Durable Goods Research Articles

Remarks on Limit Theorems for the Free Quadratic Forms.

In 2021, Ejsmont and Biernacki showed that the free tangent distribution can be used to measure household satisfaction with durable consumer goods. This distribution arises as the limit of free random variables. This, new article serves as the theoretical introduction to the continuation of the research presented in the paper from 2021. We continue the study of the limit of specific quadratic forms in free probability, which is the first step towards constructing a new distribution for the evaluation of satisfaction with material affluence among household. We formulate a non-central limit theorem for weighted sums of commutators and square of the sums for free random variable. In addition we give the random matrix models for these limits.

Correction to: Present Bias and Debt-Financed Durable Goods

Correction to: Present Bias and Debt-Financed Durable Goods

Research on the Predictive Ability of Economic Policy Uncertainty on Stock Returns of Industries

In recent years, the emergence of economic policy uncertainty has had a certain impact on stock returns. It can be used as a research object to explore whether economic policy uncertainty can significantly predict future stock returns. This paper studies the predictive ability of economic policy uncertainty based on relevant data from major industries in the United States from January 1985 to December 2023, including Food industry (Food), Retail Stores industry (Rtail), Fabricated Products industry (FabPr), Drugs, Soap, Perfumes, Tobacco industry (Cnsum), Construction and Construction Materials industry (Cnstr), Consumer Durables industry (Durbl), Automobiles industry (Cars), Textiles, Apparel & Footwear industry (Clths), Machinery and Business Equipment industry (Machn), Chemicals industry (Chems), and Transportation industry(Trans), Utilities industry (Utils), Steel Works Etc industry (Steel), Mining and Minerals industry(Mines), Oil and Petroleum Products industry (Oil), and Banks, Insurance Companies, and Other Financials industry (Finan). Through both in-sample and out-of-sample examines, it is found that economic policy uncertainty is a reliable indicator for predicting stock returns, and its predictive performance is better in Food industry, Retail Stores industry, Fabricated Products industry, Transportation industry, Construction and Construction Materials industry, Consumer Durables industry, Automobiles industry, Textiles, Apparel & Footwear industry, Machinery and Business Equipment industry, Chemicals industry, and Drugs, Soap, Perfumes, Tobacco industry than in Utilities industry, Steel Works Etc industry, Mining and Minerals industry, Oil and Petroleum Products industry, and Banks, Insurance Companies, and Other Financials industry. Meanwhile, by replacing the measurement indicator of economic policy uncertainty, conducting long-horizon forecasting, and using different evaluation periods for robustness checks, it is found that the research conclusions are robust.

Life Cycle Fluoropolymer Management in Proton Exchange Membrane Electrolysis

Concerns over the life cycle impacts of fluoropolymers have led to their inclusion in broad product restriction proposals for per- and poly-fluorinated alkyl substances (PFAS), despite their non-bioavailable properties and low exposure potential in complex, durable goods such as non-consumer electrical products. Based on the hypothesis that manufacturers are most able to manage the environmental impacts of their products, practical engineering approaches to implementing life cycle fluoropolymer stewardship are evaluated to bridge the ongoing debate between precautionary and risk-based approaches to PFAS management. A life cycle thinking approach is followed that considers product design and alternatives, as well as the product life cycle stages of material sourcing, manufacturing, field deployment, and end-of-life. Over the product life cycle, the material sourcing and end-of-life stages are most impactful in minimizing potential life cycle PFAS emissions. Sourcing fluoropolymers from suppliers with fluorosurfactant emissions control and replacement minimizes the potential emissions of bio-available PFAS substances. A stack-as-service approach to electrolyzer operations ensures a takeback mechanism for the recycling of end-of-life fluoropolymer materials. Retaining electrolytic hydrogen’s license to operate results in over USD 2 of environmental and health benefits per kilogram of hydrogen produced from reduced greenhouse gas and air pollutant emissions compared to conventional hydrogen production via steam methane reforming.

(In)Stability of the Relationship between Relative Expenditure and Price of Durable and Nondurable Goods

AbstractUsing an intertemporal consumption model with nondurable and durable goods, we identify a break in the long‐run equilibrium relationship between their relative expenditure and relative prices. From 1959 to 1981, these goods were gross substitutes with an elasticity greater than one. Post‐1981, the estimated elasticity is below one, indicating complementarity. This shift altered short‐run dynamics with durable goods still driving error correction but the magnitude of adjustment is smaller. The cyclical component of durable goods consumption has become more persistent, suggesting that shocks, such as the COVID‐19 pandemic, now result in more prolonged deviations from the long‐run equilibrium.

