A PRELIMINARY TEST OF A FAMILY MANAGEMENT RESEARCH MODEL

The conceptual frameworks of family management attempt to explain family behaviour with respect to management activities. However, rigorous empirical tests concerning the validity of these frameworks have not yet been conducted due to a number of unresolved research issues such as the measurement of concepts, data collection and research modelling specifications. This paper attempts to perform a preliminary empirical test of a research model based on the conceptual frameworks in family management. Satisfactions with eleven types of family outputs were examined in relation to a family's input conditions and throughput activities. Throughput activities as a group were found to contribute significantly to the family's satisfaction with the cleanliness of the house. Planning activities, decisionmaking styles and time spent in household production were important in explaining satisfaction with many of the outputs studied. The results of this preliminary test of the management research model demonstrate the need to collect better and relevant data and to develop improved measures of the management concepts so that a full and rigorous test of the family management frameworks can be properly performed. Other research issues such as simultaneity and functional form could then be addressed.     

Who are really purchasing environmentally friendly detergents?

This paper investigates the purchasing behaviour of environmentally friendly detergents in Belgium on the basis of a binomial logit model. The results of this analysis shed some light on the extent to which household characteristics influence demand for environmentally friendly detergents. The estimated determinants of revealed preferences are compared with the results from previous stated preference research. Although the positive influence of population density on the chance of purchasing environmentally friendly products could not be confirmed, the estimation results corroborate the importance of household size, age and socio-economic class (yuppie factor).     

AGGREGATE SUPPLY,DOMESTIC ABSORPTION,AND TERMS OF TRADE: A STRUCTURAL DECOMPOSITION OF THE U.S. TRADE BALANCE

Using an intertemporal model as a reference, this article decomposes U.S. trade balance movements into parts driven by supply shocks, demand shocks, and relative price shocks. In identifying structural shocks, we propose a new type of long-run restriction that extends the previous structural Vector Autoregression (VAR) literature, and demonstrate its relationship to other identifying schemes. Empirical results indicate that relative price shocks and demand shocks are important in the short run while demand and supply shocks dominate in the long run in explaining the U.S. trade balance.     

(When) Does Tit‐for‐tat Diplomacy in Trade Policy Pay Off?

In international relations, short‐run incentives for non‐cooperation often dominate. Yet, (external) institutions for enforcing cooperation are hampered by national sovereignty, supposedly strengthening the role of self‐enforcing mechanisms. This paper examines their scope with a focus on contingent protection aka tit‐for‐tat in trade policy. Highlighting various strategies in a partial equilibrium framework, we show that retaliation of non‐cooperative behaviour by limiting market access works as a disciplining device quite independently of supply and demand parameters. Our empirical findings are consistent with the theoretical results in that countries more frequently involved in WTO‐mediated disputes entailing tit‐for‐tat strategies pursue on average more liberal trade regimes.     

Decision Criteria in Ethical Dilemma Situations: Empirical Examples from Austrian Managers

This article is the result of an empirical research project analyzing the decision behaviour of Austrian managers in ethical dilemma situations. While neoclassical economic theory would suggest a pure economic rational basis for management decisions, the empirical study conducted by the authors put other concepts to a test, thereby analyzing their importance for managerial decision making: specific notions of fairness, reciprocal altruism, and commitment. After reviewing some of the theoretical literature dealing with such notions, the article shows the results of an online survey working with scenarios depicting ethical dilemma situations. By judging such scenarios the respondents showed their preference for the named concepts, though with different degrees of confirmation. The results (with all limitations of an online survey in mind) support the theoretical work on the named concepts: Fairness elements (including Rawlsian principles of justice and an understanding of fairness as conceived by a reference transaction) play a major part in management decisions in ethical dilemma situations. Also, commitment as a behaviour that sticks to rules even if personal welfare is negatively touched, and reciprocal altruism as a cooperative behaviour that expects a reciprocal beneficial action from other persons have been concepts used by Austrian managers when analyzing ethical dilemmas. The article also tries to put the results into a comparative perspective by taking into account other studies on ethical decision factors conducted with, e.g. medical doctors or journalists, and by discussing intercultural implications of business ethics.     

Credit Card Indebtedness and Psychological Well‐Being Over Time: Empirical Evidence from a Household Survey

While a number of studies have investigated the relationship between debt and psychological well‐being, none so far has explored if and how this relationship evolves over time. We seek to fill this gap in the literature by empirically analyzing the impact of household credit card debt on debt stress. Using cross‐sectional data collected by The Ohio State University's Consumer Finance Monthly survey between August 2008 and December 2010, we construct a debt stress index and categorize households into three groups based on the length of credit card indebtedness. Our empirical results provide statistical evidence of time‐varying impacts of credit card debt on stress levels. Specifically, we find that debt stress for short‐run debtors is more than twice that of long‐run debtors. The results are robust across a range of econometric specifications.     

TECHNICAL DEVELOPMENT OF HOUSEHOLD APPLIANCES—FOR THE BENEFIT OF CONSUMERS OR PRODUCERS?

