Capital Consumption Research Articles

THE INSTABILITY OF OPEN PARETO EFFICIENT ECONOMIES

This paper analyzes the impact of trade on the stability properties of trading countries and on stationary welfare. We consider a two-country two-good two-factor overlapping generations model where countries differ in terms of their technology. In the autarky equilibrium and the free-trade equilibrium, indeterminacy relies, under dynamic efficiency, on a capital intensive consumption good and intermediate values of the elasticity of intertemporal substitution in consumption. Opening the borders to trade can be a source of a global destabilizing effect. Indeed, considering a free-trade equilibrium in which one country is an exporter of the consumption good and the other country is an exporter of the investment good, indeterminacy can occur with trade even though the two countries are determinate in autarky. Finally, opening to trade increases the stationary welfare of the country that exports the investment good and deteriorates the one of the other country.

The effects of health, social, and consumption capital on running-related expenditures in China

ABSTRACT Research question: This study investigates the effects of health, social, and consumption capital on running-related expenditures. It adds to previous research by empirically testing investment in the stock of health on participation-related expenditures. Research methods: Chinese amateur runners (n=6,693) were surveyed on health capital (i.e. health change since taking up running), social capital (i.e. running group participation), consumption capital (i.e. sport profiles), socio-demographics, and running-related expenditures over a one-year period. Two instrumental variables reflecting life domain satisfaction were included to address the endogeneity of health change. Results and findings: Results show that variables capturing health, social, and consumption capital significantly affect total running-related expenditures, whereas the effects on expenditure categories vary. After taking endogeneity into account, the results show that health change since taking up running positively affects total running-related expenditures and sport apparel expenses. Implications: The findings provide empirical support for Downward et al.’s (2009) general economic model of sports consumption by revealing that health, social, and consumption capital are significant drivers of participation-related expenditures. While mass participation, health, and economic objectives may be achieved concurrently, policy makers should carefully balance these objectives. Sport managers and marketers can use mass participant sport events to stimulate continued participation, and this in turn generates health, social, and consumption capital that drives expenditures. Fostering running group participation increases expenditures. Early career runners should be targeted for sport apparel. Cross-promotion among related sports may increase overall sport consumption.

MICROECONOMIC IMPACT OF REMITTANCES AT THE HOUSEHOLD LEVEL IN A REMITTANCE RECEIVING COUNTRY, BANGLADESH

Purpose of the study: This paper aims to investigate the microeconomic impact of remittances at the household level in Bangladesh, which is one of the top remittance receiver’s countries in the world. The microeconomic factors, which have been include in this research, are per Capital consumption, per Capital food expenditure, poverty rate, health expenditure, education expenditure, and calorie intake.
 Methodology: The propensity Score Matching (PSM) technique has been applied to present the issue of self-selection associated with the migration decision and the scope of the receiving remittances. Based on the survey results of Household Income and Expenditure Survey (HIES) 2016 conducted in Bangladesh, this study includes the Microeconomic impact of remittances on the household level in Bangladesh including some variables such as the size of household, food calorie, expenditure on health and education, etc.
 Main Findings: Results show that the remittances have a significant microeconomic impact at the household level in Bangladesh. However, some of the findings are consistent with previous studies, while some others are not. Implications of the study have been discussed along with the concluding remarks.
 Applications of this study: The study can be useful for the government and house decision-makers to utilize the remittances sent by expatriates at the household level.
 Novelty/Originality of this study: There are no recent studies on the microeconomic impact of remittances at the household level in Bangladesh using the most recent survey, i.e. Household Income and Expenditure Survey (HIES) 2016. Previous studies were conducted based on Household Income and Expenditure Survey (HIES) 2010. Hence, this study contributes to the body of knowledge with recent variations on the microeconomic impact of remittances at the household level in a remittance-receiving country.

