Measurements and determinants of multifaceted poverty in South Africa

Poverty, despite being a multifaceted concept, is commonly measured in either absolute or relative monetary terms. However, it can also be measured subjectively, as people form perceptions on their relative income, welfare and life satisfaction. This is the first study that uses the National Income Dynamics Study data to analyse poverty across various objective and subjective methods. The paper finds that while respondents' poverty status varies across methods, blacks remain the racial group most likely to be defined as poor by at least one method. The multivariate analysis reveals that the impact of some explanatory variables, such as experience of negative events, frequency of crime victimisation, health status and importance of religious activities, is mixed across methods.     

Reducing visitor car use in a protected area: a market segmentation approach to achieving behaviour change

This research uses a market segmentation approach to reducing transport-related environmental burdens from visitors, while maintaining economic benefit. The approach was tested in the Lake District National Park (UK). It aimed first to explore visitor transport behaviour using a social psychological framework, to understand what might best predict desired behaviour change (i.e. reduced visitor car use). Second, it developed and tested different types of marketing messages to reduce car use, based on persuasive communication theory, establishing marketing propositions appropriate to different visitor types and market segments. Third, it identified market segments with both a high propensity towards positive behavioural change and the highest economic contribution to the destination. The work is based on Ajzen's Theory of Planned Behaviour and on persuasive communication. Three hundred and ninety completed questionnaires were obtained. The paper emphasises the importance of context in successful communication to influence behaviour and shows that a market segmentation approach to behavioural change can be successful. Complex patterns of visitor mobility and modal choice emerge. For example “New Explorers” and “Familiar Families” are most likely to reduce their car use (45% and 48% respectively) and less likely to perceive this as difficult.     

Bayesian and Bühlmann credibility for phase-type distributions with a univariate risk parameter

Credibility theory is a statistical tool to calculate the premium for the next period based on past claims experience and the manual rate. Each contract is characterized by a risk parameter. A phase-type (or PH) random variable, which is defined as the time until absorption in a continuous-time Markov chain, is fully characterized by two sets of parameters from that Markov chain: the initial probability vector and transition intensity matrix. In this article, we identify an interpretable univariate risk parameter from amongst the many candidate parameters, by means of uniformization. The resulting density form is then expressed as an infinite mixture of Erlang distributions. These results are used to obtain a tractable likelihood function by a recursive formula. Then the best estimator for the next premium, i.e. the Bayesian premium, as well as its approximation by the Bühlmann credibility premium are calculated. Finally, actuarial calculations for the Bühlmann and Bayesian premiums are investigated in the context of a gamma prior, and illustrated by simulated data in a series of examples.     

Ceteris Paribus Methodology and Computerized Economics-Business Models

Professor Stanford is critical of computer programs that have been developed for use in economics and business courses. He admits to having “mixed feelings” about the use of computer models as classroom teaching devices, but recognizes their great potential. His fear is that the ceteris paribus methodology has not been adequately implemented when computer models have been constructed for use in the classroom. Consequently, he has constructed a set of computerized game models which feature “options for varying degrees of complexity.” These models, which permit progression from the simple to the complex, and which enable instructors to demonstrate the effects of changing variables, are brielly described in this article.     

Effectiveness of Absurdity in Advertising Across Cultures

This paper examines the effect of absurd advertising on memory and persuasion across cultures. Drawing on Hofstede's cultural dimensions, it is hypothesized that the effect of absurdity on recall is culturally invariant, whereas the effect on attitude toward the ad is contingent on the recipients’ cultural orientation. The assumptions are tested using a between-subjects experimental design, in which we manipulated type of absurdity and used the cultural dimensions as blocking variables. Data was collected from 274 students in the United States, Germany, Russia, and China. We discuss theoretical and managerial implications of these findings as well as guidelines for further research.     

Technology readiness and usage: a global-identity perspective

The past several decades have witnessed the rapid globalization of consumption markets and widespread diffusion of information and communication technologies. However, the use of technology by consumers is not a foregone conclusion. We investigate the role of global self-identity on the orientation toward technology readiness and usage. Relying on a social-identity model of motivation as our theoretical framework, we propose a model which incorporates global self-identity (i.e., cosmopolitanism/parochialism and global/local identification) and self-regulation (i.e., promotion and prevention focus) in predicting technology readiness and usage in a self-service technology context. The proposed model is tested in two different cultures, the U.S. and China, and is contrasted with two theoretically-competing models as well. Results provide support for the hypothesized model, and a number of limitations, implications, and directions for future research are discussed.     

Economic Analysis Of The Droit De Suite– The Artist's Resale Royalty

Interest in the Droit de Suite, the artist's resale royalty, has been re-kindled by the decision of the European Union to introduce such a scheme to apply from 2006. The general nature of the Droit de Suite as an extension of copyright is discussed. The specific proposals for a Droit de Suite in Australia are analysed. Economic arguments support the sceptical view of the Droit de Suite. It is argued that the introduction of the Droit de Suite would be predicted to reduce sales of new paintings, that selling activity would move to jurisdictions which do not have a Droit de Suite and that artists would prefer to alienate their Droit de Suite by sale of a painting. The economic analysis is supplemented by an empirical study of art auction prices of 72 artists in Australia over the period 1973–1989 which reveals that the works few artists achieve a capital gain on sale in the secondary market re-inforcing the view that, if implemented, a Droit de Suite would provide payments to only a small number of artists who are likely to be in good economic circumstances. The burden of the Droit de Suite is shown to fall on the collector when selling paintings. The effect of the imposition of the Droit de Suite will be to lower the gain to collectors of paintings. It is concluded that the Australian proposal for the Droit de Suite is based on an inadequate analysis of the art market and would require a registration procedure for art works incurring heavy costs in relation to the funds available for distribution.     

Cable television and competition : Theory, evidence and policy

There is currently widespread discussion in the USA of the merits of amending legislation to allow competition in the cable television market, notably from the telecommunications companies. This article explores what economic theory can contribute to this debate, and adduces empirical evidence on the effects of competition in the cable market where it presently exists. The authors conclude that blocking entry into cable, and indeed into telecommunications markets, is likely to be poor policy, and that increased competition would foster the development of an efficient modern broadband network.     

British contributions to American Seaside Resorts

The British contribution to the 19th century North American seaside resolt was substantial. Most of the activities, structures, and philosophies that attracted North Americans in great numbers to the seaside not only originated in Britain but prior to diffusion to North America had become traditional fixtures in British resort life. The importance of the British contributions can be demonstrated by examining salient characteristics of the resorts on both sides of the Atlantic. Health resorts origins, social characteristics, architectural and landscape designs, visitor activities and perceptions, mechanical innovations aand relationships to transportation phenomena characteristics of British seaside resorts were largely emulated by subsequent institutions in North America. To date it appears that America scholars have been slow to recognize the extent of this cultural debt.