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Income Effects (income + effects)
Selected AbstractsA Shred of Credible Evidence on the Long-run Elasticity of Labour SupplyECONOMICA, Issue 308 2010ORLEY ASHENFELTER All public policies regarding taxation and the redistribution of income rely on assumptions about the long-run effect of wages rates on labour supply. The variation in existing estimates calls for a simple, natural experiment in which men can change their hours of work, and in which wages have been exogenously and permanently changed. We use a panel dataset of taxi drivers who choose their own hours, and who experienced two exogenous permanent fare increases, and estimate an elasticity of labour supply of ,0.2, implying that income effects dominate substitution effects in the long-run labour supply of males. [source] Identifying Welfare Effects from Subjective QuestionsECONOMICA, Issue 271 2001Martin Ravallion We argue that the welfare inferences drawn from answers to subjective,qualitative survey questions are clouded by concerns over the structure of measurement errors and how latent psychological factors influence observed respondent characteristics. We propose a panel data model that allows more robust tests and we estimate the model on a high-quality survey for Russia. We find significant income effects on an individual's subjective economic welfare. Demographic effects are weak at given income per capita. Ill-health and becoming unemployed lower welfare at given current income, although the unemployment effect is not robust, and returning to work does not restore welfare without an income gain. [source] Food consumption and demographics in Japan: Implications for an aging populationAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2007Mauricio V.L. Bittencourt This study estimates a cross-sectional model based on the Almost Ideal Demand System (AIDS) to examine the determinants of food consumption patterns in Japan over life-cycle periods. The test of structural changes, the analysis of the effects of demographic characteristics, and the estimation of expenditure and price elasticities are conducted from a random sample of 1,281 households from a Japanese household survey in 1997. Results show that each economic or noneconomic factor has a different impact on food consumption over a lifetime. Changes in consumption of some food groups can be explained by price and income effects where others can be explained by demographic characteristics. Financial constraint is not binding and residential location is likely to have little or no impact on predicting consumers' food choices at different periods of their lives. Other key factors that affect consumption pattern include family size, number of children, lifestyle, and health concern. [EconLit citations: C310, D120, D910.] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 529,551, 2007. [source] Price dynamics in the Bangladesh rice market: implications for public interventionAGRICULTURAL ECONOMICS, Issue 1 2003Donna Brennan Commodity price stabilisation; Food policy Abstract In this paper, the price dynamics of a rice market are examined using dynamic programming techniques. The model is parameterised to the case of Bangladesh and thus represents the situation of a very poor country which has characteristically high price elasticity (due to income effects) and high storage and interest costs. The incentives for private sector storage and its impact on price stability are examined. Various options for public intervention in the storage sector are also explored, including price ceiling schemes and subsidisation of storage costs. Results show that interventions that remove private disincentives (such as storage subsidies) are much cheaper than direct intervention by government, but the impact on the probability distribution of prices is quite different. The effect of trade on the probability distribution of prices is also examined. [source] International Pricing in a Generalized Model of Ideal VarietyJOURNAL OF MONEY, CREDIT AND BANKING, Issue 2009DAVID HUMMELS Lancaster ideal variety; price to market We examine international markups and pricing in a generalized version of an "ideal variety" model. In this model, entry causes crowding in variety space, so that the marginal utility of new varieties falls as market size grows. Crowding is partially offset by income effects, as richer consumers will pay more for varieties closer matched to their ideal types. We show theoretically and confirm empirically that declining marginal utility of new varieties results in: a higher own-price elasticity of demand (and lower prices) in large countries and a lower own-price elasticity of demand (and higher prices) in rich countries. The model is also useful for generating facts from the literature regarding cross-country differences in the rate of variety expansion. [source] Superstar Effects in Deluxe Gastronomy , An Empirical Analysis of Value Creation in German Quality RestaurantsKYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 4 2009Thomas Ehrmann Summary We analyze whether superstar effects (disproportionate income effects) exist in the deep-pocket market for quality gastronomy in Germany, and what factors determine the stars' rents. In quality gastronomy, the stars can be the restaurant chefs. Building on Rosen's (1981) and Adler's (1985) central theories on star effects, we explore two potential sources of stardom. Following Rosen (1981), we test if quality differences between the chefs' performances have a direct effect on financial rewards ("direct superstar effect"). Following Adler (1985), we assess the income effect of a media presence of chefs ("classical Superstar effect"). Through this, we deal with an economic issue of general interest: does it pay more to develop your skills in your core business to perfection, or to maintain the current level of skills and invest in self-marketing? Analyzing a sample of 288 restaurants, for potential star effects by differences in quality, we find that higher quality increases chefs' revenues. Yet, revenues do not increase disproportionately, and achieving higher quality requires substantial investments in exquisite ingredients, excellent staff and prime ambience. This problem, also called the "agony of the stars", has manifested itself in the bankruptcies of European three-star restaurants in recent years. As regards potential star effects by differences in media presence, we observe a positive impact of TV appearances on financial rewards. Yet, these income effects are moderate as well, so there is neither a direct, nor a classical superstar effect in quality gastronomy. We argue that although both perfection of skills and self-marketing have similarly positive income effects, self-marketing seems both the less risky and the less stressful way to enhance income. [source] Feeling Richer or Poorer than Others: A Cross-section and Panel Analysis of Subjective Economic Status in Indonesia,ASIAN ECONOMIC JOURNAL, Issue 2 2007Nattavudh Powdthavee O53; I3 This paper examines what makes us feel richer or poorer than others. It investigates cross-sectional and longitudinal determinants of individuals' subjective economic status in Indonesia. Using two waves of Indonesian Family Life Surveys, 1997 and 2000, I show that individuals' perceptions of where they are on the economic scale are more dependent on a number of socioeconomic characteristics, as well as their attitudes towards their future economic status, than their current spending capacities would suggest. I also find significant, albeit weaker, expenditure and income effects on individuals' subjective economic status once individual fixed effects are controlled for in the regression. [source] World Trade in Used Automobiles: A Gravity Analysis of Japanese and US Exports,ASIAN ECONOMIC JOURNAL, Issue 2 2006Danilo Pelletiere F13; F14; C20 We estimate a gravity model of Japanese and US exports of used automobiles that incorporates an original, ordered measure of protection in global, used automobile markets. The model confirms that, overall, protection by our measure is suppress-ive and often statistically significant and that what we term ,Grubel income effects' are present. However, Japanese export behavior appears to differ in some important respects from that of the USA, with distance and protection levels being less significant and left-hand side driving patterns being a critical explanatory variable. [source] | ||||||||||||||||||||||