Stated Preferences, Real Behaviour and Anchoring: Some Empirical Evidence

We compare different contingent valuation question formats with each other and with observed behaviour for a non-monetary estimation task, the expected number of kilometers travelled by automobile. Open-ended questions, open-ended follow-up questions, dichotomous choice (DC) questions, and double-bound DC questions are included. The single and double-bound DC questions result in an estimated mean about twice as high as the actual value and the open-ended mean. The DC question overestimation seems to be due to an anchoring effect leading to yea-saying behaviour. Our results about the difference between DC questions and open-ended questions is consistent with the pattern observed in contingent valuations studies of the willingness to pay. Our results indicates that DC questions seem to be associated with a general overestimation problem that is present even for simple non-monetary estimation tasks.     

Capacity utilization rates and unemployment rates: are they complements or substitutes in warning about future inflation?

This research examines capacity utilization as a measure of economic slack in the US economy. Many macroeconomists have questioned the use of capacity utilization as a measure of economics slack on several fronts. The first issue revolves around the definition and accuracy of measurement of the capacity utilization rate in the US economy. Since this research use existing Federal Reserve measures of capacity utilization no insights into the definition and measurement issues are offered other than the fact that a consistent role is found for two different Fed measures of capacity utilization in explaining inflation. The second issue effectively involves the concern as to robustness of the link between the capacity utilization rate and inflation. It was found that there is indeed reason for the Federal Reserve to take note of changes in capacity utilization when trying to determine its policy position with regard to inflation. Clearly, the high capacity measure developed in this research offers distinct information about the inflation process. The third issue raises the question as to whether the capacity utilization and unemployment rates are complements or substitutes in the inflation equation. Both rates tend to provide similar information regarding price changes at low levels of aggregate resource usage. However, as resource usage in the economy becomes increasingly close to its maximum potential, the labour market impact on inflation, as capture by unemployment rate measures, is distinctly different from that of capacity constraints. Finally, if the capacity utilization rate is indeed a useful measure of inflationary pressure, is there a threshold level of the capacity utilization rate above which policymakers should become particularly concerned about the potential of accelerating inflation? It was found that across two measures of inflation, the widely discussed capacity threshold level is in the 84-85% range.     

Oligopoly and Merger: A Simple Classroom Game

Professor Miller describes a game which has been used in intermediate price theory courses as well as in introductory classes. Two versions are presented—a duopoly and a six-firm market, both with undifferentiated product and a known market demand schedule. Students are also asked to make a monopoly of the six firms by forming a trust or holding company. Miller contends that the game is more stimulating than lectures aud suspects that it will result in longer retention.     

Polanyi and Post-neoliberalism in the Global South: Dilemmas of Re-embedding the Economy

Although Karl Polanyi Studied a different epoch and focused on Europe, his ideas have inspired an outpouring of studies on contemporary problems and prospects in the neoliberal era. The bulk of these studies pertain to industrial countries or global economic issues. However, the human, environmental and financial impact of market deregulation is arguably more devastating in the ‘developing’ countries than in the core. A question thus arises: do Polanyi's reflections on progressive alternatives to liberalism clarify contemporary debates on development alternatives in the Global South? I contend that democratic socialism – Polanyi's preferred remedy to the ‘demolition’ of society and nature occasioned by market civilisation – is problematical in light of what we have learned from the twentieth century, but his framework for evaluating alternatives – featuring the re-embedding of economy in society – remains as powerful as ever, I support this argument with an exploration of socialism and social democracy – as well as community – based alternatives arising from ‘reciprocity’. Each possibility raises distinctive dilemmas, as an analysis of cases reveals.     

An empirical examination of factors driving the offshore renminbi market

Following the 2010 establishment of the offshore renminbi market in Hong Kong, renminbi deposits there quickly rose above RMB 1 trillion. In this article, we examine fluctuations between the offshore value of the renminbi in Hong Kong and its onshore value in mainland China. The size of the spot market spread appears to be influenced by stock market sentiment as reflected in the spread between A-shares listed in Shanghai and H-shares listed in Hong Kong. There is also some evidence of a link between the spread and the pace of renminbi deposit growth in Hong Kong.     

The hydroelectricity consumption and economic growth in Asian countries - evidence using an asymmetric cointegration approach

ABSTRACT

This study examines the four commonly tested hypotheses in hydroelectricity consumption – economic growth literature for 12 Asian countries. Our results from a recently developed hidden cointegration technique uncover rich and significant relationships between negative and positive components of the variables under consideration. In particular, we find evidence to support the neutrality hypothesis in five countries (Bangladesh, Indonesia, Pakistan, Philippines, and Thailand), the growth hypothesis in four countries (India, Japan, South Korea and Taiwan), and both growth and conservation hypotheses in three countries (China, Malaysia, and New Zealand). These findings suggest that appropriate economic policies should be elaborated on the basis of the country’s specific hydroelectricity consumption–growth nexus. Finally, our new evidence suggests that the lack of stable relationship between hydroelectricity consumption and economic growth documented in previous studies for some of these countries could be due to the failure to properly account for the nonlinearity property in the data.     

Protected Geographical Indications and Designations of Origin: An Overview of the Status Quo and the Development of the Use of Regulation (EC) 510/06 in Europe,With Special Consideration of the German Situation

This article gives an overview of the current use of the European system of protected designations of origin according to Council Regulation (EC) 510/06, using the example of Germany to demonstrate its implementation as well as evaluating the potential and future development of this system of protection. The considerations show that in a few years the number of protected products in Europe will reach a figure of over 1,000 without the dynamic of new registrations weakening in the midterm. In Germany, the system of Council Regulation (EC) 510/06 has not been used very extensively. Despite this, an increase in the number of protected products can also be expected in Germany due to the promotion orientation of the Central Marketing Association and the European Commission.