Policy Determinants of School Outcomes under Model Uncertainty: Evidence from South Africa

In this paper, we assess the determinants of secondary school outcomes in South Africa. We use Bayesian model averaging techniques to account for uncertainty in the set of underlying factors that are chosen among a very large pool of explanatory variables in order to identify the subset of explanatory variables most strongly associated with the dependent variable. Our analysis indicates that the socio‐economic background of pupils, demographic characteristics such as population groups (Black and White), as well as geographical locations account for a significant variation in pupils’ achievement levels. We also find that the most robust policy determinants of pupils’ test scores are the availability of a library at school, the use of IT in the classroom as well as school climate.     

What’s behind organic certification of extra-virgin olive oil? A response from Italian consumers

Organic certification represents a growing business in international food market. In this article, an analysis of the factors influencing the purchase of organic extra-virgin olive oil is done for Italian consumers. A k-means cluster analysis was used to identify market segments. Results showed that it is possible to classify the Italian market into three clusters, respectively, indicating high, intermediate, and low willingness to pay a premium price (WTP) for organic certification of extra-virgin olive oil. Safety, nutritional, and health aspects appear to influence WTP. Factors concerning environmental sustainability and the supports to Italian food system are considered important, but do not play a fundamental role in increasing the consumer’s WTP.     

Absorptive capacity and R&;D tax policy: Are in-house and external contract R&;D substitutes or complements?

Firms fund research and development (R&;D) to generate commercializable innovations and to increase their ability to understand and absorb knowledge from elsewhere. This dual role and opposed incentive structure of internal R&;D create a significant question for both theory and R&;D policy: Is internal R&;D a complement or substitute for external R&;D? We develop a model and novel technique for empirically estimating R&;D substitution elasticities. We focus on bio-pharmaceutical and software industries in California and Massachusetts, where tax credit rates changed differently over time for the two types of R&;D, creating a natural experiment. The effective tax prices for the two R&;D types differ from type to type, firm to firm, state to state, and year to year. This allows us to examine changes in the composition of firms’ R&;D budgets between in-house R&;D and external basic research when the relative tax prices of each category of research change. We find evidence of a substitute relationship both for a sample comprising exclusively small firms as well as for a more general distribution of firm sizes.     

The impact of message appeal and message source on Gen Y consumers' attitudes and purchase intentions toward American Apparel

A 3 × 2 experimental design was used to examine the impact of message appeal (fair labor, sex, or a combination of fair labor and sex) and message source (company advertisements or third-party publicity) upon Gen Y consumers' (N = 258) intent to patronize the retailer, American Apparel. Results supported models of hierarchical effects of advertising on patronage intention as well as the inclusion of external variables in the theory of reasoned action. Findings revealed that Gen Y consumers' attitudes toward ad, attitudes toward brand, and purchase intentions toward American Apparel varied by exposure to message appeal in advertisements viewed. Participants' evaluations of source credibility, attitudes toward brand, and purchase intentions toward American Apparel were influenced by message source. Additionally, purchase intentions toward American Apparel were directly predicted by attitudes toward American Apparel and indirectly by perceptions of source credibility. Theoretical and managerial implications are discussed.     

The influence of gender,social cause,charitable support,and message appeal on Gen Y's responses to cause-related marketing

Abstract

This study examined the influence of gender, type of social cause, amount of charitable support, and message appeal on Gen Y consumers' attitudes and purchase intentions towards an apparel brand within the context of cause-related marketing. A questionnaire, with an experimental design component, was administered to a sample of 562 Gen Y college students. Results suggest that Gen Y consumers are more likely to form positive attitudes towards an apparel brand when the amount of the charitable support is clearly communicated. Gender did not influence attitude towards brand, but did predict purchase intentions. Attitude towards brand, subjective norm, evaluation of the advertisement, and involvement in social causes were strong predictors of purchase intentions. When developing CRM initiatives, marketers should consider Gen Y's involvement in a social cause (e.g. volunteerism) rather than their stated interest in the given cause, and they would be well advised to state precisely (in advertisements) the amount of monetary contribution made to charitable causes.     

What is the After‐Tax Price of R&D? An Interstate Comparison*

As of 2005, 31 US states offered corporate income tax credits on research and development (R&D) expenses in order to encourage more in‐state innovation activities. Empirical questions about the efficacy of such tax breaks at the state level persist, in part because the complexity of the tax laws means that simple credit‐rate comparisons across states do not fully capture the differential variation in effective after‐tax price incentives firms face in choosing where to locate R&D activities. We are unaware of any research analysing and comparing the effective prices of R&D faced by firms, across all US states and utilising micro‐level data. Using data extracted from detailed reading of individual firms' 10‐K and S‐1 filings and of state‐level tax credit rules, we estimate the effective after‐tax price of basic and qualified research expenditure each firm would have faced in each of the 50 states had they been located there. Our methodology simulates the effective tax price of each firm's marginal dollar of research expenditure, assuming the firm chose to move all of its R&D operations to each of the 49 other states. Through Monte Carlo techniques, we consider the sensitivity of our interstate comparative results to several modelling assumptions. We find significant variation in after‐tax R&D prices across states with quite different R&D tax laws. Prices range from $0.176 to $0.520 on a marginal dollar of R&D in Virginia and Washington State, respectively. We also find that the interstate variability is generally more important – indeed, much wider than we had anticipated before investigating state‐by‐state regulations – than the inter‐firm variability within states.