Consumer Welfare and Inefficiency Among Regulated Industries

While the issue of efficiency on the side of production is still not a settled question, it is generally agreed that competition is more conductive to efficiency—both allocative and X—than monopoly. When the monopoly is regulated, i.e., receiving a rate of return less than it would if left unregulated but greater than the market rate of return, both allocative and X-inefficiency result. Since the degree of inefficiency amounts to a tax on consumers, the question of inefficiency in production has a twin companion in the form of consumer welfare losses. This is particularly true for many public utilities upon which low income families spend a large proportion of their income. The quasi tax that the regulated monopolist exacts neither generates a flow of public goods nor increases returns to shareholders. It is a particularly burdensome levy because the rate structure is highly regressive.     

Robustness of an Intermittent Program of Comparative Retail Food Price Information

This study compares the distribution of food-item market basket prices across stores and relative to a local newspaper retail food price report. Distributions of prices for market baskets comprised of national brands and cheapest alternative brands coincided closely with the intermittent retail food price report. This suggests that consumer organizations with limited resources can produce comparative food-store price reports that provide useful information to consumers.     

Ecological Intuition versus Economic “Reason”

This paper discusses the discount rate to be used in projects aimed at preserving the environment. The model has two different goods: one is the usual consumption good whose production may increase exponentially, and the other is an environmental good whose quality remains limited. The stylized world we describe is fully determined by four parameters, reflecting basic preferences, “ecological” and intergenerational concerns, and feasibility constraints. We define an ecological discount rate and examine its connections with the usual interest rate and the optimized growth rate. We discuss, in this simple world, different forms of the precautionary principle.     

Is Sell‐Side Research More Valuable in Bad Times?

Because uncertainty is high in bad times, investors find it harder to assess firm prospects and hence should value analyst output more. However, higher uncertainty makes analysts’ tasks harder, so it is unclear whether analyst output is more valuable in bad times. We find that in bad times, analyst revisions have a larger stock‐price impact, earnings forecast errors per unit of uncertainty fall, and analyst reports are more frequent and longer. The increased impact of analysts is also more pronounced for harder‐to‐value firms. These results are consistent with analysts working harder and investors relying more on analysts in bad times.     

Purchases,food habits and waste management in households: exploring responses to local composting

This exploratory study focuses on processes of food purchases, food habits and waste management in the household. The purpose of the study has been to investigate what influences the amount and type of waste generated in the household. Information was collected in 13 households in a residential area close to central Göteborg, Sweden, where a separation of waste and local composting experiment had just been launched. The households registered purchases, meals served, and weight of biodegradable waste, for 2 weeks. In-depth interviews were also carried out. At a general level, environmental concern was found not to influence purchase behaviour. The results show that the households produced a higher level of biodegradable than non-biodegradable waste. Variations between families were found to be considerable. There are clear indications that the experience of participation in the experiment which required local composting per se was a very powerful determinant for increasing the awareness in families of the relationship between consumption and the nature and quantity of waste produced.     

Employment,Social Mobility and Neighbourhood Effects: The Case of Sweden

In science and in society at large, there is a big debate going on about the existence and potential impact of ‘neighbourhood effects’. The dominant question is: does the social composition of the neighbourhood have specific positive or negative effects on the career prospects of those who are living there? We seek to contribute to this debate by investigating the relationship between individual social mobility and the social composition of the residential environment. For that purpose we analysed new longitudinal Swedish data, which is available at the individual level. We particularly focused our attention on the employment careers of individuals in relation to the levels of employment or unemployment in their individual environments. Environment effects on social mobility were isolated, controlling for relevant variables that were available at the individual level. We were also able to control for changes in the environments over time. Individual longitudinal data could be used over the period 1991–9. The analyses revealed that their environment appears to have a moderate yet clear impact on the employment prospects of unemployed individuals. The academic relevance of the article is in its contribution to the theoretical underpinnings of the human–environment relationship; the societal relevance is to the area‐based policies and the housing policies aimed at social mixing, which are currently being developed in many places in the Western world.     

Book Reviews

Books reviewed:
Christopher A. Conte, Highland Sanctuary: Environmental History in Tanzania's Usambara Mountains .
Alfredo Saad-Filho and Deborah Johnston (eds.), Neoliberalism: A Critical Reader .
Stephen J. Russell, Agriculture, Prosperity and Modernization of French Rural Communities, 1870–1914. Views from the Village .
David Mosse, Cultivating Development: An Ethnography of Aid Policy and Practice .
Kees Jansen and Sietze Vellema (eds), Agribusiness and Society: Corporate Responses to Environmentalism, Market Opportunities and Public Regulation .
Gareth Austin, Labour, Land and Capital in Ghana: From Slavery to Free Labour in Asante, 1807–1956 .     

Mobile Communication and Local Information Flow: Evidence from Distracted Driving Laws

We examine the influence of mobile communication on local information flow and local investor activity using the enforcement of statewide distracted driving restrictions, which are exogenous events that constrain mobile communication while driving. By restricting mobile communication across a potentially sizable set of local individuals, these restrictions could inhibit local information flow and, in turn, the market activity of stocks headquartered in enforcement states. We first document a decline in Google search activity for local stocks when restrictions take effect, suggesting that constraints on mobile communication significantly affect individuals’ information search activity. We further find significant declines in local trading volume when restrictions are enforced. This drop in liquidity is (1) attenuated when laws provide substitutive means of mobile communication and (2) magnified when locals have long car commutes and when their daily commutes overlap with regular exchange hours. Moreover, trading volume suffers the most for local stocks with lower institutional ownership, less analyst coverage, and more intangible information. Additional analyses show lower intraday volume during local commute times when mobile connectivity is constrained. Together, our results suggest that local information and local investors matter in stock markets and that mobile communication is an important mechanism through which these elements operate to affect liquidity and price discovery.     

Macroeconomic policy in Britain between the wars1

This Virtual Issue of the Review is offered as a modest contribution towards reigniting interest in macroeconomic policy in Britain between the wars. In reprinting 19 articles which were published in the Review between 1974 and 1991, the introduction to this Virtual Issue supplements those articles and provides a further opportunity to re‐examine key macroeconomic policy episodes and specific policy impact. The articles are divided into three sections: monetary and exchange rate policy; fiscal policy and the Keynesian solution; and tariff policy. The purpose of this introductory essay is to contextualize these articles briefly, comment on subsequent literature, and, where appropriate, point to future, potentially fertile areas for research which will take forward the research findings here reproduced.