Goods Prices (goods + price)

Distribution by Scientific Domains


Selected Abstracts


Who Pays for Credit Cards?

JOURNAL OF CONSUMER AFFAIRS, Issue 2 2003
SUJIT CHAKRAVORTI
The authors model side payments in a competitive credit-card market. If competitive retailers absorb the cost of accepting credit cards by charging a higher goods price to everyone, then someone must subsidize convenience users of credit cards to prevent them from defecting to merchants who do not accept cards. The side payment could be financed by card users who roll over balances and pay interest. It is rational for them to do so if their subjective discount rates are high enough. Charging different prices to different customers based on the underlying cost of the payment instrument would be more efficient for retailers. However, banks may offer incentives to attract convenience users because some of them may become interest-paying users ("revolvers") in the future. [source]


Has the ECB increased interest rates too soon?

ECONOMIC OUTLOOK, Issue 1 2006
Article first published online: 26 JAN 200
Even though the Eurozone recovery is far from entrenched, the ECB decided to raise interest rates towards the end of 2005 and another hike is expected soon. Those in the ECB who have been looking for a reason to start tightening for some time can point to an inflation rate that remains stubbornly above target as a justification. In this article we find that the price rises of non-energy industrial goods - particularly those for clothing and footwear - have remained very sticky when compared to the deflation seen in countries like the UK. A lack of competitive forces may be an issue - the impact of China and India on goods prices does not seem to be fully feeding through to consumers. And weak productivity in the distribution sector may have prevented retailers from driving down prices to the same extent as in the UK. Does the current ECB action form the start of a prolonged tightening cycle as seen in the US? Despite worries over asset price and credit growth - and here we argue that the ECB's reliance on monetary aggregates as a signal of impending inflation is misguided - there is a possibility that the ECB has acted at the same time that inflation is finally set to subside. Consequently, we expect a "wait and see" approach to further moves, and unless growth comes in much stronger than the 2.2% we expect in 2006, rates should end the year at around 2½%. [source]


A New Look at Husbands' and Wives' Time Allocation

JOURNAL OF CONSUMER AFFAIRS, Issue 1 2004
MOHAMMAD ALENEZI
The impacts of economic and non-economic factors on husbands' and wives' market work time and housework time are estimated using 13 years of data from the Panel Survey of Income Dynamics. Several limitations in earlier studies are addressed, and a unique feature of the study is the direct estimation of effects on time allocation from changes in the prices of market-produced goods and input goods in household production. Many of the findings of earlier studies are reconfirmed, but new insights are also explored. Husbands and wives respond similarly in their time allocations to changes in input goods prices, but their responses are different to changes in market goods prices. [source]


The Effects of Foreign Price Uncertainty on Australian Production and Trade,

THE ECONOMIC RECORD, Issue 273 2010
ELIE APPELBAUM
This article provides an empirical analysis of the impact of uncertain international prices on Australia's production sector and international trade. We model the movement of traded goods prices via a generalised autoregressive conditional heteroskedasticity model and embed this within an expected utility maximising model of the production sector. The empirical results are consistent with expected utility maximisation and the hypothesis of risk neutrality is soundly rejected. Estimates of the effects of changes in expected prices and volatility of traded goods prices upon production decisions and the return to capital are discussed. The conclusion is that price uncertainty matters for the Australian production sector. [source]