Temporal stability of preferences and willingness to pay for natural areas in choice experiments: A test–retest

The main objective of this paper is to test the temporal stability of stated preferences and willingness to pay (WTP) values from a Choice Experiment (CE) in a test–retest. The same group of participants was asked the same choice tasks in an internet-based CE, conducted twice with a time interval of one year without interviewer interference. We examine choice consistency at individual choice task level and transferability of the underlying indirect utility function and associated WTP values. The results show that choices are consistent in 57 percent of the choice occasions. Comparison of the choice models over time shows that the estimated preference and scale parameters are significantly different, suggesting that choice behaviour changed between the two surveys. Differences between marginal WTP estimates for individual choice attributes are statistically significant only at the 10 percent level. However, we show that this can result in significantly different WTP values for policy scenarios. The instability of estimated mean WTP values for different policy scenarios asks for caution when including WTP values in cost-benefit analysis.     

The gender pay gap： Review and update

This paper explores the research behind the wage gap between men and women, the reasons for and extent of the gap, and strategies for dealing with gender pay discrepancies. Historically, gender discrimination was the traditional and easy explanation for pay discrepancies, but more aggressive enforcement of equal pay legislations has virtually diminished the validity of rationalizing the existence of pay differences solely on gender. Statistical data surrounding the pay gap point to other factors as more causal instruments that sustain and perpetuate the gap in spite of more than forty years of enforcement of equal pay legislations. The choices we make seem to predict and explain current wage gaps better than blatant gender discrimination does, and policies directed at improving those choices appear to be better strategic tools in closing the wage gap.     

Past and present outage costs – A follow-up study of households’ willingness to pay to avoid power outages

Households’ demand for electricity continues to increase. This trend per se should indicate increased disutility from power outages. Additionally, batteries and other back-up systems have been improved, and the frequency and duration of outages have been reduced in many countries. By comparing the results from two stated preference studies on Swedish households’ willingness to pay (WTP) to avoid power outages in 2004 and 2017, we investigate whether the WTP has changed. The WTP is assessed for power outages of 1- and 4 -h durations, and whether it is planned or unplanned. We find three main differences: (i) the proportion of households stating zero WTP to avoid power outages decreased significantly from 2004 to 2017, meaning that more households are willing to pay to avoid a power outage in 2017 than in 2004; (ii) the overall WTP was considerably higher in 2017 than in 2004, but (iii) the conditional WTP, that is, WTP for those that have a positive WTP for an outage, has decreased. These results have implications for how regulators incentivize and regulate electricity suppliers, because the results suggest that a reliable supply of electricity is of greater importance now than what the literature has suggested.     

Canada–US productivity gap: The role of competition intensity differential

The relative lack of competitive pressure in product markets and lower investment in both fundamental and applied innovation are among the potential factors that have been put forward to explain Canada’s weak productivity performance with respect to the US. Since competition is generally seen as the single leading catalyst for fundamental and applied innovation, this paper analyzes the role of product market competition in the Canada–US productivity level gap. We develop an empirical framework in which competition exerts both direct and indirect effects on productivity, with the indirect impact coming through fundamental and applied innovation. We find statistically significant evidence that the competition intensity differential (between Canada and the US) has contributed to the Canada–US productivity level gap directly, as well as indirectly through lower investment in both R&D activities and M&E (including ICT) investment. We also find statistically significant evidence that Canada’s relatively poor performance in both productivity and M&E (including ICT) investment have acted as a self-reinforcing mechanism, which further causes detriment to the country’s productivity.     

The fable paradigm of the gender pay gap： Evidence from Portuguese private firms

This study investigates gender income disparity in Portuguese firms using separate Tobit models for men and women. While job segregation seems to be one of the major sources of gender disparity, women do not appear to be systematically underpaid in predominantly female occupations, regardless of the industry. The authors found that gender pay gap is larger in domestic firms, and it increases with employees＇ accumulated tenure and decreases with advanced education for women and on labor market entry. Despite showing some encouraging cracks, the glass ceiling still continues to prevent women from reaching top management positions. Finally, despite it appears wage disparity does exist, and it will probably continue to exist, the results point towards a window of opportunity for women.     

