A decomposition of repeat buying

The authors decompose repeat buying for frequently purchased nondurables. The results are very similar for two categories each over a different city and time period. A factor analysis of 18 measures of repeat buying obtains four principal factors that explain 79–85% of the variance: Preference, Inertia, Coupon Proneness and Impulse Buying. A cluster analysis of factors on these dimensions yields four segments, with distinct behavioral characteristics.The authors thank IRI for the data.     

A QUADRATIC PROGRAMMING INTERREGIONAL TRADE MODEL: AN APPLICATION AND A PERSPECTIVE*

This paper presents a theoretical activity-type model of U.S. interregional trade for the agricultural sector as an extension of the broad non-linear programming formulation of Samuelson [4] and the quadratic programming reformulation of Takayama and Judge [5]. A shorter model is applied to the problem of examination of the short-run competitive strength of Wisconsin, particularly in beef and pork (interregional) trade. The conclusions for Wisconsin suggest competitive price disadvantages in beef and beef feeding but with belter prospects for expansion for a pork sector At a time of growing interest in the probable impact of expanded and freer Canada-US. trade, this type of programming model is suggested as a significant approach to problems of Canada-U.S. trade. In addition, in an apparently emerging era of regulated marketing and production control, the employing of such a model for interregional market share analysis appears a major possible policy avenue Ce papier présenle un modèle théorique “Type-activiie” du commerce interregional aux Etats-Unis, pour le secteur agricuhurel, en guise ?extension du propos de vaste programmation non-lineaire, tel que formule par Samuelson [4], ainsi que celui de Takayama el Judge [5], qui proposent une réformulation de programmation quadraiique. Un plus petit modèle est appliqué au probleme ?examinalion de la force immédiate et compétitive de Wisconsin, tout particulièrement dans le commerce (interrégional) du boeuf et du pore. Les conclusions tirées pour Wisconsin suggèrenl un prix com-pétitif qui désavantagerait le boeuf el ?alimentaiion du boeuf, mais qui favoriserait ?expansion du secieur du pore A un temps oú?on se préoccupe de ?impact tout probable dûà un commerce plus libre et plus étendu entre le Canada el les Etals-Unis, ce genre de modéle de programmation est suggéré comme étant une approche significative aux problèmes de commerce Canada-Eiats-Unis. En plus, en celle époque qui semble mettre de plus en plus ?emphase sur le marché ajuslé et le comrôle de production, les possibililés ?employer un lei modéle pour ?analyse de la part du marché interrégional nous apparait comme étanl une possibilité majeure en fait de ligne de conduiie.     

The Effects of Oil Price Shocks on Output

This analysis explores the effects of oil price shocks on U.S. economic growth. We begin with a well-known model developed by James Hamilton, consider refinements to his definition of an oil price “shock,” and then explore alternatives to his basic reduced-form model. We find that a structurally inspired error-correction model for non-farm business output, which allows for oil price changes to have both long-run and short-run effects, performs better than the basic reduced-form model and also shows significantly smaller adverse effects of rising oil prices. Our preferred model suggests that oil prices reduced GDP growth by about 0.4 percentage point on average through the first three quarters of 2008, before contributing 1.7 percentage points in the fourth quarter as prices plummeted.     

Fiscal policy, long‐run growth, and welfare in a stock‐flow model of public goods

Abstract.  We introduce public capital and public services as inputs in an endogenous growth model. We show that the growth rate depends on the apportionment of tax revenues between the accumulation of public capital and the provision of public services. When public spending is financed by proportional income taxes, the growth rate, the level of public spending as a proportion of GDP, the level of investment in public capital as a proportion of total public spending, and the level of private investment as a proportion of total private spending all are lower in the equilibrium outcome than in the optimal outcome. JEL classification: E62, O40     

The Money Trail: Ranking Donor Transparency in Foreign Aid

Transparency of aid activity is being recognized to be one of the key areas whereby aid effectiveness can be improved. In this paper, we propose an index to measure and rank donors on the transparency of their aid activities. The Transparency Index rates 31 bilateral and multilateral donor agencies on six measures of transparency. We find that being a member of the IATI is a powerful signal of a donor being more transparent across most other dimensions as well. We find no relationship between transparency and donor aid volumes. Overall IDA and Australia are identified as the most transparent donors, while Korea and IDB Special Fund are the least transparent.