Towards a theory of technological mismatch: 1 - Consumption

In this paper, the relationship between technological change and employment is analysed using private consumption as a means to do so. Technological change will create new and more consumption opportunities by means of product and process innovation. This results in changes in consumption patterns and budget shares of consumer products. As a consequence of technological change and changing tastes, the production structure will be altered and therefore, changes in (the composition) of employment are inevitable. By using a narrow classification of products as well as occupations, it is possible to analyse the dynamics of adjustment and technological change and their impact on the composition of employment in terms of occupations/skills. Furthermore, obsolescence of products and skills, caused by technological change, can be related to each other by using an input-output framework. The decrease in the (real) consumption of industrial consumer goods has for instance lead to a decrease in the employment of industrial occupations. In addition, scientific/professional occupations seems to have replaced industrial occupations between 1980 and 1990 in the Netherlands. The development of information technology may be a reason for the relative decrease in the employment of commercial skills.economics of technology ;

Smarter Lunchrooms: Using Behavioral Economics to Improve Meal Selection

Food Consumption/Nutrition/Food Safety,

Regional policy, economic performance and industrial structure

In this paper we develop a method for the evaluation of regional economic performance based on an input-output (IO) framework. After choosing economic criteria for measuring this performance, such as real GDP per worker, we pick out the 'best'performing region per sector. Taken together, they describe an optimal regional industrial structure for all sectors, a so called 'optimal' input coefficients table. On the basis of this table, we will investigate the causes of regional convergence. Furthermore, this table can be used as a point of reference for economic policy makers at the regional level. Structural deviations from the 'optimal' industrial structure may be reasons for policy action, so that the industrial structure can be evaluated in a normative way. In this paper, we investigate those deviations for 11 regions and 29 sectors in the Netherlands for the 1980-1992 period. The central focus is on the question how regional policy makers can improve regional economic performance by adjusting the regional industrial structure.

Catching Up At The Regional Level

A convenient way to find out how things are going is by taking a look at your neighbours. In this paper we develop a method for the evaluation of regional economic performance based on an input-output (IO) framework. Once we defined economic criteria for measuring this performance, such as real GDP per worker or employment per output unit, we pick out the ''best'' performing region per sector. Taken together, they describe an optimal regional industrial structure for all sectors, a so called ''optimal'' input coefficients table. On the basis of this table, we will investigate the causes of regional convergence. Furthermore, this table will be used as a point of reference for economic policy makers at the regional level. Structural deviations from the ''optimal'' industrial structure may be reasons for policy action, so that the industrial structure can be evaluated in a normative way. In this paper, we investigate those deviations for 11 regions and 29 sectors in the Netherlands for the 1980-1992 period. The central focus is on the question how regional policy makers can improve regional economic performance by adjusting the regional industrial structure.Economics ;

On the Construction of Regional IO Tables

Regional policy makers need regional economical data in order to define and backup their economical policy decisions. Regional input-output (IO) tables have proved to be useful in the policy making process, since the economic effects of policy decisions can be analysed in these models for the region as a whole. Unfortunately, the construction of regional IO tables on the basis of survey methods and other primary data collection methods is very costly and often incomplete. In this paper, we will discuss two techniques which can be applied to derive regional IO tables from national IO tables. In both methods, sectoral production specialization at the regional level is accounted for and affects the interindustrial structure of the region. The IO tables are constructed for 29 industrial sectors and 12 regions in the Netherlands. Policy makers, however, are not interested in the construction of regional IO tables themselves, but more in the economic indicators derived from them. Therefore, we present simple output- and employment-multipliers and employment-transformators derived from the IO tables and discuss some of the differences between them. A description of the economic performance of the Dutch regions is made by looking at the development of the economic indicators over a period of 12 years (1980-1992).Economics ;

A benefit congruency framework of sales promotion effectiveness

Are monetary savings the only explanation for consumer response to a sales promotion ? If not, how do the different consumer benefits of a sales promotion influence its effectiveness ? To address the first question, this research builds a framework of the multiple consumer benefits of a sales promotion. Through a series of measurement studies, we find that monetary and non-monetary promotions provide consumers with different levels of three hedonic benefits (opportunities for value-expression, entertainment, and exploration), and three utilitarian benefits (savings, higher product quality, and improved shopping convenience). To address the second question, this research develops a benefit congruency framework which argues that a sales promotion's effectiveness is determined by the utilitarian or hedonic nature of the benefits it delivers, and the congruence these benefits have with the promoted product. Among other results, two choice experiments show that as predicted for high-equity brands, monetary promotions are more effective for utilitarian products than for hedonic products. We then discuss the implications the multi-benefit and the benefit congruency frameworks have for understanding consumer responses to sales promotions, for the debate about the value of everyday-low-price policies, and for designing more effective sales promotions.Sales promotions; consumer benefit; benefit congruency

