Outsourcing, unemployment and welfare policy

The paper investigates the consequences of outsourcing of labor intensive activities to low-wage economies. This trend challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii) it increases inequality between high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto improving by using a redistributive linear income tax if redistribution is initially not too large. We finally derive the welfare optimal redistribution and unemployment insurance policies.     

Product liability and safety: Perspectives from business versus public policy makers

Product liability and the improvement of product safety are major concerns confronting business executives and public policy makers. This article reports the results of a mail survey that explored some of the major issues surrounding product liability and safety. The survey solicited the opinions of manufacturing executives, insurance executives, and state insurance commissions. Analysis of the data involved comparison of the opinions of the three groups of respondents. In general, the respondents agreed that (1) the increased emphasis on safety has caused prices to rise, but products are safer; (2) the salesforce should be used more as a source of information on the safe use of products; (3) a good safety record is a competitive edge for a manufacturing firm; (4) small businesses should not be treated more leniently than large ones in product liability cases; and (5) the CPSC's activities have generally been favorable. In contrast, manufacturing and insurance executives were more negative regarding the application and enforcement of strict liability than were insurance commission respondents.     

Advertising Evaluation and Measurement Error: The Case of Fluid Milk in Ontario

A key component of any attempt to assess the economic impacts of advertising is the ability to obtain accurate estimates of advertising elasticities or response coefficients. Accurate estimates of advertising response require accurate data. This study compares estimates of advertising elasticities based on two alternative data series. One data series represents actual expenditures on fluid milk advertising as measured by the entity conducting the advertising. The other data series represents estimated advertising expenditures as measured by a commercial tracking firm. Results based on a quarterly econometric model covering the period 1973-84 suggest data obtained from the tracking service produce severely downward-biased estimates of advertising response. The tracking data, moreover, tended to understate the actual level of advertising over the sample period and to misrepresent turning points. Un des facteurs déterminants permettant d'évaluer l'incidence économique de la publicité est la capacityé d'obtenir une estimation précise des élasticités de la publicité ou des coefficients de réaction. Pour estimer avec précision la réponse à la publicité, on a besoin de données précises également. La présente étude compare les estimations de l'élasticite de la publicité obtenues au moyen de deux séries de données. La premiére série portait sur les dépenses réelles de publicité pour le lait de consommation, telles que calculées par l'organisme chargé de la campagne. La seconde représentait les dépenses de publicité prévues par une entreprise d'étude de marché. Les résultats tirés de l'application du modéie économétrique trimestriel à la période de 1973 à 1984 indiquent que les données de l'en-treprise d'étude du marché entraînent une nette sous-estimation de la réaction a la publicité. EHes ont eu aussi tendance à sous-estimer le budget réel consacré à la publicité au cours de la période à l'étude et à mal signaler les points déterminants du cycle.     

THE IMPACT OF FEMALE WORK ON FAMILY INCOME DISTRIBUTION IN THE UNITED STATES: BLACK-WHITE DIFFERENTIALS*

Using data from the 1973 National Survey of Family Growth, the present study analyzes, for blacks and whites separately, the impact of female market activity on the inequality of the income distribution among households. The family life cycle is divided into three stages, according to the presence and age of children: (1) the interval between marriage and the birth of the first child, (2) the child-rearing interval, and (3) a final period which begins when all the children have reached school age. Using the coefficient of variation as an indicator of inequality, the empirical results show that in period 1, the contribution of white working wives has a large equalizing impact, while that of their black counterparts results in a slight increase in dispersion. In the child-rearing and post child-rearing stages, the labor supply of mothers decreases family income inequality by a small amount for both black and white households. A decomposition of the squared coefficient of variation of family income is presented to aid in the interpretation of these findings.     

The Transitioning of Marketing Practices from Segment to Customer-Centric Marketing in the African Business Context: Toward a Theoretical Research Framework

ABSTRACT

Although marketing has long been posited to be shifting from segment marketing to customer-centric marketing, there is little theoretical insight into the status of such transformation, especially in emerging African economies. Therefore, this paper develops an integrated theoretical framework for assessing (a) the extent to which firms in African economies use the segment marketing mix (4Ps) versus the customer-centric marketing mix (4As) as well as (b) their antecedents and performance outcomes. Propositions drawn from qualitative data and theoretical tenets in strategic management and in institutional theory are offered to guide systematic empirical research.     

