UNITARY VERSUS COLLECTIVE MODELS OF THE HOUSEHOLD: IS IT TIME TO SHIFT THE BURDEN OF PROOF?

Most development objectives focus on the well-being of individuals.Policies are targeted to increase the percentage of individualswho avoid poverty, who can read, who are free from hunger andillness, or who can find gainful employment. Individual welfare,however, is based in large part on a complex set of interactionsamong family members. Until recently most policy analyses implicitly viewed the householdas having only one set of preferences. This assumption has beena powerful tool for understanding household behaviour, suchas the distribution of tasks and goods. But a growing body ofevidence suggests that this view is an expedience that comesat considerable, and possibly avoidable, cost. The article arguesthat more effective policy instruments will emerge from analyzingthe processes by which households balance the diverse interestsof their members.      

Culture, management accounting and managerial performance: Focus Iran

Modern management and control systems may not be equally effective in every country. Budget participation is one of the effective tools in western nations. However, management control tools, in general, and budget participation, in particular, could be ineffective or even dysfunctional in other environments. Hofstede (1980) had suggested that cultural differences among countries are influencing factors. In this study, we investigate the impact of culture, budgetary participation, and management accounting systems on managerial performance in Iran. Three-way analyses of variance are used separately for each of the four cultural Hofstede dimensions. We find convincing evidence that the application of management tools and techniques developed in western countries for effective management performance is not as useful in the Iranian context.     

Slotting allowances: a time series analysis of aggregate effects over three decades

Slotting fees and related discounts are important but controversial mechanisms for obtaining shelf space in marketing channels for consumer packaged goods. The theoretical field is divided between the efficient market and the market power schools of thought. Results from empirical studies and analytical models point in different directions. This paper analyzes trends in key macro economic variables to see if the patterns are more consistent with an underlying market efficiency model vs. a market power one. The data span 30+ years and focus on retailers in the marketing channel for food and kindred products. The variables studied include new product introductions, retail selling area, consumer price indices, profitability, cost of goods sold and selling expenditures. Efficient market explanations do not fare well in the analyses in comparison with market power explanations for practically all the variables studied. The paper conlcudes with recommendations for regulators and retail management.     

The structure of reseller goals and performance in marketing channels

The typical view of a marketing channel is that of a manufacturer-designed and-controlled distribution system. However, today, marketing functions, as well as market power, are more evenly distributed in the channel. In organizing and managing the modern channel, it is important to understand the business circumstances and priorities confronting channel members. This article studies how reseller firms establish their goal hierarchies and how these goals are related to performance. It hypothesizes that goal priorities emerge in relation to the environmental imperatives faced by the firm. The article develops hypotheses that are tested on survey data collected from a sample of franchisee firms, using structural equation models. The results support all the hypotheses about the effects of primary goals on performance. The effects of secondary goals are not unequivocal but informative nevertheless. Overall, the study points to interesting theoretical and managerial conclusions. Ravi S. Achrol (raachrol@mail.wvu.edu) (Ph.D., Northwestern University) is the Kmart Professor of Marketing in the College of Business & Economics at West Virginia University. Previously, he has served on the faculties of the George Washington University and the University of Notre Dame. His areas of research interest include distribution channels, marketing strategy, interorganizational relations, and network organization. His articles have appeared in theJournal of the Academy of Marketing Science, theJournal of Marketing, theJournal of Marketing Research, theJournal of Public Policy and Marketing, theJournal of Retailing, Social Science Research, theJournal of Business Strategy, and various other publications. Michael J. Etzel (michael.j.etzel.1@nd.edu) (DBA, University of Colorado) is a professor of marketing at the University of Notre Dame. He has previously served on the faculties of the University of Kentucky and Utah State University. His areas of research include marketing management and strategy, retailing, and buyer behavior. In 1996–1997, he served as chair of the Board of the American Marketing Association. His research has appeared in a variety of publications, most notably theJournal of Marketing Research, theJournal of Marketing, theJournal of Consumer Research, and theJournal of Retailing.     

Fifty Years of Regional Inequality in China: a Journey Through Central Planning, Reform, and Openness

The paper constructs and analyzes a long‐run time series for regional inequality in China from the Communist Revolution to the present. There have been three peaks of inequality in the last fifty years, coinciding with the Great Famine of the late 1950s, the Cultural Revolution of the late 1960s and 1970s, and finally the period of openness and global integration in the late 1990s. Econometric analysis establishes that regional inequality is explained in the different phases by three key policy variables—the ratio of heavy industry to gross output value, the degree of decentralization, and the degree of openness.     

The scarring effects of youth joblessness in Sri Lanka

Retrospective data on labor market spells for successive cohorts of youth in the school‐to‐work transition in Sri Lanka are used to examine whether early spells of joblessness lead to subsequent difficulty in finding or keeping a job. A balancing score approach is used to generate pairs of youth in the school‐to‐work transition who have similar expected levels of joblessness but who differ in realized levels of joblessness. Assuming that youth are not able to perfectly control whether they are employed or not employed, we argue that marginal differences in joblessness among otherwise observationally equivalent youth can be viewed similarly to a regression discontinuity in experienced joblessness. We find evidence of scarring in that spending the first year after leaving school without a job or training increases subsequent share of time spent jobless by 23–31 percentage points and lowers subsequent wages by 5.5%–7.5%.     

Monopolistic competition,aggregation of competitive information,and the amount of product differentiation

Consider an industry with a large number of homogeneous firms. Each firm's profits are a function of its own strategy and the strategies the other firms select. Suppose other firms' strategies enter into each firm's profit function only through one or more statistics. For example, average price in the market may parameterize every firm's profit function. We prove that, as a general rule, the industry's firms will in equilibrium follow at most M + 1 distinct strategies, where M is the number of statistics by which competitors' strategies affect each firm's profits.     

Raising capital in emerging markets with restricted Global Depositary Receipts

Despite serious governance concerns revealed in Rule 144A and/or Regulation S Global Depositary Receipt (GDR) circulars, institutional investors voluntarily purchase these illiquid securities. Like issuers of Level III American Depositary Receipts (ADRs), GDR issuers exhibit strong pre-offer performance, with higher average Tobin's q ratios, sales growth rates, sales levels, returns on equity, and dividend payout ratios than their home-market counterparts. However, GDRs are issued predominantly by firms in emerging markets, while ADRs are issued mostly by firms in developed markets. After controlling for country and industry effects, we find that ADR issuers are larger and that they employ more reputable underwriters than GDR issuers do, but no other significant differences emerge. Notwithstanding their similarities, GDRs have larger discounts than ADRs, suggesting that legal bonding provides benefits that reputational bonding cannot fully replicate. However, within the sample of GDRs, pre-offer performance attributes also influence pricing. Specifically, discounts vary inversely with issue size but directly with firm size, suggesting that economies of scale exist in the GDR issue process and that potential agency costs are higher in larger firms. GDR discounts also vary inversely with incremental returns on equity in all partitions of the data, indicating the importance of pre-offer profitability in establishing the reputation of the issuing firm and in increasing the GDR offer price.