title: Behavioural Economics: The Inferior-Good Effect

authors: Messick, Eric Michael

subjects: behavioural economics

abstract: These experiments used 15 domestic hens to investigate the inferior-good effect, a decrease in consumption of a commodity as income increases.  Experiment 1 investigated plain and salted wheat to serve as superior goods (opposite to inferior goods) and inferior goods.  Hens consumed mostly plain wheat when given ad-libitum access so it was the intended superior good and salted wheat was the intended inferior good.  In the next experiments, 3 s of plain wheat and 10 s of salted wheat were available for single responses on 2 keys during discrete trials.  Income changed by changing the inter-trial interval (ITI) of fixed-length sessions or the total number of trials.  Experiment 2 partially replicated the Silberberg et al. (1987) procedure, using the ITI income analogue for 6 hens.  When income increased, 4 hens sometimes responded less on the salted-wheat key (demonstrating the inferior-good effect), 2 of these hens and a 5th hen sometimes responded more on both keys but proportionally more on the plain-wheat key (termed here as a relative inferior-good effect).  Experiment 3a partially replicated the Hastjarjo et al. (1990a) procedure using the total-trials analogue for 7 other hens.  The inferior-good effect occurred across some conditions for 2 hens while other hens tended to respond on the plain-wheat key, suggesting lack of contingency contact.  When a 60-s ITI was added in Experiment 3b, variability increased for most hens, but only 1 hen showed the effect, 1 of the hens that did so in Experiment 3b.  These 6 hens' (1 died) 80% bodyweights were re-assessed in Experiment 4 and hens were below 80% during Experiments 3a and 3b, suggesting that the lack of the inferior-good effect was not due to some hens being at high weights.  The ITI analogue was used for these 6 hens in Experiment 5 and the effect occurred for 2 hens.  Experiment 6 added forced-choice trials to the total-trials analogue (with 60-s ITI) to guarantee contingency contact.  The inferior- and/or relative-inferior-good effect occurred for 3 hens.  Across Experiments 2 through 6, body weights were usually heavier in high-income conditions and a within-session pattern of early-salted-late-plain responding occasionally occurred.   Crop capacities  of 5 Experiment-2 hens and a new hen (1 died) were assessed in Experiment 7 and there was no relation between this measure and inferior-or relative-inferior-good effects.  Experiments 8 and 9 examined effects of pre- and post-feed in low-income conditions using the ITI analogue.  When hens were pre-fed, responding for 5 of 7 hens resembled responding in high-income conditions of Experiment 2 with more plain-wheat responding and similar or less salted-wheat responding in some conditions (behaviour similar to the inferior- and relative-inferior-good effects, but without the income change).  A similar pattern was found for 4 of 5 hens when hens were post-fed in Experiment 9, suggesting that food in the digestive tract may have played a role, and perhaps not the income manipulations themselves, where it (or other component of body weight) may have abolished quantity (i.e., the intended-inferior-good) as a reinforcer.  Although these experiments occasionally demonstrated inferior- and relative-inferior-good effects, but less convincingly than published studies, the effects of income may have been non-specific.  The usefulness of the inferior-good concept and other income-related economic concepts are thus challenged.