Techno-economic analysis of processes for biodiesel production with integrated co-production of higher added value products from glycerol

A techno-economic analysis was conducted to compare 3 different processes for biodiesel production: (i) the conventional base-catalysed process (NaOH) (ii) a reactive coupling process to form glycerol carbonate (GLC) as a co-product in situ (iii) a reactive coupling to form solketal as a co-product in situ. The processes were simulated at rapeseed oil feed of 100,000 t/y. The capital investment and energy consumption of biodiesel production with associated GLC formation were found to be lower than that for the conventional process. The GLC process required $7.63 M capital investment and 2.2 MW per annum. The conventional process required $8.75 M capital investment and 5.4 MW per annum. Solketal production, however, was more capital-intensive, with $12.87 M capital investment and 25.8 MW. The 20-year net present values (NPVs) for the three biodiesel processes were: $65 M for the conventional alkali-biodiesel process, $128 M for solketal co-production and $631 M for GLC co-production. Clearly, the conversion of glycerol into higher added value species in situ can significantly increase the profitability of biodiesel production, particularly for glycerol carbonate formation.

What Drives Binge-Watching? An Economic Theory and Analysis of Impact Factors

Behavioral patterns in media consumption are changing. With the upcoming of video-on-demand platforms, so-called ‘binge-watching’ gained broad awareness. To the best of our knowledge, this is the first economic analysis explicitly on binge-watching. We approach the phenomenon by arguing that it follows fundamental patterns of addictive behavior. By applying concepts of rational addiction and behavioral economics, we derive: (i) a theoretical understanding of binge-watching behavior and (ii) factors increasing the likelihood of binging, especially with modern technologies and digital media services. The decision to binge depends on individual factors such as the accumulation rate of consumption capital (speed of learning and acquiring knowledge), opportunity costs, and the expected value of consumption. Consumption capital in the form of specific knowledge positively influences marginal utility. Moreover, binge-watching is not specific to online streaming services (video-on-demand), but modern platforms facilitate certain factors which increase the consumers’ engagement. Non-linear, self-organized video scheduling and a single narrative (coherent plot) increase the likelihood for consumers to binge.

Assessing the ecotoxicity of ionic liquids on Vibrio fischeri using electrostatic potential descriptors

Ionic liquids (ILs) have attracted increasing attention both in the scientific community and the industry in the past two decades. Their risk of being inevitable released to ecosystem lights up the urgent research on their toxicity to the environment. To reduce the time and capital consumption on testing tremendous ILs ecotoxicity experimentally, it is essential to construct predictive models for estimating their toxicity. The objective of this study is to provide a new approach for evaluating the ecotoxicity of ILs. A comprehensive ecotoxicity dataset for Vibrio fischeri involving 142 ILs, was collected and investigated. The electrostatic potential surface areas (SEP) of separate cations and anions of ILs were firstly applied to develop predictive models for ecotoxicity on Vibrio fischeri. In addition, an intelligent algorithm named extreme learning machine (ELM) was employed to establish the predictive model. The squared correlation coefficients (R2), the average absolute error (AAE%) and the root-mean-square error (RMSE) of the developed model are 0.9272, 0.2101 and 0.3262 for the entire set, respectively. The proposed approach based on the high R2 and low deviation has remarkable potential for predicting ILs ecotoxicity on Vibrio fischeri.

