state misallocation and housing prices theory and evidence from china this paper examines the equilibrium price effects of the privatization of housing assets that were previously owned and allocated by the state i develop a theoretical framework that shows that privatization can have ambiguous effects on prices in the private market and that the degree of misallocation of the assets prior to privatization deter mines the subsequent price effects i test the predictions of the model using a large scale housing reform in china the results suggest that the removal of price distortions allowed households to increase their consumption of housing and led to an increase in equilibrium hous ing prices jel l33 018 p25 r31 r38 state participation in the housing market occurs in several forms in countries throughout the world the provision of subsidized housing as a welfare benefit to low income households is common throughout the western hemisphere in addition local governments in several cities in the united states have implemented regula tions that limit the increase of rents charged by landlords 1 this paper focuses on a form of state intervention in housing that occurs through the provision of subsidized homes to state employees the economic consequences of this area of research are potentially large as employer provided housing in the state sector is common throughout the developing world particularly in asia and sub saharan africa government regulation of the private market or the creation of a separate mar ket ensures that certain households have access to housing at prices that are below market value state interventions that aim to bring affordable housing to particu lar subsegments of the population can create economic inefficiencies they distort the decisions that individuals make regarding residential mobility joseph gyourko and peter linneman 1989 gordon a hughes and barry mccormick 1987 and employment michael svarer michael rosholm and jakob roland munch 2005 wang forthcoming and they lead to underinvestment in the construction and main

undocumented immigration and income inequality in the native born population of the us econometric evidence according to the theoretical models suggested by chiswick and others the growing presence of undocumented immigrants in the us should have a disequalizing effect on income distribution in the native born population however this proposition has not been subjected to empirical test here an econometric model of income inequality in native born households is constructed and census based estimates of the state distribution of undocumented immigrants are used to estimate model parameters the results show that such immigration has been disequalizing but that the impact has been small ranking behind several other socio economic variables

womens labour force participation and the distribution of household incomes evidence from cross national data this study investigates the effects of womens labour force participation on household income inequality the theoretical background is examined an econometric model is specified and tested and a simulation is performed it is found that the direction and strength of the income distribution effects depend on the level of womens participation starting from low levels a rise in their activity rates intensifies income inequality but the disequalizing tendency diminishes as participation continues to increase and is replaced by an equalizing process when high levels of participation are attained excerpt

the estimation of demand parameters in hedonic price models this paper shows that the econometric problem of estimating hedonic demand parameters is not a standard identification problem caused by demand supply interaction as has been often assumed estimation procedures based on this assumption lead to biased results the hedonic estimation problem is instead caused by the endogeneity of both prices and quantities when households face a nonlinear budget constraint an instrumental variables solution to this problem is suggested using instruments that exogenously shift the budget constraint

migration theories and evidence an assessment abstract this paper presents a critical survey of theories of migration their welfare and policy implications and their empirical relevance we also develop some extensions to the theory beginning with the harris and todaro ht model in particular the ht model is extended to examine risk averse behaviour within families where the migration of members of families serves to diversify risk the welfare implications of the individual migration decision and government intervention in the form of employment subsidies are examined recent evidence on international migration is presented it is shown that migration does not flow automatically in response to wage differentials characteristics of migrants and the process of self selection are found to be important determinants of the rate of migration

the self reinforcing dynamics of economic insecurity and obesity this article models the dynamic effects of economic insecurity on body weight using australian panel data we infer an individual s level of economic insecurity as a function of exposure to various financial risks and employ regression equations to explore its effect upon current period body mass index bmi scores estimates reveal that a sustained standard deviation increase in economic insecurity raises an individual s bmi at a rate of approximately 0 35 units per year quantile regressions are then used to estimate the sensitivity of body weight to insecurity at different percentiles of the distribution and we find that persons who are overweight and obese are much more seriously affected this implies that shocks that make individuals more financially vulnerable can generate harmful self sustaining cycles of risk and weight gain we also model the dynamics of insecurity and show that it is a persistent phenomenon for persons with high levels of exposure and lower incomes this finding indicates that persons of lower socio economic status are more likely to encounter vicious cycles of increasing insecurity and obesity which partially explains why weight related health problems are unusually highly concentrated amongst these individuals

