The Impact of Environmental Labelling on Consumer Preference: Negative vs. Positive Labels

Eco-labels in use today signify environmentally benign outcomes: "Choose this product, it is better for the environment than the average product." Another strategy would be to indicate negative outcomes with the purpose of trying to persuade consumers to avoid a product: "Do not choose this product, it is worse for the environment than the average product." In a computer-based experiment, it was investigated how these two types of labels affected preference for some everyday products. Individuals who had a weak or no interest in environmental issues were unaffected by either kind of label. Individuals with an intermediate interest in environmental issues were more affected by a negative label than by a positive label. Individuals with a strong interest in environmental protection were equally affected by the two kinds of labels.     

Modeling Methods for Discrete Choice Analysis

This paper introduces new forms, sampling and estimation approaches fordiscrete choice models. The new models include behavioral specifications oflatent class choice models, multinomial probit, hybrid logit, andnon-parametric methods. Recent contributions also include new specializedchoice based sample designs that permit greater efficiency in datacollection. Finally, the paper describes recent developments in the use ofsimulation methods for model estimation. These developments are designed toallow the applications of discrete choice models to a wider variety ofdiscrete choice problems.     

Voluntary Disclosure of Nonproprietary Information: A Complete Equilibrium Characterization

The so-called disclosure principle is a 'puzzle' in the accounting literature: Game theoretic models of financial markets show that in equilibrium firms should disclose all their private information. Yet, the result is not convincing. Researchers have therefore built sophisticated models in order to demonstrate for which reasons the disclosure principle might fail. This note shows that even in the original model there are multiple equilibria. In those equilibria good types disclose and bad types do not. The commonly known full disclosure equilibrium is a limit point of the equilibrium set.     

Monetary Policy with Uncertain Parameters

This paper shows that—in contrast to the received wisdom—uncertainty about the parameters in a dynamic macroeconomic model may lead to more aggressive monetary policy. In particular, when there is uncertainty about the persistence of inflation, it may be optimal for the central bank to respond to shocks more aggressively in order to reduce uncertainty about the future development of inflation. Uncertainty about other parameters, on the other hand, dampens the policy response.
JEL classification : E 43; E 52     

Issues in the estimation and application of latent structure models of choice

Our paper provides a brief review and summary of issues and advances in the use of latent structure and other finite mixture models in the analysis of choice data. Focus is directed to three primary areas: (1) estimation and computational issues, (2) specification and interpretation issues, and (3) future research issues. We comment on what latent structure models have promised, what has been, to date, delivered, and what we should look forward to in the future.     

Book Review

Book Review

Book Review     

Trade in variety and domestic production: Evidence from US manufacturing

Welfare gains from increasing product variety are an important source of the gains from international trade. Previous empirical studies, however, typically focus on measuring gains from imported varieties. This paper introduces a measure to analyze changes in domestically produced varieties to estimate the total variety gains. Our analysis suggests that, for US manufacturing, losses in domestic varieties from 1992 to 2006 seem substantial given the large decline in the number of US establishments. Yet, once we account for the reallocation of resources towards large multi‐variety firms, we find considerable domestic variety gains, adding to those from imported varieties.     

Family life in grocery stores – a study of interaction between adults and children

Today the family is seen as a unit for food choice and consumption. The influence of family members on food choice comprises several stages that can be carried out both in the private home and in the public sphere, such as the grocery store. This makes the grocery store a context in which ordinary family life can be observed. The aim was to study families and the interaction between children and adults in the grocery store, focusing on young people's involvement in food shopping. Hidden observation and family interview methods were used. A total of 338 people were observed in seven different grocery stores in Stockholm during the summer and autumn of 2003. Seven family interviews, involving a total of 29 persons, were conducted in Uppsala in the spring of 2003. In the interviews, parents reported avoiding shopping for food together with children as they experienced it as stressful and exhausting. The observations showed that family life in the grocery store comprises not only the food purchase, but also bringing up children and consumer education. Young people's involvement in the food purchase varied depending on their age and the specific product. The different behaviour observed may be interpreted as reflecting the variation in ways of bringing up children at home. Another conclusion is that a public place such the grocery store facilitates pedagogical situations and can work as a tool for informal education.     

The link between the share of banks’ Level 3 assets and their default risk and default costs

Review of Quantitative Finance and Accounting - We empirically explore the risk relevance of Level 3 fair value estimates. Thereby we focus on banks’ default risk as well as banks’...