text: Behavioural Economics: The Inferior-Good Effect These experiments used 15 domestic hens to investigate the inferior-good effect, a decrease in consumption of a commodity as income increases.  Experiment 1 investigated plain and salted wheat to serve as superior goods (opposite to inferior goods) and inferior goods.  Hens consumed mostly plain wheat when given ad-libitum access so it was the intended superior good and salted wheat was the intended inferior good.  In the next experiments, 3 s of plain wheat and 10 s of salted wheat were available for single responses on 2 keys during discrete trials.  Income changed by changing the inter-trial interval (ITI) of fixed-length sessions or the total number of trials.  Experiment 2 partially replicated the Silberberg et al. (1987) procedure, using the ITI income analogue for 6 hens.  When income increased, 4 hens sometimes responded less on the salted-wheat key (demonstrating the inferior-good effect), 2 of these hens and a 5th hen sometimes responded more on both keys but proportionally more on the plain-wheat key (termed here as a relative inferior-good effect).  Experiment 3a partially replicated the Hastjarjo et al. (1990a) procedure using the total-trials analogue for 7 other hens.  The inferior-good effect occurred across some conditions for 2 hens while other hens tended to respond on the plain-wheat key, suggesting lack of contingency contact.  When a 60-s ITI was added in Experiment 3b, variability increased for most hens, but only 1 hen showed the effect, 1 of the hens that did so in Experiment 3b.  These 6 hens' (1 died) 80% bodyweights were re-assessed in Experiment 4 and hens were below 80% during Experiments 3a and 3b, suggesting that the lack of the inferior-good effect was not due to some hens being at high weights.  The ITI analogue was used for these 6 hens in Experiment 5 and the effect occurred for 2 hens.  Experiment 6 added forced-choice trials to the total-trials analogue (with 60-s ITI) to guarantee contingency contact.  The inferior- and/or relative-inferior-good effect occurred for 3 hens.  Across Experiments 2 through 6, body weights were usually heavier in high-income conditions and a within-session pattern of early-salted-late-plain responding occasionally occurred.   Crop capacities  of 5 Experiment-2 hens and a new hen (1 died) were assessed in Experiment 7 and there was no relation between this measure and inferior-or relative-inferior-good effects.  Experiments 8 and 9 examined effects of pre- and post-feed in low-income conditions using the ITI analogue.  When hens were pre-fed, responding for 5 of 7 hens resembled responding in high-income conditions of Experiment 2 with more plain-wheat responding and similar or less salted-wheat responding in some conditions (behaviour similar to the inferior- and relative-inferior-good effects, but without the income change).  A similar pattern was found for 4 of 5 hens when hens were post-fed in Experiment 9, suggesting that food in the digestive tract may have played a role, and perhaps not the income manipulations themselves, where it (or other component of body weight) may have abolished quantity (i.e., the intended-inferior-good) as a reinforcer.  Although these experiments occasionally demonstrated inferior- and relative-inferior-good effects, but less convincingly than published studies, the effects of income may have been non-specific.  The usefulness of the inferior-good concept and other income-related economic concepts are thus challenged.

year: 2007

title: Measurement error in long-term retrospective recall surveys of earnings

authors: Gibson, John

subjects: longitudinal data

abstract: Several recent studies in labour and population economics use retrospective surveys to substitute for the high cost and limited availability of longitudinal survey data. Although a single interview can obtain a lifetime history, inaccurate long-term recall could make such retrospective surveys a poor substitute for longitudinal surveys, especially if it induces non-classical error that makes conventional statistical corrections less effective. In this paper, we use the unique Panel Study of Income Dynamics Validation Study to assess the accuracy of long-term recall data. We find underreporting of transitory events. This recall error creates a non-classical measurement error problem. A limited cost-benefit analysis is also conducted, showing how savings from using a cheaper retrospective recall survey might be compared with the cost of applying the less accurate recall data to a specific policy objective such as designing transfers to reduce chronic poverty.

text: Measurement error in long-term retrospective recall surveys of earnings Several recent studies in labour and population economics use retrospective surveys to substitute for the high cost and limited availability of longitudinal survey data. Although a single interview can obtain a lifetime history, inaccurate long-term recall could make such retrospective surveys a poor substitute for longitudinal surveys, especially if it induces non-classical error that makes conventional statistical corrections less effective. In this paper, we use the unique Panel Study of Income Dynamics Validation Study to assess the accuracy of long-term recall data. We find underreporting of transitory events. This recall error creates a non-classical measurement error problem. A limited cost-benefit analysis is also conducted, showing how savings from using a cheaper retrospective recall survey might be compared with the cost of applying the less accurate recall data to a specific policy objective such as designing transfers to reduce chronic poverty.

year: 2007-03

title: Investment in Authentic Sustainable Cultural Tourism : Planning for the Future Benefit of Waikato-Tainui along the Waikato River, Case Studies at Tūrangawaewae and Te Awamārahi Marae

authors: Cooper, Mei Te Werawera Te Reokaha

abstract: “Tērā ōkū hoa kei ngā tōpito e whā o te ao - My friends will come from all parts of the world” – Kīngi Tāwhiao 1822-1894

This doctorate is guided by the visions of the second Māori king, Kīngi Tāwhiao, which reflect the importance of global connections, relationships (Turongo House, 2000:109) and investment to achieve the ultimate goal of authentic or ‘true’ sustainability throughout the world.  The strategic process will require a balance between humans and the natural environment to ensure long-term growth and survival.  This research will investigate whether investment in Authentic Sustainable Cultural Tourism (ASCT) will provide long-term and sustainable benefits for tribes throughout New Zealand, using a study of Waikato-Tainui.  ASCT, if practiced correctly, must be driven by whānau of marae, hapū and iwi alongside ideal long-term partners to ultimately achieve indigenous autonomy. ASCT prioritises the wellbeing of indigenous and local communities, cultural preservation and environmental sustainability while providing secure economic returns to key stakeholders. 

