Deliberation revisited

Because the consumer is the focus of all marketing activities, knowledge of his/her behavior is one of the most important aspects of marketing. Empirical studies are needed to determine, how consumer arrives at decision to make a particular purchase, what kind of deliberation exhibited by consumers and correlates of deliberation are analyzed.     

DISTRIBUTION OF WEALTH IN THE UNITED KINGDOM: EFFECT OF INCLUDING PENSION RIGHTS,AND ANALYSIS BY AGE-GROUP*

This article on the distribution of wealth among individuals in the United Kingdom presents recent work on the effects of including pension rights and the significance of sex, age and marital status. It describes the rationale for including the accrued rights in occupational and State pension schemes (funded or unfunded) and the methods of estimation used. For funded schemes the rights are valued as the accrued liability of the schemes to their members, and for unfunded schemes similar liabilities are hypothecated; these estimates of the value of accrued pension rights involve assumptions about future earnings and interest rates. The trend in average marketable wealth with age is upwards until advanced years when it slows down or slightly reverses. Adding occupational pension rights only slightly raises the trend for females but has a bigger effect for males. Adding State pension rights raises these upward trends until the age of 60 after which there is a decline. For marketable wealth on the average males are wealthier than females but less wealthy if single, divorced or widowed. Adding occupational pension rights improves the relative position of males; adding State pension rights cancels this out. The effect of marital status rises with both age and sex and therefore a detailed three-way analysis is made. For females widows are on average the wealthiest; for young males the married; for older males the single. Using Theil's coefficient of entropy for comparing the inequality of wealth, the addition of pension rights reduces inequality by two-thirds. Age accounts for only 6 percent of inequality for marketable wealth but for 31 percent if pension rights are included.     

Overreaction after Controlling for Size and Book-to-Market Effects and its Mimicking Portfolio in Japan

In this paper we observe that firm size (SZ) and book-to-market (BM) cannot fully explain stock returns on prior-return- (PR-) based portfolios in the Japanese stock market. The overreaction effect after controlling for the SZ and BM effects is significant and persistent, and accounts for a large part of the zero-investment returns on the loser to the winner. We therefore propose a new mimicking portfolio whose returns mimic the common factor in returns related to overreaction. Our evidence shows that the proposed four-factor model captures common variation in returns on portfolios, based on stocks SZ, BM, and PR, better than the well-known three-factor model does.     

Export channel design: The use of foreign distributors and agents

Because many manufacturers are unable to integrate vertically into global distribution, the nonintegrated market entry modes of foreign distributor and agent are frequently used. Unfortunately, little is known about choosing efficiently between distributor and agent because research has only partially examined the importance of transaction and production costs in determining institutional arrangements. To specify efficient channel design, this article develops and tests hypotheses linking the characteristics of export exchange to the cost-minimizing mode of export channel governance. Based on a sample of 269 manufacturers, results suggest that market diversity, type of transaction-specific asset, and production cost economies all affect the choice between foreign-based agents and distributors. The article concludes with the implications of these results for export management and future export research. He received his Ph.D. from Michigan State University. His research interests include distribution strategy and international marketing. He has published in theJournal of Marketing, European Journal of Marketing, Journal of International Business Studies, Journal of Business Research, Industrial Marketing Management, andJournal of Advertising. He serves on the editorial review boards of various professional journals including theJournal of Marketing and theJournal of Business Research. She received her Ph.D. from the University of Maryland. Her research interests include buyer-seller relationships and business-to-business marketing. She has published in theJournal of Business Research, Industrial Marketing Management, Journal of Global Marketing, and in the proceedings of various professional conferences.     

Empirical analysis of real and financial volatilities on stock excess returns: evidence from Taiwan industrial data

This paper tests the relation between stock excess returns and risk factors measured by volatility. The sources of the volatility are based on the volatility of macroeconomic factors and time-series volatility. To model the macroeconomic fundamentals, we divide the risk into real and financial volatilities pertinent to Taiwan's economic environment. By examining the data of indusry excess returns and market excess returns, we find evidence to reject the hypothesis that the stock excess returns are independent of the real and financial volatilities.     

A bully pulpit

It is pointed out that in an economy with only one resource and price-making firms, virtually any price vector is a market-clearing vector if profits are distributed as dividends and consumers correctly anticipate these dividends. It is argued that the resulting model has been useful in comparing competition and monopoly, direct and indirect taxation, and first and second best and has the potential for shedding light on many other questions in welfare economics. A painless procedure for verifying the counterintuitive fundamental proposition is provided.Presidential Address presented at the Forty-Second International Atlantic Economic Conference, Washington, DC, October 10–13, 1996.     

Political feasibility of structural adjustment in africa: an application of SAM mixed multipliers

The implementation of structural adjustment programs (SAPs) has often been undermined by opposition from politically powerful groups who are favored by existing policies. To assess the political sustainability of SAPs this paper uses social accounting matrices for three African countries to model the income effects of stylized SAPs on different socioeconomic groups. The analysis reveals wide variation in the likelihood for typical SAPs to be acceptable to political elites while generating growth in the rest of the economy. The presence of a rural elite or strong farm-nonfarm linkages can enhance the political sustainability of SAPs.     

Tax Reporting Behavior Under Audit Certainty

This study uses a confidential data set of firms assigned to the Internal Revenue Service's Coordinated Industry Case (CIC) program to examine the effect of audit certainty on firms' tax reporting behavior. We first model the determinants of assignment to the program. Although the ability and incentive to avoid taxes are related to CIC assignment, we find that the IRS assigns firms primarily based on size and complexity. We then test whether audit certainty has a detectable effect on tax payments. Our results show that tax payments do not change when firms enter the CIC program, suggesting the CIC program does not have higher deterrence or enforcement effects relative to the IRS's standard selection and audit process for large corporations not included in the CIC program. However, supplemental analysis suggests that audit certainty does alter managers' expectations regarding future tax payments. Our paper provides new empirical evidence on the strategic game between the taxpayer and the tax authority and has important implications for tax authorities as they consider the costs and benefits of certain audit programs.