“Economy Size” Labels and Consumer Welfare

The main purpose of the Fair Packaging and Labelling Act (FPLA) as stated in the act is “… to promote labeling and packaging practices with respect to packaged consumer commodities which will facilitate value comparisons by consumers.” Justification and actual implementation of the portion of the FPLA dealing with economy size labels are analyzed from the consumer's point of view. Because of loopholes and the limitation of enforcement activity to the manufacturer-level, the law fails to protect the consumer. Remedies to the existing situation are presented.     

HUMAN CAPITAL FORMATION AND CONTINUOUS TRAINING: EVIDENCE FOR EU COUNTRIES

This paper links data on continuous training from the EU Labour Force Survey (LFS) to information on skill levels and earnings from the EU KLEMS growth and productivity accounts, to examine the relative magnitudes of continuous workforce training versus human capital formation through the general education system in the European Union. The measurement methodology draws from the literature on measuring intangible investments by firms and sources of growth in an accounting framework. The results suggest that in the EU15 group of countries, intangible investments in continuous training represent just under 2 percent of GDP or about 35 percent of expenditure on general education. The share of GDP accounted for by training is less than a third as large in the new member states. A growth accounting method is employed to show that failure to account for continuous training leads to an underestimate of the impact of human capital on output growth in the EU.     

RACIAL DISPARITIES IN FEDERAL DISABILITY BENEFITS

We estimate racial differences in the Social Security Administration’s (SSA) decision to award federal disability benefits using newly available data, multivariate econometric models, and Oaxaca decomposition methods. We focus on the appellate level of SSA’s disability decision‐making process. We find that for claimants represented by attorneys there is no statistically significant difference in benefit award rates between whites and African‐Americans. However, for claimants without attorney representation, we find sizable and significant differences between whites and African‐Americans. (JEL J15, H53)     

THE COST OF WASHING CLOTHES: SOURCES OF VARIATION

This paper develops the national average cost of washing clothes by examining consumer research data on the frequencies of using various water temperature settings and laundry additives and by utilizing national surveys of laundry product prices. Variations in these costs are shown to be significantly affected by three variables: (1) costs increase with family size due to the higher number of loads washed, (2) costs increase in areas where phosphate detergents are not available due to an increased use of hot water and laundry additives and (3) costs increase in harder water areas due to an increased use of hot water and fabric softener. The average increased cost for energy and laundry additives per family due to the nonavailability of phosphate detergents exceeds $11.00 per year. In addition to this amount, increased wear on washing machine parts and fabrics from the use of carbonate-built detergents significantly increases the costs to consumers in nonphosphate areas.     

The micro‐foundations of the early London capital market: Bank of England shareholders during and after the South Sea Bubble, 1720–251

Using two sources, Bank of England Transfer Books and Stock Ledgers, this article explores the nature of the ‘customer base’ for Bank shares during and after the South Sea Bubble. This examination uncovers the nature of individual participation in this early capital market. The Transfer Ledgers record roughly 7,000 transfers during 1720, while the Ledger Books from 1720–25 record over 8,000 individuals holding stock. The analysis finds the customer base had breadth and depth, comprising individuals from across the social spectrum, from all over England and Europe. The market was diverse and liquid. Activity during the Bubble came from those living in and around London, with most traders participating in the market only twice at most. While the majority of participants were men, there was a sizeable female presence. Men as a group lost money from their market activity, but women made money. In the five years after the Bubble, the customer base was sustained. The analysis argues that the secondary market in financial assets cannot be dismissed as mere gambling devices, and that the basis for a mutually productive interaction between the financial sector and the real sector of the economy was already in existence and was sustained through the shock of the South Sea Bubble and its collapse.     

Trends in Child Poverty in Australia, 1982 to 1995–96

This study suggests that child poverty in Australia fell by about one-third between 1982 and 1995–96, largely as a result of the very substantial increases in government cash payments to lower income families with children. However, while there were sharp falls in poverty among dependent children, poverty rates among 15 to 18 year-olds who had left the parental home or who were still living at home but not in full-time study increased very sharply. In addition, the after-housing poverty picture did not look so optimistic, apparently due to a compositional shift in the types of families in after-housing poverty.     

PECTIN METHYLESTERASE ACTIVITY AND THE TEXTURE OF CARROT SLICES COOKED IN AN ELECTRIC CASSEROLE*

Carrot slices cooked for 11 hours on the LOW setting of an electric casserole were firmer and less acceptable than those which had been boiled for 25 minutes; when slices were cooked on the HIGH setting of the casserole for 6 hours they became as soft as boiled slices. Short periods of heat treatment in the casserole on LOW, followed by boiling for 25 minutes, produced slices which were firmer and less acceptable than those which had simply been boiled. These observations may be explained in terms of the action of the enzyme pectin methylesterase (PME) which at certain temperatures can cause firming of plant tissue. During the early stages of casserole treatment on LOW, considerable PME activity could be detected in carrot slices whereas on the HIGH setting, thermal inactivation was more rapid. When using the casserole on LOW, undesirable firmness in carrot tissue could be prevented by subjecting slices 1 cm thick to a preliminary 2 minute blanch in boiling water.