The gains from variety in the European Union

Over the last decade, European Union members have experienced a steady increase in imports. This increase was accompanied by a strong growth in the number of imported goods and trading partners, suggesting positive welfare gains for consumers via an extended set of consumption possibilities, as pointed out in the ??New Trade Theory??. In this paper, we apply the methodology developed by Feenstra (Am Econ Rev 84(1):157?C177, 1994) and Broda and Weinstein (Q J Econ 121(2):541?C585, 2006) to structurally estimate the gains from imported variety for the 27 countries of the European Union using highly disaggregated trade data at the CN-8 level from Eurostat for the period from 1999 to 2008. Our results show that, within the European Union, especially ??newer?? and smaller member states exhibit high gains from newly imported varieties. Furthermore, we find that the majority of the gains from variety for consumers stems from intra-European Union trade.     

Criminals,bankruptcy, and cost of debt

Review of Accounting Studies - We examine whether criminal records of CEOs and rank-and-file employees are associated with firms’ likelihood of bankruptcy, and whether lenders adjust their...     

Welfare to Well‐Being Framework for Research,Education, and Outreach

The proposed framework is intended to serve as a model for understanding the comprehensiveness of welfare assistance policies that contribute to the economic well‐being of individuals and families. The framework uses a systems approach to move thinking from a narrow focus on welfare assistance as welfare for the few to well‐being of the many. Such an approach provides a new way to understand policies and language related to welfare reform.     

Why Manufacture Offshore? An Empirical Analysis of Valuation Effects

In this study, announcements by U.S. firms of offshore joint venture manufacturing during the 1980s are used to provide more comprehensive evidence than past studies on the wealth effects of offshore joint ventures. Evidence shows that the target country's level of economic development and political stability, currency strength of the originating country (U.S. in this study) relative to that of the target country, U.S. firm's mode of entry, and the relative value of the U.S. firm's investment in the joint venture affect the wealth of U.S. firms which engage in offshore joint ventures. The target country's level of economic development, its political stability, and the currency strength of the originating country relative to the target country are shown to be the dominant economic factors. Of particular importance, evidence indicates that the target country's level of economic development is a more important determinant of excess returns than is its political stability.     

A SIMPLIFIED APPROACH TO SHORT-TERM INTERNATIONAL DIVERSIFICATION

Using Eurocurrency deposit interest rates, currency exchange rates, and inflation rates in a mean-variance portfolio analysis, the authors develop portfolios of interest-bearing deposits in London banks denominated in various currencies. These easily constructed multicurrency portfolios are shown to provide better risk-return positions than comparable single currency holdings.     

Einzelbesprechungen

Ohne Zusammenfassung     

The usage of media across product classes: the influence of demographics and psychographics

The purpose of this study was to investigate the differences in the types of media used for four product classes, and to examine the effect of respondent's demographics and psychographics on the types of media. Eight hundred and four respondents were randomly selected from the population (8040) of five residential sections of Lubbock, Texas, by using systematic sampling. Different merchandise names representing the classes of product were listed in the questionnaire. The respondents were asked to rate each type of merchandise according to the order of media usage when they purchased the merchandise. One hundred and fifty-two questionnaires were analysed by factor analysis, multivariate analysis of variance, and Friedman two-way analysis of variance by ranks. Eight psychographic factors extracted by factor analysis were Traditional, Self-confident, Satisfied with Finances, Satisfied with Friends, Living Optimist, Self-conscious, Community Minded, and Homebody. Self-conscious was the only factor to affect the consumers' usage of newspapers, television, radio, magazines and direct mail. In addition, the usage of television was affected by the Satisfied with Finances factor. The demographic variables of marital status, age, education, ethnic group, political outlook, occupation and social level influenced the usage of newspapers, magazines, radio, television and direct mail. The usage of television was affected by one's political affiliation. Income did not influence media usage. The findings indicated that the individual's usage of the newspapers, television, radio, magazines and direct mail was affected by the classes of products: convenience, preference, shopping and speciality goods.