willingness to pay for the green food in china abstract with use of payment card survey data of willingness to pay wtp for the green food a unique food certification in china this study finds that age and income are important for the wtp for the green food in china there are structural differences in consumer preference for green food between the large city and the small county consumers in china on average are willing to pay 47 more for green vegetables and 40 more for green meat than for their conventional counterparts compared with the real markets and the previous studies our results are very consistent and reliable

capital mobility and foreign debt sustainabilty some evidence from turkey this paper address the extent of capital mobility and foreign debt sustainability in turkey over the 1962 2003 period by examining the relationship between saving and investment and imports and exports respectively the empirical investment is based on cointegration error correction models and threshold and momentum threshold autoregressive models our findings are consistent with the existence of capital mobility and the strong form of foreign debt sustainability

on the relevance of export demand conditions for capital income taxation in open economies this paper highlights the role of export demand conditions in determining the real cost of external funding for a country that has unrestricted access to funding from the international capital market at a predetermined real interest rate if such a country enters into a free trade arrangement which includes national treatment provisions for foreign investment then the capital income tax becomes an appropriate second best instrument for ensuring that national welfare is maximized if the capital income tax is set optimally the national return on savings will always be at least as great as the domestic marginal product of capital

us and german consumer preferences for ground beef packaged under a modified atmosphere different regulations different behaviour new technologies in food processing can provide advantages to consumers and producers but often the technologies are applied in different country specific regulatory climates modified atmosphere packaging extends the shelf life of fresh meat and with the inclusion of carbon monoxide stabilizes colour these packaging technologies can be used in the us and europe although a modified atmosphere package that includes carbon monoxide is allowed only in the us this study applies choice experiments to analyse preferences of us and german consumers towards the meat attributes enhanced by the packaging results show that longer shelf life is preferred in the us as long as the technology is understandable consumers in both countries have clear preferences for cherry red meat colour however providing information on the use of carbon monoxide in the packaging decreases us consumers willingness to pay and increases some german consumers willingness to pay

on the fiscal policy implications of low capital mobility some further evidence from cross country time series data in an attempt to determine whether an increase in a nation s private saving stimulated say by tax policies raises domestic investment or flows abroad feldstein and horioka 4 and feldstein 2 examined the relationship between the saving and investment rates of a sample of industrialized countries their results pointed to the existence of a strong almost one to one relationship between investment and saving rates they interpreted that finding as implying that the assumption of perfect capital mobility is invalid in that sustained increases in domestic saving rates induce approximately equal increases in domestic investment rates 2 150 the finding has farreaching implications for instance with low international capital mobility a country s growth prospects are tied to its saving effort if the saving effort is weak relative to investment opportunities realized investment rates could fall short of their potential and thus impact adversely on growth it also implies that fiscal deficits lead to neoclassical crowding out of investment so that both the keynesian view as well as the ricardian equivalence proposition do not hold since the feldstein and horioka henceforth denoted by fh article numerous papers have offered alternative explanations for the strong saving investment correlations many of those explanations center on supposed weaknesses of the econometric methodology employed by fh and feldstein one of the arguments initially proposed by fieleke 5 and tobin 19 is the policyresponse argument according to that argument if the government adjusts its policy instruments to offset current account imbalances a strong positive correlation between saving and investment would result however that correlation reflects the policy response and not low capital mobility in a recent paper summers 16 proposed a direct test of that argument and his empirical results

on china s domestic capital mobility and the role of the government empirical evidence over 1970 2006 this article investigates capital mobility across 29 provinces in china for the period of 1970 2006 using the feldstein horioka fh approach and campbell and mankiw s consumption smoothing cs framework it also examines the role of the governments in driving provincial capital mobility if the provincial government investment is not properly separated out from the private investment the fh framework applied to the overall saving and investment private plus public is found to underestimate the private saving investment correlation and hence overstates the degree of private capital mobility compared with the cs framework that focuses on the private consumption and output both frameworks indicate strong correlation between private saving investment and private consumption output implying strong barriers in the provincial private capital flows however there is ample evidence that capital mobility has been rising over time particularly after the mid 1990s it also appears that the government facilitates capital flows through inter governmental transfers during the sample period the extent of provincial capital mobility sheds light on the ability of different provinces in diversifying idiosyncratic provincial risks the earlier findings are robust to alternative measurements of variables and model specifications

theory based measurement of the saving investment correlation with an application to norway i introduction the findings of feldstein and horioka 19c 0 have led to numerous theoretical and empirical papers on the close correlation between domestic saving and domestic investment and its supposed implications for international capital mobility feldstein and horioka 1980 317 state that with perfect world capital mobility there should be no relation between domestic saving and domestic investment saving in each country responds to the worldwide opportunities for investment while investment in that country is financed by the worldwide pool of capital however in a cross country regression using period averaged saving and investment figures for sixteen oecd countries they obtain a significant coefficient close to unity and conclude that capital is rather immobile this result constitutes the feldstein horicka puzzle as it contradicts the widely held perception that capital is highly mobile across countries subsequent empirical work confirmed the close correlation though its implication for the degree of capital mobility is a moot point see tesar 1991 this paper contributes to the understanding of the puzzle on both theoretical and empirical counts first we present a theory based econometric specification for estimating saving investment correlations second we discuss the possible usefulness of the estimates for detecting capital mobility third we provide empirical results for the interesting case of norway we argue that feldstein and horioka s basic idea that the saving investment correlation contains information about international capital mobility is correct but that the interpretation of the estimated correlation value must be altered substantially in view of the results derived from modern macroeconomic models our research is motivated by the observation that various regression equations have been used to measure the saving investment correlation but that none of them has a firm theoretical foundation this in turn raises questions about the interpretation and comparability of the existing empirical results we propose an econometric specification that is founded in intertemporal general equilibrium models in which agents optimize under intertemporal budget constraints we show that time series studies have estimated misspecified equations and that cross section studies are seriously flawed because they neglect dynamics as a result the puzzle may turn out to be an artifact caused by measurement errors however the significance of reliable measurement of saving investment correlations goes beyond solving the feldstein horioka puzzle because they represent stylized facts open economy models should explain norway serves as a suitable example to cement our methodological arguments with empirical evidence thanks to its system of capital controls which were phased out during the 1970s and 1980s the oil discoveries and its small size we demonstrate that the failure to take structural breaks into account seriously distorts the picture making a strong case for careful diagnostic testing our main empirical result is that the feldstein horioka puzzle does not exist for norway the paper proceeds as follows in section ii we briefly summarize the state of the discussion regarding feldstein and horioka s findings in section iii we derive our specification from the theory compare it to the previous specifications and discuss how to make inferences about capital mobility in section iv we sketch major developments in the post war norwegian economy notably the abolition of capital controls and the emergence of the important oil sector section v presents the empirical results section vi summarizes and concludes ii the feldstein horioka puzzle many authors have confirmed feldstein and horioka s result of a high and stable correlation of saving and investment for oecd countries both in cross country studies and in time series studies