expert opinion and cuisine reputation in the market for restaurant meals as food is an experience good the market for restaurant meals is a market where the cost of acquiring information regarding quality is relatively high in such markets consumers often turn to reputation measures to guide purchase decisions as australia does not have a longstanding cuisine style of its own and given australia has been open to substantial immigration inflows since federation it represents an especially appropriate market to study regarding the impact of individual restaurant reputation and collective cuisine reputation on meal prices the following study uses the hedonic price approach to investigate the implicit price of individual reputation indicators cuisine type reputation indicators and other objective indicators in the market for restaurant meals the empirical findings presented suggest that both individual restaurant reputation and cuisine type reputation are important other important factors are shown to include the quality of the restaurant wine list the availability of pr

reservation price as a range an incentive compatible measurement approach abstract drawing from the literature on buyers uncertainty in preference and product knowledge the authors suggest and empirically test the proposition that a consumer s reservation price for a product is more meaningfully and accurately represented as a range than as a single point given this conceptualization they propose an approach for incentive compatible elicitation of a consumer s reservation price range icerange that builds on becker degroot and marschak s 1964 point of purchase method two empirical applications of the approach provide an assessment of its practicality and its predictive performance relative to current methodologies for reservation price elicitation the results demonstrate that the proposed method significantly outperforms the benchmark approaches in terms of predictive validity and yields valuable incremental information about uncertainty in product valuation

the role of site and job characteristics in hedonic wage models recent economic analyses of wage rate differentials have generally used some form of hedonic framework in explaining the observed wage structure while these studies have adopted this common theoretical justification the models have been used to serve two distinct objectives the first of these is an empirical test of the theory of equalizing differences originally introduced by adam smith in such applications see brown 7 lucas 26 olson 28 thaler and rosen 36 and viscusi 40 as examples specific job characteristics measured with technical information or with worker perceptions have been used to explain differences in wage rates across individuals and jobs while there are a number of these studies there has not been a consistent pattern of support for the theory indeed with the exception of job risks many characteristics that a priori would be expected to lead to equalizing differences have often exhibited incorrect and or statistically insignificant measured effects on wages the second use for wage models has been as the basis for an index of the quality of life in urban areas in this framework households are assumed to select residential locations so as to maximize their individual welfare migration between cities provides the mechanism for an equilibrium household assignment under ideal conditions the pattern of equilibrium wage rates reflects the attributes of the cities involved see hoch 20 izraeli 23 cropper lo cropper and arriaga salinas 111 and rosen 31 as examples the purpose of this paper is to develop a model for wage rate differentials that includes both job and site characteristics and to estimate the model with a large micro data set our wage models provide estimates of a market clearing envelope which includes each of two types of past analyses as a

hedonic prices and the benefits of public projects s scotchmer has shown that even if the population is homogeneous hedonic prices do not correctly measure long run benefit s of a large public project this paper examines the direction of err ors and shows that the use of cross sectional land rent differentials leads to overestimation of the benefits the short run benefits with fixed lot size are also considered copyright 1988 by the econometric society

undocumented immigration and unemployment of u s youth and minority workers econometric evidence we use census based data on the state distribution of the undocumented alien population in analyzing the relationship between that population and unemployment among youth and minority workers in the united states regression results from our two equation models do not support commonly expressed fears that undocumented immigration has caused any substantial increases in joblessness among these presumably vulnerable groups although small amounts of displacement are indicated a sizeable reverse effect is evident undocumented immigrants tend to concentrate in states where labor markets for these marginal groups are most favorable excerpt

how to measure labour market effects of immigration a review abstract this paper surveys available empirical evidence on labour market effects of immigration many different approaches have been used already to try to find out whether immigration hurts the labour market opportunities of natives no doubt new approaches will follow in the future as globalization will keep the migration issue on the agenda this literature review discusses the different approaches concentrating on both the methodology and the results at the end it tries to summarize available evidence