Bayesian calculation of degradation-based burn-in policy for heterogeneous item under two-dimensional warranty

Two-dimensional (2D) warranty service has been greatly used in many heavy equipment and consumer durables. The items with 2D warranty are usually highly reliable and their heterogeneity is unavoidable. Degradation-based failure model is often used to characterize failure modes for highly reliable items. This paper proposes a degradation-based burn-in model for heterogeneous items with renewing 2D warranty. We consider that the degradation of item is modeled through the inverse Gaussian process and that the item is replaced by a new one as soon as it fails within warranty period. We screen the items based on the degradation information of the items during burn-in to enhance the reliability of items passed burn-in. The models based on performance and cost are proposed to analyze the burn-in procedures from different perspectives. Firstly, we investigate the properties of the optimal policies for the three burn-in models. Secondly, we further present a Bayesian method to solve the uncertainty of parameters in the model. The Bayesian method allows us to incorporate prior knowledge and update our beliefs based on observed data, providing more accurate and reliable estimates. Finally, we give an example of the gallium arsenide laser devices to illustrate the benefits of proposed model and method.

Managing strategic inventories in a three-echelon supply chain of durable goods

Firms can hold strategic inventory to bargain with their suppliers about wholesale prices. In this paper, we model a three-echelon durable goods supply chain consisting of a supplier, a wholesaler, and a retailer, where the latter two firms can choose to hold strategic inventory. Our major findings are as follows. First, contrary to the literature, our study shows that the retailer's use of strategic inventory benefits all supply chain members, irrespective of whether the wholesaler holds strategic inventory. Second, the strategic inventories of the wholesaler and the retailer suppress each other when the holding cost is low. Otherwise, the retail strategic inventory can stimulate the wholesale strategic inventory. Third, after the retailer employs strategic inventory, introducing wholesale strategic inventory will harm each supply chain member. However, after the wholesaler employs strategic inventory, introducing retail strategic inventory can benefit all members. For the entire supply chain, holding strategic inventory exclusively at the retailer is optimal. Fourth, when product durability is high, the supplier may suffer from the wholesaler's strategic inventory. Additionally, the retailer's strategic inventory can solve the time inconsistency problem associated with durable goods. Finally, we extend our main model to consider multiple retailers and different holding costs. Our analysis confirms the robustness of our major findings and managerial insights.

Determinants of Purchase Intention for Green Consumer Durables: Investigating the Moderating Role of Price Sensitivity

Drawing upon the theory of planned behavior, the present study investigates the antecedents (perceived value, media exposure, and environmental knowledge) of customer intention toward purchasing green durables. Secondarily, this study also examines whether the driver effect of the precursors of customers’ sustainable purchase intention varies across different levels of their price sensitivity. A mall-intercept survey method was used to acquire data from 261 respondents from India’s National Capital Region, and the relationships were tested using PLS-SEM. The findings reveal that perceived value, media exposure, and environmental knowledge positively impact customer buying intention of green durables. Also, price sensitivity negatively moderates the relationship between media exposure and purchase intention. These results afford critical insights to marketers and policymakers regarding the driving factors of customer intention to purchase eco-friendly durables.

Present Bias and Debt-Financed Durable Goods

Abstract It has become common to view credit as problematic for present-biased consumers, who are tempted to incur too much debt because of its deferred costs. But while this view is generally valid when debt is used to finance current consumption, the picture becomes much more nuanced when credit is used to fund the purchase of durable goods—such as houses, cars, and education—which is the most common use of consumer credit. When bundled with the purchase of a durable good, the deferred cost feature of credit can be a feature, not a bug. The reason is that durable goods provide deferred benefits that are also undervalued by present-biased consumers. Moreover, people often need to save in advance to finance the purchase of a durable good, and present-bias makes it difficult to save. As a result, people with present bias tend to underconsume durable goods. We show that the deferred costs of purchase debt can offset these barriers to buying durable goods and make the present-biased consumer better off both by tempting her to buy something that she should—but would not otherwise—buy and by making it easier to save up for the purchase. (JEL D90, K0, G51)

