The effect of distance and road quality on food collection, marketing margins, and traders' wages: evidence from the former Zaire

Food price variation is typical of the food economies of many low income countries. The presence or absence of road infrastructure is perceived to be one of the main determinants of this variation. This analysis shows that in the case of the former Zaire, food price dispersion is significant both across products and across regions. It is demonstrated that transportation costs explain most of the differences in food prices between producer regions and that road quality is an important factor in the transportation costs. However, food prices decrease relatively faster than transportation costs increase and traders' wages are higher on bad roads.     

THE DETERMINANTS OF THE QUANTITY‐QUALITY BALANCE IN MONOPOLY*

This paper describes how a monopolist manipulates the balance of quantity and quality in order to increase revenue when its customers treat quantity and quality as substitutes. This ‘skewing’ of quality depends on the characteristics of customer's demand for quality. Customers differ in demand for quality, because they differ in either (i) their preferences and/or (ii) their time cost per unit. The monopolist is constrained to supply the same quality of good to all customers. The price and quality per unit are described under the assumption the monopolist (i) profit maximises; (ii) maximises social welfare subject to a profit constraint. The determinants of the skewing of quantity and quality are found under third‐degree price discrimination and uniform pricing.     

Momentum or market? Determinants of large stock price changes in an emerging market

The aim of this study is to investigate the determinants of large price changes in Turkey. We also provide additional evidence on determinants of large price changes in different macroeconomic environments, specifically on the pre-crisis and post-crisis periods. Using recurrent event analysis with stratified observations and frailty effects, our findings suggest that momentum has a significant impact on large price changes during both pre-crisis and post-crisis periods. However, the impact of market is more significant on the estimation of large price declines in the pre-crisis period and of large price increases in the post-crisis period. Additional findings suggest that liquidity and market-to-book ratio have positive, firm size has a negative impact on likelihood of large price changes regardless of the direction of the stock price change and macroeconomic environment. Findings of this study provide new insights into the understanding of large price changes in an emerging market.     

Profitability of mergers in food manufacturing

Two issues are examined. The statistical significance of a number of socio-economic factors that affect the level of charitable giving are evaluated. Family wealth and age of the head of household tend to be significant determinants of charitable giving, regardless of whether it is to all charities or to religious charities only. Such is not the case for the price of giving; for instance, the price of giving is an important determinant of all charitable contributions, but almost non-existent as a determinant for religious donations. Results such as this suggest that changes in marginal tax rates prompted by a switch to a tax credit as a substitute for a deduction, and hence a change in the price of giving, may have virtually no impact on contributions to religious organizations but may affect conntributions to other charitable organizations. The extent to which some socio-economic factors changed in relative importance as determinants of charitable giving from 1982 to 1986 is also reviewed.     

The Yugoslav inflation: Some competing hypotheses

Various hypotheses about wage and price inflation in Yugoslavia are presented and tested empirically with quarterly data from the 1962–1972 period. Both theoretical literature and empirical evidence on the behavior of the self-managed firm are used to derive different models of wage determination. The wage-equation results indicate that labor-market conditions, inflationary expectations; and labor-productivity variables are significant determinants of the rate of growth of wages. The price equations, based on a modified cost-markup model consistent with the practices of Yugoslav firms, identify labor costs and aggregate demand as significant determinants of the rate of growth of prices. University of California, Berkeley.     

Determinants of stock price bubbles

In this paper we propose a cross-sectional model of the determinants of asset price bubbles. Using 589 firms listed on the NYSE, we find conclusive evidence that trading volume and share price volatility have statistically significant effects on asset price bubbles. However, evidence from sector-based stocks is mixed. We find that for firms belonging to electricity, energy, financial, and banking sectors, and for the smallest size firms, trading volume has a statistically significant and positive effect on bubbles. We do not discover any robust evidence of a statistically significant effect of share price volatility on bubbles at the sector-level.     

New empirical evidence on the bid-ask spread

In this article, we model the determinants of spread for 734 firms listed on the NYSE over the period 1 January 1998 to 31 December 2008. We propose a panel data model of the determinants of spread. There are four main messages emerging from our work. We find a statistically significant effect of volume on spread inconsistent with the work of Johnson (2008). On price, we find mixed results, consistent with the literature. On the effect of price volatility on spread, our results are completely the opposite of the cross-sectional literature but sides with the relatively recent work of Chordia et al. (2001). We allow for persistence of spread as a determinant of spread and find significant evidence of spread persistence across all 16 sectors. Finally, we examine size effects and find statistically strong evidence of size effects based on the relationship between price and spread, persistence and spread, and volatility and spread.     