intertemporal generalization of the relationship between material requirements planning and input output analysis abstract the relationship between different approaches for modelling production opportunities has previously been investigated regarding input output analysis and material requirements planning mrp concerning mainly one period cases not taking intertemporal considerations such as inventories the time phasing of orders etc into account this paper focuses on mrp related approaches and input output analysis generalizing previous findings to multi period cases in which inventories and the time allocation of production activities due to lead times are essential ingredients an important concept developed is the generalized input matrix which apart from input requirements also captures all lead times involved by means of z transform operators also derived are two simple stationary economic order quantity formulas for the multi product multi period case treated

tests for parameter instability in regressions with i 1 processes this article derives the large sample distributions of lagrange multiplier lm tests for parameter instability against several alternatives of interest in the context of cointegrated regression models the fully modified estimator of phillips and hansen is extended to cover general models with stochastic and deterministic trends the test statistics considered include the supf test of quandt as well as the lm tests of nyblom and of nabeya and tanaka it is found that the asymptotic distributions depend on the nature of the regressor processes that is if the regressors are stochastic or deterministic trends the distributions are noticeably different from the distributions when the data are weakly dependent it is also found that the lack of cointegration is a special case of the alternative hypothesis considered an unstable intercept so the tests proposed here may also be viewed as a test of the null of cointegration against the alternative of no cointegration the tests are applied to three data se

what do saving investment relationships tell us about capital mobility abstract this paper re examines the tests of international capital mobility based on saving investment regressions originated by feldstein while analyses of various measures of capital controls provide some support for the feldstein hypothesis it is shown that the existence of nontraded goods can independently lead to a saving investment correlation this theoretical critique is supported empirically an analysis of the stability of the coefficients resolves the oft reported puzzle in the literature that economies appear to have become increasingly closed financially over time

international capital mobility net versus gross stocks and flows abstract feldstein and horioka 1980 observed that net capital flows have been small in relation to domestic saving and investment flows for oecd countries in the post war period which they interpreted as evidence of low capital mobility this paper argues that the correlation between gross domestic and international financial flows can be a better indicator of capital mobilitythan net capital flows contrary to the conventional wisdom among international economists gross flows have been small in relation to gross domestic asset creation for oecd countries although by this measure the degree of capital mobility increased in the 1980s

international capital mobility what do national saving investment dynamics tell us abstract we interpret the relationship between national saving and investment in the long run as reflecting a solvency constraint and interpret the ease with which a country can run current account imbalances in the short run before it has to ultimately reverse the transaction at some future date to satisfy the solvency constraint as being positively related to the degree of international capital mobility we apply panel error correction techniques to data for 20 oecd countries from 1960 to 1999 we find that saving and investment display a long run cointegration relationship that is consistent with the interpretation that a long run solvency constraint is binding for each country over time however deviations from this long run equilibrium relation have become more persistent which suggests that capital mobility has increased

bad investments and missed opportunities postwar capital flows to asia and latin america since 1950 the economies of east asia grew rapidly but received little inter national capital while latin america received considerable international capitaleven as their economies stagnated the literature typically explains the failureof capital to flow to high growth regions as resulting from international capitalmarket imperfections this paper proposes a broader thesis that country specificdistortions such as domestic labor and capital market distortions also impactcapital flows we develop a dsge model of asia latin america and the rest ofthe world that features an open economy business cycle accounting framework tomeasure these domestic and international distortions and to quantify their con tributions to international capital flows we find that domestic distortions havebeen the predominant drivers of international capital flows and that the generalequilibrium effects of these distortions are very large international capital market distortions also matter but less

terms of trade dynamics in asia an analysis of national saving and domestic investment responses to terms of trade changes in 14 asian ldcs abstract i estimate a three equation model of savings investment and growth on pooled time series data for 14 asian developing countries to explore terms of trade dynamic effects on the current account a terms of trade deterioration lowers aggregate saving and raises investment in the current year it also exerts a positive lagged effect on investment due to the unanticipated temporary nature of the terms of trade change the current account oscillates before returning gradually to its steady state level the model explains 65 per cent of the variance in the sample countries current accounts over the period 1962 1983