the intergenerational effects of compulsory schooling this article attempts to improve our understanding of the causal processes that contribute to intergenerational immobility by exploiting historical changes in compulsory schooling laws that affected the educational attainment of parents without affecting their innate abilities or endowments we examine the influence of parental compulsory schooling on children s grade for age using the 1960 1970 and 1980 u s censuses our estimates indicate that a 1 year increase in the education of either parent reduces the probability that a child repeats a grade by between 2 and 4 percentage points

technological change in u s jet fighter aircraft this paper quantitatively measures technological change in u s jet fighter aircraft from 1944 to the present day using the hedonic pricing approach the technical and performance characteristics of jet fighters have changed dramatically between the time they were first developed at the beginning of the 1940s and the present parallel to this technological change there has been a sharp escalation in costs regarding the new generations of jet fighter aircraft we estimate a measure of price for the performance and technical characteristics of these aircraft embodied technological change in jet fighter airframes is measured using quality adjusted prices although the flyaway cost of jet fighter aircraft has soared on average by about 12 63 per year the quality adjusted aircraft cost has only risen by about 2 6 per year a figure lower than the average observed general inflation rate for the period around 4 this represents an impressive average technological progress ratio of around 10 per year a revealed preferences argument shows that the characteristic most valued by the government is stealth capability followed by advanced avionics

brothers household financial markets and savings rate in china abstract this study analyzes the effect of the number of brothers an individual has on that individual s household savings rate under the current underdeveloped household financial market in urban china i show that having an additional brother reduces an individual s household savings rate by at least 5 percentage points brothers help households 1 by sharing risks providing a source of informal borrowing and 2 by sharing the cost of supporting parents sisters play a minor role in affecting a household s savings rate mainly because of cultural norms the decline in the average number of brothers in households induced by population policies explained at least one third of the increased aggregate household savings rate in urban china

are there increasing returns to the intergenerational production of human capital information on ability and achievement test scores of sibling children many of whom had mothers who continued their schooling between births is used to test the hypothesis that maternal schooling augments the production of children s human capital that there are increasing returns to human capital estimates from models that take into account heterogeneity in maternal endowments could not reject this hypothesis and suggest benefits to postponed childbearing in particular they suggest that postponement of the initiation of childbearing by two years among women who are tenth graders would result in a 5 percent increase in their children s achievement test scores

hedonic price functions and the measurement of preferences the case of swedish wine consumers abstract a hedonic price function for wine is estimated using swedish data 1989 1991 implicit prices for quality attributes are determined not from a regression of variety price on a vector of quality attributes but rather from a regression of quantity sold adjusted for weeks of availability on price and quality attributes such a reduced form is justified by the assumption that prices and attribute contents can be taken as exogenous to the swedish consumer price elasticity is estimated to be about 1 65 holding quality constant showing that swedish consumers are highly sensitive to price estimates of the implicit valuations of quality attributes are shown to differ greatly from those obtained from the more usual hedonic regression with price as the dependent variable

consumer sorting and hedonic valuation of wine attributes exploiting data from a field experiment this article uses a novel experimental approach to measure consumer willingness to pay wtp for wine attributes we invited customers of a local supermarket who had selected a bottle of wine to purchase to participate in a valuation experiment integrating their original wine choice into the experiment each participant evaluated six alternative wines generating a rich set of data on willingness to pay and consumer characteristics the data from the experiment allow us to compare standard shelf price based wine attribute valuation estimates with estimates using wtp data and an increasing amount of information about individual consumers the full model employs individual fixed effects to estimate wtp parameters without bias from consumer sorting or supply side influences our wtp estimates for wine attributes differ markedly from previous attribute value estimates consumers in our sample display clear and stable preferences for wine varieties but less clear preferences for appellations our results suggest caution is needed in using market prices to estimate parameters of the consumer valuation function for product attributes

new estimates of quality of life in urban areas implicit markets capture compensation for intraurban and interregional differe nces in amenities and yield differences in housing prices and wages these pecuniary differences become preference based weights in a qual ity of life index hedonic equations are estimated using microdata fr om the 1980 census and assembled county based amenity data on climati c environmental and urban conditions ranking of 253 urban counties reveals substantial variation within as well as among the 185 urba n areas the quality of life differences across counties within one s msa is almost one half of the difference between the top and bottom ranked counties in the nation copyright 1988 by american economic association

