Cash prizes and mail survey response rates: A threshold analysis

In a study involving the mailing of some 3,150 questionnaires, the ability of six kinds of incentives to augment survey responses was tested against a no-incentive control condition. Two of the incentives were small prepaid monetary amounts (25￠ and $1.00), while the remaining four consisted of the opportunity for respondents to win cash prizes valued at either $50, $100, $150, or $200. The use of such cash prizes enabled an approximate test of the just-noticeable-difference principle in terms of both its absolute and differential threshold hypotheses. The 25￠ and $1.00 incentives yielded response rates that were significantly larger than that of the control group. No confirmation of the differential threshold hypothesis was evidenced, at least over the range of cash prizes employed in the present study. In contrast, the absolute threshold hypothesis received support. Suggestions for further research in this area were also identified.     

A multifactor experiment on the generalizability of direct mail advertising response techniques to mail survey design

This field experiment support for the idea that response-enhancing techniques developed in the direct mail advertising field may be generalized to mail surveys of commercial populations. Significant response-speed techniques. It was also discovered that none of the three techniques tested significantly affected response-quality. The results of this study suggest that response-rate and-speed are stimulated by different factors which must be treated as distinct components when designing a mail survey. Finally, the findings imply that the experimental factors' effect on response-speed is an additive combination of factor interactions and main effects. This, in turn, suggests that the impact of the experimental manipulation on response-speed operates through a more complex process than the one generally found for the response-rate criterion. Acknowledgement The authors wish to express their appreciation to the funders of the study: The University of North Carolina Research Council and the Center for Applied Research at the University of North Carolina at Greensboro.     

The Role of Home Equity Lending in the Recent Mortgage Crisis

Home equity lending grew rapidly from 2000 to 2008 with balances more than tripling. In this article, we examine the role this phenomenon may have played in increasing aggregate default risk during the mortgage crisis. We also document a relationship between growth in home equity lending and high house price depreciation and first mortgage default during the downturn of 2006–2009. Line of credit growth is shown to be associated with large increases in nonowner‐occupied property purchases, suggesting that home equity lines of credit were tapped to fund such investments, exacerbating default rates during the market downturn.     

Implications for food production, land use and rural development of the European Union’s Single Farm Payment: Indications from a survey of farmers’ intentions in Germany, Portugal and the UK

The 2003 reform of the European Union’s (EU) Common Agricultural Policy introduced a decoupled income support for farmers called the Single Farm Payment (SFP). Concerns were raised about possible future land use and production changes and their impact on rural communities. Here, such concerns are considered against the workings of the SFP in three EU Member States. Various quantitative studies that have determined the likely impact of the SFP within the EU and the study countries are reviewed. We present the results of a farm survey conducted in the study countries in which farmers’ responses to a decoupling scenario similar to the SFP were sought. We found that little short-term change was proposed in the three, rather different, study countries with only 30% of the farmers stating that they would alter their mix of farm activities. Furthermore, less than 30% of all respondents in each country would idle any land under decoupling. Of those who would adopt a new activity, the most popular choices were forestry, woodland and non-food crops.     

Peering and Settlement in the Internet: An Economic Analysis

This paper explores the implications of Internet peering in the context of a model of competing, vertically integrated Internet Access Providers. We show that if regulation forbids settlement payments between firms, there will be under-investment in capacity and under-pricing of usage, both of which lead to excessive congestion. To overcome these problems, firms that are net providers of Internet infrastructure should be allowed to charge firms that are net users. We characterize the efficient level of these access payments, assuming usage can be appropriately measured. We find that refusal to peer and the charging of settlement payments may well be efficiency enhancing.     

Pay Me Now or Pay Me Later: Alternative Mortgage Products and the Mortgage Crisis

Mortgage contract design has been identified as a contributory factor in the recent market crisis. Here we examine alternative mortgage products (including interest‐only and other deferred amortization structures) and develop a game theoretic model of contract choice given uncertain future income and house prices across different types of borrowers. Results imply that deferred amortization contracts are more likely to be selected in housing markets with greater expected price appreciation and by households with greater risk tolerance; moreover, such products necessarily entail greater default risk, especially among lower‐income households who are aggressive in housing consumption levels. Empirical tests of model predictions generally provide support for the theory.