Access to credit and informality among micro and small enterprises in Ethiopia

This paper examines the determinants of Micro and Small and Enterprises (MSEs) access to credit in Ethiopia using detailed firm‐level data collected in 2003. Its basic purpose is to identify the various attributes of a firm that determine its access to credit with an emphasis on the role of firm formality. We find that informal firms are more credit constrained compared to formal firms. A firm’s location, membership of a business association and maintaining an accounting record are found to be important determinants of access to credit. Further, we find firms whose owners have vocational training are more credit constrained than those who are not, as are firms that are exclusively male owned. There is no systematic relation between access to credit and a firm’s age, size and the sector in which it operates. The paper concludes with possible policy interventions designed to improve access to credit for MSEs in Ethiopia.     

Abatement and Allocation in the Pilot Phase of the EU ETS

We use historical industrial emissions data to assess the level of abatement and over-allocation that took place across European countries during the pilot phase (2005–2007) of the European Union Emission Trading Scheme. Using a dynamic panel data model, we estimate the counter factual (business-as-usual) emissions scenario for EU member states. Comparing this baseline to allocated and verified emissions, we find that both over-allocation and abatement occurred, along with under-allocation and emissions inflation. Over the three trading years of the pilot phase we find over-allocation of approximately 280 million EUAs and total abatement of 247 Mt CO₂. However, we calculate that emissions inflation of approximately 73 Mt CO₂ also occurred, possibly due to uncertainty about future policy design features.     

Retailing evolution research: Introduction to the special section on retailing research

This JBR Special Issue on Retailing includes several high quality research studies presented at the 10th and 11th Society for Marketing Advances Retail Strategy and Patronage Behavior Symposiums. The articles cover a wide range of interesting and important retailing topics including topics such as atmospherics, self-esteem and advertising. This introduction offers a few comments on the 2007 and 2008 Symposiums' content including a brief overview of each article.     

Strategies to reduce product proliferation

Major problems associated with product proliferation include higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; added consumer confusion and stress; and increased susceptibility to stockouts. This article describes how a firm can limit product proliferation without incurring reduced sales or lowering consumer loyalty. An effective product proliferation reduction program needs to be based on several principles: resisting the temptation of asking consumers if a greater assortment is required; classifying goods into consumer behavior-based tiers; using interfunctional product pruning teams; practicing mass customization, where appropriate; placing absolute limits on product choice; and implementing effective strategies for product pruning.     

Strategic Interaction in a Repeated Game: Evidence from NCAA Football Recruiting

We analyze decisions to comply or cheat on NCAA recruiting regulations in the context of repeated interactions. Teams possess private information about resources devoted to football programs, recruiting effort made by rival programs, and rival program behavior. We test for evidence that the behavior of NCAA Division IA football programs conforms to predictions from repeated game theoretic models using panel data from IA football over the period 1978–2005. We find anecdotal and empirical support for strategic interaction. The presence of in-conference rivals under NCAA sanctions increases the probability of a team being placed under future sanctions.     

Accelerating the Durable Replacement Cycle with Marketing Mix Variables

In many established product categories, a large component of sales is due to the replacement of existing units. Because of the long expected lifetime of durables, replacement decisions can often be postponed by the consumer. In light of this, one marketing strategy for manufacturers of such products may be to accelerate the timing of product replacement decisions for buyers planning to replace. In this article, Barry Bayus presents the results of his investigation of the effect of marketing efforts on shortening the replacement cycle. Such information can be used by new product managers to forecast more accurately long-term sales and to help decide when to introduce new products (e.g., with enhanced features). Using data on color television purchases, he shows that the marketing variables of price, advertising, new features and styling are related to the timing of discretionary replacements. Further, these data suggest that price has the most impact in accelerating replacement purchases.     

An empirical model of attendance factors at major sporting events

Sports events represent a major category of event revenue contributing economic benefits to cities and regions. Whilst attendance at sports events is recognised as an important leisure and entertainment activity (Shamir and Ruskin, 1984), over the past 20 years sports event attendance expenditure has been declining as a percentage of total recreation expenditure (Ross, 2006). Consequently, an understanding of the factors that influence sports event attendance is crucial to the sustainability of these events. This study identifies the antecedents of sports event attendance among 460 respondents who were surveyed in Melbourne, a city that was recognised as the Ultimate Sports City in 2008 (Church-Sanders, 2008). Structural Equation Modelling was used to create an empirical model of attendance motivations. The model identifies constructs relating to emotional responses and facilities, as the predictors of event attendance and provides a discussion of the implications of this research for sporting event and hospitality managers.     

Payment Limitations and Acreage Decisions under Risk Aversion: A Simulation Approach

Payment limits have played an important role in U.S. farm policy deliberations for the last thirty years. Current limits are largely nonbinding. Proposals to strengthen and enforce limits are currently in discussion. We evaluate the likely effects of such proposals on acreage for corn, soybeans, wheat, cotton, and rice in several important producing states. Our results generally indicate that payment limits are unlikely to significantly affect acreage in most cases; exceptions occur for cotton and rice, where the probability that limits would be binding is much greater and thus more likely to affect production.