International capital markets and open‐economy macroeconomics

Abstract

The standard open‐economy model on which the Bretton Woods macroeconomics is based takes into account neither the systemically fragmented nature of international capital markets nor the institutional relationship between savings and investment in semi‐industrial economies. This paper suggests that a more realistic approach to these structural features, possibly along the lines suggested by recent “new‐Keynesian” theories of market failure, would yield a model of macroeconomic behaviour which emphasizes investor uncertainty and vulnerability to external shock. The policy implications have interesting parallels with Keynes's own views on stabilization.     

Quarterly Dynamic Relationships Between the U.S. Wheat Market and Wheat-Related Prices for Products Downstream

Abstract

A quarterly VA R econometric model of the reduced form relationships between the U.S. wheat market and prices of processed wheat-related flour, bread, and other bakery products downstream was estimated. The model then simulated under a rise in production- or import-induced increase in wheat quantity, and a decline in wheat price, to examine the dynamic effects on the U.S. wheat market and on processed wheat-related prices downstream. U.S. trade negotiators at the upcoming WTO agricultural round, Federal policy makers, farmers, and agribusiness agents should be interested in the dynamic patterns with which negotiated trade conditions, farm policy alterations, and climatic variation influence wheat quantity and price, and in turn the price of more highly processed wheat-based products downstream.     

Real estate market efficiency

Summary

The application of modern portfolio theory to the investment in shares and bonds is integrally connected with the efficient market hypothesis. The requirement of multivariate normality of security returns is a sufficient condition for equilibrium asset pricing models such as the capital asset pricing model to theoretical work. Nevertheless the empirical relevance in decision making is firmly based on the efficiency of the capital market. If real estate investors are to avail themselves of these techniques it is first necessary to ensure the requirements of the efficient market hypothesis are satisfied in the context of the property market. This paper reports the results of such an inquiry into the British and Australian real estate markets.     

Product Labeling and Economic Value of Milk Market Segmentation

Abstract

This study explores the economic benefit from labeling milk and milk products and its impact on the supply and demand for fluid milk. The empirical estimate measures the economic value of milk market segmentation based on consumers' willingness to pay for hormonefree milk. The study uses survey data from Kansas households and applied a Probit model for willingness-to-pay and an ordinary least square model for demand analysis. The empirical results show that as long as consumers are willing to pay a higher price for bSTfree milk society would benefit from milk market segmentation.     

The retail warehouse: A hybrid form of development

Summary

The paper examines the property market aspects of retail warehouse development. To set the context for the discussion, the history of the development of retail warehouses is traced, highlighting the increasing sophistication of this form of trading and comparing the future development prospects in each of the three main goods sectors. Comparative rental evidence provides the basis for the discussion of the relative influences of the retail and industrial property markets which follows, from which it is evident that the market for retail warehouses is much more strongly related to the industrial market than to the retail market. It is concluded, however, that the influence of the industrial market is likely to weaken as grouped developments of retail warehouses become more common and thus a ranking of centres emerges which is reflected in increasingly differentiated rental levels. Finally, the impact of planning policies on retail warehouse developments is considered.     

Identifying Factors Affecting Consumption of Peanut Tahina in Bulgaria

Abstract

A demand for snack foods has emerged as market-oriented reforms and privatization progresses in Bulgaria. Information is needed about consumer preferences to compete in the emerging market. This study identified socioeconomic and demographic characteristics influencing the consumption of peanut tahina, a unique product made of ground peanuts. An ordered probit model with sample selection showed that household income, education, age, and location significantly effected the decision to consume the product, but not the consumption intensity.     

Factors Influencing Consumers' Decision to Purchase Beef

Abstract

The South Korean beef import market was deregulated in 2000. As the beef import quotas were lifted in January 2001, increased market opportunities became available for exporters. Beef exporters are allowed to have direct communication with beef merchandisers in South Korea, which enable them to respond to Korean consumer demand more effectively. Korean consumers apparently have a negative perception on the quality of imported beef. However, little information is available to guide international beef exporters in the design of an export market development program. This study used a consumer mail survey in order to examine the Korean consumer beef market. While this study is exploratory by nature, it goes beyond traditional demand analysis, and it aims to provide comprehensive information on the important factors affecting Korean consumers' beef purchasing behavior. Marketing implications for beef exporters are drawn.     

