THE ECONOMICS OF INTRODUCING WINE INTO GROCERY STORES

The repeal of the Prohibition Act in 1933 introduced many state‐specific regulations in wine markets. For example, 15 states currently have laws that restrict wine sales in grocery stores. Several of these states have proposed changes that would expand the distribution of wine; however, the proposals have met significant resistance from key stakeholders and none have resulted in legislation. It is widely expected that additional proposals will be initiated, but with more attention given to mechanisms that would address some of the transitional issues. A simulation model is developed here to assess the likely economic effects of introducing wine into grocery stores in New York State. Results indicate that tax revenue would increase by $22 million annually, revenue for in‐state wineries would increase by approximately 13%, and revenue for liquor store owners is calculated to fall by 28%. Simulation results are subsequently used to develop a framework for evaluating the transitional costs of policy reform in this highly regulated industry. (JEL K23, Q18)     

中国：2500亿美元外汇储备多样化投资

在中国向美国投资公司黑石集团（Blackstone）注入30亿美金之后一个月，中国政府设立国家外汇投资管理公司，来专门负责投资、管理手中2500亿美元的外汇储备。这是中国政府对其世界第一的外汇储备总额采取多元化战略的第一个重大举措。这是近期由中国证券报报道的，采用的是非常官方的新华社所发出的信息，《上海证券报》也报道了这个消息。     

Winning in Small Claims Courts: An Empirical Analysis

Small claims courts provide consumers with a potentially effective method for complaint resolution. Little is known, however, about the factors which influence the probability of consumers winning their cases in court or of successfully settling their cases out of court. This study estimated these probabilities using 1975–76 data from the Syracuse, New York Small Claims Court. A major goal of the research was to determine if plaintiffs' demographic characteristics, the amount and type of advice sought by plaintiffs and the specific characteristics of the cases differentially affected the probability of successful consumer outcomes. Major findings were that economic variables such as the amount of the claim and the amount offered by way of settlement of the claim primarily determined the probability of settling out of court. Neither sex nor race had any impact on the probability of winning in court. Advice from the small claims court staff and from lawyers both were found to lower the probability that the consumer would win in court. The results point to the need for more empirical analyses of small claims court cases and may aid educators in advising consumers on the use of the institution and policy makers concerned with court reform.     

The Frequency of Consumer Expenditure: An Empirical Analysis

How does the observed pattern of household purchases vary, as we extend or shorten the period of observation? An empirical analysis of data from the U.S. Consumer Expenditure Survey, Interview Survey, from 1987–1989, reveals that there is considerable heterogeneity across disaggregate goods and across households in the frequency of expenditure. Issues of data quality and of the implications of the period of observation for Tobit analysis are also discussed.     

What Explains the Gender Gap in Financial Literacy? The Role of Household Decision Making

Using newly collected data from the RAND American Life Panel, we examine potential explanations for the gender gap in financial literacy, including the role of marriage and who within a couple makes the financial decisions. Blinder–Oaxaca decomposition reveals the majority of the gender gap in financial literacy is not explained by differences in the characteristics of men and women—but rather differences in coefficients, or how literacy is produced. We find that financial decision making of couples is not centralized in one spouse although it is sensitive to the relative education level of spouses.     

STATE WELFARE-REFORM IMPACTS: CONTENT AND ENFORCEMENT EFFECTS

The continuing debate over the cause of the precipitous 1994—1998 decline in welfare caseloads is fueled by the ambiguity of evaluation results that attempt to disentangle cyclical and programmatic effects. One reason for this uncertainty is the lack of homogeneity across jurisdictions in the content, timing, and enforcement of welfare-reform parameters. This paper attempts to incorporate interjurisdictional variation in program content and enforcement into the standard evaluation model. The results suggest that state initiatives do reduce Aid for Families with Dependent Children caseloads but that all of the aggregate impact derives from a few "tough" provisions that limit welfare access. Variation in local enforcement of exemption and participation rules are also shown to have significant caseload effects. (JEL 138)     

The Impact of Financial Accounting Practices on the Measurement of Profit and Equity: Australia Versus the United States

The purpose of this paper is to make a quantitative comparative analysis of differences between Australian financial reporting practices and U.S. GAAP. The empirical data consist of Form 20-F filings for thirteen Australian incorporated companies for the period 1985–93. Based on prior research, there is a test of the hypothesis that U.S. GAAP is more conservative than Australian financial reporting practice. The results of the empirical analysis offer little support for this hypothesis in the context of the reporting of profit. However, the hypothesis is supported for the reporting of shareholders’ equity. The most frequent and material differences in profits relate to asset measurement, equity consolidation and accounting for intangible assets. Generalizations relating to differences in shareholders’ equity are more difficult to make.