technological sophistication in Initial Coin Offering (ICO) successes and valuations. Using various machine learning methods, we construct technology indexes from ICO whitepapers to capture technological sophistication for all cryptocurrencies. We find that the cryptocurrencies with high technology indexes are more likely to succeed and less likely to be delisted subsequently. Moreover, the technology indexes strongly and positively predict the long-run performances of the ICOs. Overall, the results suggest that technological sophistication is an important determinant of cryptocurrency valuations.

Knowing What You Don't Know: The Role of Information and Sophistication in Ballot Completion

ObjectiveWe seek to examine how individual factors such as information and political sophistication can affect the likelihood of a voter completing his or her ballot.MethodsThrough the use of an original experiment, we examine the individual‐level effects of information and political sophistication on ballot completion.ResultsWe find that having less information about the candidates on a ballot results in lower levels of ballot completion. On average, voters complete 19 percent less of their ballot when they possess low levels of information about the candidates involved. Moreover, there are significant differences in how political sophisticates and nonsophisticates respond to deficiencies in candidate information.ConclusionEven though voters are likely to be hesitant to make a decision for a ballot contest when they are lacking in information, political sophisticates are more comfortable making a voting choice than nonsophisticates, even when they are operating under the exact same information constraints.

The Role of Business Sophistication, Revenue Diversification, and Labor Relations on Firm Financing Choice

We model and empirically estimate the relationship of ordinal scaled dependent variable: firm financing choice with business sophistication, revenue diversification and labor relationship using Indonesian data. We use controlling variables derived from Trade off Theory and Pecking Order Theory literature. We then elaborate the baseline model to include additional categoric variables of location and ownership, besides the interaction terms. The dataset is constructed from World Bank Enterprise Survey Year 2015 and Generalized logistic —partial proportional odds regression is employed as an estimator. We find that better business sophistication leads to greater acceptance to financing from outsiders and more diversified firms tend to prefer external financing. Finally, a better labor relationship corresponds to a greater preference for internal financing.

The Role of Business Sophistication, Revenue Diversification, and Labor Relations on Firm Financing Choice

The Role of Business Sophistication, Revenue Diversification, and Labor Relations on Firm Financing Choice

When is the atypical design not penalized? Moderating role of product innovativeness and technological sophistication in consumer’s evaluation of new products

PurposeThe purpose of this paper is to examine the individual and joint effects of the two design dimensions, form design and functional design, and moderating role of product innovativeness and technological sophistication in consumer’s evaluation of new products. Employing theoretical underpinnings from categorization theory, this paper investigates two major research questions. First, what type of form is more advantageous for a radically new product or an incrementally new product? Second, is there an individual difference in consumer evaluations to innovative products with various form designs?Design/methodology/approachOne pre-test and three between-subject experiments were performed. In Experiments 1 and 2, a two-way between-group ANOVA analysis was performed to examine the effect of form and the degree of technological innovation on attitude toward the product using different product categories (car and camera). In Experiment 3, a three-way between-group ANOVA analysis was performed to explore the impact of form, the degree of technological innovation and consumer technological sophistication on attitude toward the product.FindingsThe results from the three experiments conducted demonstrate that, first, whereas the form design for incremental innovations must be closer to the incumbent products for favorable evaluations, less typical form is evaluated as good as a more typical form for radical innovations. Second, form design of an innovative product matters more to the technologically more sophisticated consumers (experts).Originality/valueThis paper extends the previous design literature and fills the gap of under-researched area by demonstrating that individual difference, technological sophistication, moderates the design effect on consumer evaluation of innovation; providing boundary condition of when the atypical form is not penalized in spite of consumer’s perceived learning cost; examining how the form and function interplay in “high-status product”; and demonstrating how to strengthen the reliability and validity by replicating the study. Managerially, this paper demonstrates that innovating firms can influence the perceived value of new products using form and functionality, and marketing managers who launch really new products have strategic freedom of choosing own product design.