The unequal distribution of unequal pay – An empirical analysis of the gender wage gap in Switzerland

In this paper we analyze the distribution of the gender wage gap. Using microdata for Switzerland we estimate conditional wage distribution functions and find that the total wage gap and its discrimination component are not constant over the range of wages. At low wages an overproportional part of the wage gap is due to discrimination. In a further analysis of specific individuals we examine the wage gap at different quantiles and propose a new measure to assess equal earnings opportunities. These additional results reveal that it is primarily low education that causes the large discrimination component at low wages. First version received: April 1999/Final version accepted: July 2000     

The price of imports and TFP: Application to the Korean crisis of 1997–1998

This paper studies the effects of import-price shocks on measured output and productivity in a standard small open economy model and quantifies such effects in the case of the Korean crisis of 1997–1998. I argue that it is the price of imported goods relative to the price of domestic goods but not the terms of trade that determine measured output and productivity. The simulated results show that shocks to the price of imports account for about half of the output deviation (from trend), one third of the TFP deviation and two thirds of the labor deviation in 1998. For the quantitative results, the extent to which the usage of imported goods is distorted is critical and substantially larger than tariffs because of significantly sizable non-tariff distortions.     

Urban–rural gap and poverty traps in China: A prefecture level analysis

Urban–rural gap and regional inequality are long-standing problems in China and result in considerable number of studies. This article examines the dynamic behaviours of incomes for both urban and rural areas with a prefectural data set. The analysis is conducted by using a distribution dynamics approach, which have advantages in examination on persistence, polarization and convergence clubs. The results show that persistence and immobility are the dominant characteristics in the income distribution dynamics. The prefectural urban and rural areas converge into their own steady states differentiated in income levels. This pattern of urban–rural gap also exists in three regional groups, namely the eastern, central and western regions. Examination on the dynamics of the poorest areas shows that geographical poverty traps exist in both urban and rural prefectural areas. Our results indicate that more policy interventions are required to narrow down the urban–rural gap and to eliminate the poverty traps in China.     

Post-socialist constitutions: The de jure–de facto gap,its effects and determinantsa

The aim of this paper is to contribute to the debate on constitutional rules and their economic effects by extending focus to the de jure–de facto constitutional gap. First, evidence is provided that size of this gap matters as higher gaps lower the effectiveness of the constitutional commitment mechanism. Second, several explanations of this gap are identified, in particular relating to the democratization process, political conflict, age and comprehensiveness of the constitution. The conclusions are based on an empirical study for the unique setting of the post-socialist countries of Europe and Asia, which all enacted new constitutional frameworks after 1989 and it is shown that in some of these countries constitutions acted as blueprints.     

Procedural invariance as a result of commitment costs: evidence from an economic experiment on farmers’ willingness to pay for digestate

We offer a conceptual explanation for some of the procedural invariance witnessed in experimental studies related to the concept of commitment costs, which is confirmed in a field experiment with Sicilian farmers valuing a renewable soil conditioner.     

A field experiment to estimate the effects of anchoring and framing on residents’ willingness to purchase water runoff management technologies

Watersheds throughout the world have been severely polluted by nutrient-laden runoff that comes from industrial, agricultural, and residential sources. Efforts to reduce this runoff have focused on industrial and agricultural sources, while little attention has been paid to encouraging residents to reduce runoff from their properties. To study residents’ willingness to adopt landscaping practices that reduce runoff, we conducted a field experiment in the Delaware River watershed. In the experiment, over three hundred adults participated in a series of random-price auctions that revealed their willingness to pay (WTP) for five products that reduce nutrient runoff. To study how WTP can be influenced by attributes of the choice architecture, we randomized the starting bid values (anchors) and the way in which the external benefits of the five practices were framed. Compared to a neutral framing, a positive framing (using the product can improve water quality) increased average WTP by about one-third, while the estimated effect of a negative framing (failing to use the product can worsen water quality) was also positive, but smaller and not statistically different from zero. The estimated effect on average WTP from the anchor depends on how bids of $0 are modeled, but the results imply that higher anchors lead to higher WTP. Although we believe the magnitudes of our results should be considered suggestive and we recommend replications with higher statistical power, the results add to the evidence base that environmental programs can achieve policy-relevant gains in program performance through a series of small changes to the decision environment.     