price premium for high efficiency refrigerators and calculation of price elasticities for close substitutes a methodology using hedonic pricing and demand systems this article uses the hedonic pricing method to estimate the price premium paid for the highest energy efficiency label a in the refrigerators market of the basque autonomous community spain the estimated figure is 8 9 of the final price or about 60 euro which represents one third of the energy savings that a consumer gets during the lifetime of a refrigerator with the highest energy efficiency label this figure is then combined with the linear version of the almost ideal demand system la aids to obtain own and cross price elasticities of demand the information presented here is useful for policy design and analysis the results indicate that the demand for refrigerators with the highest energy efficiency label is highly sensitive to price variations

rethinking new wines implications of local and environmentally friendly labels abstract new wine production areas around the world are encountering challenges in creating a reputation for high quality products in order to help these new wine growing areas numerous labeling programs claiming local origin and environmentally friendly practices are being implemented in this study consumer response toward wine grown in a new production area such as colorado is researched using an interval probit model the mean willingness to pay wtp for colorado environmentally friendly and colorado regular wines are calculated in summary the results in this paper highlight the need to improve quality perceptions to garner a premium in differentiated wine markets as a consequence environmentally friendly labeling in wine is an inefficient marketing tool for wines perceived as low quality

novelty preferences and fashion when goods are unsettling abstract there is a whole class of goods those semi durable and durable conveniences for which efficiency and functionality seem not to be the main characteristics of appeal but rather the variability they display in their design properties and in their connections with other goods these goods have not been much dealt with in economics yet these are the goods whose new variants households seem to consume in numbers to which consumers become addicted and in which fashions appear and disappear in this paper i offer a framework for understanding these phenomena without having to resort to one or another form of irrationality on the part of consumers the rationality i suggest however has to include also the cognitive and affective problems that arise when novelty appears

time use during the great recession using data from the american time use survey between 2003 and 2010 we document that home production absorbs roughly 30 percent of foregone market work hours at business cycle frequencies leisure absorbs roughly 50 percent of foregone market work hours with sleeping and television watching accounting for most of this increase we document significant increases in time spent on shopping child care education and health job search absorbs between 2 and 6 percent of foregone market work hours we discuss the implications of our results for business cycle models with home production and non separable preferences jel codes d13 e32 j22

estimating the demand for the characteristics of housing a hstract estimates of the demand for the characteristics contained in a differentiated product such as housing can be based on hedonic regressions however previous studies have not dealt with several potential problems in such estimation a more appropriate framework for the estimation is provided in this paper also data from a number of cities are used to eliminate the identification problem and the endogeneity of the marginal prices derived from non linear hedonic equations is considered in the estimation the results on own and cross price elasticities expenditure elasticities and the effects of socio economic vafiables accord well with expectations

the political economy of immigration law impact of simpson rodino on the united states and mexico about two years ago the united states passed the immigration reform and control act also called the simpson rodino bill of 1986 the act called for increased enforcement of migration policy employer sanctions and amnesty for those who could prove continuous residence since 1982 despite considerable discussion and debate prior to the act the legislation was passed without any comprehensive economic analysis of its potential impact on the united states or its main source of undocumented immigration mexico notwithstanding the politically charged atmosphere surrounding the bill the sense among many in congress and the white house that we need to restore control over our borders and the determination by mexico to stay out of what it regarded as a domestic u s legislative matter the absence of attention to basic economics in a bill so fundamental to the performance of both countries was surprising in this paper we shall look at some implications of the recent immigration law for both economies given their widely differing levels of income and productivity the challenges each faces to restructure its economy given increased international competitiveness and the particular problems and opportunities presented by a common border with growing labor market interdependence by our calculations the economic opportunity cost of simpson rodin o as compared to continuation of the prior status quo will add up to a present value of 110 billion between now and the year 2000 a general equilibrium approach to the problem of migration policy indicates that the united states has even more to gain than mexico from greater accessibility to mexican labor in the next decade than simpson rodino would permit however the gains to capital and the majority of higher skilled workers would be partially offset by slower earnings growth for the lowest 10 percent of its wage earners mexico on the

