Prices of Unpackaged and Packaged Foods

Prices of packaged and unpackaged items sold in the same retail out-let were compared in 19 northern California supermarkets. The magnitude of potential price savings depended upon the size and type of product purchased. Savings would most likely accrue to the purchaser of small rather than large quantities of unpackaged products. The future of unpackaged foods is linked to technical developments in sealed dispensers that limit customer access to the product.     

Consumer Vulnerability to Fraud: Influencing Factors

Using the 1993 Survey of Older Consumer Behavior commissioned by the American Association of Retired Persons, consumer vulnerability to market fraud was investigated. Consumer vulnerability was determined based on consumers' market knowledge and awareness of unfair business practices. Using an ordered logit analysis, it was found that consumers were more susceptible to fraud if they were older, poor, less educated, and/or living without spouse. Neither gender nor race was found to be a significant predictor of consumer vulnerability. Implications for consumer educators and policy makers were drawn.     

Wealth Distribution, Inflation Tax, and Societal Benefits of Illiquid Bonds

Illiquid nominal government bonds are shown to have two opposing effects on welfare. First, the relatively poor choose to top-up money balances for future consumption by purchasing nominal bonds at a discount. The wealth distribution becomes more centered with a smaller consumption deviation from the first best. Second, the higher inflation tax on monetary wealth to finance interest payments makes money less valuable, so that the quantity of output produced in exchange for money decreases. The trade-off between the welfare-enhancing effect on wealth distribution and the distortionary effect on output implies the socially optimal discount rate and liquidity.     

Dairy product consumption in South Korea

The per capita daily consumption of dairy products increased approximately 2450% in South Korea from 1969 to 1987. The purpose of the present study was to determine the frequency with which urban South Koreans consume 10 common dairy products, and to find the socio-economic group most responsible for the increase in dairy product consumption. Data were collected on the dietary patterns and socio-economic backgrounds of 923 women, 880 children and 772 men in urban areas. This study showed that seven of 10 dairy products investigated were consumed evenly by both sexes, all age groups and income levels. However, three recently-introduced products (i.e. cheese, ice cream and butter) were found to be consumed most frequently by young Koreans in the high income level.     

Business Groups and Tunneling: Evidence from Private Securities Offerings by Korean Chaebols

We examine whether equity‐linked private securities offerings are used as a mechanism for tunneling among firms that belong to a Korean chaebol. We find that chaebol issuers involved in intragroup deals set the offering prices to benefit their controlling shareholders. We also find that chaebol issuers (member acquirers) realize an 8.8% (5.8%) higher (lower) announcement return than do other types of issuers (acquirers) if they sell private securities at a premium to other member firms, and if the controlling shareholders receive positive net gains from equity ownership in issuers and acquirers. These results are consistent with tunneling within business groups.     

A Note on the Nature and Determination of Income

This note comments on the doubtful application of an economic concept of personal income to the non-personal business enterprise situation.     

Bad Credit,No Problem? Credit and Labor Market Consequences of Bad Credit Reports

We study the financial and labor market impacts of bad credit reports. Using difference-in-differences variation from the staggered removal of bankruptcy flags, we show that bankruptcy flag removal leads to economically large increases in credit limits and borrowing. Using administrative tax records linked to personal bankruptcy records, we estimate economically small effects of flag removal on employment and earnings outcomes. We rationalize these contrasting results by showing that, conditional on basic observables, “hidden” bankruptcy flags are strongly correlated with adverse credit market outcomes but have no predictive power for measures of job performance.