The Influence of Children on Family Life Cycle Spending Behavior: Theory and Applications

This study examines the effect of children on family consumption decisions during different stages of the life cycle. An empirical model that incorporates both continuous measures of adult equivalence and a flexible functional form is used. Results indicate that durables, food eaten (purchased) away from home, and adult clothing are luxury goods for two-child families. Economies of scale are noted for food and shelter expenditures. Two-child families substitute out of expenditures for meals eaten away from home, adult clothing, and other goods and services to meet increased demand due to the children's presence.     

Two Paradoxes in the Theory of Capital Investment and Competition

This paper considers two paradoxes concerning the relationship between capital investment decisions and competition. First, conventional capital budgeting methods imply that substantial infra-marginal surpluses are attained above the cost of capital, but this is inconsistent with the premise that returns on capital equal the cost of capital in competitive markets. Second, contrasts in the pharmaceutical industry between high reported returns on capital invested, the accounting treatment of research and development outlays, and inter-firm competition in research and development are explored.     

European tourism management

European governments must recognize the economic significance of the tourism industry to Europe. Dr Klaus Edelmann, Professor at the Swiss School of Tourism Management, describes how modern marketing methods and EEC consensus policies must be adopted to combat increasing competition from outside Europe and expand the domestic market.     

INSTITUTIONAL ECONOMICS: SURVEYING THE ‘OLD’ AND THE ‘NEW’

This paper surveys and compares the literature on the ‘new’ institutionalism (North, Williamson, etc.) with that of the ‘old’(Veblen, Commons, Mitchell). A criterion for distinguishing these two schools is suggested, along with criticisms of the limitations of each. The ‘new’ institutionalism is associated with methodological individualism and the idea that the individual should be taken as given. Particular attention is paid to ‘new’ institutionalist treatments of markets and firms. The paper moves on to examine some ‘old’ institutionalist criticisms of ‘economic man’ as well as some negative features of the ‘old’ institutionalism. On the positive side, the latter is seen to have an ‘evolutionary’ dimension, related to modern work in the area of technological change.     

Warranties: Continued Readability Problems After the 1975 Magnuson-Moss Warranty Act

A major thrust of the Magnuson-Moss Warranty Federal Trade Commission Improvement Act (MMWA) passed by Congress in 1975 is to make warranties “easy to read and understand.” This study examines readability levels for 121 warranties in ten categories of consumer durables. The warranties analyzed are found to require readability levels beyond what most Americans have attained. Limited warranties require significantly higher readability levels than full warranties. Results suggest the MMWA, since passage in 1975, may have increased the number of limited warranties and the difficulty of reading level.     

Disengagement predictions via drift flux correlation vertical,horizontal and spherical vessels

The behavior of an open system is modeled. Thus, for special cases, the void fraction is predicted as a function of location and time. The open system may be an open vessel or a vessel with an open relief device. A single governing equation is derived based on combining the material and energy balances with the churn-turbulent drift flux relationship and assuming no radial gradients. This partial differential equation is not solved. It is, however, bounded by homogeneous and all vapor venting. These special cases are solved. In homogeneous venting the key variable is time. In all vapor venting under pseudo-steady-state conditions the key variable is location. The solution of the partial differential equation is also discussed. Under pseudo-steady-state and churn-turbulent conditions, the open system is modeled. The minimum void fractions (corresponding to a maximum liquid inventory) with all vapor venting, for vertical, horizontal, and spherical vessels are predicted and compared. Analytical expressions for the local and average void fractions in a vertical vessel and non-unity distribution parameters are presented. Void fraction profiles are compared for three cases: 1. vertical cylinders with distribution parameters (Co values) of unity and 1.5, 2. horizontal and vertical cylinders with varying L/D ratios, and 3. spheres with inscribed vertical cylinders having constant gas production to bubble rise ratio (Ψ′ value). The vertical cylinder average void fraction for non-unity distribution parameters can now be calculated analytically. The horizontal cylinder average void fraction predicted by turning it upright results in an over prediction of at most 4%. The sphere average void fraction predicted via an inscribed vertical cylinder, with the same Ψ′ value, is consistenly high by at most 8%.     

Ultimate capacity of blast loaded structures common to chemical plants

There has been a great deal of investment in development of design criteria and design and construction of heavily reinforced, blast-resistant control rooms. This remains the best option for protective construction against severe blast loading experienced close in to a vapor cloud or other explosion hazard. However, most structures encountered at chemical plants and contemplated for future construction are conventional steel frame, metal clad buildings. In this paper we look closely at the response of such buildings to explosion loads and their ability to undergo large deformations without structural failure. The types of structural elements evaluated include metal decking of various gauge and shape along with a variety of girt and purlin sections. Building frames or bents are also evaluated, although the date base for these is much more limited. The work is based on observations made during investigations of large explosion accidents along with analytical predictions and test measurements. To conclude, we offer specific design criteria and connection recommendations for enhancing the overall strength of a building through the use of conventional components in unconventional construction.