the use of expert opinion quality and reputation indicators by consumers evidence from the french vaulting stallion semen market we build a model inspired by the standard hedonic approach developed by rosen 1974 and completed by landon and smith 1997 1998 to analyse the price of french vaulting stallion semen in 2004 we show that reputation modelled as an endogenous factor plays a less important role than information on true quality for the explanation of price dispersion this result is explained by the fact that information on studhorses is not only available but also reliable insofar as the quality of a stallion is stable over time contrary to nondurable products like wine or cigars this explains also why consumers on this market do not use expert opinions to make their choices

the economics of nested names name specificity reputations and price premia a good can be identified by its region or country of origin the firm that produces it and its product name in other words names can nest within each other to categorize goods with increasing specificity this article develops a conceptual framework for jointly analyzing the effect of product firm and collective reputations on market price the model is estimated via quantile regression with california wine market data the results portray how the structure and relative importance of reputations change as product prices vary specifically reputation premia migrate from collective to specific names as prices increase

credit constraints job mobility and entrepreneurship evidence from a property reform in china this paper provides new evidence on the impact of private property rights on entrepreneurship i explore this issue in the context of a housing reform in urban china that allowed state employees renting state owned housing the opportunity to buy their homes at subsidized prices using the reform as an exogenous change in the capital constraints and mobility costs that inuence individuals entry

modeling winegrape prices in disequilibrium this article presents an econometric model of winegrape prices which recognizes the existence of demand and supply imbalances in the australian market a markets in disequilibrium framework is employed to motivate modeling price changes as responding to variations in excess demand solidus supply the disequilibrium price equation provides estimates of regional and varietal price discounts solidus premiums and a measure of the speed of disequilibrium price adjustment the equilibrium assumption is rejected for the market and substantial differences between equilibrium and disequilibrium estimates point to the inaccuracies of assuming market clearing disequilibrium estimates point to significant differences between warm and cool regions and changing speed of disequilibrium adjustment over time

wine market prices and investment under uncertainty an econometric model for bordeaux crus classes this paper describes an econometric assessment of wine market prices for 21 of the crus classes ch teaux in the bordeaux region of france the model developed in the analysis attempt to define the relationship between factors that influence wine quality and those that influence wine prices characteristics of the models are 1 climate influences on grape composition acid and sugar levels 2 grape composition influences on market prices 3 subjective quality evaluations parker points on market prices and 4 the effects of age of the wine on market prices the results indicate that composition levels of merlot dominated wines are more climate sensitive than those from cabernet sauvignon dominated wines overall warm dry summers result in high sugar and low acid levels at harvest which in turn lead to higher quality wines wine market price sensitivity to parker point ratings indicates that properties with high cabernet sauvignon dominated wines are highly dependent on the external ratings while merlot dominated wines have a decreased rating sensitivity smaller properties tend to gain over proportionally from high ratings indicating great jumps in price from year to year additionally ch teaux that have experienced high ratings for past vintages exhibit great sensitivity to point steps in ratings for current vintages aging has a positive effect on bordeaux wine pricing this is due to the increasing maturity as well as the increasing absolute scarcity absolute scarcity of product is expressed by the size of the property with small properties producing less per vintage and therefore having less in the market additionally merlot dominated wines exhibit more maturing potential and profit more from aging than cabernet sauvignon dominated wines average per ch teau real annual profit ranges from 1 to 10 high levels of grape ripeness absolute scarcity and smaller properties that are dominated by merlot in their blend lead to the highest profits forecasts for a vintage not yet on the market indicates that 1995 is better than 1994 for both cabernet sauvignon and merlot dominated wines but that 1996 and 1997 are not as good as 1995 especially for merlot dominated wines 2001 elsevier science b v all rights reserved

welfare based income insecurity in the us and germany evidence from harmonized panel data this paper develops normative approaches for measuring individual level income insecurity using concepts derived from expected utility theory and prospect theory we build a suite of measures designed to capture various facets of psychologically distressing income risk we present an application for the us and germany from 1993 2013 employing conditionally heteroskedastic fixed effects models to generate predictive densities for future incomes our results reveal much higher levels of income risk in the us relative to germany which can be mostly attributed to a higher level of autonomous time invariant volatility state by state variations in liberal conservative political administrations partially explain our results and we find some evidence that trade exposure is a contributing factor in the us