Brexit und die Zukunft Europas – eine spieltheoretische Einordnung

After the Brexit referendum’s leave outcome last summer, the new relationship between the UK and the EU has to be shaped institutionally. For the two bargaining parties the question now is which negotiation strategy to take. In order to choose the optimal strategy, the players have to factor in their time preferences. A game theoretical approach yields that the EU — no matter what is economically feasible in the short run — has to play a tough negotiation strategy if they care about the long run. This result is not a question of punishment but of pure economic rationale.     

EU-Osterweiterung: eine Bilanz nach zehn Jahren

Ten years after the biggest enlargement in the history of the EU, the integration of the new member states is assessed positively. It is considered an economic success when looking at the income levels. However, due to overly optimistic assumptions and the crisis, economic integration and the catching-up process will take much longer for the new EU member states than originally expected. Moreover, new challenges are looming, especially as the Central and Eastern European accession countries adopt the euro. Smaller countries introduced the euro as quickly as possible, whereas larger countries have been much more hesitant, thinking twice not only because of several unsolved problems in the euro area but also because they use the exchange rate tool much more intensively. All new member states have to make sure they continue to increase their productivity and competitiveness. Findings suggest that after having entered the EU, the new eastern member states appear to have been developing rather stringent competition cultures. Bulgaria and Romania’s transition performance significantly differs from the pattern in the 2004 accession countries, both in terms of quantitative growth and institutional quality. These countries show that EU funds can be highly counter-productive since they help to conserve old structures.     

Mature and Emerging Organic Markets: Modelling Consumer Attitude and Behaviour With Partial Least Square Approach

Although the organic food sector has been researched for around 20 years, still little is known about consumer behaviour when comparing developed and emerging organic markets. Therefore, the aim of this study is to investigate the determinants of organic food consumption in a mature (Germany) and an emerging (Chile) organic market using a model based on the theory of planned behaviour and partial least squares for parameters estimation. The reported results have implications for decision makers in both countries. The use of altruistic arguments in organic food marketing is a key aspect to increase organic food demand in both countries. However, egoistic motives might also gain importance in Chile, as they already have in Germany. In both countries, the barriers for organic food consumption have to be addressed with great attention—a lack of information and availability, especially in Chile, and scepticism about organic food in Germany.     

How Managers Handle Conflict in Supply Chain Collaborative Relationships in Ghana

To contribute to a broader understanding of how conflict impacts the emergence of collaborative relationships in the supply chain, the authors conduct a series of simulation games among supply chain collaborative teams in Ghana, West Africa. Results lend support to a theoretic proposition that managers' responses to conflict differ on the basis of their evaluative judgments about the favorability of processes and fairness of outcomes as predicted by the process and outcome discrepancy model (Kumar & Nti, 1998 Kumar , R. , & Nti , K. O. ( 1998 ). Differential learning and interaction in alliance dynamics: A process and outcome discrepancy model . Organizational Science , 9 , 356 – 367 .[Crossref], [Web of Science ®] , [Google Scholar]). Further, results show that most collaborative relationships are prone to only a moderate level of conflict (contentious) as opposed to being highly conflict-prone (hostile) or conflict-free (harmonious), but the incidence of contentious and hostile relationships has a greater negative impact on collaboration decisions than the incidence of harmonious relationships. These findings demonstrate the importance of the process and outcome discrepancy model and the loss aversion tenet in prospect theory to supply chain collaboration research and strategy formulation.     

Competing with Marketing Channels and Logistics in Africa's Booming Markets: An Investigation of Emerging Supply Chain Management Practices in Ghana

Using Ghana as the African context for testing the applicability of supply chain management, this study reveals that firms there place less emphasis on logistics and channels management practices relative to product and pricing marketing mix elements. However, this situation is changing in response to the perceived positive impact of the regulatory and technological environment on market-share competitive performance. Those firms that emphasize integration of both logistics and channels management practices exhibited the strongest competitive market-share and financial performance; firms whose practices placed moderate emphasis on both logistics and channels management integration reported moderate levels of market-share and financial performance. These results suggest that firms in Ghana compete along a continuum of supply chain integration primarily on the basis of the increasingly market-oriented business environment.