a market game with the characteristic function according to the mrp and input output analysis model abstract in recent papers grubbstrom and molinder ijpe 1994 bogataj and horvat ijpe 1996 the material requirements planning and input output analysis have been studied using z transform for discrete time models laplace transform for continuous time models and elements of decision theory for stochastic demand in the model in the above models a single decision maker i e a company chooses an optimal decision i e production level without reference to the effect that the decision has on other decision makers and vice versa in many business situations also with an mrp model however two or more decision makers i e companies choose an action i e production level simultaneously and the actions chosen by each player affect the rewards i e profits earned by other companies we have determined the optimal policy for each company in a three person game derived by the theory of the shapley value where the objective function is estimated by the expected value of the annuity stream using mrp theory for a detailed coordination case for a two level model

demand for beef from cattle administered growth hormones or fed genetically modified corn a comparison of consumers in france germany the united kingdom and the united states we compare consumer valuations of beef ribeye steaks from cattle produced without growth hormones or genetically modified corn in france germany the united kingdom and the united states results suggest that french consumers place a higher value on beef from cattle that have not been administered added growth hormones than u s consumers however valuations of non hormone treated beef are statistically indistinguishable across germany the united kingdom and the united states results also suggest that european consumers place a much higher value on beef from cattle that have not been fed genetically modified corn than u s consumers copyright 2003 oxford university press

are choice experiments incentive compatible a test with quality differentiated beef steaks this study compares hypothetical and nonhypothetical responses to choice experiment questions we test for hypothetical bias in a choice experiment involving beef ribeye steaks with differing quality attributes in general hypothetical responses predicted higher probabilities of purchasing beef steaks than nonhypothetical responses thus hypothetical choices overestimate total willingness to pay for beef steaks however marginal willingness to pay for a change in steak quality is in general not statistically different across hypothetical and actual payment settings

are saving and investment cointegrated the case of malaysia 1965 2003 this article examines whether domestic saving rate leads to higher domestic investment rate in the case of malaysia we argue that the results obtained from cross sectional studies are not able to address this issue satisfactorily and highlight the importance of individual country case studies using the recently developed autoregressive distributed lag bounds testing procedure the results reveal a robust cointegrated relationship between domestic saving and investment rates during the period 1965 to 2003

supply chain coordination in spatial games abstract the notion that economies consist of the systems of cities originates from a theory by christaller and beckmann based on a lochean framework of retailers having an endogenously determined market area in 1968 it was completed by tinbergen who has suggested production approach this original theory explains the location pattern of the market and manufacturing centers selling goods to the local populations within given market areas the theory was based on the idea of the urban area being a trading center our paper influenced by the ideas presents the quantitative method of building up the model of spatial hierarchy as the result of spatial games the paper by girlich on the metric transportation problems and their solution inventory modelling lecture notes of the international postgraduate summer school vol 2 isir budapest portoro 1995 pp 13 24 gives us proper foundations for our present research in this paper customer traveling problem is described which helps us to define a market area a mathematical description of market areas defines the border between two areas under the assumption of shortages of goods in at least one market area the study is influenced by grubbstrom s work on mrp optimization for details see r w gubbstrom management science 13 7 1967 558 567 the mathematical scientist 16 1991 118 129 international journal of production economics in press international encyclopaedia of business and management routledge london 1996 r w grubbstrom a bogataj eds storlien 1997 fpp portoro 1998 r w grubbstrom a molinder international journal of production economics 35 1994 289 311 in our paper the problem is formulated as a non constant sum game which is the case of the total market area being constant and the conditions for lower central places described for different positions of this central place in an urban hierarchy in the case of two level production differential games are suggested when the total market area changes over the time

savings and investment in australia it has become popular to advocate tax reduction on the basis of promoting savings investment and ultimately economic growth the linkage between the variables is argued by various neoclassical growth models and is further suggested by recent studies which highlight the close association between domestic saving and investment rates the close association may allow for polices which alter domestic saving levels in order to alter domestic investment levels this interpretation however presumes an endogenous investment response equally likely theoretically is that the close association is maintained by movements in national savings the present paper explicitly examines the endogeneity of the australian saving and investment rates the results highlight the exogeneity of investment the results further suggest an endogenous response on the part of australia s saving rate the results may limit the potential benefits of these tax changes

international intertemporal solvency in industrialized countries evidence and implications recent large current account deficits among industrialized countries have caused concern for policy makers some believe for example that the current buildup of claims on the u s by foreigners violates her solvency condition with respect to the rest of the world recent research 22 suggests that for a country s intertemporal solvency condition to hold the change in the country s obligations to the rest of the world i e her current account deficit must be stationary stationarity tests on current accounts were performed for the u s by trehan and walsh 22 and wickens and uctum 23 for the u s and canada by otto 15 and for twenty three countries by gundlach and sinn 10 these papers present evidence that current accounts are non stationary for several major industrialized countries including the u s the u k canada germany and japan these findings do not favor international intertemporal solvency for this reason the issue merits further investigation in this paper we test for the stationarity of current account deficits of the group of seven industrialized countries preliminary results confirm many of gundlach and sinn s 10 findings however several events during the 1980s might have caused discrete breaks in current account balances events potentially linked with current account breaks include the reduction in world inflation tax reduction and reform in the u s and other industrialized countries attempts at international macroeconomic coordination i e the plaza accord and shifts in the after tax rate of return on capital in many countries as shown in recent research on gross national product 16 2 if such breaks are not accounted for stationarity tests will be biased in favor of accepting the null hypothesis of non stationarity our results suggest strong evidence of discrete breaks in the u s and japan and some evidence favoring breaks in the u k germany and canada the break in the u s current account appears to occur in 1983 while breaks in the other countries appear to occur somewhat later between late 1984 and 1987 more importantly once these breaks are incorporated the evidence is more favorable toward the stationarity of current accounts in these countries these findings thus support intertemporal solvency for these countries