The distribution of income in Sri Lanka in 1969–1970 and 1980–1981: A decomposition analysis

In 1977 the Sri Lankan government implemented a comprehensive policy of economic liberalization, removing many government controls on the economy and providing incentives for both foreign and domestic investment. The previous policies were often justified as necessary to maintain an equitable distribution of income. Income data from 1969–1970 and 1980–1981 surveys indicate that inequality has increased, but these data are shown to be unreliable for drawing conclusions on changes in the distribution of income. Expenditure data from the same surveys indicate that inequality has declined in the 1970's, both in the economy as a whole and within all sectors and ethnic groups.     

The decomposition of disturbances to national output of China–the evidence of sectoral and regional shocks

Diversities and similarities in international consumption patterns are highlighted. A large body of data is used to identify cross-country consumption differences and to understand these in terms of the familiar utility-maximizing framework, in which observed differences in prices and incomes play the key role. Taken as a whole, the results reveal a surprising degree of similarity in international consumption patterns and support the idea that tastes are constant, at least with respect to broad commodity groups.     

The Profit–Investment Nexus in an Era of Financialisation,Globalisation and Monopolisation: A Profit-Centred Perspective

ABSTRACT

During recent decades, the link between profits and domestic investment has weakened in the largest high-income economies. In this article, we explore this attenuation of the profit–investment nexus through a profit-centred perspective. Focusing on the impact of the origins and uses of profits, we study the investment behaviour of non-financial corporations in relation to their profits at the macro level since 1970, a period marked by financialisation, globalisation and, more recently, monopolisation. We contrast and discuss four competing hypothese—the revenge of the rentiers, the financial turn of accumulation, globalisation and monopolisation—and related stylised facts for France, Germany, Japan, the United Kingdom and the United States.     

A stage-based diffusion of IT innovation and the BSC performance impact: A moderator of technology–organization–environment

Information system (IS) innovation is an important resource to link to firm performance according to the resource-based view. However, the diffusion of IS innovation is often the crux of the final successful use and thus, critical to realizing firm performance. The diffusion process is dynamic and complex in nature. The innovation diffusion theory (IDT), which is inherent with a multi-stage analysis, can provide insight to its implementation. Little research has examined IT-enabled firm performance for a multi-stage analysis. Moreover, empirical studies have shown inconclusive results in assessing IT value. The balanced scorecard (BSC) is a hybrid performance measure system with four indicators. Grounding on the IDT and BSC, this study proposed a novel research model to examine the relationships between a stage-based diffusion structure and the four BSC indicators. Further, the technology–organization–environment (TOE) was defined as a moderator between them as it is critical in determining the adoption of technology innovation. The results indicated that IT value is realized differentially in different forms of performance indicators across different diffusion stages. Time-lag effect is also important for a well-realized financial performance.     

A segmented trend model to assess fiscal sustainability: The US experience 1929–2009

The academic literature has focused largely on testing for long-run fiscal sustainability. In this exercise we formulate a flexible regression model that can be used to assess the sustainability of a more recent build-up of fiscal deficits and debt that would be of major concern to policy makers. The analysis of US data shows that, after adjusting for some fundamentals, the gross Federal debt–income ratio has been growing at an unsustainable rate of 4 % per year since 2007. The net debt–income ratio does not show such a significant trend. Since not all government assets are readily available to reduce debt, significant positive trends in the gross debt–income ratio calls for policy actions.     

Do consumers pay voluntarily? The case of online music

The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5–$18). Magnatune's comprehensive pre-purchase access facilitates music discovery and allows an informed buying decision setting it apart from conventional online music stores.On average customers pay $8.20, far more than the minimum of $5 and even higher than the recommended price of $8. We analyse the relationship between artists/labels and customers in online music. We consider social preferences, in particular concerns for reciprocity. The resulting sequential reciprocity equilibrium corresponds to the observed pattern of behaviour.We conclude that Magnatune's open contracts design can encourage people to make voluntary payments and may be a viable business option.