key market values for bottled wine in an emerging market product attributes or business strategy this article focuses on the emerging bottled chilean red wine market and studies the main determinants of the consumer price of wine sold on the domestic market a hedonic price function was estima

the dynamics of population growth differential fertility and inequality studies of population growth relative to income distribution from single equation and simultaneous equation models have shown that higher population growth rates increase inequality the reasons for this inequality contain important welfare issues including the fact that different income groups grow at different rates with lower income the fastest the differential fertility of the income groups complicates these issues the lorenz curve has often been used as a foundation of the theory of inequality comparisons and uses cumulative shares of income as a function of cumulative shares of population the mortality rates age of new entrants and the mobility across income groups must be factored in these can be analyzed simultaneously using a multistate life table which describes simultaneous transitions across age groups and states data from brazil was used to test whether increase in the fertility rates of the poor would affect income inequality the results indicate a 100 increase in the fertility of the poor which increases the percentage of poor in the equal fertility case there were decreases in the percent of poor from the original number these results confirm that inequality measures can give conflicting signals and could be inconsistent with real changes in relative welfare analyzing relationships between population growth and inequality is difficult and standard measures are inadequate to test hypotheses about the distribution effects of migration or high fertility it appears to be impossible to differentiate changes in population make up from changes in economic status

combining farrell frontier and hedonic travel cost models for valuing estuarine quality a 1992 survey of tennessee anglers was used to determine who is fishing and how often the species they fish for and how anglers perceive the regulatory structure the results are based on telephone interviews with 450 active licensed an glers nearly 81 of the anglers visited a tennessee reservoir in 1992 while 41 fished warm water streams 28 farm ponds and 22 trout streams over 60 pre ferred separate regulations for reservoirs active reservoir fishermen were more likely to support individual regulations the participants were evenly split on whether a proposed regulation which has public support should be imposed even if the manage ment agency does not feel the fishery would benefit eighty percent of the anglers indicated that existing fishing regulations were not complicated proc annu conf southeast assoc fish and wildl agencies 47 767 774 proper administration of fishery resources requires management authorities to have knowledge of the angler population served by the management agency specifically authorities should be aware of the type and intensity of angler activi ties and understand angler preferences concerning existing and proposed management alternatives to the degree that certain types of fishermen are less likely to support management policies authorities should target educational pro grams specifically at non supportiv e anglers to gain greater public support for biologically viable management strategies this study uses data gathered from a survey of tennessee anglers to deter mine who is fishing and how often the species they are targeting and how anglers perceive the regulatory structure we report the demographic factors of anglers which exhibit statistically significant relationships to angler support for the current

efficient estimation of hedonic inverse input demand systems this article is concerned with efficient estimation of characteristics demand we derive and estimate an inverse input demand system for quality characteristics by using 172 946 observations over 881 trading days in the icelandic fish auctions an improved estimation method based on an expanded random coefficient model is suggested as an alternative to the currently used two stage method of brown and rosen the estimates demonstrate the improved efficiency of the suggested method a number of empirical results emerge including a general increase in the demand for quality the purpose of hedonic price analysis is to determine how the price of a unit of a commodity varies with its characteristics that is to estimate the hedonic price function some recent examples of the estimation of hedonic price functions are nerlove combris lecocq and visser and mcconnell and strand however theory predicts that shifts in supply or demand affect the implicit price relationships between the overall price of the good and its individual characteristics and so we need to estimate the underlying demand and supply functions for the characteristics rosen developed a two stage method for analyzing hedonic markets in the first stage of this method the hedonic price function is estimated and in the second stage a system of demand and supply functions for characteristics is estimated using the shadow prices of the characteristics from the first stage as variables brown and rosen showed that this procedure could yield estimates of demand and supply functions that are mere transformations of the coefficients in the hedonic function they suggested the currently used two stage method using data from multiple markets this method utilizes the within market variation to iden