saving investment correlations and capital mobility on the evidence from annual data this paper evaluates the use of saving investment correlations to measure capital mobility it is argued that the intertemporal approach to the balance of payments predicts that the practice of calculating the correlation coefficient using long term averages of saving and investment shares biases the result toward accepting the hypothesis of capital immobility calculations based on annual data show that the correlation coefficient is much lower and that is varies considerably estimates of intranational capital mobility based on saving and investment shares of u s federal states show that the saving and investment link is much looser within a nation than among nations copyright 1992 by royal economic society

modelling recreation demand using choice experiments climbing in scotland this paper is concerned with the use of thechoice experiment method for modelling thedemand for recreation using the example ofrock climbing in scotland we begin byoutlining the method itself including itstheoretical and econometric underpinnings datacollection procedures are then outlined wepresent results from both nested and non nestedmodels and report some tests for theimplications of choice complexity andrationality finally we compare our resultswith a revealed preference data model based onthe same sample of climbers

consumers preferences for fresh broccolis interactive effects between country of origin and organic labels while international trade in organic products has grown significantly understanding consumers preferences for imported organic foods has remained limited this research examines the impact of country of origin labeling on us consumers choices of organic foods results show that consumer valuation of domestically produced organic broccoli was significantly higher than that of imported organic broccoli adding information about usda organic certification standards rules for imported products mildly increases consumer valuation of imported organic broccoli in some cases these findings suggest that providing such information may have a positive impact on consumer willingness to purchase imported organic products

stochastic considerations of grubbstrom molinder model of mrp input output and multi echelon inventory systems abstract in a recent paper grubbstrom and molinder 1994 grubbstrom and molinder studied theoretically the dynamic relationship between mrp input output analysis and multi echelon inventory systems in this paper we upgrade this approach including in the model the uncertainty of external demand and decision theory elements in the model we suppose that we know only the upper and lower bounds of external demand rate and because of lack of information that the external demand is uniformly distributed the complete decision model for our case is considered and the advantages of this approach are demonstrated

political vs currency premia in international real interest differentials a study of forward rates for 24 countries abstract different approaches to quantifying the degree of capital mobility for a cross section of currencies particularly saving investment correlations and tests of real interest parity have appeared to show a surprisingly low degree of financial integration we use a new data set forward rate data for 24 countries including many small industrialized countries and seven ldcs to decompose the real interest differential into two parts the covered interest differential or political premium and the real forward discount or currency premium the latter in turn can be decomposed into the exchange risk premium and expected real depreciation we find a high degree of capital mobility across political boundaries for most of the g 11 countries plus hong kong and singapore for our sample period of 1982 to 1987 even for most of the other ldcs and smaller industrialized countries for which covered interest parity clearly fails the political premium is not as big a component of the real interest differential as the currency premium france would appear to have higher capital mobility than most by the criterion of real interest differentials but is seen in fact to have low capital mobility by the criterion of covered interest differentials a clear example of the superiority of the latter criterion

using choice experiments to estimate consumer valuation the role of experimental design and attribute information loads with fixed dimensionality of choice experiments ces previous simulation results show that d optimal design with correct a priori information generates more accurate valuation in the absence of a priori information random designs and designs incorporate attribute interactions result in more precise valuation estimates in this article monte carlo simulations demonstrate that the performances of different design strategies are affected by attribute information loads in ces consumer valuation estimates in simulation settings vary with the number of attributes

the global financial crisis and the european single market the end of integration using various versions of the feldstein horioka fh coefficient we measure the time varying degree of capital mobility and economic integration in the european union prior research shows high correlation between domestic investment and savings implying low capital mobility this surprising result has led to subsequent research on the feldstein horioka puzzle our empirical findings show that the puzzle is less puzzling with a coefficient of 0 52 in the period 1990 1995 in eu countries approaching its minimum value of 0 02 in the period 2003 2008 this clearly indicates that the fh coefficient is time varying signalling a deepening of economic integration in the european union yet with the advent of the global financial crisis the fh coefficient has increased to 0 26 underlining worrying signs of disintegration

are saving and investment cointegrated another look at the data abstract in his paper are saving and investment co integrated economics letters 27 pp 31 34 miller finds that u s saving and investment rates were cointegrated during the post wwii fixed exchange rate regime and not cointegrated during the flexible exchange rate regime miller did not take into account the fact that both of these rates have non zero means once this is taken into account i find that his results no longer hold i also find that the levels of saving and investment are not cointegrated during either the fixed or flexible exchange rate regimes these findings cast doubt on whether or not this technique can shed light on international capital mobility

savings and investment some international perspectives consistent with neoclassical growth models recent estimates of the close association between domestic saving and investment rates may allow policy makers the opportunity to alter investment through the introduction of polices that alter domestic savings however such an interpretation presumes an endogenous investment response equally likely at least theoretically is that the close association is maintained by movements in domestic savings the present paper explicitly examines the endogeneity of domestic saving and investment rates for a subset of countries including the united states the results suggest that saving adjustments make up only a small portion of investment behavior

stochastic properties of a production inventory process with planned production using transform methodology abstract we consider a stochastic inventory process in which demand is generated by individual events separated by independent stochastic time intervals whereas production takes place in batches of possibly varying sizes at different points in time the resulting processes are analysed using laplace transform methodology expressions for inventory and stockouts are developed applying the theory of residues an example includes poisson distributed demand intervals assuming costs for set ups for carrying inventory and for stockouts conditions are developed for determining the optimal production policy on the one hand when applying the traditional average cost measure on the other when applying the annuity stream principle

