Measuring and Testing Advertising-Induced Rotation in the Demand Curve

Advertising can rotate the demand curve if it changes the dispersion of consumers valuations. We provide an elasticity form measure of the advertising-induced demand curve rotation in five demand models and test for its presence in the U.S. non-alcoholic beverage market. The AIDS model reveals that doubling advertising spending rotates the demand curves clockwise for milk, and coffee and tea with associated slope changes of 7.3% and 11.6%. Soft-drink advertising rotates its demand curve counterclockwise. Our policy suggestion is that milk and soft-drink firms might enhance profits by timing advertising to coincide with high- and low-price periods, respectively.Demand and Price Analysis,

Bankruptcy Law of the People\u27s Republic of China: Principle, Procedure & Practice

The Enterprise Bankruptcy Law of the People\u27s Republic of China (For Trial Use) (the National Act), promulgated on December 2, 1986, is the first bankruptcy legislation applicable nationwide in the People\u27s Republic of China (PRC or China). At the same time, some regional governments have also enacted regional bankruptcy laws with very limited geographic application. The National Act applies only to state-owned Chinese enterprises, while one regional bankruptcy regulation applies exclusively to foreign investment enterprises. The PRC thus has developed two parallel bankruptcy regimes. The introduction of a bankruptcy system in China represents a significant development in the economic relationship between enterprises and the state. Foreign businessmen doing business in China will find it useful to have a basic understanding of how the bankruptcy system works, particularly its impact on the legal and economic status of their Chinese business partners. This article introduces the two parallel bankruptcy regimes and also presents a case study to illustrate the actual operation of bankruptcy law in China

Insurance in the People\u27s Republic of China: Laws and Practice

The insurance industry in the People\u27s Republic of China (PRC) has expanded rapidly during the past several years. Since the end of 1979 when domestic insurance was reestablished, the income generated from insurance business has been increasing at a rate of over forty-four percent annually.\u27 By early 1987, over 500,000 enterprises and business entities utilized property insurance and about 34 million people purchased personal insurance; during the first half of 1986 the total insurance earnings from the People\u27s Insurance Company of China alone reached a record high of over 2.33 billion yuan. In the meantime, the insurance business has become much more diversified, and by the end of 1986 Chinese insurance companies were underwriting over 130 different types of coverage. Along with the growth of the insurance business, the laws and practice of insurance have steadily developed, and a basic regulatory framework of insurance has now taken shape. The development of insurance law in the PRC has had a direct impact on foreign economic interests in China. Chinese law contains provisions making it compulsory to obtain Chinese insurance for certain kinds of foreign investment in China. Consequently, understanding Chinese insurance law and practice is important for a foreign investor to formulate and carry out well-informed investment or business planning in China. This eight-part article represents a preliminary review of the current Chinese insurance law and practice. Section II discusses the history and development of the Chinese insurance business, law and practice. Section III considers regulations and administration of the insurance business in the PRC. Section IV discusses the basic state law and the policies towards insurance. Section V illustrates Chinese laws relating to the insurance contract. Section VI explains Chinese insurance practice by introducing major insurance coverage. Section VII highlights major elements of dispute settlement relevant to insurance contracts, and Section VIII considers future prospects of Chinese insurance law and practice

General Principles of Civil Law of the People\u27s Republic of China (Translation)

(Adopted April 12, 1986, at the Fourth Session of the Sixth National People\u27s Congress, to take effect on January 1, 1987

General Principles of Civil Law of the People\u27s Republic of China (Translation)

(Adopted April 12, 1986, at the Fourth Session of the Sixth National People\u27s Congress, to take effect on January 1, 1987.)\u2

Opinion of the Supreme People\u27s Court on Questions Concerning the Implementation of the General Principles of Civil Law of the People\u27s Republic of China (Translation)

The General Principles of Civil Law of the People\u27s Republic of China ( General Principles ) came into force on January 1, 1987. We now issue the following Opinion concerning issues encountered when implementing the General Principle

General Principles of Civil Law of the People\u27s Republic of China (Translation)

(Adopted April 12, 1986, at the Fourth Session of the Sixth National People\u27s Congress, to take effect on January 1, 1987.)\u2

Opinion of the Supreme People\u27s Court on Questions Concerning the Implementation of the General Principles of Civil Law of the People\u27s Republic of China (Translation)

The General Principles of Civil Law of the People\u27s Republic of China ( General Principles ) came into force on January 1, 1987. We now issue the following Opinion concerning issues encountered when implementing the General Principle