Longitudinal Poisson Assessment of Factors Influencing Farmers’ Market Counts

ABSTRACT

This study uses secondary longitudinal data and a first difference pooled Poisson regression model to explain annual counts for farmers’ markets in the United States. Data were collected for all 50 states and the District of Columbia for 10 years, from 2004 to 2013, leading to a longitudinal data set with 510 observations. Results indicate that population growth and funds routed toward Women, Infants, and Children (WIC) farmers’ market nutrition programs increase farmers’ markets’ annual counts. The rate ratio of farmers’ markets’ counts for highly populated states that have both WIC and senior farmers’ market nutrition programs is approximately three times greater than their counterparts. Areas with high agriculture output experience a significant increase in counts. States located in the south and in desert areas have lower counts than other regions. This study suggests important recommendations to policy makers, farmers’ market managers, and researchers.     

Econometric Examination of U.S. Potato-Related Market Relationships

Abstract

Modeling results, from a U.S. International Trade Commission investigation, that illuminate potato-related competitive conditions, particularly U.S. market impacts of potato imports, are presented. Estimation and simulation results of a monthJy vector autoregression model of the U.S. fresh and frozen trench fry markets suggest that the own-price elasticity of fresh table potato demand is more moderately elastic than previously thought; that U.S. fresh potato and trench fry markets only modestly interact, because the fresh table market residually and infrequently supplies raw product to processors; and that increased U.S. imports of fresh Canadian potatoes are likely a regional problem in Northeast U.S. markets, and do not appreciably influence potato-related prices or quantities nationally. Given the scarce potato-related literature, the model's estimated market parameters arc of interest.     

Quality Policy and Consumer Behavior

Summary

A broad view of the European Union (EU) quality policy to the meat sector is given in this article. It analyses the links between quality policy and consumer attitudes and behavior in the Spanish meat market. Quality programs allow traceability within the chain, which is an important improvement, compared to the traditional way of marketing meat. For this reason, we study the evolution and performance of Spanish meat market from the view of consumer behavior. This paper mentions some basic information in quality policies in Spain, including the results of a survey carried out in 1997, with some practical conclusions.     

A Comparative Static Analysis of European Union Tariff and Support Policies for Canned Pears

Abstract

A nonlinear, partial equilibrium, Armington model of the European Union canned pear market was built and simulated for reductions in specific EU policies and for reductions in selected combinations of these policies relevant to canned pears: import tariffs, factor subsidies, and an output subsidy. Effects of these policy reductions on the following EU canned pear market variables were comparatively analyzed: own-product consumption, imports, exports, and price. Comparative analyses of these policy-specific effects were conducted from two viewpoints: the absolute magnitudes of completely eliminating, and the marginal effects of incrementally reducing, the EU policies and policy combinations. Among other findings, results suggest that EU tariff reduction enhances EU imports more than EU subsidy reduction, and that EU subsidy reduction increases EU prices more effectively than reducing EU tariffs.     

The Effects of Maize Market and Policy Reforms on Price Discovery and Competitiveness in Zimbabwe, 1991–1997

Abstract

Maize is Zimbabwe's staple food. An adequate supply of maize is essential to food security and domestic stability. A series of droughts and government mismanagement of the economy led to a maize production and food security problem in the 1980s. Zimbabwe's maize marketing system was transformed dramatically from a government monopoly to a competitive market system in which prices are determined by market forces in the 1990s. This paper examines the steps that Zimbabwe took towards maize market reform and the benefits of that reform. The movement to a competitive market led to formation of a commodity exchange to improve price discovery and increase price transparency. De-regulation has increased entry and competitiveness from new private sector hammer millers and traders. Farmers, millers, and traders face new profit opportunities and new price and financial risks that have increased management responsibilities. Consumers enjoy lower cost maize meal products and more convenient service. The benefits of the 1991–1997 reforms indicate what could be achieved in the long run if prices are determined by the market, rather than by the government.     

Assessing Market Efficiency

Abstract

Government regulations through import licensing and “seasonal calendars” entail large transaction costs for traders operating in the fruit and vegetable wholesale market in Oman. Monitoring and enforcing these market regulations increase search costs and reduce market efficiency. The objective of this study is to develop a methodology to categorize and measure transactions costs by analyzing traders perceptions and attitude toward regulatory measures, and other market activities. Results show that importers operating at Al-Mawaleh market face the highest level of transaction costs. The changing nature of import calendar as well as the import license procedure represents significant elements of uncertainty that rise the importers' search and monitoring costs. It is suggested that the conversion of these non-tariff barriers into tariffs along WTO rules would reduce market uncertainty and increase market efficiency.     