the feldstein horioka puzzle revisited a monte carlo study abstract this study revisits the feldstein horioka fh puzzle by employing a variety of asymptotically efficient cointegration estimators and by using the critical values obtained from monte carlo simulations to test the hypothesis of a unit retention coefficient this leads to a lower rejection of the null than standard critical values would have implied despite ample evidence supporting the fh result there appears to be considerable heterogeneity in terms of the savings investment association and only 25 of the 23 oecd countries we examine can be characterised as open economies in the fh sense whether or not one subscribes to the fh interpretation the fh result does not appear to be robust

unit root tests of the current account balance implications for international capital mobility the extent of international capital mobility is assessed in a time series context the possibility that the current account balance of different 0ecd countries contains a unit root is explored it is shown that if the ratio of the current account balance to gdp is found to be integrated of the order of one the country is likely to be part of the world capital market the results for the whole period 1950 1988 indicate that the current account balance of at least germany japan and the united states contains a unit root considering the subperiods before and after 1972 it is shown that international capital mobility increased after the breakdown of the bretton woods system

capital mobility in the world economy an alternative test abstract this paper proposes a new measure and test of international capital mobility in order to investigate capital flows we utilize a small open economy version of campbell and mankiw s nber macroeconomic annual 1989 185 216 permanent income model our capital mobility measure focuses on the correlation between the country s consumption and net output instead of the correlation between domestic saving and domestic investment proposed by feldstein and horioka economic journal 90 1980 314 329 the model is estimated for 11 oecd countries the results suggest that the null hypothesis of perfect capital mobility cannot be rejected for more than a half of these countries on the other hand some kind of capital mobility constraints are detected for several countries including the united states and japan

a century of current account dynamics abstract recent globalization trends have refocused attention on the historical evolution of international capital mobility over the long run the issue is examined here using time series analysis of current account dynamics for fifteen countries since circa 1850 the inter war period emerges as an era of low capital mobility and only recently can we observe a tentative return to the degree of capital mobility witnessed during the late nineteenth century the analysis of saving and investment dynamics also helps make sense of the frequently observed high correlation of saving and investment rates in historical data

the importance of regret minimization in the choice for renewable energy programmes evidence from a discrete choice experiment abstract this study provides a methodologically rigorous attempt to disentangle the impact of various factors unobserved heterogeneity information and environmental attitudes on the inclination of individuals to exhibit either a utility maximization or a regret minimization behaviour in a discrete choice experiment for renewable energy programmes described by four attributes greenhouse gas emissions power outages employment in the energy sector and electricity bill we explore the ability of different models multinomial logit random parameters logit and hybrid latent class and of different choice paradigms utility maximization and regret minimization in explaining people s choices for renewable energy programmes the pure random regret random parameters logit model explains the choices of our respondents better than other models indicating that regret is an important choice paradigm and that choices for renewable energy programmes are mostly driven by regret rather than by rejoice in particular we find that our respondents choices are driven more by changes in greenhouse gas emissions than by reductions in power outages finally we find that changing the level of information to one attribute has no effect on choices and that being a member of an environmental organization makes a respondent more likely to be associated with the utility maximization choice framework

do hypothetical and actual marginal willingness to pay differ in choice experiments application to the valuation of the environment abstract in this paper we test the validity of choice experiments with donations for environmental projects in particular we test whether or not there are differences in preferences between a hypothetical and an actual choice experiment our experiments indicate no differences in addition internal tests of validity indicate transitive and stable preferences in both experiments although there are some indications of possible learning effects during the experiment

domestic saving and international capital movements in the long run and the short run the evidence and analysis in this paper support the earlier findings of feldstein and horioka 1980 that sustained increases in domestic savings rates induce approximately equal increases in domestic rates of investment new estimates for the post opec period 1974 79 imply that each extra dollar of domestic saving increases domestic investment by approximately 85 cents in a sample of 17 oecd countries an explicit analysis of the problems of identification and simultaneous equations bias suggests that the regression estimates are more relevant as a guide to the long run response of international capital flows than to their short run behavior coefficient estimates based on annual variations in savings and investment are subject to potentially severe simultaneous equations bias that is not present when annual observations are averaged over a decade or more and the regression is estimated with a cross country sample of these averages a portfolio model of international capital allocation that is presented in the paper indicates that the short run change in the rate of net foreign investment in response to a sustained increase in domestic saving is likely to be substantially greater than the ultimate steady state response this abstract was borrowed from another version of this item this abstract was borrowed from another version of this item

the impact of deal proneness on wtp estimates in incentive aligned value elicitation methods even after controlling for hypothetical biases some incentive aligned value elicitation methods still produce different willingness to pay wtp estimates in this study we compare wtp estimates from three incentive aligned value elicitation methods real choice experiment rce real double bounded dichotomous contingent valuation rcvm and becker degroot marschak auction bdm we find that participants aggressiveness in obtaining low prices i e deal proneness influences wtp estimates in the bdm auction but not those elicited from the rce and rcvm the participants with higher levels of deal proneness tend to submit lower bids in the bdm auction the discrepancies in wtp estimates between different incentive aligned procedures are narrower for participants with lower levels of deal proneness our results indicate that the bids in bdm auctions may be understated and the auction mechanism may induce the gambling behavior of people who are deal prone that is whether the bdm auction is truly incentive aligned is again called into question we also discuss the practical implications for food retailers

capital mobility and the relationship between saving and investment rates in oecd countries abstract this paper considers tests that use data on saving and investment rates to determine the degree of international capital mobility two types of evidence are presented to show that a high correlation between saving and investment rates across oecd countries can be consistent with a high degree of capital mobility this evidence qualifies the conclusions of previous studies and casts doubt on the usefulness of testing hypotheses about capital mobility with data on saving and investment rates