Today, tourism is New Zealand’s largest and fastest growing industry; total tourism expenditure is forecast to increase from $34.7b in 2016, an increase of 12.2% from the previous year, to $41b by 2025.  The natural landscape is the main reason why international travellers visit New Zealand, followed by an interest in Māori culture (Tourism Industry Association, 2015).  Unfortunately, there is sparse funding for Māori tourism development (New Zealand Māori Tourism, 2015; Goulter, 2015) compared to mainstream tourism and Māori are the most impoverished people in New Zealand (Statistics New Zealand, 2011).  Cultural tourism has existed in New Zealand for more than 150 years and has a vital role in New Zealand’s tourism industry.  Te Kīngitanga and the Waikato River are the main aspects that make Waikato unique in New Zealand, however, there is very little cultural tourism in the region.  As a descendant of Waikato-Tainui, I work with my people at the marae level to inform tribal governance about the significant opportunities available to whānau compared to current mainstream investments by the tribe. 

Using Kaupapa Māori and critical realism, the methods used in this research include an investigation of government tourism organisations, interviews with Waikato-Tainui governance groups, case studies at Tūrangawaewae and Te Awamārahi Marae, case studies at fourteen successful Māori tourism providers throughout New Zealand, and an international comparison of best practices in indigenous tourism.

text: Investment in Authentic Sustainable Cultural Tourism : Planning for the Future Benefit of Waikato-Tainui along the Waikato River, Case Studies at Tūrangawaewae and Te Awamārahi Marae “Tērā ōkū hoa kei ngā tōpito e whā o te ao - My friends will come from all parts of the world” – Kīngi Tāwhiao 1822-1894

This doctorate is guided by the visions of the second Māori king, Kīngi Tāwhiao, which reflect the importance of global connections, relationships (Turongo House, 2000:109) and investment to achieve the ultimate goal of authentic or ‘true’ sustainability throughout the world.  The strategic process will require a balance between humans and the natural environment to ensure long-term growth and survival.  This research will investigate whether investment in Authentic Sustainable Cultural Tourism (ASCT) will provide long-term and sustainable benefits for tribes throughout New Zealand, using a study of Waikato-Tainui.  ASCT, if practiced correctly, must be driven by whānau of marae, hapū and iwi alongside ideal long-term partners to ultimately achieve indigenous autonomy. ASCT prioritises the wellbeing of indigenous and local communities, cultural preservation and environmental sustainability while providing secure economic returns to key stakeholders. 

Today, tourism is New Zealand’s largest and fastest growing industry; total tourism expenditure is forecast to increase from $34.7b in 2016, an increase of 12.2% from the previous year, to $41b by 2025.  The natural landscape is the main reason why international travellers visit New Zealand, followed by an interest in Māori culture (Tourism Industry Association, 2015).  Unfortunately, there is sparse funding for Māori tourism development (New Zealand Māori Tourism, 2015; Goulter, 2015) compared to mainstream tourism and Māori are the most impoverished people in New Zealand (Statistics New Zealand, 2011).  Cultural tourism has existed in New Zealand for more than 150 years and has a vital role in New Zealand’s tourism industry.  Te Kīngitanga and the Waikato River are the main aspects that make Waikato unique in New Zealand, however, there is very little cultural tourism in the region.  As a descendant of Waikato-Tainui, I work with my people at the marae level to inform tribal governance about the significant opportunities available to whānau compared to current mainstream investments by the tribe. 

Using Kaupapa Māori and critical realism, the methods used in this research include an investigation of government tourism organisations, interviews with Waikato-Tainui governance groups, case studies at Tūrangawaewae and Te Awamārahi Marae, case studies at fourteen successful Māori tourism providers throughout New Zealand, and an international comparison of best practices in indigenous tourism.

year: 2018