The Effects of Regulating Hidden Add‐On Costs

We examine the welfare effects of price and disclosure regulation in a model where firms can shroud add‐on costs, such as penalty fees for consumer financial products. Such regulation can increase or decrease welfare even when there are no direct costs. There are, however, strong complementarities between price controls and disclosure mandates: conditional on disclosure being mandated, price controls always (weakly) increase welfare, and conditional on prices being sufficiently constrained, disclosure mandates always (weakly) increase welfare.     

Access Regulation and the Timing of Infrastructure Investment

This paper examines infrastructure investment incentives under a system of 'regulation by negotiation'. We demonstrate that an appropriately specified access pricing rule can induce private firms to choose to invest at a socially optimal time. The optimal regulatory regime allocates investment costs to the access provider and seeker based on their relative use-values of the facility. It is superior to an unregulated environment because it commits firms ex ante to an access charge that allows for sunk cost recovery. In addition, we show that when the time that access is sought is flexible both replacement- and historical-cost asset valuation methodologies can lead to optimal investment incentives. However, when seeker timing is restricted, historical cost can give rise to distorted incentives.     

Non-market provision of food by low-income households

A model of food provision through growing, hunting or raising food was developed. Food supply was less of a problem for those who grew, raised or hunted their food than for others. Non-market food provision was a viable alternative for consumers regardless of educational levels, income levels and employment status. Home food production varied by other characteristics. There was not a significant difference between urban and rural households in some types of food provided. Results of this study can be helpful to professionals assisting households with resource use and to policy makers concerning policies to assist low-income consumers.     

Canadian academic accountants' productivity: A survey of 10 refereed publications, 1976–1989*

Abstract. In this paper we examine the productivity of Canadian academic accountants through analyses of articles published in 10 refereed journals between 1976 and 1989, inclusive. We report the numbers of articles by Canadian institutional affiliation cross-tabulated by subject area, whether theoretical or empirical, and by the journal in which articles appeared. Summary statistics are computed to identify the gross and per capita productivity of the institutions represented and to identify the 10 most productive researchers in this period as well as in the subperiods 1976–82 and 1983–89.     

An Australian Housing Model*

A 13-equation model is developed which captures the essential economic features of the housing industry in Australia. The importance of speculative builders and investors is recognized. Empirical results are presented for two key equations. The asset price of existing dwellings (including land) owned by persons is explained by a portfolio choice or generalized asset adjustment model. This asset price then feeds in as a determinant of new private construction, along with construction costs of new dwellings, financial variables and a measure of demand-supply imbalance.     

LITERACY AND THE CONSUMER

There is an increasing need for a minimum level of functional competence on the part of consumers and citizens. People must for the sake of their own, their families' and their communities' well-being be able to read and understand information, 60% of which is communicated in print. They must also be able to decode and follow instructions and labelling, and above all react appropriately to warnings. In all parts of the world there is a growing recognition that reading can provide the key to consumer competence, and that the desire for such competence is often a major motivation in seeking out literacy. Unfortunately, much of the information imparted by governments, industries and the professions cannot be absorbed by the majority of people because it is not expressed in ways and terms which they can generally understand. This paper examines some of the failures in consumer communications, which particularly affect those of low reading ability, and points the way to improvement.