estimating saving investment correlations evidence for oecd countries based on an error correction model abstract saving investment correlations are important stylized facts in open economy macroeconomics and indicators of capital mobility they are best estimated by an error correction model ecm because an ecm is consistent with intertemporal general equilibrium models the ecm is a synthesis of previous approaches applying the ecm to the oecd countries we find that in general saving and investment are cointegrated the ecm is more powerful in detecting cointegration than the two step engle granger procedure estimates of the saving investment correlation are robust with respect to overdifferencing we find evidence of a large country effect and an increase in capital mobility within the oecd area

how do respondents process stated choice experiments attribute consideration under varying information load the popularity of stated choice sc experiments has produced many design strategies in which researchers use increasingly more complex choice settings to study choice behaviour when the amount of information to assess increases we wonder how an individual handles such information in making a choice defining the amount of information as the number of attributes associated with each choice set we investigate how this information is processed as we vary its complexity four ordered heterogeneous logit models are developed each for an sc design based on a fixed number of attributes in which the dependent variable defines the number of attributes that are ignored we find that the degree to which individuals ignore attributes is influenced by the dimensionality of the sc experiment the deviation of attribute levels from an experienced reference alternative the use of adding up attributes where feasible the number of choice sets evaluated and the personal income of the respondent the empirical evidence supports the view that individuals appear to adopt a range of coping strategies that are consistent with how they process information in real markets and that aligning choice complexity with the amount of information to process is potentially misleading relevancy is what matters copyright 2006 john wiley sons ltd

are saving and investment cointegrated an ardl bounds testing approach using the newly developed ardl bounds testing procedure we find that as implied by the intertemporal budget constraint u s saving and investment rates cointegrate in all sample periods considered our results also show that the saving investment correlation weakens after 1971 suggesting that the feldstein horioka approach provides an at least partially informative measure of capital mobility

habit spillovers or induced awareness willingness to pay for eco labels of rice in china abstract the willingness to pay wtp for eco labeled rice is investigated for chinese consumers using choice experiments with information interventions the mixed logit model shows preference heterogeneities and the latent class model unveils two sources pro environmental behaviors with spillover effects which are defined as catalyst behaviors and the awareness about imperatives of ecological farming which is defined as induced awareness classification results identify that using bp bags and sorting waste are catalyst behaviors as the multivariate ordered probit model implies consumers with higher educational attainment and family income levels are more likely to adopt these behaviors instead of creating the preference for eco labels the induced awareness is only found to strengthen preferences that already exist the results of this study provide policy implications for the design of proper strategies to develop the eco labeled food market especially in developing economies

current account solvency and the feldstein horioka puzzle in this paper we suggest an alternative explanation of the high cross section association between shares of saving and investment in gdp which feldstein and horioka 1980 interpret as evidence of low capital mobility in oecd countries saving and investment shares appear to be i i we show that a solvency constraint implies that the current balance is stationary and thus that saving and investment cointegrate with a unit coefficient irrespective of the degree of capital mobility it is this long run relation that the fh cross section regression captures econometric results for 23 oecd countries over the 1960 92 period are consistent with this explanation

regional effects of taxes in canada an applied general equilibrium approach this paper reports on an applied general equilibrium regional model for canada which is used to investigate the regional effects of taxes earlier literature on regional tax effects is reviewed and the main features of the model are briefly described existing literature on regional tax effects is largely non quantitative and does not discuss several important regional features of taxes such as taxes which are predominantly on products or industries located in particular regions results suggest that regional effects of taxes can be significant and in the canadian case at least do not tend to counterbalance one another in general richer regions tend to lose and poorer regions gain from federal taxes but other regional characteristics such as manufacturing non manufacturing or resource non resource can be important this abstract was borrowed from another version of this item

country of origin labeling for complex supply chains the case for labeling the location of different supply chain links we investigate the value of a country of origin label cool that separately identifies the geographic location of different stages in a food product s supply chain we estimate the willingness to pay wtp of u s consumers for a packaged cereal product where the key grain ingredient may be grown in one country and processed in a second country multicountry supply chain and compare it to equivalent products that have both stages located in a single country we find consumer wtp for products with single country and multicountry supply chains are statistically different meaning that simplifying a multicountry label by listing only the country where the ingredients are grown or only the country where the ingredients are processed can result in different consumer values we also find that for countries with a poor quality reputation consumers respond more negatively when that country has the last touch than when that country s involvement is limited to upstream supply chain links

exchange rate regimes and the feldstein horioka puzzle the french evidence this paper investigates whether the feldstein and horioka economic journal 90 314 329 1980 argument on domestic saving investment relationship is supported by the french data when an endogenous structural break corresponding to a major policy regime change is taken into account the evidence suggests that the saving investment cointegration disappears after the estimated endogenous structural break point in 1973 coinciding with the end of the bretton woods system of fixed exchange rates consistent with a current account targeting policy an investment driven saving process appears to be the case for the fixed exchange rate regime period

fiscal deficits and intergenerational welfare in almost small open economies the intergenerational welfare effects of government deficits are examined in a simple life cycle economy which can borrow at given interest rates and import at given prices but has unexploited market power in exports despite perfect capital market integration a deficit financed tax cut to the current young causes an immediate real exchange rate of return on domestic assets subsequently the real exchange rate depreciates to a lower steady state value and the after tax wage decreases by more than the tax increase needed to service the larger deficit

a functional coefficient model view of the feldstein horioka puzzle what does the saving investment si relation really measure and how should the si relation be measured these are two of the most discussed issues triggered by the so called feldstein horioka puzzle based on panel data we introduce a new variant of functional coefficient models that allows to separate long and short to medium run parameter dependence the new modeling framework is applied to uncover the determinants of the si relation macroeconomic state variables such as openness the age dependency ratio government current and consumption expenditures are found to affect the si relation significantly in the long run