Mathematical Model of Optimal Development Enterprise Economics

Purpose of the study. The production sphere of the enterprise is a dynamic system of cash, material and information flows, in the framework of which the final product is formed, distributed between investments in production capital and own consumption. The task of choosing the optimal proportions of the distribution of the final product is relevant and practically significant for corporations in developing economies. The purpose of this work is, using mathematical modeling, to identify strategy for the optimal development of commercial enterprise, based on the volume of investment in factors of production and consumption norms and the accumulation profit of the enterprise.Materials and methods. To obtain scientific results, general scientific and specific research methods were used: analysis, synthesis, comparison, system analysis, parametric analysis, economic, mathematical and statistical research methods. The theoretical basis of the study is the fundamental work and publications of Russian and foreign scientists in the field of research of optimal management of the economic system of the enterprise. The authors proposed a methodological approach that distinguishes their research from others – a mathematical model of the balanced development of the economy of an economic entity is presented, where production capital, labor resources and intellectual capital are considered as factors of socio-economic development. The information base of the study is the data of the financial and accounting statements of the Public Joint Stock Company Rosneft Oil Company for the period 2006-2018.Results. The factors of development of the enterprise economy are highlighted, among which, in addition to the traditional approach, which includes capital and labor, intellectual capital is introduced into the main production factor. As a valuation of the intellectual capital of the enterprise, the costly method is used. Based on the cycle of reproduction of the enterprise’s activity, a balance equation of the enterprise’s activity model has been formed taking into account capital investments in production factors and consumption and profit accumulation rates. The criterion functional in the optimal management problem is the discounted profit of the enterprise. As a control, a function was selected that characterizes the share of investment in fixed assets, and as a state of the system, the ratio of the value of fixed assets to intellectual capital. The mathematical model of optimal development is applied to the economic system of the enterprise of PJSC NK “Rosneft”.Conclusion. Modeling the dynamics of production capital, labor resources and intellectual capital of PJSC NK “Rosneft” and the results of solving their optimal management problem show that to keep a production enterprise on a balanced growth path, 55% of net profit will be spent on developing the intellectual capital of the enterprise, 35% of net profit – to improve the state of production capital of Rosneft. Given the optimal management in the future for 2019-2022. projected annual revenue growth rate of 19.9%, fixed assets – 16.2% and annual net profit of the company –9.7%.

Prospects and Challenges of Postharvest Storage and Losses of Potato (Solanum tuberosum L.) in Central highlands of Ethiopia: A Review

In Ethiopia, potato is becoming a prominent source of income since the crop is the most important cash crop for smallholder farmers in the mid-altitude and highland areas of the country. Post-harvest management in potato crop is a set of operations and functions between crop production and consumption. Potato is inherently perishable. During the process of harvesting, storage, distribution and marketing, substantial losses are incurred which range from a slight loss of quality to substantial spoilage. Post-harvest losses may occur at any point in the marketing process, from the initial harvest through assembly and distribution to the consumer. The causes of losses are many: physical damage during handling and transport, physiological decay, water loss, or sometimes simply because there is a surplus in the marketplace and potatoes are kept longer under inconvenient condition for some time. The tuber, once harvested, is susceptible to environmental influences and requires proper handling and processing in to value added products that have longer shelf-life. The increasing market demand for quality is requiring growers and others engaged in the industry to strictly follow appropriate principles and standards to ensure higher productivity and quality with reduced losses and minimum cost all along the potato value chain. There is a huge estimate of post-harvest losses for fruits, vegetables, roots and tuber crops that sometimes reaches as high as 50%. So far there are limited marketing options for the individual farmer in the major production regions and there are almost no storage facilities to help producers stabilize the low price during peak production. From the estimated potato acreage of over 0.3m ha, a total of 3.65 million tons of potatoes is produced annually. About 20–25% of the annual production is a post harvest loss. In Ethiopia most of the potato produced is mainly consumed as boiled, salad and stew preparations. Potato is consumed throughout the year, but with higher consumption during harvesting. Use of alternative recipes like crisps, french fries, flakes, pre-peeled potatoes and various snack food items has not developed well. This in combination with the high post-harvest losses is believed to have limited the overall consumption of potato in the country to be one of the lowest for per capital consumption in Africa. Keywords : Postharvest, Farmers Field School, Farmer Research Group, potato storage DOI: 10.7176/JNSR/10-5-04 Publication date: March 31 st 2020

SHARING ECONOMY IMPACT ON OWNERSHIP TRANSFORMATION AND REGIONAL PERFORMANCE

The phenomenon of sharing economy as a model of productivity growth and transaction costs’ decline considers distributed use of underutilized assets containing excess capacity which is available for other economic agents and demanded by them. Several researchers and mass media foster fears that sharing propagation will facilitate inequality growth and unfair property distribution thus causing property transformations in different territories. Those transformations will obviously follow different patterns and result into a specific structure of a region’s economy resulting from structural shifts between the private and public sectors. Suh an ownership transformation will presumably have specific impact on regional performance, measured traditionally by gross regional product. Yet, GRP is not flexible enough to catch low-scale shifts of regional property complex employment practices as sharing. That is why an alternative approach to regional performance assessment is suggested and implemented. The private sector’s capital expenditure in fixed assets is proved to be subject to change under the novel phenomena like sharing economy which is potentially changing patterns of capital consumption. This would lead to gross regional product changes in short-term and long-term perspective.