Two hypotheses are presented on the basis of the consumerist and private enterprise points of view of technical development of household appliances: H₁: maintaining or increasing sales of household appliances by product development can be done regardless of, or even conflicting with, consumer needs. H₂: maintaining or increasing sales of household appliances can only be done by developing products that satisfy consumer needs. To test these hypotheses the concept of utility has to be defined operationally. Assuming that household appliances are bought to be used according to their functions, utility is defined as use frequency and way of using. Using data from a Norwegian survey on the purchase and use of electric ranges and sewing machines, it is shown that all equipment studied is used frequently and correctly by too many respondents to declare them generally without utility. But for each device there was quite a large share of the respondents who did not use it. The hypothesis that products cannot be sold to consumers who do not need them, is thus rejected. The causes of the problem as well as possible means of solving it are discussed.     

The determinants of households’ repayment difficulties on mortgage loans: evidence from Italian microdata

This article investigates the main determinants of households’ repayment difficulties on mortgage loans in Italy. We contribute to the empirical literature on household financial vulnerability by assessing the joint impact of socio‐demographic factors, loan characteristics and institutional variables on the likelihood of mortgage insolvency and on the intensity of arrears. Using data from the Italian component of the 2008 European Union‐Statistics on Income and Living Conditions (EU‐SILC) survey, we firstly identify which types of households are more vulnerable to unexpected adverse events that may trigger repayment difficulties. Specifically, households whose head is young, unemployed or immigrant show a higher probability of arrears and emerge as those suffering more from the adverse economic conditions connected to the crisis. Moreover, household repayment behaviour is affected by mortgage characteristics and, in particular, having modified contract terms significantly increases current arrears probability. Finally, regional institutional and credit market factors mainly impact on the conditional intensity of arrears. This evidence suggests that, although repayment difficulties mainly arise from a genuine inability to repay, households are less likely to pay on time when institutions are less effective at punishing default, confirming the existence of some strategic behaviour.     

Customer Satisfaction,Service Quality and Perceived Value: An Integrative Model

The present study examines the relationships among customer satisfaction, service quality and perceived value. These variables are increasingly recognised as being sources of competitive advantage. However, little empirical research has been conducted to examine these variables simultaneously and their relationships with post-purchase behaviour. The present study was therefore designed to develop an understanding of the relationships among these variables and their influence on postpurchase behaviour. An integrative model was developed and tested using data collected from customers in the restaurant industry. The results reveal that customer satisfaction and perceived value significantly influence post-purchase behaviour. Implications of the findings and areas for future research are discussed.     

DEMAND POLICIES FOR LONG‐RUN GROWTH: BEING KEYNESIAN BOTH IN THE SHORT AND IN THE LONG RUN?

The idea of demand‐led growth is defended by neo‐Kaleckians and neo‐Keynesians using very specific assumptions. In their models the paradox of costs is always valid in the long run. The central message of this paper is that these specific and strong assumptions are not needed to defend the Kaleckian perspective of a demand‐driven long‐run growth. What is needed is simply a less demanding theory of flexible mark‐ups in an open economy. The formal model developed in this paper shows that long‐run growth may be demand driven even when the paradox of costs does not hold in the long run.     

Explaining Gender Differences in Housework Time in Germany

This study evaluates couples’ time use behaviour with regard to housework in Germany with data from the 2001/2002 and 1991/1992 German Time Use Survey. Despite the fact that women reduced their hours worked within the household context over the past decades, the unequal division of housework between men and women still persists. This study aims both at analysing the determinants of the allocation of time spent on housework, as well as why gender differences in household time use behaviour still exist. With the aid of structural equation modelling, it is shown that the decrease in time spent on housework by women can largely be explained by changes in the effects that wages, household goods consumption and the aspiration for market goods consumption have on time spent on housework. Men’s time allocation behaviour has remained remarkably constant. It is also observed that women’s time allocation behaviour with regard to household work is becoming more similar to that of men.     

THE ASTONISHING REGULARITY OF SERVICE EMPLOYMENT EXPANSION

An update of Victor Fuchs analysis shows an astonishing regularity of the relationship between per capita income and service industry employment. The two major theoretical hypotheses for the growth of the service sector, shifts in final demand towards services and the technological stagnancy of services, are then analyzed. Theories achieve simplicity and clarity from radical assumptions and it is therefore not surprising that empirically both dimensions are relevant. Shifts in final demand to services—especially of private consumption, however, gained importance over the last decades indicating a fundamental change of the division of labor: the marketization of household production, which is analyzed finally.     

An Econometric Study of Advertising and Cigarette Demand in the United Kingdom

This article reports the results of an empirical investigation of the effect of total cigarette advertising on aggregate demand for cigarettes in the United Kingdom. The research is conducted within the framework of the Becker-Murphy model of rational addictive behaviour, using time series spanning the period 1963–1992. No evidence is found in this research to back up the view that aggregate cigarette advertising has the effect of expanding total market demand for cigarettes.     