The economics of BitCoin price formation

This is the first article that studies BitCoin price formation by considering both the traditional determinants of currency price, e.g., market forces of supply and demand, and digital currencies specific factors, e.g., BitCoin attractiveness for investors and users. The conceptual framework is based on the Barro (1979) model, from which we derive testable hypotheses. Using daily data for five years (2009–2015) and applying time-series analytical mechanisms, we find that market forces and BitCoin attractiveness for investors and users have a significant impact on BitCoin price but with variation over time. Our estimates do not support previous findings that macro-financial developments are driving BitCoin price in the long run.     

The Determinants of Sticky Prices and Sticky Plans: Evidence from German Business Survey Data

So far, there is no consensus on the price adjustment determinants in the empirical literature. Analyzing a novel firm‐level business survey data set, we provide new insights on the price setting behavior of German retailers during a low inflation period. Relating the probability of both price and pricing plan adjustment to time‐ and state‐dependent variables, we find that state‐dependence is important; the macroeconomic environment as well as the firm‐specific condition significantly determines the timing of both actual price changes and pricing plan adjustments. Moreover, input cost changes are important determinants of price setting. Finally, price increases respond more strongly to cost shocks compared to price decreases.     

Demand for parimutuel horse race wagering with special reference to telephone betting

Parimutuel horse race wagering (handle), measured in real terms, has been steadily declining for the past several decades. In an attempt to reverse this trend, a number of racetracks in the United States have instituted telephone betting systems which allow wagering from an ‘off-track’ location. The present study investigates the demand for parimutuel horse race wagering when a telephone betting system is implemented. Two demand equations are estimated for a racetrack, one for on-track (live race) handle and another for total (on-track plus telephone betting) handle. As expected, it is found that the telephone betting system has led to a decline in on-track wagering but surprisingly, it has also led to decline in total wagering, although not to the same extent as in on-track wagering. Thus, off-track wagering generated through the telephone betting system has not been sufficient to offset the loss in on-track handle. In addition to the effect of the telephone betting system, it is found that the takeout rate (price of wagering), the price of admissions, racing quality, racing days, and competition from professional sports and another racetrack in the market area are significant determinants of the demand for wagering. Demand is found to be elastic with respect to the takeout rate, inelastic with respect to the price of admissions and parking, and almost unitary elastic with respect to income.     

Ideal Divisia moments,price dispersion and inflation

Ideal Divisia price and quantity index numbers are computed for 18 countries using per capita consumption data for the 1970's. Correlation matrices of general price change and price dispersion are computed and determinants of price dispersion are analyzed.     

Explaining European Emission Allowance Price Dynamics: Evidence from Phase II

We empirically investigate potential determinants of the allowance price dynamics in the European Union Emission Trading Scheme during Phase II. In contrast to previous studies, we place particular emphasis on the fuel price selection. We show that results are extremely sensitive to choosing different price series of potential determinants, such as coal and gas prices. In general, only the influence of economic activity in Europe and hydropower provision in Norway is robustly explaining allowance price dynamics. The influence of fuel switching on allowance prices and, therefore, equalization of marginal abatement costs – in particular in the long run – is still rather small.     

The determinants of privatization prices: evidence from Turkey

This paper analyses the determinants of privatization prices in a multi-industry study using a sample of 68 recently privatized firms from Turkey. Results show that revenue and market characteristics are significant determinants of privatization prices while current cost and profit indicators are not. It is argued that potential buyers regard these state firms as inefficient, therefore do not take into consideration their current costs and profits in determining their value. When the dependent variable is altered by dividing the firm's privatization price by the firm's sales (revenues), it is found that sales-adjusted privatization prices are responsive to firms profit margins. However, this result does not hold when the sample is restricted to a single industry. Profit margins along with other profitability and firm efficiency measures are no longer significant determinants of sales-adjusted privatization prices in the cement industry analysis. Unexploited production opportunities measured by capacity utilization ratios, and complete private ownership resume a more important role.     