The transmission mechanism of the housing price fluctuations on the global value chain position of manufacturing-evidence from China.

Since the real estate market reform in 1998, China's house prices have been rising. High housing prices have exerted negative impacts on labour mobility, the investment environment and resident consumption, all of which may affect the overall resource allocation efficiency and the improvement of the global value chain position of China's manufacturing industry. However, there is little research on the mechanism of the impact of housing prices on the status of manufacturing global value chain. Based on the matching data of China and the OECD-TiVA from 2005 to 2016, the parallel multiple mediator model is adopted to empirically test the transmission mechanism of housing price fluctuation on the global value chain position of China's manufacturing industry in this study using human capital level, resident consumption level, resident consumption structure, and R&D investment level as the mediating variables. This article finds that although housing price fluctuations do not have a direct impact on the global value chain position of the manufacturing industry, human capital level and resident consumption structure do have positive and negative mediating effects, respectively. Finally, we put forward some suggestions to promote the global value chain position of China's manufacturing industry, which provides useful reference for policy makers.

Towards the Derivation of the Cambridge Equation with Expanded Reproduction and Markup Pricing

Does the Cambridge equation, in which the rate of profits in a steady state is equal to the quotient of the rate of growth and the savings rate out of profits, hold in an economy with widespread non-competitive markets? This article presents a multiple-good model of markup pricing in an attempt to answer this question. A balance equation is derived. Given competitive conditions, this model can be used to derive the Cambridge equation. The Cambridge equation also holds in a special case of markup pricing, with one capital good and many consumption goods being produced. No definite conclusions are reached in the general case.

Consumption of addictive goods in Russian regions and its impact on the quality of human capital

Research relevance. Consumption of addictive goods and its impact on the human capital is widely discussed in contemporary research literature, not only on the micro- and macro- but also on the meso-level. At the present stage of the ongoing transformations we are prompted to reassess current approaches to this problem and to re-evaluate its public significance; moreover, practical application of available research outcomes should also be reconsidered. In Russia, consumption of addictive goods is subject to significant regional variations determined by socio-economic and other factors. Research aim. The study is aimed at investigating the impact of consumption of addictive goods (alcohol) on the quality of Russian consumers' human capital and at building a system of indicators to estimate this impact. Data and methods. The study uses the methods of comparative analysis, expert estimation, ranking, and economic-statistical analysis, it also proposes a spatial approach to problems associated with regional variations in human capital of consumers of addictive goods. The study relies on the Russian and international research evidence; the data of the Federal State Statistics Service and its regional offices; expert estimates and the authors' own calculations. Results. The study demonstrates the connection between consumption of addictive goods and consumers' human capital. It also describes a system of statistical indicators that can be used for estimating the impact of alcohol consumption on human capital and the criteria such indicators should meet. Based on the proposed indicator set, the study analyzes and compares the trends in human capital deterioration on the regional and national levels. As a result of cross-regional analysis, regions with the highest and lowest figures of human capital deterioration are identified. Conclusions. As their addiction progresses, alcohol consumers face an increasing devaluation of their human capital. This parameter varies significantly across Russian regions due to a range of climatic, regional, and socio-economic factors, which should be taken into account when devising and implementing regional alcohol policies. The existing system of statistical observations uses a limited set of indicators that needs to be expanded to allow for a more comprehensive cross-regional analysis.

