WTP vs. WTA: Christmas Presents and the Endowment Effect

Using data on the valuation of Christmas gifts received by students in different fields at a German university, we investigate whether the endowment effect differs between students of economics and other respondents and whether it varies with the market price of the object under consideration. Our estimation results suggest that economics students have both, a significant lower WTP and WTA, indicating that existing studies on the efficiency loss of holiday gifts and experimental studies on the endowment effect that rely on data from economics students may be biased. The result further indicates that the endowment effect is independent of the market price of the object.loss aversion, endowment effect, Christmas presents, deadweight loss

WTP vs.WTA: Christmas Presents and the Endowment Effect

Using data on the valuation of Christmas gifts received by students in different fields at a German university, we investigate whether the endowment effect differs between students of economics and other respondents and whether it varies with the market price of the object under consideration.Our estimation results suggest that economics students have both, a significant lower WTP andWTA, indicating that existing studies on the efficiency loss of holiday gifts and experimental studies on the endowment effect that rely on data from economics students may be biased. The result further indicate that the endowment effect is independent of the market price of the object.Loss aversion, endowment effect, Christmas presents, deadweight loss

Preferences of Indian Meal Moth Larvae for Different Dog Foods

Indian meal moths (IMM), Plodiainterpuntella, are persistent pests to our foods (Fasulo et al.1998; Plunkett’s Pest Control 2018). When IMMs infest a a food product the resulting value loss is the result of contamination by larvae that leave droppings and silken webs in grain and grain products (Jacob and Calvin 2001). The IMM is an important pest of high-value dog foods and the grain components of these food may influence their infestation. Experiments were conducted with eggs of the IMM to determine if moth larvae would choose and infest the grain-based dog food in comparison to dog foods with a higher meat content. IMM laboratory rearing diet was included for comparison. No-choice and choice tests confirmed the IMM diet to be the most preferred and best for larval development. Forced infestation of 50 IMM eggs on the four different dog foods found difference among them. In two-choice test that require newly hatched larvae to walk to and infest either lab diet or a dog food, the highest proportion of larvae selecting any of the dog foods was on product C, which was a medium quality, grain-free food. These results suggest that IMM infestations in warehouses or consumer’s homes could be prevalent on some dog foods more than others

The maturing of microbial ecology

A.J. Kluyver and C.B. van Niel introduced many scientists to the exceptional metabolic capacity of microbes and their remarkable ability to adapt to changing environments in The Microbe’s Contribution to Biology. Beyond providing an overview of the physiology and adaptability of microbes, the book outlined many of the basic principles for the emerging discipline of microbial ecology. While the study of pure cultures was highlighted, provided a unifying framework for understanding the vast metabolic potential of microbes and their roles in the global cycling of elements, extrapolation from pure cultures to natural environments has often been overshadowed by microbiologists’ inability to culture many of the microbes seen in natural environments. A combination of genomic approaches is now providing a culture-independent view of the microbial world, revealing a more diverse and dynamic community of microbes than originally anticipated. As methods for determining the diversity of microbial communities become increasingly accessible, a major challenge to microbial ecologists is to link the structure of natural microbial communities with their functions. This article presents several examples from studies of aquatic and terrestrial microbial communities in which culture and culture-independent methods are providing an enhanced appreciation for the microbe’s contribution to the evolution and maintenance of life on Earth, and offers some thoughts about the graduate-level educational programs needed to enhance the maturing field of microbial ecology. [Int Microbiol 2006; 9(3):217-223

International Labor Migration, Economic Growth and Labor Markets – The Current State of Affairs

Even though European labor markets are characterized by high average unemployment, there is a shortage of high-skilled labor, leading many European economists to argue for an immigration policy directed at actively recruiting highly qualified workers from abroad. It has further been argued that an immigration policy that is tailored to attract young and economically successful migrants can alleviate some of the demographic burden associated with an aging population.We embed this discussion into a systematic classification of economic migration research according to its major conceptual and applied questions. The state of theoretical and empirical research on the migration decision, the literature on the economic performance of immigrants and their economic impact is reviewed briefly, proceeding along the lines of a clear conceptual framework. In addition, the paper discusses expectations on future migration flows and the policy options of immigration countries for dealing with these flows.Immigration, European labor markets, Immigration policy

Fiscal Effects of Minimum Wages: An Analysis for Germany

Against the background of the current discussion on the introduction of statutory minimum wages in Germany, this paper analyzes the potential employment and fiscal effects of such a policy. Based on estimated labor demand elasticities obtained from a structural labor demand model, the empirical results imply that the introduction of minimum wages in Germany will be associated with significant employment losses that are concentrated among marginal and low- and semi-skilled full-time workers. Even though minimum wages will lead to increased public revenues from income taxes and social security benefits, they will result in a significant fiscal burden, due to increased expenditures for unemployment benefits and decreased revenues from corporate taxes.minimum wages, employment, public budget, fiscal effects