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Consumption Decisions (consumption + decision)
Selected AbstractsAre Private Sector Consumption Decisions Affected by Public Sector Consumption?THE ECONOMIC RECORD, Issue 239 2001Ólan T. Henry This paper looks at the interaction between public and private consumption in Australia. The results show that there is a long-run equilibrium relation between private and public consumption. However, the nature of this relation changed during the 1980s from one of complementarity to one of substitutability. [source] Groundnut consumption frequency in GhanaINTERNATIONAL JOURNAL OF CONSUMER STUDIES, Issue 6 2008Curtis M. Jolly Abstract Groundnut (peanut) is an important food and oil crop in Ghana, but little is known about the factors influencing consumption. The study surveyed market participants; investigated the frequency and forms of groundnut consumed; and evaluated the factors influencing consumers' decisions to eat groundnuts in Ghana. About 80% of respondents consume groundnut and/or its products at least once a week and 32.0% consume it three times a week. Logistic models showed that age, education and the form in which groundnuts are consumed influence the frequency of groundnut consumption. Total revenue and the form in which groundnut is eaten influence farmers consumption decision whereas groundnut consumption by poultry farmers is influenced by knowledge of the health effects of groundnuts on birds and the form in which groundnut is eaten by the poultry producers. Processors' frequency of consumption is influenced by the form in which groundnut is consumed and their knowledge of reasons for sorting. The results are important for market segmentation for demand projection along the marketing chain. [source] Wives' Value of Time and Food Consumed Away from Home in Taiwan*ASIAN ECONOMIC JOURNAL, Issue 3 2005Shao-Hsun Keng Q18; J2 In the present paper, we examine the relationship between wives' value of time and expenditures on food away from home (FAFH) in Taiwan between 1983 and 2000. An endogenous switching regression model is used to model the household's consumption decision on FAFH. The empirical results show that wives' value of time, household income, presence of young children and grandparents, and wives' educational attainment are important factors for both participation in consuming and amount spent on FAFH. The income elasticities of FAFH have increased from 0.09 to 0.17 over the sample period. Moreover, other things being equal, the level of spending on FAFH has also increased over time. The results suggest that there has been a structural change in the consumption pattern of FAFH by families in Taiwan. [source] Liquidity and Trading DynamicsECONOMETRICA, Issue 6 2009Veronica Guerrieri In this paper, we build a model where the presence of liquidity constraints tends to magnify the economy's response to aggregate shocks. We consider a decentralized model of trade, where agents may use money or credit to buy goods. When agents do not have access to credit and the real value of money balances is low, agents are more likely to be liquidity constrained. This makes them more concerned about their short-term earning prospects when making their consumption decisions and about their short-term spending opportunities when making their production decisions. This generates a coordination element in spending and production which leads to greater aggregate volatility and greater comovement across producers. [source] Estimating the price elasticity of expenditure for prescription drugs in the presence of non-linear price schedules: an illustration from Quebec, CanadaHEALTH ECONOMICS, Issue 9 2005Paul Contoyannis Abstract The price elasticity of demand for prescription drugs is a crucial parameter of interest in designing pharmaceutical benefit plans. Estimating the elasticity using micro-data, however, is challenging because insurance coverage that includes deductibles, co-insurance provisions and maximum expenditure limits create a non-linear price schedule, making price endogenous (a function of drug consumption). In this paper we exploit an exogenous change in cost-sharing within the Quebec (Canada) public Pharmacare program to estimate the price elasticity of expenditure for drugs using IV methods. This approach corrects for the endogeneity of price and incorporates the concept of a ,rational' consumer who factors into consumption decisions the price they expect to face at the margin given their expected needs. The IV method is adapted from an approach developed in the public finance literature used to estimate income responses to changes in tax schedules. The instrument is based on the price an individual would face under the new cost-sharing policy if their consumption remained at the pre-policy level. Our preferred specification leads to expenditure elasticities that are in the low range of previous estimates (between ,0.12 and ,0.16). Naïve OLS estimates are between 1 and 4 times these magnitudes. Copyright © 2005 John Wiley & Sons, Ltd. [source] Demand for traditional medicine in Taiwan: a mixed Gaussian,Poisson model approachHEALTH ECONOMICS, Issue 3 2001Steven T. Yen Abstract Hurdle count models are used to examine the participation and consumption decisions in Chinese medicine use. Motivated by a household production model, a second censoring mechanism is introduced into existing single-hurdle models, and the resulting specification accommodates conscientious abstainers, as well as economic non-consumers, and admits excessive zeros in the sample. In contrast to previous studies that found few predictors, empirical results based on a Taiwanese national sample suggest that Western medicine is a gross substitute to Chinese medicine, and both time price and money price play more important roles than income. Insurance, lifestyle and demographics also determine the use of Chinese medicine. Copyright © 2001 John Wiley & Sons, Ltd. [source] Determinants of Voter Support for a Five-Year Ban on the Cultivation of Genetically Modified Crops in SwitzerlandJOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2008Felix Schläpfer D62; D72; Q26 Abstract While much effort has been devoted to estimating market premiums for non-genetically modified (GM) food, the results of such research are largely silent about the