Consumption of addictive goods in Russian regions and its impact on the quality of human capital

Research relevance. Consumption of addictive goods and its impact on the human capital is widely discussed in contemporary research literature, not only on the micro- and macro- but also on the meso-level. At the present stage of the ongoing transformations we are prompted to reassess current approaches to this problem and to re-evaluate its public significance; moreover, practical application of available research outcomes should also be reconsidered. In Russia, consumption of addictive goods is subject to significant regional variations determined by socio-economic and other factors. Research aim. The study is aimed at investigating the impact of consumption of addictive goods (alcohol) on the quality of Russian consumers' human capital and at building a system of indicators to estimate this impact. Data and methods. The study uses the methods of comparative analysis, expert estimation, ranking, and economic-statistical analysis, it also proposes a spatial approach to problems associated with regional variations in human capital of consumers of addictive goods. The study relies on the Russian and international research evidence; the data of the Federal State Statistics Service and its regional offices; expert estimates and the authors' own calculations. Results. The study demonstrates the connection between consumption of addictive goods and consumers' human capital. It also describes a system of statistical indicators that can be used for estimating the impact of alcohol consumption on human capital and the criteria such indicators should meet. Based on the proposed indicator set, the study analyzes and compares the trends in human capital deterioration on the regional and national levels. As a result of cross-regional analysis, regions with the highest and lowest figures of human capital deterioration are identified. Conclusions. As their addiction progresses, alcohol consumers face an increasing devaluation of their human capital. This parameter varies significantly across Russian regions due to a range of climatic, regional, and socio-economic factors, which should be taken into account when devising and implementing regional alcohol policies. The existing system of statistical observations uses a limited set of indicators that needs to be expanded to allow for a more comprehensive cross-regional analysis.

Исследования праздничных распродаж: поведение, мотивы и отношение покупателей к «черной пятнице». (Обзор)

The review discusses approaches to describing Black Friday, the annual sales day, which originated in the United States and has spread around the world. The textanalyzes the attitude of buyers to Black Friday, their behavior during the days of sales, rituals and emotions related to partaking in this «festivals of consumption». Black Friday is seen as part of the consumption culture, market relations, and capitalism.

Epstein–Zin Utility, Asset Prices, and the Business Cycle Revisited

Abstract This paper discusses the advantages of Epstein and Zin (1989) (EZ) preferences when building dynamic stochastic general equilibrium (DSGE) models that are consistent with well-known stylized facts of both the business cycle and asset markets. To this end, we combine EZ preferences with several building blocks from the DSGE literature that has tried to solve the equity premium puzzle and to replicate characteristic statistics of the labor market. Our goal is to guide researchers in this area to useful modeling devices and to discuss EZ preferences vis-a-vis the standard time-additive expected utility function. EZ preferences separate the attitude toward risk from the attitude toward intertemporal substitution. We demonstrate that this additional degree of freedom allows us to closely match the empirical facts already in a frictionless production economy with endogenous labor supply. Our study follows Heer and Maußner (2013). We examine models that consider adjustment costs of capital accumulation, consumption habits, and frictions in the allocation of labor. Our empirical targets are estimated from German data.

Lifestyle Marketing, Brand Personality, Brand Image, Customer Satisfaction, Customer Loyalty dan Impulse Buying

ABSTRACTLifestyle is a person's lifestyle in the world expressed in his activities, interests, and opinions Widjaja (2009). Lifestyle describes a whole person in interacting in their environment. Lifestyle or lifestyle of humans today grow in tandem with the history of economic globalization and the transformation of consumption capitalism which is characterized by the mushrooming of shopping centers. Through many media that exploit the luxurious lifestyle around the development of food, fashion, and fun, humans indirectly need to adjust to these developments. Along with the lifestyle changes that are fixated on food, fashion, and fun, the learning centers began in Bali, especially in Badung Regency in recent years. The data analysis used in this study is CB-SEM (Covariance Based-Structural Equation Modeling) with the AMOS (Analysis of Moment Structure) program. The data used in this study are primary data obtained directly from the source where in this study the primary data that will be used is obtained from the questionnaire. The results of the study show that lifestyle marketing, brand personality, brand image, and customer satisfaction have a positive and significant influence on customer loyalty and impluse buying at Starbuck in Badung Regency.

