Traditional Food Products: The Effect of Consumers’ Characteristics,Product Knowledge,and Perceived Value on Actual Purchase

The study demonstrates the importance of customer orientation in markets dominated by small food and drink manufacturers. The study evaluates the effect of consumers’ personal characteristics and perceptions on purchase and provides better understanding of their role in business development in specialty food markets. The United Kingdom’s Mediterranean food market was chosen as a context, focusing specifically on Greek feta. Two hundred seventy-three UK specialty food shoppers were surveyed online to determine what aspects of consumers’ cognition and what personal characteristics would affect purchase decisions. The findings reveal, through 3 models (R² = .26/.20/.19), that product knowledge (p < .01), country of origin (p < .10), perceived transactional value (p < .10), consumers’ life stage (p < .05), and available income (p < .01) are 5 critical factors affecting decision making. The managerial implications for small and medium sized enterprises (SMEs) lie in the need to create and deliver value to consumers by informing production decisions on consumers’ insight rather than on customers’ (wholesalers, retailers) specifications.     

Indeterminacy and nonlinear dynamics in an OLG growth model with endogenous labour supply and inherited tastes

This study analyses the dynamics of a two-dimensional overlapping generations economy with endogenous labour supply à la Reichlin (J Econ Theory 40(1):89–102, 1986) and aspirations. We show that the degree of nonlinearity of consumption externality in individual utility is responsible for the existence of either one steady state or two steady states. In addition, some interesting global dynamic properties, such as cyclical behaviour and/or global indeterminacy, emerge depending on the relative importance of aspirations in utility.     

A Comparative Study of the Use of Generalized Additive Models and Generalized Linear Models in Tourism Research

In this paper, we investigate the impact that spatial and micro‐economic variables have on the probability that a household goes on holiday. In doing so, we propose two alternative modelling specifications: a classic discrete choice model and a semiparametric logistic model. The semiparametric model extends the classic logistic model, usually employed in studies on participation in tourism, allowing modelling in a flexible manner for continuous predictors without making any a priori assumption. This is achieved via the use of penalized regression splines. A sample of Italian households was considered for our study. Comparing the results of the two approaches, we found that both methods opportunely captured, in terms of signs, the relationships under investigation. However, the use of a more flexible approach has allowed us to uncover some interesting non‐linearities that are usually not assumed a priori, thus improving the interpretation of the results. Copyright © 2011 John Wiley & Sons, Ltd.     

Experimental comparison between markets on dynamic permit trading and investment in irreversible abatement with and without non-regulated companies

This paper examines the investment strategies of compliance companies in irreversible abatement technologies and the environmental achievements of the system in an inter-temporal cap-and-trade market using laboratory experiments. The experimental analysis is performed under varying market structures: firstly, in a market that is exclusive to compliance companies and subsequently, in a market that is open to both compliance and non-compliance entities. In line with theoretical models on irreversible abatement investment, the paper shows that regulated companies trade permits at a premium. Also, steep per unit penalties for excess emissions prompt early investments in irreversible abatement technologies. Further, the paper shows that by contributing to the permit demand and supply, non-compliance companies (i) enhance the exchange of permits, helping the system to achieve a zero-excess permit position, (ii) increase the price levels, but has no apparent effect on price variability.     

How Does Fiscal Consolidation Impact on Income Inequality?

In this paper, we assess the impact of fiscal consolidation on income inequality. Using a panel of 18 industrialized countries from 1978 to 2009, we find that income inequality significantly rises during periods of fiscal consolidation. In addition, while fiscal policy that is driven by spending cuts seems to be detrimental for income distribution, tax hikes seem to have an equalizing effect. We also show that the size of the fiscal consolidation program (in percentage of GDP) has an impact on income inequality. In particular, when consolidation plans represent a small share of GDP, the income gap widens, suggesting that the burden associated with the effort affects disproportionately households at the bottom of the income distribution. Considering the linkages between banking crises and fiscal consolidation, we find that the effect on the income gap is amplified when fiscal adjustments take place after the resolution of such financial turmoil. Similarly, fiscal consolidation programs combined with inflation are likely to increase inequality and the effects of fiscal adjustments on inequality are amplified during periods of relatively low growth. Our results also provide support for a non‐linear relationship between inequality and income and corroborate the idea that trade can promote a more equal distribution of income.     

Testing theories of reciprocity: Do motivations matter?

One of the key issues for understanding reciprocity is how agents evaluate the kindness of an action. In this paper we investigate experimentally the hypothesis that the motivation driving an action is relevant for its perceived kindness and, as a consequence, for reciprocal behavior. In particular, we examine the hypothesis that, for a given distributional outcome, positive reciprocity is less strong in response to strategically motivated actions than to non-strategically motivated actions. Our results indicate that, both at the aggregate and the individual level, reciprocity is significantly stronger when strategic motivations can be ruled out. These findings suggest that intentions matter and, in particular, that models of intention-based reciprocity should take into account the nature of the motivations behind choices.     

Does defence expenditure affect private consumption? Evidence from the United States

This paper empirically discusses the relationship between government defence expenditure and private consumption for the United States. The estimations show a substitution or complementary effect of the military sector on private categories of consumer choices, although sensitivity analysis for different utility functions and sub-samples indicates a time-decrease on substitutability. Our findings are in line with previous results highlighting a weak substitution of defence expenditure on aggregate consumption.     

The economic effects of improving investor rights in Portugal

The Portuguese economy has performed remarkably well since joining the EU in 1986. Output per worker grew at an annual rate of 2.25%. The relative price of investment has declined. Real investment has increased compared to output, in part fuelled by an increase in capital inflows. At the same time, resource allocation seems to have improved as well: firm-level data shows a significant decline in the dispersion of labor productivity and size across firms. This paper argues that improvements in outside investor rights that have taken place since Portugal joined the EU is a prime candidate to explain this set of facts.

European Soil Data Centre: Response to European policy support and public data requirements

In the context of the European Union's Soil Thematic Strategy, policy makers require easy access to soil data and information of various types and scales to assess the state of soils at European level. To satisfy this need, the European Commission and the European Environment Agency (EEA) decided to establish the European Soil Data Centre (ESDAC), located at the European Commission's Joint Research Centre.The ESDAC is one of ten environmental data centres that have been established during the last 4 years in support of policy development, implementation and monitoring by the European Commission's Directorate General for Environment. The ESDAC, located at http://esdac.jrc.ec.europa.eu, has become the focal point for soil data and information at European Union level by hosting a series of soil products and web-based tools that allow access to the data. The ESDAC acts as the primary data contact point for the Commission and EEA to fulfill their information needs. The establishment and the evaluation of harmonised databases should facilitate improved soil protection measures.     

Twin Crises in Emerging Markets: The Role of Liability Dollarization and Imperfect Competition in Banking

Currency crises in emerging markets have been accompanied by banking crises, with concentration in the market for bank credit increasing after large devaluations. This paper examines how the presence of imperfect competition and liability dollarization in banking shapes the real effects of the just mentioned twin crises. An important gap in the theoretical literature is filled, by being the first paper to provide a model of twin crises in the presence of imperfect competition in banking, and the changes in market structure that occur in the aftermath of crises. Doing so, the analysis is able to reveal that currency devaluations generate more severe twin crises in economies with less competitive banking sectors. This result is consistent with the empirical evidence on the concentration‐fragility view, and it unveils the importance of prudential regulation that focuses on the market structure in banking.