Divergence in alternative Hicksian welfare measures: the case of revealed preference for public amenities

This paper investigates the divergence between the two Hicksian welfare measures of non‐traded amenity improvement associated with housing. First, the Hicksian surplus measures for amenity changes are analytically developed based on explicit specification of utility structures. A hedonic two‐stage approach is then applied to empirically show that, for quantity changes, in contrast to hypothetical markets, divergence in real market is small. The paper also analytically develops expressions for the income and substitution effects and empirically shows that for a given income effect, the greater the substitution effect the smaller the divergence between the two measures. Copyright © 2002 John Wiley & Sons, Ltd.     

Ranking of sectors based on fuzzy importance measure

The changing nature of policy variables specific to any planned developmental programme often leads to conflicting decisional problems regarding the identification of thrust areas. Hence the inherent requirement is for a composite index which eases out such ambiguous choice issues. The present paper introduces the measure of sectoral importance which is capable of encompassing different variables with their associated weights and ranks sectors in an economy based on such a measure. However, the term importance suggests the qualitativeness and subjectivity involved in defining such a concept and thus establishes the need for the concepts of fuzzy mathematics. The theory of fuzzy subsets is capable of dealing with qualitative variables within a quantitative framework. The sectoral importance measures derived from the sectoral output linkages, employment multipliers and value added multipliers, have been represented as fuzzy subsets, or to be precise, as fuzzy numbers. A comparison of these numbers through the binary approach of determination of the measure of relative strength provides the basis for the ranking of sectors. The novelty of the approach lies in its simplicity and flexibility in treating qualitative factors which characterise most decision support socio economic planning problems. The validity of the exercise has been tested by applying it to the economy of West Bengal, a State of India.     

Change-point analysis through integer-valued autoregressive process with application to some COVID-19 data

In this article, we consider the problem of change-point analysis for the count time series data through an integer-valued autoregressive process of order 1 (INAR(1)) with time-varying covariates. These types of features we observe in many real-life scenarios especially in the COVID-19 data sets, where the number of active cases over time starts falling and then again increases. In order to capture those features, we use Poisson INAR(1) process with a time-varying smoothing covariate. By using such model, we can model both the components in the active cases at time-point t namely, (i) number of nonrecovery cases from the previous time-point and (ii) number of new cases at time-point t. We study some theoretical properties of the proposed model along with forecasting. Some simulation studies are performed to study the effectiveness of the proposed method. Finally, we analyze two COVID-19 data sets and compare our proposed model with another PINAR(1) process which has time-varying covariate but no change-point, to demonstrate the overall performance of our proposed model.     

Stealth marketing as a strategy

Stealth marketing has gained increasing attention as a strategy during the past few years. We begin by providing a brief historical review to provide some perspective on how this strategy has been practiced in a myriad of ways in various parts of the world, and how it has consequently evolved in the emerging new marketplace. A more inclusive definition of stealth marketing is then proposed to conceptually understand its use in various contexts. Specifically, we propose a new typology of stealth marketing strategies based on whether businesses or competitors are aware of them, and whether they are visible to the targeted customers. We further provide suggestions of how firms can counter the stealth marketing strategies used by their competitors. Contrary to conventional wisdom, evidence is also provided about how such strategies can be used for “doing good” for society. Finally, the assessment of efficiency and effectiveness of stealth marketing strategies, and their related ethical implications, are discussed.     

Functional sunspot equilibria

Consider a one step forward looking model where agents believe that the equilibrium values of the state variable are determined by a function whose domain is the current value of the state variable and whose range is the value for the subsequent period. An agent’s forecast for the subsequent period uses the belief, where the function that is chosen is allowed to depend on the current realization of an extrinsic random process, and is made with knowledge of the past values of the state variable but not the current value. The paper provides (and characterizes) the conditions for the existence of sunspot equilibria for the model described.     

Cooperative vs. non-cooperative R&D incentives under incomplete information

This paper studies incentives for cooperative research vis-à-vis non-cooperative research in an incomplete information framework. We show that with quantity competition under asymmetric information, the expected payoff from non-cooperative research goes down compared to the case of symmetric information; hence research joint venture incentives of the firms are larger under asymmetric information. In either case, however, the larger is the size of the cost-reducing innovation the lower is the incentive for cooperative research. Finally, in our model, incomplete information does not affect the consumers' welfare, but the firms become worse off.     

Further developments in estimation of the largest mean ofK normal populations

We revisit the bounded maximal risk point estimation problem as well as the fixed-width confidence interval estimation problem for the largest mean amongk(≥2) independent normal populations having unknown means and unknown but equal variance. In the point estimation setup, we devise appropriate two-stage and modified two-stage methodologies so that the associatedmaximal risk can bebounded from aboveexactly by a preassigned positive number. Kuo and Mukhopadhyay (1990), however, emphasized only the asymptotics in this context. We have also introduced, in both point and interval estimation problems,accelerated sequential methodologies thereby saving sampling operations tremendously over the purely sequential schemes considered in Kuo and Mukhopadhyay (1990), but enjoying at the same time asymptotic second-order characteristics, fairly similar to those of the purely sequential ones.     

Who Cares about Environmental Stigmas and Does It Matter? A Latent Segmentation Analysis of Stated Preferences for Real Estate

This article uses latent segmentation analysis to estimate the benefits of contaminant cleanup in Waukegan Harbor, Illinois. Survey responses to attitudinal and perception questions provide significant information about the existence of distinct preference groups. By comparison, the predictive usefulness of demographic covariates is unclear. The expected aggregate willingness-to-pay of Waukegan homeowners for full cleanup is approximately equivalent to a 20% increase in the market value of homes. The aggregate estimate is little affected by the identification of preference clusters.     

Growth,income distribution and unemployment in a two-sector economy

We build a two-sector general equilibrium growth model with capital-intensive consumption goods and a labour-intensive investment goods sector to investigate the coexistence of growth and unemployment. The model uses heterogeneity in saving behaviour, introduces an effective demand problem, has full employment of capital with input non-substitutability and shows that the aggregate labour employment is determined by available capital along with commodity market equilibrium. The long-run growth may not be balanced, and under biased growth, the level of unemployment may monotonically increase or decrease over time, or may first increase (decrease) and then decrease (increase). Such possible unemployment paths help us tightly define “jobless growth”.