Bounding quantile demand functions using revealed preference inequalities

This paper develops a new approach to the estimation of consumer demand models with unobserved heterogeneity subject to revealed preference inequality restrictions. Particular attention is given to nonseparable heterogeneity. The inequality restrictions are used to identify bounds on counterfactual demand. A nonparametric estimator for these bounds is developed and asymptotic properties are derived. An empirical application using data from the UK Family Expenditure Survey illustrates the usefulness of the methods.     

A natural experiment of the effect of advertising on sales: the SASOL case

China's so-called ‘reform and opening up’ policy (Gai Ge Kai Fang), implemented nearly 30 years ago, has led to tremendous economic development. China's nominal Gross Domestic Product (GDP) was 3.25 trillion US dollars in 2007, making it the fourth largest economy in the world. At the same time, income inequality has become quite skewed in China, inviting considerable criticism. Moreover, the trend towards greater income inequality persists. Of particular public policy relevance is the effect of income inequality on health disparities in China, particularly for low-income households. This study addresses this issue using a longitudinal dataset from the China Health and Nutrition Survey (CHNS) over the period 1997 to 2006. Our central finding is that income inequality affects health differently by socioeconomic status: income inequality harms individual health among low income households by more than it does among high income households. More specifically, health is more adversely affected by greater income inequality for households with low incomes. China's central government is committed to making further investments in the health care system. As part of that effort, attention should be directed at low income households to reduce health inequality, possibly providing them with a health insurance safety net similar to Medicaid in USA.     

Tourists’ travel time values using discrete choice models: the recreational value of the Teide National Park

Abstract

The value of travel time is one of the most important factors in recreation demand models. Traditionally, the most common approach for its calculation has been the use of different proportions of the wage rate; however, criticisms of this method abound because in a recreational trip the relevant measure is the opportunity cost of leisure time rather than work time. In this paper, we adopt a novel approach in the literature using discrete choice models based on short-term decisions and independent of the labor market. We obtain the value of travel time through the trade-off between time and money considered by the tourist visitors when choosing the transport mode and we present the first calculation of the recreational value of the Teide National Park. Specifically, using a Revealed Preference survey of 801 park visitors, we estimate Mixed Logit models accounting for random preference heterogeneity, derive travel time values and incorporate them into a Zonal Travel Cost Method. This approach allows us to estimate different time values depending on transport mode and stage of the trip and shows that the use of discrete choice models instead of the wage rate approach has a strong impact on the recreational value calculated.     

SME growth in the service sector: A taxonomy combining life-cycle and resource-based theories

The approach to the life-cycle theory has been used as an analytical tool of the firms' growth. Several researchers argue that organisations move across several development stages where different problems are found resulting from different management styles and priorities, and resources. This research aims to develop an empirical taxonomy of small medium enterprise (SME) growth in the service sector based on life-cycle and resource-based theories. The data were submitted to bivariate and multivariate analyses to develop and test an empirical life-cycle model. It was possible to conclude that the firms could be clustered in three life-cycle stages. Some implications and future researches are addressed.     

Identification in nonparametric limited dependent variable models with simultaneity and unobserved heterogeneity

We extend the identification results for nonparametric simultaneous equations models in Matzkin (2008) to situations where the observations on the vector of dependent variables might be limited, and where the number of exogenous unobservable variables is larger than the number of dependent variables.     

Public intervention on heritage conservation and determinants of heritage authorities’ performance: a semi-parametric analysis

Government plays a significant role in the field of heritage conservation using a mix of different tools such as public spending, tax-expenditures and regulation. Surprisingly, the literature on the economics of heritage has not extensively investigated the performance of the public actors involved in the implementation of conservation policies or its determinants. In this paper we address this issue, from a theoretical and an empirical perspective, using Sicily as a case study. More precisely, we analyse the determinants of the differences in the efficiency levels of conservation activity of the nine Sicilian heritage authorities over the period 1993–2005. Economic, political and managerial variables are used to distinguish nondiscretionary from discretionary causes. The results show that the efficiency scores seem to be affected by economic and political factors, whereas the managerial variables do not affect the performance of heritage authorities.     

Fiscal equalization and lobbying

Inter-regional redistribution through tax-base equalization transfers is examined in a setting in which taxpayers, organized as lobby groups, influence policy making. With lobbying only at the local level on tax rates, social welfare maximization implies, ceteris paribus, high (low) equalization rates on the tax bases backed by the strong (weak) lobby groups. With lobbying also at the central level, equalization is distorted downward on all tax bases if the pressure groups are similar in terms of lobbying power. It is instead distorted downward (upward) on the bases backed by strong (weak) groups if they are highly heterogeneous. In the latter situation, a uniform equalization structure may perform better than a differentiated one.     

Being a woman in an ICT job: an analysis of the gender pay gap and discrimination in Spain

Despite policy initiatives aimed at promoting female access to jobs, the information and communication technology (ICT) professions have traditionally been largely monopolised by men. Segregation, gendered stereotypes and environmental factors have a clear impact on educational and professional choices, as well as on working conditions. The spread of ICT to all economic activities has meant that ICT specialists are now to be found everywhere, not only in the ICT sector where many stereotypes related to technical jobs persist. This work aims to analyse the gender wage gap and discrimination in ICT professions, with the emphasis on how working in an ICT-intensive industry might affect that situation. The study uses the Spanish Earning Structure Survey data for 2014, and applies wage decomposition techniques to the wage distribution. The results show that female ICT professionals face unfavorable working conditions, especially in highly qualified jobs and in ICT-intensive industries.