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

shine bright like a diamond a hedonic model of grading and pricing an experience good diamonds are generally evaluated on the basis of sensory characteristics such as carat weight colour clarity and cut however given the experience goods nature of diamonds few consumers grasp how the sensory characteristics of these stones are evaluated by the gemological grading laboratories that independently issue diamond reports this study extends prior research by determining whether diamonds graded by certain gemological laboratories are subject to pricing premiums or discounts in online retail markets regression models employing a sample of 169 483 real time diamond offerings from online diamond retailers e g blue nile james allen and adiamor find significant price discounts attributable to diamonds graded by the european gemological laboratory usa in relation to diamonds graded by the gemological institute of america gia and significant price premiums attributable to diamonds graded by the american gem society in relation to diamonds graded by the gia

estimation of a hedonic price equation for bordeaux wine does quality matter in this paper the hedonic price technique is applied to bordeaux wine in the hedonic price function we include not only the objective characteristics appearing on the label of the bottle but also the sensory characteristics of the wine our data come from an experimental study in which juries have evaluated and graded a sample of bordeaux wines the estimation of the hedonic price equation shows that the market price is essentially determined by the objective characteristics the estimation of a jury grade equation shows that quality unlike the market price is essentially determined by the sensory characteristics

what to show on the wine labels a hedonic analysis of price drivers of sicilian wines unlike previous literature we construct a hedonic model of wine price that incorporates all the main categories of variables simultaneously to enable a better evaluation of their importance on wine price formation a comprehensive model has the advantage of providing more reliable estimates of the attributes implicit prices thereby facilitating firms pricing and improving effectiveness of wine production and marketing decisions we utilize two different datasets of sicilian wines collecting data from influential wine guides our results suggest that wine price strongly depends on objective features such as vintage alcoholic content geographical origin grape variety producer size and cellaring potential in addition use of containers like tonneaux and barrique positively affects prices whereas use of concrete containers has a negative influence no univocal indications emerge with regard to the effect of the type of company type of viticulture and firm age as for sensorial characteristics our a

incorporating nutrients into meat demand analysis using household budgets data the objective of this article is to analyze the spanish demand for meat taking into account the consumer s concern about the relationship between food diet and health this concern is forcing food demand analysts to assume that consumer utility is a function of nutrients instead of simply the food products themselves nevertheless these utility function arguments are not produced in the marketplace but rather at home as a consequence in this article household production theory is followed in order to analyze spanish demand for meat using the quarterly national expenditure survey for 1999 demands for several meat products the input in the model are derived from the translog cost function censored regression models are used in the estimation process since many zero responses are reported five broad categories eight nutrients and the most relevant socioeconomic variables are considered finally a set of elasticities is calculated with respect to all the variables included in the analysis

hedonic prices and implicit markets estimating demand and supply functions for differentiated products in choosing the level of quality to purchase the buyer of a differentiated product also chooses a point on the marginal price schedule for that product hence in general the demand functions for product characteristics cannot be consistently estimated by ordinary least squares market equilibrium results in a matching of characteristics of demanders and suppliers this matching restricts the use of buyer and seller characteristics as instruments when estimating demand and supply functions for product characteristics the paper develops these issues a stochastic structure for hedonic equilibrium models is then proposed identification results are presented and estimation procedures are outlined

the shattered iron rice bowl intergenerational effects of chinese state owned enterprise reform reform of the chinese state owned enterprise soe sector in the late 1990s triggered massive layoffs 34 million employees and marked the end of the iron rice bowl guarantee of employment security for the remaining 67 million workers an expanding international literature has documented the adverse health impacts of economic insecurity on adults but has typically neglected children this paper uses the natural experiment of soe reform to explore the causal relationship between increased parental economic insecurity and children s bmi z score using province year level layoff rates and income loss from the layoffs we estimate a generalised difference in differences model with child fixed effects and year fixed effects for a medium build 10 year old boy a median treatment effect implies a gain of 1 8 kg and a 2 2 percentage point increase in the overweight rate due to the reform anxiety about potential losses causes weight gain for boys whose soe parents kept their jobs unconditional quantile regressions suggest that boys who are heavier are more likely to gain weight girls are not significantly affected intergenerational effects therefore increase the estimated public health costs of greater economic insecurity