Advertising bans and product demand: how does marketing affect demand for a differentiated product?

Applied economists have made extensive use of product category time series studies to investigate the effects that an advertising ban might have on markets for potentially harmful products such as tobacco and alcohol. This paper argues that such studies can cast little light on the question, partly because they contain no plausible hypothesis of how advertising influences demand in a market for differentiated products. This paper extracts such an hypothesis from literature on the psychology of consumer behaviour, and uses it in simple economic model of a differentiated product market. The analytical results are sensitive to the precise assumptions made about the competitive structure of the market. This apparently negative conclusion is an important warning against making over-generalized predictions about the effects of an advertising ban. Finally, the paper makes several proposals about how its hypothesis could be tested empirically.     

Asymmetric effects of inflation shocks on inflation uncertainty

The empirically documented regularity that dis-inflationary shocks are associated with larger output changes than are positive shocks presents an interesting puzzle to macroeconomists. This paper presents, and empirically supports, a new explanation for this asymmetry. The authors show, using a TARCH model, that negative inflationary shocks result in greater inflation uncertainty than positive shocks. As Friedman [1977] argues, and a body of empirical evidence demonstrates, inflation uncertainty leads to lower output growth. Drawing on this explanation, this essay points to an avenue by which the output asymmetry of inflationary shocks can be explained.     

The emergence of small transnational enterprise in Vancouver: the case of Chinese entrepreneur immigrants

This article examines the small transnational enterprises of recent Chinese entrepreneur immigrants to Vancouver, Canada. These enterprises are part of the globalization process and contribute to the economic and cultural integration of certain regions of Asia with large urban areas of Canada. The entrepreneurs are analyzed utilizing a transnationalism framework which is situated in the ethnic enterprise literature. The article explains how these transnational small Chinese businesses are different from the businesses of earlier Chinese in Canada. A detailed analysis of the Canadian Business Immigration Program illustrates how and why small Chinese transnational enterprises have emerged. The primary data comes from extensive in–depth interviews with 61 Chinese entrepreneur immigrants that allows for the delineation of three transnational business types: (1) Asian production–North American distribution, (2) retail chains and (3) import–export. Quantitative data illustrate the major differences between ‘transnational’ and ‘non–transnational’ enterprises along several variables. Other qualitative data provide insights on how family networks are interwoven with firm relations in small transnational businesses, how entrepreneurs perceive interethnic relations and the extent to which they experience barriers to mobility. Evidence is provided of extensive transmigration and, in contrast to the sojourner identity of earlier Chinese, the data here suggests the emergence of a new transnational and cosmopolitan identity amongst entrepreneur immigrants. Cet article étudie les petites entreprises transnationales des récents immigrants chinois de Vancouver (Canada). Celles–ci s’inscrivent dans le processus de mondialisation et contribuent à l’intégration économique et culturelle de certaines régions d’Asie dans d’importantes zones urbaines canadiennes. L’analyse de ces créateurs d’entreprise est faite à partir d’un cadre d’analyse transnationaliste qui se situe dans la littérature sur l’entreprise ethnique. L’article explique en quoi ces petites entreprises chinoises transnationales diffèrent de celles des Chinois arrivés plus tôt au Canada. Une étude détaillée du Programme canadien d’Immigration des Hommes d’affaires explique comment et pourquoi sont apparues ces petites entités transnationales. Les principales données, tirées d’entretiens approfondis avec 61 entrepreneurs chinois, permettent de définir trois types d’entreprises transnationales: production asiatique avec distribution nord–américaine, chaînes de détaillants, et import–export. Des données quantitatives illustrent les grandes différences entre les entreprises ‘transnationales’ et ‘non–transnationales’ en fonction de plusieurs variables. D’autres données quantitatives révèlent de quelle manière les réseaux familiaux s’entremêlent avec les relations professionnelles dans les petites entités transnationales, comment les chefs d’entreprise perçoivent les relations inter–ethniques et dans quelle mesure ils rencontrent des obstacles à leur mobilité. Une importante transmigration est mise en evidence et, par opposition au caractère temporaire du séjour des premiers Chinois, les données suggèrent ici l’émergence d’une nouvelle identité transnationale et cosmopolite chez les immigrants chefs d’entreprise.     

Obstacles to Future Prosperity

Mr Heseltine offers a positive approach to prosperity, believing that obstacles are there to be overcome. There is potential to be realised through the GATT agreement, and developments such as information highways and the growth of tourism. Nevertheless there are some major obstacles to be overcome: lack of education, over-regulation and lack of public funding, for example. Solutions to these obstacles require new techniques, such as the inter-related use of public and private resources, and new attitudes of mind.     

Party building since Mao—a question of style?

Party workstyle remains a problem for the CPC leadership, reinforced by rejection of Cultural Revolution methods and re-evaluation of Mao which have confused many cadres. In a number of ways, Mao had destroyed the ‘rules of the game’ of the Leninist Party- state. Yet the problem is one of structure of power not merely of attitude.Development strategies have been changing; moves have been made towards economic reforms. These call for a different kind of Party than that which existed prior to 1976. For example, in relations with other institutions, the dominating role of the Party will need modification. In combating ‘sickness’ within the Party, two problems have been diagnosed by the authorities: bureaucratism and feudal hangovers. These lead to corruption, patronage and lack of inner-Party democracy. Earlier ideas of inner-Party struggle by democratic means and a real role for the Constitution have been revived. The latter now includes restrictions on individuals acting beyond the scope of Party policy — a thrust at the personality cult that develops around Party leaders. Life-long tenure for cadres is being abolished, and interpenetration of state and Party organs limited to a degree, though differences continue on how far this should proceed and on the amount of freedom to be given to intellectuals to intervene in the process.