domestic savings intra national and intra european union capital flows 1971 1991 abstract this paper examines the relationship between savings and investment for the pre 1995 twelve members of the eu during the period 1971 1991 the results of the statistical analysis suggest that the capital market of the members of the eu resembles that of intra national regions implying a considerable degree of capital market integration this conclusion however is subject to several caveats the relationship between savings and investment in the case of portugal for example is unusual

are saving and investment co integrated abstract the observation of a strong positive correlation between national saving and domestic investment rates calls into question the assumption of highly mobile international capital i re examine the question of a high correlation by considering the time series relationship between national saving and domestic investment rates in the u s using newly developed co integration techniques national saving and domestic investment appear to be co integrated prior to 1971 but appear not to be co integrated after 1971

bootstrapping the autoregressive distributed lag test for cointegration we propose a bootstrap autoregressive distributed lag ardl test by applying the appropriate bootstrap method some weaknesses underlying the pesaran shin and smith ardl bounds test are addresse

tax policy and economic growth lessons from the 1980s the past seven years of u s economic policy and performance constitute a truly remarkable if confusing experiment few would have guessed in 1980 that inflation would fall rapidly to 4 percent and hold pretty steady during a lengthy recovery that productivity growth would partially rebound the national debt more than double capital imports reach 150 billion in a single year or that employment would continue to expand at rates envied by other advanced economies perhaps fewer still would have predicted two major and two minor tax reforms would be passed in six years a flip flop in depreciation schedules and a top personal tax rate below 30 percent while it is always easier to draw inferences concerning economic growth its determinants and policies affecting the determinants with long historical hindsight this paper will attempt to provide information evaluation and conjecture to draw some tentative lessons about the effects of tax policies in the 1980s on long run economic growth the good news from the 1980s is the remarkable achievement of substantially lower marginal tax rates making the government a much smaller silent partner in many economic decisions for example the tax advantage of debt finance is reduced substantially with the much lower marginal tax rates the bad news is that the nation could not afford all of the good news the very large budget deficits add to the instability in the tax code in addition to whatever other problems they cause moreover in a country with the lowest saving and investment rates in the advanced world the consequence of which may be to decrease our long run growth potential and short run trade competitiveness the remaining anti saving and investment features of our tax law while probably less important in the long run than the u s

factor rewards and the international migration of unskilled labor a model with capital mobility abstract conventional economic wisdom holds that the migration of unskilled labor from less developed countries to neighboring developed countries should be expected to narrow the wage gap between those countries and thereby reduce the incentive for further migration if capital is mobile internationally this reasoning may be inappropriate instead emigration of unskilled labor out of the less developed country provides an incentive for capital to leave the country too as a consequence wage rates move in the same direction in each country and the gap between wage rates across countries even may increase

implementing cool comparative welfare effects of different labeling schemes country of origin labeling cool is being implemented in different forms and degrees in the united states and other countries across the world the first implementation of mandatory country of origin labeling mcool in the united states was for seafood in 2005 this is an example of partial mcool because it exempts the foodservice sector and excludes processed seafood from labeling using a conceptual framework we analyze the welfare impacts of partial mcool when compared to no voluntary and total mandatory cool taking into account imperfect competition in the downstream markets information asymmetry and diversion of low quality product to the unlabeled market the model is general enough to apply to any incomplete regulation for which the perceived low quality product is required to be labeled such as the labeling of genetically modified food in the european union our results show that when consumers have a strong enough preference for domestic relative to imported product regulators can overestimate the gain in consumer welfare from partial mandatory labeling if they ignore the diversion of lower quality imports to the unlabeled sector we show that if the preference for domestic product is large enough total mcool benefits the home market the most overall including domestic consumers and producers but not the imperfectly competitive downstream agents however if total mcool is too costly to implement partial mcool is the second best solution but only if consumers falsely believe the unlabeled product to be of higher quality than it truly is our results suggest more research is needed to determine the extent to which consumers value the information provided by mcool and to enable regulators to consider the welfare impact of diversion in evaluating incomplete mandatory labeling regulations

crowding out in open economies results from a simulation study it has recently been shown that industrialized countries in the 1970s and 1980s are characterized by a high correlation between national saving and investment this regularly is considered puzzling in the context of highly integrated international capital markets in this paper the author shows that both the failure of real interest parity and productivity changes are each sufficient to generate a high positive correlation between national saving and investment these results indicate that it is easier than previously thought to reproduce a high correlation between saving and investment in models with perfect capital mobility

savings investment and international capital flows abstract the high correlation between national savings and domestic investment rateshas been interpreted as evidence that capital is not internationally mobile this paper surveys the theory and evidence on the relationship between savings and investment in a sample of 23 oecd countries a positive correlation between savings and investment rates is found in both the short and long runs however a wide variety of models generate such co movements in savings and investment in response to exogenous disturbances even under conditions of complete financial markets thus the savings investment correlation provides little evidence on the question of international capital mobility

vignettes on the world capital market this paper is motivated by a sense that we as a profession need to understand much better than we now do how the world capital market works we seem to be genuinely schizophrenic in the ways we build models many of them are closedeconomy models in which the rest of the world does not even appear yet others of them are models of the small open economy in which hardly any degree of freedom is left for economic policy to influence events lying behind the schizophrenia is i believe a genuine ignorance on our collective part of how the world capital market

domestic determinants of the current account balance of the united states the u s economy is found to be sufficiently open to make the balance on foreign transactions an essential part of the equilibration process between saving and investment specifically over the past two decades changes in the national saving rate have increasingly been matched by changes in net foreign rather than domestic investment thus it would be counterfactual to assume in policy discussions that measures to raise the national saving rate add fully to the stock of productive capital in the united states barring only keynesian complications conversely a stimulus to domestic investment could be validated in part by drawing on foreign saving