Determining Opportunities for U.S. Exports of Consumer-Oriented Foods to African Regional Markets

Abstract

This study examines the level of trade between the U.S. and Africa for consumer-oriented agricultural products during the 1990s. To achieve this objective, we propose six congruent regional African markets and examine patterns of U.S. trade with Africa on consumer-oriented agricultural products. The reason for such groupings is to identify trade flow differences and similarities between the U. S. and each of these regional groups. The results shed light on the extent to which U.S. exporters of consumer food products are capitalizing on the emerging markets of Africa. The graphing technique used in the study, in combination with trend stability measures for the six proposed congruent regional African markets, introduce a method for identifying market opportunity.     

Problems in planning tropical tree crop projects and possible solutions

Abstract

This paper considers whether top‐grade diary beef produced in Japan and high‐quality beef imports from the USA are components of the same product market. In addressing this issue an approach is used for defining the nature and extent of a product market relying on the concept of instantaneous causality. The results, for selected cuts of beef, suggest that the markets are in fact separate.     

Spatial Integration of Wheat Markets in India: Evidence from Cointegration Tests

Using the maximum likelihood method of cointegration, this paper empirically evaluates intra-state and inter-state spatial integration of wheat markets in India. The cointegration tests provide strong evidence in favour of spatial integration of the regional wheat markets. Even though the regional markets are geographically dispersed, the prices across different market centres within and across the selected states have exhibited long-run spatial linkages, suggesting that all the exchange locations are integrated and the prices provide relevant market signals. There are several implications of these results for agricultural price policy and food market liberalization programmes.     

Planning Viable Wholesale Markets for Fruit and Vegetables in Eastern European Cities

Abstract

The paper provides an overview on the present status of wholesale market (wm) development in Eastern European countries. Wms are providing essential facilities for the development of a private wholesale trade for fruit and vegetables. The study addresses major issues in planning viable wholesale markets, particularly those which are affecting the economic viability of market to be newly built. The issues addressed include: the need of identifying accurately major shortcomings of the present marketing systems and their causes, the need for active participation of beneficiaries in the planning and implementation process, deciding on size, type of buildings, on institutional and management aspects and viability of assembly markets. All these issues affect the viability of wholesale markets and their capacity of repayment loans.     

Market Performance of Potato Auctions in Bhutan

Abstract

Market performance with respect to a main horticultural export commodity in Bhutan is the subject of this paper. Imperfections in (market) infrastructure and market structure and conduct may prevent an optimal price for farmers. Market performance is assessed by testing the law of one price for this commodity. This is done by testing three series of auction price data on both long-run and short-run price integration. It is concluded that for the period 1996-2000 the auction prices were interrelated both in the long and short run with one of the three auctions as the price-leading market. In contrast, in the period 2001-2005 the market arbitrage process slowed down, indicating the rise of market imperfections. Policy implications are suggested.     

Marketing Practices and Distribution System of Rice in Punjab,India

Abstract

The study focuses on the marketing practices, market structures, and firms' motives for vertical co-ordination of the paddy-rice distribution system during the post green revolution period in the Punjab state of India. The study is based upon secondary data taken from several published sources and intensive interviews with the market agents in the entire distribution chain from growers to the retailers. Study highlighted the emergence of public sector as a giant player in the paddy (non-basmati) wholesale markets, unscrupulous practices for paddy/rice supplies, wide disparities in the issue prices for the below and above poverty line families, reduced off take from the public distribution system, launching of several schemes to off load excessive stocks, and improve market efficiency. Open market segment of the industry is highly fragmented wherein a large majority of the market agents have confined at the levels they can be best managed, vertical co-ordination plays a pivotal role to cope up with market imperfections and supply agents constitute a strategic link for rice sales. However, private milling gains momentum particularly during the downward phase of the industry due to increased profitability.     

Consumer Attitude towards Organic Labeling Schemes in Japan

ABSTRACT

Japan is the most lucrative organic market in the Asian region and is projected to account for about 80% of the Asian market revenues by 2009 (Kuhlmann and Jones, 2006). This study identifies Japanese consumer preference and interest in two major labeling information- source of organic certification/traceability and country of origin for organic food products. Stated preference method (SPM) based survey data was collected from two major cities in Japan in order to develop Japanese consumers' organic food choice model. Findings show that Japanese consumers are willing to pay 10% price premium for the organic food products compared to conventional products that have no specific labeling, suggesting a significant profit margin to be possibly captured by the organic producers and marketers. The Japanese consumers have perceived value of the JAS label in their stated preference and showed willingness to pay a price premium for this quality certification system, which validates the importance of government-regulated mandatory labeling. Regarding the country origin labeling issue, the Japanese consumers showed clear preference for the domestic organic products to the imported products, while showing no preference for any particular country origin for imported organic products. For private-voluntary organic labeling, the consumer organization-led organic label is considered to be more reliable source than the retailer-guaranteed organic label.