A comparison of the effect of retail purchase and direct marketing on the endowment effect

This article reports on a study comparing the effect of the retail and direct marketing channels of delivery on the endowment effect. The results demonstrated the endowment effect for both retail and direct marketing channels of product delivery. In addition, in the direct marketing channel, the endowment effect was strengthened by the physical, tangible possession of products at the point of product receipt compared to its virtual possession value at the point of purchase. In the retail channel of delivery, confirming consumer expectation with the possession of the product at the point of purchase resulted in the strengthening of the endowment effect compared to the unexpected out‐of‐stock retail situation. Contrary to expectations, the duration of the product possession did not affect product valuation. Managerial implications are discussed. © 2006 Wiley Periodicals, Inc.     

Trade Flows,Exchange Rate Uncertainty,and Financial Depth: Evidence from 28 Emerging Countries

This article investigates the effects of real exchange rate uncertainty on manufactures exports from 28 emerging economies, representing 82% of all developing country manufactures exports, and explores the sources of heterogeneity in the uncertainty effects by controlling for the direction of trade (south‐north or south‐south), and the level of financial development of the exporting country. The empirical results show that for more than half of the countries, the uncertainty effect is unidirectional, either south‐south or south‐north, and the median impact is negative. In addition, while we find that financial development augments trade, exchange rate shocks can negate this effect. Last but not least, trade among developing economies improves export growth under exchange rate shocks.     

Diffusion of a new product under network effects: the US DVD market

We formulate a model that captures the inter-dependence between hardware demand and software supply – indirect network effect – in the DVD industry. The identification of the network effect comes from the difference in software availability across two different formats: VHS and DVD. We find that a 1% increase in the number of DVD titles raises the demand for DVD players by 0.87%. Simultaneously, a 1% increase in video player ownership leads to a 0.14% increase in the variety of video titles. Our simulations show that hardware manufacturers might be able to internalize the network externality to increase total industry revenues.     

The effects of the military in politics on the inbound tourism: evidence from Turkey

In this paper, we analyze the effects of the military in politics on the number of tourist inflows from 71 countries to Turkey for the period from 1984 to 2014. We use the fixed-effects and the random-effects as well as the dynamic generalized methods of moments estimations. We find that a lower level of the relative military in politics (the difference between the source country and Turkey) positively affects the tourism inflows to Turkey. Specifically, one standard deviation reduction in the index of the relative military intervention in politics in Turkey leads to almost 7% increase in the tourism inflows.     

The firm size,farm size,and transaction costs: the case of hazelnut farms in Turkey

This study analyzes the effects of transaction costs on the size of hazelnut farms in Turkey. The study finds that higher land slope and higher variance of rain, as transaction‐cost‐increasing natural effects, lead to smaller hazelnut land holdings. High slope and weather variation can increase the costs of monitoring the laborers, make moving inputs or output up and down harder, limit the use of machinery, and reduce contractual performance of labor contracts. For farm production functions, land is a complex input with measurable interactions with nature. Contrary to common production theory approaches that take natural properties of land as given, the study develops a production function that incorporates natural properties, such as, slope and rain variance. The study utilizes two separate data sets for the estimations. The first data set explores the characteristics of hazelnut farmers, while the second one analyzes the regional characteristics of hazelnut farms.     

Determining the property ownership on cadastral works in Turkey

The transformation process from state to civil ownership in Turkey was started at the end of the Ottoman Empire and continued until after the formation of Turkish Republic. In this process, in accordance with the Civil Code legislation, most land users who had been using state lands were regarded as owners of those lands. These parcels of real estate were used in various ways and it became necessary to register these properties by using a process called ‘written cadastre’. The initial process was slowed down during World War II but an intensive cadastral program was begun after the war in both urban and rural areas, particularly in 1950s. The cadastre work had two components called technical and legal. The definition of land ownership is the legal foundation of the cadastre. If properties have their titles, land ownership can be defined based on the title; otherwise the ownership can be defined according to statements by experts chosen from local people. However, without title or written evidence, determining the land ownership is more problematic. In this context, this study explains how the ownership of properties, with or without a title, is determined in cadastral work in Turkey.     

How do monetary operations impact tourism demand? The case of Turkey

All monetary operations such as revaluation and devaluation have some degree of impact on tourism demand at different significance levels. The purpose of this study was to explain how devaluation and revaluation affect tourism demand (domestic and international) and what the government should do to obtain the greatest benefits from them. Turkey has one of the fastest growing tourism industries in the world, and has been experiencing high inflation at a very significant level since the 1970s. The Turkish Government sometimes makes value adjustments on the Turkish national currency, the ‘Lira’, and these adjustments have influenced domestic and international tourism demand in Turkey. The case of Turkey is discussed specifically. Copyright © 2004 John Wiley & Sons, Ltd.     

Growth under exchange rate volatility: Does access to foreign or domestic equity markets matter?

Employing a firm-level dataset, this paper explores the effects of exchange rate volatility on the growth performances of domestic versus foreign, and publicly traded versus non-traded private manufacturing firms in a major developing country, Turkey. The empirical results using dynamic panel data estimation techniques and comprehensive robustness tests suggest that exchange rate volatility has a significant growth reducing effect on manufacturing firms. However, having access to foreign, and to a lesser degree, domestic equity markets is found to reduce these negative effects at significant levels. These findings continue to hold after controlling for firm heterogeneity due to differences in export orientation, external indebtedness, profitability, productivity, size, industrial characteristics, and time-variant institutional changes.