Regional price levels in Germany

Cross-sectional evidence on price levels is scarce for all countries. However, several studies suggest that there might exist considerable differences in price levels within countries, which has obvious welfare implications. A sample of price levels in 50 German cities in 1993 is used to analyse the determinants of inter-city price level differentials. The most important explanatory variables for price level differentials are population size and density and the average wage level. Using this information, the price levels are predicted in all 440 German districts and aggregated to the state level. At the state level convergence of the price levels to a common mean is found, but at a very low speed. The estimated half-life is about 19 years.     

Analysing Firm‐level Price Effects for Differentiated Products: The Case of Australian Wine Producers

The paper discusses and illustrates estimation methods for identifying and modelling the influence of producers on the prices for a differentiated product. A two‐step fixed effects approach is contrasted to the random effects specification. The techniques are employed to analyse prices for over 260 Australian premium wine producers. The fixed effects specification is preferred given significant correlation between wine attributes and random producer effects. The estimation of fixed producer price effects identifies statistically significant price premiums and discounts, which average 15%. Fixed producer price effects are estimated to depend on the quality reputation of the producer, its level of experience, producer size and the use of multibrands by conglomerates. In part, results indicate that price discounts are associated with producers who have low‐quality reputations, are small and recently established.     

Royalty Rates and Upfront Fees in Share Contracts: Evidence from Franchising

This article provides evidence on the determinants of royaltiesand upfront fees in share contracts by examining how state franchisetermination laws affect franchise contracts. The results areconsistent with the joint hypothesis that the two-sided moralhazard model explains the terms in franchise contracts and thattermination laws increase the relative importance of franchisoreffort (due to the extra effort that is required to controlsystem quality). I find that franchise companies that are headquarteredin termination-law states charge significantly higher royaltyrates than companies headquartered in other states (around 1%higher). Correspondingly, the initial franchise fees are lowerfor companies headquartered in termination states. Overall,franchisees appear to pay a higher price for franchises in stateswith protection laws. Consistent with a basic tenet of law andeconomics, price adjustments appear to offset at least someof the transfers that would otherwise be implied by the laws.     

Key market values for bottled wine in an emerging market: product attributes or business strategy?

ABSTRACT

This article focuses on the emerging bottled Chilean red wine market and studies the main determinants of the consumer price of wine sold on the domestic market. A hedonic price function was estimated for a sample of 810 wines using a quantile regression (QR) model. The database contains three variable groups to explain price: objective variables (national, international and vine quality designations), subjective variables (wine score) and business strategies used by wine producers. Results show that some objective variables have a greater impact on price than the wine score (a subjective variable) and business strategies, which vary for each quartile of prices analysed. Finally, this information will allow companies to design and implement marketing strategies to inform the consumer about the importance of some variables in the price of their product.     

Pricing in Segmented Markets, Arbitrage Barriers, and the Law of One Price: Evidence from the European Car Market

The paper uses micro‐level price data from the European car market to examine why there are deviations from the law of one price. The absolute law of one price is strongly rejected, but there is convergence to its relative version. Two sets of explanations are considered: (i) price‐setting in segmented markets, and (ii) arbitrage barriers. Overall, the determinants of arbitrage costs have more explanatory power. The single most important factor is the distance between markets. Evidence for Belgium and Luxembourg suggests that a single currency lowers price differences significantly.     

Fiscal policy and asset price volatility

This paper investigates the relationship between volatility of different asset prices and the volatility of various indicators of fiscal policy (primary balance, spending and revenue). We find evidence that asset price volatility affects the volatility of fiscal policy stance in a positive and significant way. The effect comes primarily through residential property and equity price volatility on government revenue and spending. Increased volatility in commercial property prices is associated with increased variability of government revenue. Output growth volatility is the dominant determinant of revenue and primary balance variability, whereas bad budgetary conditions and the size of the public sector are the most significant determinants of spending variability. Trade openness leads to greater variability of government spending, revenue and primary balance to GDP ratios.     

国内外煤炭价格波动特征分析——基于GARCH模型

利用2005—2011年的澳洲BJ动力煤价格和秦皇岛大同优混煤(>6000大卡)价格的时间序列数据,采用GARCH模型分析方法,实证检验了澳洲BJ动力煤价格和秦皇岛大同优混煤(>6000大卡)价格的波动性特征。研究结果表明,澳洲BJ动力煤价格和秦皇岛大同优混煤(>6000大卡)价格表现出相同的市场特性,具有显著的GARCH效应与波动聚集性,波动衰减缓慢,不具有显著的非对称性波动。最后提出了相应的对策与建议。