A Stochastic Model with Penalized Coefficients for Spatial Price Comparisons: An Application to Regional Price Indexes in Italy

This paper focuses on a new strand of research that uses stochastic approach for making spatial price comparisons. We propose a novel method to account for the presence of spatial dependencies in consumer prices and consequently in price indexes by imposing penalization conditions on the estimation of traditional CPD models leading to the spatially-penalized country-product-dummy (SP-CPD) model. The paper proposes an appropriate estimation strategy, which enables us to simultaneously estimate all the parameters in the model, including the smoothing parameter of the penalization term instead of determining it externally. In order to estimate spatial price indexes for areas lacking in price data, we suggest applying the kriging methodology to the price indexes obtained from the SP-CPD model. This new approach is applied to official Italian CPI data for constructing regional spatial price indexes for 2014. The results show that price levels are higher in the Northern-Central regions than in the South.     

Positive versus negative comparative advertising

Two studies examined cognitive responses to comparative advertising that was valenced, i.e., was either negative or positive. Negative comparative advertising featured the advertised brand derogating the comparison brand (I'm OK, you're not OK). Positive comparative advertising claimed superiority over the comparison brand in a nonderogatory manner (You're OK, I'm more OK). Subjects were exposed to either a negative comparative ad or a positive comparative ad. In study 1, the ad featured either a high or low share advertised brand and either a high or low share comparison brand while in study 2, the ad featured advertised and comparison brands with either a strong or a weak reputation. Across both studies, it was found that negative comparative advertising evoked significantly higher counterargumentation and lower claim acceptance than its positive counterpart. Also, when the advertised brand had a high share relative to the comparison brand, counterargumentation was lower and claim acceptance was higher vis-a-vis when the advertised brand had a low share relative to the comparison brand. Findings pertaining to brand reputation were mixed. Managerial and future research implications of the findings are discussed.     

PROPERTIES OF OPTION PRICES IN MODELS WITH JUMPS

We study convexity and monotonicity properties of option prices in a model with jumps using the fact that these prices satisfy certain parabolic integro–differential equations. Conditions are provided under which preservation of convexity holds, i.e., under which the value, calculated under a chosen martingale measure, of an option with a convex contract function is convex as a function of the underlying stock price. The preservation of convexity is then used to derive monotonicity properties of the option value with respect to the different parameters of the model, such as the volatility, the jump size, and the jump intensity.     

Keep up with the winners: Experimental evidence on risk taking,asset integration,and peer effects

The paper reports the result of an experimental game on asset integration and risk taking. We find some evidence that winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the experiment affects risk taking. Controlling for past winnings, participants receiving a low endowment in a round engage in more risk taking. We test a ‘keeping-up-with-the-Joneses’ hypothesis and find that subjects seek to keep up with winners, though not necessarily with average earnings. Overall, the evidence suggests that risk taking tracks a reference point affected by social comparisons.     

Will future land based food and fibre production be in family or corporate hands? An analysis of farm land ownership and governance considering farmer characteristics as choice drivers. The New Zealand case

Family farming in various guises has been the dominant ownership and governance system in primary production over recorded history. This outcome has been controlled by farmers and their families, possibly due to tradition, opportunities, personal characteristics, skill sets and the nature of primary production. Of these, it is hypothesised that the farmers’ personal characteristics play a major part in the choice, and continuance, of current ownership and governance systems. Equally as important, they, and therefore the land ownership system, play a part in the efficiency of production systems and improvement of the biological and production environment.The benefits and difficulties of commonly used ownership systems in Western society are reviewed. Using a sample of New Zealand (NZ) farms, a comparison of the managers’ features for owner/operator, partnership and corporate based systems is presented. There were significant differences in many variables including the farmers’ age, education, number of children, asset levels, years on the current farm, and similar, but more importantly, the farmers in the ownership system groups had differing personal characteristics. Significantly, despite the corporate based farms employing more professional assistance, the profit levels were similar across ownership systems leaving the farmers’ characteristics the main factors correlating with system choice. However, governance systems per se are only marginally correlated with production systems and efficiency.As successive generations of farmers are unlikely to have different characteristics, and corporate based systems continue to exhibit similar profit levels, relatively simple family based systems will continue to dominate farm land ownership and control. The trends suggest family farms will increase in size and involve family conglomerates facilitating the management of larger, and in many cases multiple, farms. While currently there are few differences in biological efficiency between ownership systems, given the efficiency benefits of size and scale, this could well change with the increase of family conglomerates. Relative to increasing corporatisation, the continuance of family based ownership and governance will also be of benefit to the environment. When developing land policies, these highlighted relationships should be taken into account. This study is a first to consider personal characteristics relative to ownership.     

The relative income hypothesis

Despite its theoretical dominance, the empirical case in favor of the permanent income hypothesis is weak. Contrary to one of its basic implications, a growing body of evidence suggests that rich households save a higher proportion of their permanent income than poor households. We propose an overlapping-generations economy where households care about relative consumption. As a result, an individual's consumption is driven by the comparison of his lifetime income and the lifetime income of his reference group; a permanent income version of Duesenberry's (1949) relative income hypothesis. Across households the savings rate increases with income while aggregate savings are independent of the income distribution.     

北海市铁山港区近期供水工程输水管管材比选

文章介绍夹砂玻璃钢管与不同材质管道的优缺点。工程实践表明,在长距离输水工程中应用的夹砂玻璃钢管是一种具有轻便、强度高、易施工、造价低等优点的管材。     

The Role of Individualism/Collectivism in Critical Classroom Encounters

Abstract

Internationalization raises the issue of whether, and to what extent, the inherent culture of a country may have particular influence on the nature of service interactions, and on education (i.e., student-professor interactions) specifically. Thus the service encounter in the classroom becomes a subject of increasing importance and interest with respect to satisfactory and unsatisfactory outcomes, and also with respect to related behavioral outcomes such as word-of-mouth and repatronage. This paper investigates these issues in classrooms of higher education by utilizing the Individualism-Collectivism dimension of culture in four different samples: China, New Zealand, Poland, and the United States. Differences are identified with respect to the types of critical incidents reported, nature of the outcome, and behavioral responses to those encounters.     

Is Post-Communist Health Spending Unusual?

What factors determine a country's spending on health? And what factors determine the share of spending financed by the public sector? Taking these factors into account, is post-communist health spending unusual? For the OECD economies, we find that per capita health spending is strongly related to per capita income, with an elasticity of about 1.5. The elasticity for developing economies is close to one. Spending is also positively related to the elderly dependency rate, but the relationship is weaker than a static comparison of spending by the elderly and non-elderly would suggest. Even though health spending as a share of GDP in the post-communist countries of eastern and central Europe is below the OECD average, there is evidence of above normal health spending in most countries when we control for income and demographics. For Hungary, the ‘excess’ spending reached over three percentage points of GDP in 1994. For the OECD sample, four development indicators account for half the variation in the public sector share of total health spending. Political variables help explain the remainder. If the post-communist countries converge to the market economy pattern, the share of public financing will fall, yet still remain well above half.