Hyperbolic or Exponential Time Discounting Function? Empirical Evidence Using a Conditional Consumption Capital Asset Pricing Model

The main objective in this article is to shed new light on the term structure of subjective time preference rates using a conditional Consumption Capital Asset Pricing Model. Following Samuelson’s (1937)’s suggestion, we analyze the concept of “time consistency”. More precisely, we challenge the relevance of the exponential time discounting function assumption, which leads to a constant subjective time preference rate. First, we develop a parsimonious, consumption-based model of the term structure of interest rates. Second, we test its implications for US monthly data from 1970:4 to 2013:1. We use a bivariate two-factor model of inflation and real consumption (through a VAR-GARCH process) to condition the term premiums of bonds. Our results clearly cast doubt on the assumption of a flat term structure, as implied by the standard exponential discounting function. A decreasing term structure of time preference rates is reported. It is particularly clear for the 1991-2013 period. Our results give strong support for the hyperbolic time discounting function hypothesis and open the way for the hypothesis of time varying time preference rates.

Modeling and Forecasting Meat Consumption per Capita in Turkey

The objective of this study is to model the per capita consumption of red meat in Turkey employing various time series methods, evaluate the forecasting capability of the developed models, and address the variables that may affect the per capital consumption of red meat using the cointegration method on a term basis (short/long). The material of the study consists of the per capita consumption of red meat, total annual population, feed prices, gross domestic product and share of agriculture in gross domestic product in Turkey between 1993 and 2017. ARIMA (0,1,0) and Brown's exponential smoothing method were employed to model the time series data for per capita consumption of red meat, and Johansen method was used to address the cointegration relationship between per capita consumption of red meat and the other variables. The results of the modelling work suggest that per capita consumption of red meat has an increasing trend. Additionally, a statistically significant short-term relationship was found between per capita consumption of red meat and the other variables. Given the relationship between consumption of red meat and level of economic development, the projections concerning red meat consumption are important from the viewpoint of the policies that will be formulated.

An urban studies approach to elites: nurturing conceptual rigor and methodological pluralism

ABSTRACTThis special issue offers a set of methodologies to chart urban elites. Whereas most research has focused on the global super-rich, the authors in this special issue pay specific attention to the multidimensional urban geographies of elite reproduction and transformation, as elites depend on urban contexts for capital accumulation, consumption and leisure, and housing. In this article, we discuss theoretical and methodological antecedents in urban studies that have investigated economic elites. Building on but moving beyond these bodies of literature, we reject a-priori definitions of the size and shape of this social group and propose to pursue relational, place specific conceptualizations of elite composition and behavior. In particular, we argue, urban elite research would benefit from paying more attention to: (i) boundary work between elites and non-elites; (ii) intra-elite competition and distinction; (iii) national state spaces in determining elite composition; and (iv) the urban sense of belonging of economic elites.

The Organizational Logic of Technology: An Analysis of the Transformation of the Agricultural Economy in County B, 1986–2016

Based on field investigation in County B of Shanxi Province, this paper explores the relationship between technology and organization by examining the complex interactions between the government (technology supplier) and the differentiated agricultural managers (technology recipients) and the subsequent transformation of the agricultural economy. Past studies have argued that government intervention can significantly improve economic management, and the government-led, highly organized model of agricultural technology promotion can effectively solve the problem of social cost in technology application by rural households. However, when technology promotion driven by political mobilization is over, the application of new technologies by rural households encounters difficulties because of the growing capitalization of technological factors on the one hand and the households’ limited capital accumulation and consumption structure on the other. The government, for its own part, also redirects its technological services to the more capitalized, large-scale managements, which are considered to be able to accelerate the application of new technologies and the realization of the government’s economic objectives. Nevertheless, the importance of rural households should never be ignored in the government’s economic planning. It is possible that, with the support of the government, large-scale agricultural managements can integrate rural households into their growth model that combines production with marketing by outsourcing technological service. This will bring about profound changes in the local agricultural technology promotion system and accelerate the transformation of the agricultural management system.