A marketing-finance approach linking contracts in agricultural channels to shareholder value

A conceptual marketing-finance framework is proposed which links channel contracting in agriculture and the use of financial facilitating services (e.g., financial derivatives) to (shareholder) value creation. The framework complements existing literature by explicitly including channel contract relationships as market-based assets that can be managed to reduce cash flow volatility and hence increase shareholder value. We show how financial facilitating services (e.g., derivatives) can be used to complement the cash flows components of channel contract relationships thereby further reducing the risk adjusted cost of capital and improving shareholder value. In a field study of producers, wholesalers, and processors, in the potato and meat industry the framework shows how shareholder value can be enhanced by using financial facilitating services, such as derivatives, to complement marketing channel relationships. Moreover, this study shows how producers and managers from agribusiness companies can use such financial services as conflict-solving tools in case of incongruent contract preferences between channel members.marketing-finance, agricultural marketing strategy, decision-making, channels, Agribusiness, Agricultural Finance,

Does the Fama-French three-factor model work in the financial industry?

This paper aims to test whether the three-factor model by Fama and French (1993) is applicable on the global banking/financial industry. The Fama and French three-factor model is an extension of the Capital Asset Pricing Model (CAPM) which predicts expected return rate using a systemic market risk factor. Fama and French (1993) argued the CAPM was not sufficient and added a size risk factor and value risk factor. Although the model has been proven in multiple researches, it is also important to observe that it consistently excludes financial firms from its sample. This could be considered as a shortcoming, as the financial industry represents a large fraction of the economy. Therefore, in this paper we assess the efficiency of 3 risk factors of the Fama and French model for predicting expected returns for financial institutions in the United States, the European Union, and Japan. The findings show that there is indeed a correlation between the three factors and the expected returns of financial institutions. The results show a correlation between financial institutions with a small market capitalization and a low book-to-market ratio and higher expected returns. This is contrary to the popular belief of the Fama and French model where firms with small market capitalizations and high book-to-market ratios are considered to cause higher expected returns.Esta dissertação tem como objetivo testar se o modelo dos 3 fatores de Fama and French (1993) é aplicável ao setor global da indústria financeira. O modelo dos 3 fatores de Fama e French é uma extensão da Capital Asset Pricing Model (CAPM), a qual tenta estimar os retornos utilizando um fator de risco sitemático. Fama e French (1993) argumenta que a CAPM apenas não é suficiente para medir retornos e, consequentemente, adiciona um fator relacionado ao tamanho de uma empresa e um fator relacionado ao risco do valor de uma empresa. Apesar de o modelo ter sido utilizado em vários estudos desde a sua origem, é importante notar que as empresas financeiras são comumente excuídas do modelo. Isto pode ser considerado como um defeito, já que o setor financeiro representa uma parte significante da economia. Portanto, nesta dissertação avaliamos a eficiência do modelo em retornos nos setores financeiros do Japão, Estados Unidos e União Europeia. Os resultados dos testes indicam que existe uma correlação entre os 3 fatores e as taxas de retorno de empresas financeiras. Ademais, os resultados demostram que empresas com um tamanho maior e um book-to-market ratio baixo tendem a ter retornos mais altos. Contraditório às indicações populares do modelo, em qual considera-se que um empresas de um tamanho menor e um book-to-market ratio alto tendem ser relacionado a retornos mais altos

HOW SOY LABELING INFLUENCES PREFERENCE AND TASTE

Using a “Phantom Ingredient” taste test, this article demonstrates how the use of soy labels and health claims on a package negatively biased taste perceptions and attitudes toward a food erroneously thought to contain soy. Consumers who ate products which mentioned soy on the package described the taste more grainy, less flavorful, and as having a strong aftertaste compared to those who ate the product but saw no soy label. Yet, while putting “soy” on a package negatively influenced taste-conscious consumers, when combined with a health claim, it improved attitudes among consumers who are health-conscious, natural food lovers, or dieters. Our results and discussion provide better direction for researchers who work with ingredient labeling as well as for marketers who work with soybean products.Food Consumption/Nutrition/Food Safety,