Revenue‐enhancing Trade Liberalization in a Differentiated Duopoly

Existing studies suggest that in developing countries, tax reforms that increase consumption taxes can compensate for shortfalls in revenue from a tariff reduction. However, these revenue‐enhancing tariff–tax reforms have a critical shortcoming—they generally reduce welfare under imperfect competition. This paper shows that tax reforms such as consumption tax reforms do not necessarily have to be implemented to make up for revenue shortfalls from tariff reductions under imperfect competition, because trade liberalization through tariff cuts leads to an increase in government revenue when domestic and imported goods have a high substitutability. This revenue‐enhancing effect of a tariff reduction occurs for a wider degree of product substitutability when initial tariff and consumption tax rates are high. More importantly, we show that even if initial tariff and consumption tax rates are sufficiently low, a tariff reduction still increases government revenue for a low degree of product differentiation under Bertrand competition.     

Parents’ knowledge,behaviour and concerns of food chemical hazards: Korean mothers sending their preschool‐aged children to child care centres

Although incidences of foodborne illness caused by chemical hazards are increasing, the studies on public awareness of food chemical hazards are limited. This study was conducted to assess mothers’ knowledge, behaviour and concerns on diverse food chemical hazards. A total of 960 mothers sending their preschool‐aged children to child care centres in Gwanak‐Gu, Seoul, Korea were surveyed, and 633 (65.9%) returned the questionnaires. After excluding inappropriate questionnaires, 364 (37.9%) were analysed. The majority of the mothers were able to identify food categories containing acrylamide (83.2%) and trans fat (80.2%), while slightly over half of the mothers named food categories containing allergen (56.3%) or pesticide residues (57.1%). Less than two thirds of mothers were knowledgeable of human exposure pathway to environmental contaminants (59.3%), acrylamide (55.2%) or heavy metals (65.9%). A significant number of mothers showed familiarity on health risk from dietary exposure to environmental contaminants (82.4%), trans fat (91.5%) or heavy metals (96.7%) (P < 0.05). The data on safe food behaviour towards environmental contaminants (81.8%), acrylamide (98.0%), heavy metals (96.7%) and trans fat (90.6%) showed high levels of right behaviours. About 47.2% and 22.8% of mothers read label of food additives and ingredient statement on allergen when purchasing processed foods, respectively. Mothers seemed to be concerned about food chemical hazards. Among the sociodemographic characteristics, only age significantly differentiated mothers’ concerns on chemical hazards in foods (P < 0.05). This study suggests that mothers needed to be educated on food chemical hazards regardless of their education levels, occupation status or the number of child.     

Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification

The relationship between macroeconomic developments and bank capital buffer and portfolio risk adjustments is relevant to assess the efficacy of newly created countercyclical buffer requirements. Using the U.S. bank holding company data over the period 1992:Q1–2011:Q3, we find a negative relationship between the business cycle and capital buffer. Our results offer some support for the Basel III agreements that countercyclical capital buffer in the banking sector is necessary to help the performance of the real economy during recessions. We find a robust evidence of inverse relationship between business cycle and bank default risk. Our analysis provides evidence of diversification benefits. The probability of insolvency risk decreases for diversified banks and banks with high revenue diversity achieve capital savings.     

Adolescents' utilitarian and hedonic Web consumption behavior: Hierarchical influence of personal values and innovativeness

This study addresses the Web‐consumption behavior of adolescents from a cognitive, hierarchical decision‐making perspective. Using a structural equation analysis technique on data collected from high school students, two a priori domains of Web consumption (utilitarian and hedonic) were confirmed. The utilitarian and hedonic domains of Web consumption were influenced directly by innovativeness and indirectly by the personal values of the adolescents. A theoretical discussion based on the results and the implications of these results are presented for the benefit of youth practitioners, educators, parents, and social marketers. © 2006 Wiley Periodicals, Inc.     

Distress Selling and Asset Market Feedback

This paper examines the process of distress selling and asset market feedback. It splits this process into several stages, in order to analyze what triggers distress selling, why asset prices fall, and how falling prices generate additional rounds of selling. This framework enables us to understand and compare models relevant to distress selling from diverse literatures. The paper also considers what policy options are available at each stage to mitigate the adverse economic consequences of distress selling and asset market feedback.     

A study of Japanese consumers' cognitive hierarchies in formal and informal gift‐giving situations

In recent years, academicians have shown an increasing interest in Asian gift‐giving behavior. Yet studies investigating Asians' cognitive hierarchical structures in the gift‐giving context have been limited. Additionally, the literature suggests that Asian consumers' cognitive structures are particularly affected by situational contingencies. Thus, this study examines Japanese consumers' cognitive hierarchies, in a gift‐giving context, in formal and informal situations utilizing a most‐abstract to least‐abstract cognitive hierarchical framework. Data were collected through a mail survey of Japanese consumers in the greater Tokyo area and six other major metropolitan cities. As hypothesized, structural‐equation modeling results revealed that the Japanese consumer's cognitive hierarchical flow from most‐ to least‐abstract cognitions remained intact regardless of the situation. In contrast, as expected, differing situations were found to influence intercognitive dimensional relationships. Implications of these findings are discussed. © 2003 Wiley Periodicals, Inc.     

DISUTILITY, OPTIMAL RETIREMENT, AND PORTFOLIO SELECTION

We study the optimal retirement and consumption/investment choice of an infinitely-lived economic agent with a time-separable von Neumann–Morgenstern utility. A particular aspect of our problem is that the agent has a retirement option. Before retirement the agent receives labor income but suffers a utility loss from labor. By retiring, he avoids the utility loss but gives up labor income. We show that the agent retires optimally if his wealth exceeds a certain critical level. We also show that the agent consumes less and invests more in risky assets when he has an option to retire than he would in the absence of such an option.
An explicit solution can be provided by solving a free boundary value problem. In particular, the critical wealth level and the optimal consumption and portfolio policy are provided in explicit forms.     

A study focusing on American expatriates’ learning in host countries

This study examines the learning process and situations while expatriates are living and working in a foreign country. The survey was conducted on 70 American expatriates via individual e‐mails and the World Wide Web. The study found that expatriates gained the culture of their host country through reflective learning. Cross‐cultural training programs should be examined based on expatriates’ actual needs. Finally, several learning situations that would be helpful in reducing expatriates’ cultural difficulties are: previous cross‐cultural experience, language competency, long‐term relationships with the host people, and information about the host country originating from the home country as well as the host country.