NUMERAIRE,SAVINGS AND THE INSTABILITY OF A COMPETITIVE EQUILIBRIUM

This paper addresses the stability of a multimarket competitive equilibrium. The dependence of stability on the choice of the numeraire is clarified. The traditional tâtonnement pricing is revised in order to satisfy some basic features of economic behaviour. Well‐known conditions for local stability are proved to be insufficient if a market for credit is introduced alongside the markets of dated commodities. Stability depends not only on the slopes of the demand and supply curves, but also on equilibrium prices. This result emerges without the occurrence of capital perversities, such as reswitching and reverse capital deepening.     

AN ANALYSIS OF THE DECISION TO FILE,THE DUMPING ESTIMATES,AND THE OUTCOME OF ANTIDUMPING PETITIONS

The goal of this article is to identify industries filing successful petitions in good times according to demand, capacity utilization, concentration, and import-penetration ratio under the U.S. antidumping procedures and using U.S. data. Good times means that the domestic industry is facing increasing consumption prior to filing. This article examines: (a) the relation between the dumping estimates and the conditions facing the petitioning industry prior to filing; (b) the relation between the dumping estimates and the outcome of the petitions; and (c) the factors affecting the probability of filing, the dumping estimates, and the probability of success of a petition. The decision to file and the probability of success of petitions are estimated using univariate probit and a bivariate probit model with sample selection. The dumping estimates are analyzed using a Tobit model. The primary metal products and the stone and concrete industries are also analyzed separately. The empirical analysis indicates that the import-penetration ratio, capacity utilization, and the dumping estimates by the Department of Commerce (DOC) are the significant factors in explaining the outcome of the petitions. The import penetration ratio, the concentration level, and the interaction of concentration and capacity utilization are the significant factors in explaining the decision to file. The analysis shows that in case of high-capacity utilization (proxy for high demand), less concentrated industries are more likely to file, but highly concentrated industries are more likely to receive protection. The results also show that the level of concentration of the petitioning industry, import-penetration, and the dumping estimates provided by the petitioning industries explain the dumping margins estimated by the DOC as the basis for the antidumping duty. This suggests that the relief or protection that the petitioning industry receives may not entirely be based on technical standards.     

HOUSEHOLD PRODUCTION - AN EXAMPLE

This study was designed as an application of Becker's household production function approach to the production of a household commodity, in this case care of clothes and household linen. The production function and the derived input demand functions for the inputs into the production were formulated. Hence, the attempt was made to look at the whole system of functions that are relevant with respect to the production of clean clothes in the household, trying to uncover the interrelations and interdependencies in household production.     

Consumer views of self-service technologies

This study examined how customers perceived and classified a set of 12 self-service technologies (SSTs) based on multidimensional scaling. The authors describe first, how the classifications developed by Lovelock are perceived by consumers and then, how the individual SSTs map onto those classifications. Results of the study show that 67% of the variance in classification is explained by two dimensions of customization/standardization and separability/inseparability. The authors also propose a typology for the SSTs based on their groupings in the classification framework. The authors discuss the managerial implications of the findings and suggest directions for future academic research.     

Household norms and their role in reducing household electricity consumption

Researchers have only recently begun to investigate the role of the norms of the household or family group in energy‐efficiency decisions. These researchers have demonstrated that these norms can influence the behaviour and attitudes of children within the household. We contribute to their findings by providing a characterization of the use of household norms in household decisions about electricity efficiency. For our qualitative research, we conducted focus groups with three different household types: (1) share houses/young couples with no children; (2) households with children; and (3) empty nest/elderly households in three regional centres in New South Wales, Australia (total of 76 respondents in nine focus groups). Specifically, we found that household norms were evident in the decision‐making process through rules and expectations about behaviour and the use of sanctions to enforce or shaped that behaviour. We identified several drivers of household norms including a household member taking the role of ‘efficiency champion’ and the occurrence of critical incidents in the household. In addition, we found that household members try to establish household norms to socialize household members with the goal of the intergenerational transmission of desirable behaviours. Based on these observations, we conclude that household members employ norms to regulate and reduce their electricity consumption, and as a mechanism for consumer socialization. As such, our findings are important for marketers and policy makers tasked with regulating household consumption.     

Demand and Revenue Management of Deteriorating Inventory on the Internet: An Empirical Study of Flash Sales Markets

In this study, we investigate demand and revenue management of deteriorating inventory in flash sales markets (FSM). Retailers operating FSM source excess inventories of products from secondary markets in fixed lot sizes and offer them as part of deals that get no replenishments and expire after running for predetermined periods (e.g., 24 hr) or when they sell out, whichever occurs first. We develop a demand forecasting model that incorporates the effects of sentiments conveyed by consumers in discussion forum posts associated with different deals on the deals’ empirical demand rates. We then conduct a survival analysis to find that the empirical demand rates projected from our forecasting model are significant predictors of the deals’ actual time to stockout, even after controlling for their initial inventory provisions and markdowns. We also find that the predicted effects of these demand rates on stockout times are stronger at low markdowns. Our investigation offers insights into different strategies that sellers operating FSM can pursue to improve their inventory performance. These strategies involve decisions that sellers must make both a priori, before deals start, and a posteriori, according to real‐time detection of departures from projected demand rates as deals run their course.