An empirical analysis of euro cash payments

If the denominational structure of the euro is used in an optimal way, there should be no preferences for certain coins and notes when making cash payments. In Kippers et al. [2003. An empirical study of cash payments. Statistica Neerlandica 57, 484-508] it is documented that the Dutch public did have certain preferences concerning the Dutch guilder in the sense that a few notes and coins were used less often than they should have been. With the advent of the euro, which changed the denominational structure from 1--5 (guilder) to 1-2-5 (euro), it is of interest to examine whether there are any preferences for euro coins and notes. In this paper we use a unique dataset for the Netherlands to empirically examine if the euro range is used in an optimal way. We find that there are no preferences for certain euro denominations.     

Backcasting for sustainability: Introduction to the special issue

In this introductory paper we introduce the special issue on “Backcasting for Sustainability”. We present briefly a historical background, and position backcasting in the wider context of future studies, in which it can be related to “normative forecasting” and normative scenarios. We reflect on the diversity and variety of backcasting studies and experiments, as presented in the ten papers for this special issue. After summarizing the papers we formulate a future research agenda.     

Strategic approximations of discontinuous games

An infinite game is approximated by restricting the players to finite subsets of their pure strategy spaces. A strategic approximationof an infinite game is a countable subset of pure strategies with the property that limits of all equilibria of all sequences of approximating games whose finite strategy sets eventually include each member of the countable set must be equilibria of the infinite game. We provide conditions under which infinite games admit strategic approximations.     

The value of celebrity endorsements: A stock market perspective

Are celebrity endorsements worthwhile investments in advertising? To answer this question, we analyze a unique sample of 101 announcements made between 1996 and 2008 by firms listed in the USA. Internet is the main medium of communication for these announcements. We employ event study methodology and document statistically insignificant abnormal returns around the announcement dates. This finding is consistent with the notion that the incremental benefits from celebrity endorsements closely match the incremental costs due to such contracts. Further, we investigate if the announcement date return depends on a number of characteristics that are often used in the endorsement literature. As a result, we find that endorsements of technology industry products coincide with significant positive abnormal returns around the announcement dates. Finally, we find weak support for the match-up hypothesis between celebrities and endorsed products.     

Measuring the cost of liquidity in agricultural futures markets: Conventional and Bayesian approaches

Estimating the cost of liquidity in agricultural futures markets is challenging because bid‐ask spreads are usually not observed. Based on an ability to reflect simulated data from Roll's spread model, we assess the effectiveness of conventional and Bayesian bid‐ask spread estimators under different market conditions. Conventional serial covariance and absolute price change spread estimators appear to be biased. Hasbrouck's Bayesian estimator generates small costs of liquidity whose values depend on the correlation and noise in the data. The absolute value Bayesian estimator is precise and works well under conditions of high levels of noise and correlation usually found in agricultural futures markets. Using data from live cattle (LC) and lean hog (LH) contracts, we find similar patterns of performance that produce economically meaningful cost of liquidity differences.     

Access to consumer credit in the UK

This paper investigates household access to consumer credit in the UK using information on 58,642 households between 2001 and 2009. Employing a treatment-effects model and propensity score matching, we find that non-white households are less likely to have financing compared to white households. We also find that even if they obtain financing, the intensity of borrowing is lower than for white households. Overall, non-white households seem to be in a weaker position to access consumer credit in the UK.     

W. H. Hutt (1899–1988): Free Markets and Social Justice

W.H. Hutt reaffirmed the principles of classical economics and classical liberalism and, by applying them to urgent issues he observed in the world around him, he demonstrated the contemporary relevance of freedom and competitive institutions. A wide‐ranging critique of Keynes was founded upon a classical analysis of the labour market, while his trenchant opposition to apartheid advanced along economic and political paths. Hutt questioned the justice of the accumulation of wealth from the exploitation of monopoly power over generations. In all of these respects there are affinities between Hutt's thought and that of ‘Bleeding Heart Libertarians’.     

Adaptive Economic Models

The growth literature has identified four channels of transmission by which the abundance of natural resources can negatively affect economic growth. In this article, I suggest ideology as a fifth transmission channel. To test this hypothesis, I exploit the geography of Bolivia whose western regions have natural resources that differ considerably from its eastern regions. I find that regions with predominantly extractive natural resources tend to choose redistributive and interventionist rather than laissez-faire policies. Additionally, I identify two effects on growth depending upon the type of natural resource that a region possesses in abundance.     

Institutionalism and the New Classical Economics

Neoliberalism has transformed markets supplying public goods. Analysis of five real-world Australian markets reveals the eligibility rules for access and ongoing participation, interaction of participants, the role of intermediaries and government, the extent of competition, complex regulatory regimes shaping and controlling these markets, and key market outcomes. Contrary to neoliberalism's free market rhetoric and the view promulgated by mainstream economics, a spectrum of market configurations and governance regimes were found along with participation being highly dependent on technology access and skills, market outcomes inconsistent with policy rhetoric, market interrelationships posing adverse cumulative impacts, and government is strongly interventionist through multiple roles.     

Rooted in Place: Understanding Camper Substitution Preferences

This study examines recreationists using primitive roadside campsites on Forest Preserve lands in the Adirondack Park. The primary objective of this study was to explore psychological factors (experience use history, enduring involvement, place bonding) that contribute to visitors’ substitution preferences and their willingness to make a resource substitution for roadside camping in the Adirondack Park. Two discriminant function analyses indicate that experience use history variables and the rootedness dimension of place bonding can significantly discriminate between substitution preference groups and willingness to substitute for roadside camping. Enduring involvement in the activity of camping, however, was not a significant predictor of substitution variables.