preferences for the public good aspects, or externalities, of GM food production. For public goods, the closest substitute of private consumption decisions is voting on referenda. In November 2005, 55.7% of 2 million Swiss voters approved a five-year moratorium (ban) on the commercial cultivation of GM plants in Switzerland. The present study examines how individual voting decisions were determined by: (i) socioeconomic characteristics; (ii) political preference/ideology; and (iii) agreement with a series of arguments in favour and against the use of GM plants in Swiss agriculture. The analysis is based on the data of the regular voter survey undertaken after the national-level voting in Switzerland. The results suggest that current concerns about the use of genetically engineered plants in agriculture may not automatically decrease with higher levels of education/knowledge and generational change. Furthermore, analysis of voter motives suggests that public support for a ban on GM crops may be even larger in other countries, where industrial interests in crop biotechnology are less pronounced. [source] Bonus of rebate?: the impact of income framing on spending and savingJOURNAL OF BEHAVIORAL DECISION MAKING, Issue 3 2006Nicholas Epley Abstract All income increases a person's absolute wealth, but consumption decisions may be based more heavily on perceived changes in wealth. Change is computed by comparing a current state with a former state, and we predicted that people would be more likely to spend income framed as a gain from a current wealth state than income framed as a return to a prior state. Four experiments confirmed this prediction on people's memory for spending of a government tax rebate (Experiment 1), on unobtrusive self-report measures of spending an unexpected windfall (Experiments 2 and 3), and on actual spending on items for sale in a laboratory experiment (Experiment 4). These results can be explained, at least in part, by the reference points implied in the framing of income (follow-ups to Experiments 1 and 4). Discussion focuses on implications for the consumption of other commodities, assessments of risk, and government tax policies. Copyright © 2006 John Wiley & Sons, Ltd. [source] Consumer advisors revisited: What drives those with market mavenism and opinion leadership tendencies and why?JOURNAL OF CONSUMER BEHAVIOUR, Issue 2-3 2009Nicola E. Stokburger-Sauer Consumers with a tendency toward market mavenism (MM) and opinion leadership (OL) represent powerful forces in the marketplace because of their influence on other consumers' consumption decisions. They are thus important consumer groups for both other individuals and companies. Little is known, however, about the motives that drive these individuals. Additionally, research has not explored the consequences of the market mavenism tendency (MMT) and OL. Research is thus needed to tap into and compare factors that influence MMT and OL as well as variables that are influenced by MMT and OL. A key goal of the current study is to determine whether individuals with a tendency toward MM and opinion leaders are consumers who are more or less satisfied and loyal than other consumers. This study investigates product involvement and need for variety (NFV) as antecedents of MMT and OL and looks into their relationship with satisfaction and loyalty. Using data from 1145 German consumers in four product categories (i.e., wine, clothing, cars, and cameras) and applying structural equation modeling, it was found that opinion leaders have higher levels of product category involvement than individuals with a tendency toward mavenism, while the latter have a higher NFV than opinion leaders. Finally, opinion leaders and individuals with a tendency toward mavenism have higher levels of satisfaction, and the first are more loyal consumers, but this varies across product categories. Important implications for marketing theory and marketing practice can be derived. Individuals with a tendency toward MM and/or opinion leaders could, for instance, be integrated as powerful sources in the context of co-producing products and services. Copyright © 2009 John Wiley & Sons, Ltd. [source] Optimal sequence of landfills in solid waste managementOPTIMAL CONTROL APPLICATIONS AND METHODS, Issue 5-6 2001Francisco J. André Abstract Given that landfills are depletable and replaceable resources, the right approach, when dealing with landfill management, is that of designing an optimal sequence of landfills rather than designing every single landfill separately. In this paper, we use Optimal Control models, with mixed elements of both continuous-and discrete-time problems, to determine an optimal sequence of landfills, as regarding their capacity and lifetime. The resulting optimization problems involve splitting a time horizon of planning into several subintervals, the length of which has to be decided. In each of the subintervals some costs, the amount of which depends on the value of the decision variables, have to be borne. The obtained results may be applied to other economic problems such as private and public investments, consumption decisions on durable goods, etc. Copyright © 2001 John Wiley & Sons, Ltd. [source] Does Public Income Induce More Consumption?,THE ECONOMIC RECORD, Issue 272 2010ELLIOTT FAN The Life-Cycle/Permanent Income Hypothesis predicts that income uncertainty reduces an individual's incentive to consume, while holding permanent income level constant. This implies that switching from a relatively unstable form of income to a stable one motivates consumption. This article explores this implication by quantifying and comparing the marginal propensity to consume (MPC) out of private income and income from a public pension scheme. It exploits the introduction of a public pension that provides a monthly fixed amount of payment , a relatively secure source of income. The results suggest that the provision of pension leads to a higher MPC for the beneficiaries' households, and the estimated MPC out of the pension income is significantly larger than the corresponding estimate for private income. Further examination suggests that households facing more non-tradable risks appear to be more prudent on consumption, highlighting the role of income uncertainty in households' consumption decisions. [source] | ||||||||||