effects of label information on consumer willingness to pay for food attributes choice experiments ces are often used to elicit consumer willingness to pay wtp for food attributes a concern about these approaches is that food attributes provided to respondents are assumed independent of attributes not provided we use surveys containing a series of ces to investigate effects of adding beef steak attributes wtp for important attributes in the ces decrease when the number of attributes increases from three to four while wtp increases when the number of attributes increases from four to five changes in wtp for attributes depend on their relationships with newly added attributes and the number of attributes presented copyright 2007 oxford university press

the feldstein horioka puzzle revisited abstract this paper confirms the evidence that the feldstein horioka test does not reflect capital mobility in the real side world economy but only the variability between external and domestic saving

impact of satisficing behavior in online surveys on consumer preference and welfare estimates conducting online surveys through consumer panels has become increasingly popular for researchers to assess consumers preferences and attitudes for the purpose of obtaining welfare estimates because they are inexpensive flexible and allow for fast feedback interestingly few studies have examined the behaviors of online survey panelists particularly their satisficing behaviors on welfare measures this study demonstrates the use of validation questions trap questions to detect survey respondents satisficing behavior and its impact on consumer choice willingness to pay wtp and consumer surplus cs estimates we find that respondents who fail a validation question vq are more likely to violate the weak axiom of revealed preferences warp in the choice experiment the estimates for preference parameters wtp and cs are statistically different between those who pass and those who fail the vq in addition the wtp and cs from respondents passing the vq in general have smaller variances than those from respondents failing the vq these results indicate that without controlling for potential satisficing behaviors online surveys may produce less efficient estimates estimates with larger variance of welfare measures

raised without antibiotics lessons from voluntary labeling of antibiotic use practices in the broiler industry voluntary labeling improves market efficiency if consumers receive the product characteristics they demand and producers are compensated for producing these characteristics for this to occur label claims have to be truthful credible and understandable we examine the introduction of raised without antibiotics rwa label claims in the broiler industry by perdue farms perdue and tyson foods tyson in 2007 and the events that follow we ask whether voluntary label claims were able to improve efficiency in the market for rwa chicken products in this case evidence presented as part of court testimony suggests that tyson did not deliver the rwa attribute that consumers demanded competitors suffered and tyson profited from introducing what was ruled to be a false and misleading label claim to the marketplace while the media informed consumers and stockholders of these events we found little evidence in publicly available data literature or documentation from court cases that tyson suffered significant harm in the market or from stockholders the u s department of agriculture food safety and inspection service did ultimately remove tyson s label claims from the marketplace and the legal system provided some redress to competitors and consumers even so labels with animal raising claims such as rwa and voluntary process based label claims in general continue to be challenged by similar issues that is consumer confusion the absence of universally accepted definitions and varying degrees of credibility

inventory allocation and customer travelling problem in spatial duopoly abstract the paper is a theoretical study about connecting inventory allocation and market area for the goods defined by customers travelling decisions influenced by the expected shortages of goods in the paper inventories in spatial models bogataj international journal of production economics 45 1996 337 342 2 we have emphasized the need for connecting inventory and location analysis this problem was studied further by h j girlich in his paper on the metric transportation problems and their solution girlich lecture notes of the international postgraduate summer school vol 2 1995 pp 13 24 which gives us proper foundations for our present research the study is influenced by grubbstrom and molinder s work on mrp optimization for details see grubbstrom management science 13 7 1967 558 567 grubbstrom the mathematical scientist 16 1991 118 129 grubbstrom international journal of production economics forthcoming grubbstrom international encyclopaedia of business and management 1996 grubbstrom and molinder proceedings of the eight international working seminar on production economics 1994 grubbstrom and molinder international journal of production economics 35 1994 299 31 6 11 the annuity stream approach has been applied in the environment of spatial duopoly where the optimal ordering policy depends on the interaction between the prices and shortages of goods in the studied duopolies customer travelling problem ctp is defined which determines the market area for allocated inventories

the feldstein hoiroka puzzle across countries this article tests the feldstein hoiroka puzzle for a sample of 49 countries from two angles that of co movements in the saving investment series and the magnitude of the saving retention coefficient src the overall conclusion we obtain from the results of three different cointegration tests leaves no room for puzzle in the majority of the countries included in the sample on the other hand various statistical tests applied to the srcs show that there are significant differences among the high income middle income and low income country groups with regards to the salient aspects of capital mobility first there are significant differences in the average srcs of the country groups second the srcs are differently distributed around their means among the country groups the results yielded by a third test dictate that future research should pay more attention to the underlying distribution of the srcs within country groups when testing the country size argument

producer decision making under uncertainty role of past experiences and question framing limited research examines the role of reference points or how uncertain outcomes are processed in producer decisions this study employs a survey containing a split sample choice experiment varying how uncertain outcomes are portrayed and assesses multiple candidate reference points results suggest that u s cattle producers use the best outcome experienced as reference points in their decisions and the method by which uncertain outcomes are presented impacts loss aversion marginal willingness to pay and market participation estimates this illustrates how research employing split samples multiple reference points and alternative methods of portraying uncertain outcomes may better identify producer decision making

the saving and investment nexus for china evidence from cointegration tests the saving and investment nexus as postulated by feldstein and horioka fh 1980 is revisited the saving investment correlation for china is estimated over the periods 1952 1998 and 1952 1994 the latter culminating in a period of fixed exchange rate regime amongst the key results it is found that saving and investment are correlated for china for both the period of the fixed exchange rate and the entire sample period with high saving investment correlation the results suggest that the chinese economy is in conformity with the fh hypothesis this is a valid outcome for in china capital mobility was fairly restricted over the 1952 1994 period as indicated by the relatively low foreign direct investment