A dynamic almost ideal demand system incorporating consumer expectations

In this paper a theoretical framework is presented for the analysis of the effects of psychological, perceptual or expectational factors on household expenditure within a complete demand system. The model was estimated using the Consumer Sentiment Index, which represents an index of consumer perceptions of economic conditions. Evidence was found for significant expectational effects on five of nine expenditure categories—food at home, alcohol, housing, durables and other services. The direct expectation effects were found to be small in size. The results demonstrate the model's potential usefulness as a framework for modelling consumer behavioral responses to expectations and for evaluating the welfare implications of policy-induced changes in expectations.     

The benefits and costs of the deferral of U.S. Taxes on retained earnings of controlled foreign corporations

This paper develops and applies a model to measure the effects of deferral on world and U.S. incomes. It is assumed that elimination of deferral would be accompanied by a compensating reduction in the U.S. corporate income tax rate which would leave the overall tax burden of corporations unchanged. The results of the model support several conclusions: Deferral has a positive net effect on world income, but has a negative effect on U.S. income; over two-thirds of the income gains of foreign countries due to deferral goes to developed or oil-exporting countries; and the Tax Reform Act of 1976 has roughly doubled the importance of deferral.     

The System of Land Rights in Nigerian Agriculture

A bstract . Land ownership in the agricultural sector of the Nigerian economy is basically communal. Under this system the land holding group is the family, clan, village or community. An important practice under communal ownership is the principle of inalienability of land. The mobility of the agricultural labor force is inhibited. Non-provincials are forbidden to plant cash crops. Property rights to land are not specific. Individualized allotments are absent and land markets non-existent. Other details of the communal system of land tenure in Nigeria are given. Reasons are sought for the persistence of custom in the practice of inalienability of land even when economic conditions have changed, enabling the right perception of land values.     

Internal service quality within the different Chinese subcultures: a comparison between Taiwan, China, and Singapore

Previous research has determined the different internal service quality (ISQ) characteristics in the East and the West; however, the differences within Chinese subcultures still remain unknown. The objective of this study is thus to determine whether the importance level of ISQ factors and attributes is similar within the different Chinese subcultures. The empirical results show there are significant differences between Taiwan, China, and Singapore in the purchasing function of the manufacturing industry. Internal service providers should thus be able to use the results of this research to improve the service quality they direct towards their customers. This study also offers recommendations for managers to increase the levels of ISQ in Chinese businesses.     

Best-performing US mutual fund families from 1993 to 2008: Evidence from a novel two-stage DEA model for efficiency decomposition

When analyzing relative performance, especially at the institutional level, the traditional data envelopment analysis (DEA) models do not recognize vastly different and important activities as separate functions and therefore cannot identify which function may be the main source of inefficiency. We propose a novel two-stage DEA model that decomposes the overall efficiency of a decision-making unit into two components and demonstrate its applicability by assessing the relative performance of 66 large mutual fund families in the US over the period 1993–2008. By decomposing the overall efficiency into operational management efficiency and portfolio management efficiency components, we reveal the best performers, the families that deteriorated in performance, and those that improved in their performance over the sample period. We also make frontier projections for poorly performing mutual fund families and highlight how the portfolio managers have managed their funds relative to the others during financial crisis periods.     

Notes and Communications

Educational institutions in the Netherlands have some degree of economic independence. Their management decisions are not guided completely by a budget system, but in part also by a market mechanism. Still, budget management is crucial as survival is not primarily determined by the amount of equity capital, but by the annual funding received from the government. For the evaluation of capital management, a capitalization factor is introduced to measure the amount of capital employed by an educational institute in relation to its annual income. It can signal possible inefficiencies reflected in excessive capital assets. Actual budget and capital management is assessed with the help of four financial indicators. There appears to be scope for improvements in financial policies and some recommendations are offered on how to attain them.     

How digital platforms influence luxury purchase behavior in India?

In an emerging country such as India, consumers are tech savvy and connect easily with digital media platforms. They use these platforms even for luxury purchases. However, there have been only a few conceptual papers on this process. Therefore, this study aims to explain how digital platforms influence consumers’ decision for luxury brands in India. Two qualitative studies were conducted with young Indian consumers as they are the heaviest users of digital platforms and the most frequent purchasers of luxury brands. The first study consisted of 156 respondents in 15 focus groups in four major Indian cities. The second was made up of 95 on-site customer observations in 18 retail luxury stores and 45 consumers’ interviews. These data were further validated by 32 interviews with luxury brand managers and retail managers We found and developed a cyclical framework that projects digital media influences on Indian consumers at all the phases of purchase, i.e., pre-purchase is digital and hedonic, purchase is experiential and enjoyable while digital media is used and post-purchase is based on aspirations, lifestyles and virtual networks. More importantly, these consumers are always connected to reference groups digitally who significantly affect their purchase behavior and subsequent brand choices.