Tariff‐jumping FDI and domestic firms' profits

Abstract.  Studies of trade policy welfare effects often ignore the potential for tariff‐jumping foreign direct investment (FDI) to mitigate positive gains to domestic producers. Using event study methodology we find that affirmative U.S. antidumping decisions are associated with average abnormal gains of over 3% to a firm in the petitioning industry in the absence of tariff‐jumping FDI, but much smaller and statistically insignificant abnormal gains if there is tariff‐jumping FDI. We also find evidence that tariff jumping in the form of new plants or plant expansion has significantly larger negative effects on U.S. domestic firms' profits than other types of tariff‐jumping FDI. JEL Classification: F13, F23, L11     

A Diagnostic Tool for Assessing the Relative Importance of Information in Impression Formation: Application in Order Effects

This paper describes a diagnostic tool for assessing relative impact weights of time-dependent information on an impression or judgment and illustrates its use in the area of order effects. A novel and somewhat counterintuitive finding, based on applying this tool, is that the bit of information associated with the greatest impact weight is not necessarily the bit of information associated with the greatest relative impact weight. At the heart of this tool is the ability to compute precisely the relative impact weights associated with each piece of information, which are, in general, different from the actual impact weights associated with each piece of information. This provides the opportunity to determine relative impact weights under various assumptions about, and theories of, or related to, impression formation. In turn, this diagnostic information may be used to deepen understanding of a particular theory or, perhaps, to propose or define new theory.     

Charging for local telephone calls: How household characteristics affect the distribution of calls in the GTE Illinois experiment

When the billing of local telephone service is changed from flat rate to measured service, the distribution of monthly calling rates is altered. This paper models the distribution of flat-rate telephone use in terms of demographic variables and stochastic components; the shift to measured service affects both the systematic and stochastic parameters. The model is fitted by maximum likelihood to data for interviewed households participating in General Telephone's local-measured-service experiment in Illinois. Households tend to make more calls if they are larger (more people), older, or include teenagers. They tend to reduce calling proportionately more in response to usage charges if they average many calls under flat rate for any of the above reasons or for other, unexplained reasons. There is substantial variation in telephone use by households with similar demographic characteristics. Consequently, the benefits and costs of local measured service will tend to be diffused across demographic groups.     

Consumption and the Within-household Income Distribution: Outcomes from an Australian "Natural Experiment"

Does the within-household distribution of income influence householdconsumption patterns? In one attempt to answer this question,Lundberg, Pollak and Wales (1997) exploited the ‘naturalexperiment’ of a change in family benefits in the UK.They found that the within-household income distribution didhave a significant impact on expenditure. This paper exploitsa similar natural experiment in Australia. During the 1990s,unemployment benefits for unemployed married couples changedfrom being paid almost entirely to husbands, to being paid primarilyto wives. Using household expenditure data it is found that,although the changes in the within-household income distributionwere large, the changes in expenditure patterns were small andnot in the expected direction. The data do not, therefore, providesupport for the hypothesis that women's control over householdexpenditure was increased. The paper concludes with a discussionof the possible reasons for this. (JEL J10, J12, I38)     

The channels manager: Now,soon or never?

This paper examines the adoption and viability of the channels manager concept in large manufacturing organizations. Results of a survey indicate that only 14 percent of respondents have a channels manager position within their companies. However, these respondents from companies with a channels manager position strongly support the establishment of the position within their own company and within other large companies. Among all respondents, executives tend to reject the need for a channels manager position within their own organizations, and estimate that the likelihood of implementation of the position within their company is low. The major impediment to implementation is concern about proliferation of organizational positions and cost of implementation. The study indicates that the channels manager position is still more a concept than a reality. However, favorable views of those respondents representing firms with a channels manager position suggest the concept does have potential value in certain types of companies.     

Marginal Workers and Their Decisions to Work or to Quit

Abstract . What motivates the marginal worker to decide to work or to quit and collect unemployment insurance or welfare payments? A study of poultry processing plant workers in Georgia indicates that few quit to obtain more leisure. Dissatisfaction with compensation is only a secondary factor. Primary ones are cumulative dissatisfaction with work and the total work environment. Changes in supervision and in the Job structure are suggested.