Communities,institutions and natural resources: An assessment of case‐studies from KwaZulu Natal

This article describes three community‐based organisations (CBOs) that were established to protect natural resources in parts of KwaZulu Natal. The object is to determine why some CBOs are more successful than others. The case‐studies (Dukuduku Forest, Shongweni Resources Reserve and Thukela Biosphere Reserve) are analysed and compared using criteria suggested by the theory of institutional economics. It is concluded that the rural poor are unlikely to comply with rules restricting their access to natural resources unless the benefits are obvious. Creating appropriate management institutions is a necessary first step, but it may also be necessary to subsidise their enforcement costs and development programmes.     

Food Industry Firms' Economic Incentives to Provide Nutritional Information to the Market: European Breakfast Cereals,Snacks, and Soft Drinks Industries

Information asymmetries between producers and consumers exist with respect to nutritional characteristics of foods and beverages. This article aims to analyze firms' methods to supply nutritional information, focusing on 3 specific food industries: breakfast cereals, snacks, and soft drinks. A theoretical model is developed and tested empirically on European firm-level data obtained from company websites. Firms' incentives to provide nutritional information are positively related to their products' healthfulness, to firm size, and to firms' degree of international orientation. These insights may have important implications for the design of regulations to increase efficiency in the supply of nutritional information to consumers.     

The effects of local labour market conditions on welfare programme participation

A fractional imputation method is applied to Iowa administrative data to deal with a problem of missing data. The effects of local labour market conditions and mobility of household heads on Family Investment Program (FIP) participation are evaluated. Results show that mobility increases the opportunity for employment and decreases the FIP participation rate for low-income families. An increase in predicted unemployment rates decreases labour force participation and increases programme participation; an increase in unpredicted unemployment rates increases labour force participation and decreases programme participation. Overall, the effects are relatively larger in rural areas than in nonrural areas in Iowa.     

Attending to the Reasons for Attribute Non-attendance in Choice Experiments

This paper focuses on behavioural reasons underlying stated attribute non-attendance in choice experiments. In order to identify and incorporate procedures for dealing with heterogeneous attribute processing strategies, we ask respondents follow-up questions regarding their reasons for ignoring attributes. Based on these statements, we conclude that the standard way of assigning a zero impact of ignored attributes on the likelihood is inappropriate. We find that some respondents act in accordance with the passive bounded rationality assumption since they ignore an attribute simply because it does not affect their utility. Excluding these genuine zero preferences, as the standard approach essentially does, might bias results. Other respondents claim to have ignored attributes to simplify choices. However, we find that these respondents have actually not completely ignored attributes. We argue along the rationally adaptive behavioural model that valid preference information may indeed be elicited in these cases, and we illustrate how recoding of non-attendance statements conditional on stated reasons may be a more appropriate solution than the current standard way of taking stated non-attendance into account.     

Optimum stratification of the logarithmic normal distribution: A comment

Abstract

In a recently published article Block has given the optimum points of stratification when the stratification variable and the estimation variable follow a two-dimensional logarithmic normal distribution. ¹ Eskil Block: “Numerical Considerations for the Stratification of Variables Following a Logarithmic Normal Distribution”, this Journal 1958, pp. 185–200.      

Funding conditions and insurance stock returns: Do insurance stocks really benefit from rising interest rate regimes?

We examine funding conditions and U.S. insurance company stock returns. Although constrained funding conditions, signaled by restrictive Federal Reserve monetary policy, correspond with increases in the future payouts of fixed‐income securities held by insurance firms and potentially provide value through the liability side of insurer balance sheets, they also decrease the values of securities currently held in insurer portfolios. Prior research finds that restrictive policy has a negative effect on equity returns in general. Our results suggest the negative impacts of constrained funding environments outweigh the potential positives, as insurance company stock returns are significantly lower during periods of constrained funding. This effect varies within a given funding state and also across insurer type. The effect is strongest during the first 3 months of a constrained funding environment and for life and health insurers—insurer types with longer portfolio durations. For property and liability (P&L) insurers, lower stock return performance only exists in the first 3 months of a constrained funding environment. In the subsequent months, P&L insurers actually have higher stock returns during constrained periods, consistent with their typically shorter duration asset portfolios, which are more quickly rolled over into new higher‐yielding securities.     

The price effects of greening vacant lots: How neighborhood attributes matter

We identify the effects of greening vacant lots on nearby housing prices and show how neighborhood attributes matter to these outcomes. Using data from a longstanding program in Philadelphia, we find that prices for houses within 1,000 feet of a greened vacant lot rise by about 4%, consistent with the literature, with the effect size increasing over time. Using the extensive data available in Philadelphia, we show how these effects vary by the attributes of the neighborhood in which they occur, with larger effects in areas with a high share of vacant land and higher-than-average median household incomes, with peak responses estimated at 19% and 15%, respectively. We demonstrate the importance of sample selection bias adjustment for identification of the effect of vacant lot greening.