Community-based elderly home care services policy and household consumption enhancement: Evidence from China

The influence of elderly consumption is increasing, and community-based elderly home care service (CEHCS), as an important social security system, will have a significant impact on household consumption levels and consumption structure. This paper utilizes data from five batches of CEHCS pilot policies implemented in China from 2016 to 2020, combined with data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2020, to design a dynamic difference-in-differences model to systematically evaluate the dynamic effects and mechanisms of CEHCS on elderly household non-durable goods consumption. The study found that after the coverage of CEHCS, the consumption levels of non-durable goods such as clothing, daily necessities, and cultural and entertainment products in middle-aged and elderly households significantly increased year by year, while consumption of durable goods significantly decreased. Moreover, the impact of CEHCS was more pronounced in households with lower housing assets and rural households. Mechanism analysis suggests that CEHCS promote the increase in non-durable goods consumption by alleviating children's labor constraints, reducing the family's caregiving burden, and diminishing precautionary savings. This paper provides further empirical evidence on the pathways through which elderly care services influence household consumption behavior, which holds significant implications for proactively addressing population aging and unlocking household consumption potential through micro-institutional design.

Consumer Behaviour Towards Durable Goods: A Study On Thiruvananthapuram District

Understanding consumer behaviour is fundamental to modern marketing, making it essential for effective marketing management. While consumers may articulate their needs and desires, their actual behaviour often diverges, reflecting deeper motivations they might not even recognize. India's consumer market is currently flourishing, fuelled by the nation's robust economic growth. This expansion is largely driven by a youthful population with increasing disposable incomes and easy access to financing options, leading to remarkable market outcomes. The challenges posed by consumer behaviour are becoming more pronounced, especially in the context of durable goods. In recent years, the popularity of durable goods in India has surged, with the introduction of various products bringing about significant changes in consumer tastes and preferences

Financial Reporting and Consumer Behavior

ABSTRACT We show that financial reporting influences consumer behavior by drawing consumer attention to announcing firms. Analyzing global positioning system (GPS) data, we document upticks in foot traffic to firms’ commercial locations immediately following their earnings announcements. This increase is more pronounced for announcements with substantial media attention, fewer concurrent announcements, heightened internet search volume, and extreme stock price jumps and earnings surprises—indicating that announcement coverage impacts consumer behavior by capturing attention. Furthermore, foot traffic increases with positive earnings for firms offering durable goods, suggesting consumers respond to news about firms’ financial prospects. Consumer attention patterns increase revenues and advertising effectiveness, ultimately suggesting that financial reporting serves a marketing function. Data Availability: All other data are available from the public sources cited in the text. JEL Classifications: G10; G11; G12; G14; G40; G41.

The Role of Price, Quality, and Brand in Consumer Perception of Durable Goods in Online Shopping: A Study in Chhattisgarh

This research aims to explore the influence of price, quality, and brand on consumer perception of durable goods in online shopping, focusing on the state of Chhattisgarh. The digital marketplace has increasingly become the go-to platform for purchasing durable goods, but understanding the key factors influencing consumer behavior is essential for businesses. Through a mixed-methods approach, this study surveys a diverse population in Chhattisgarh to evaluate how these three variables—price, quality, and brand—shape their online shopping decisions. The findings provide valuable insights for e-commerce platforms, manufacturers, and marketers in tailoring their strategies for the regional market. The paper concludes with actionable recommendations for enhancing consumer satisfaction and loyalty in the online shopping ecosystem.

As a service or a product? A comparison of electric vehicle battery supply models

In response to the challenges posed by high costs and rapid degradation of electric vehicle (EV) batteries, Battery as a Service (BaaS) is introduced as a new EV battery supply model, alongside the traditional model of Battery as a Product (BaaP). Under this background, how to choose a battery supply model is a major strategic problem. Through game theory approach, we analyze and compare the BaaS and BaaP models under a durable goods framework. Firstly, we find that the BaaS model is more profitable than the BaaP model when battery cost or degradation rate is excessively high. The firm under BaaS can relieve cost pressures by selectively retaining used batteries and reducing the price threshold for consumers to acquire batteries. Secondly, through premature disposal of used batteries, a firm can endogenously determine the quality of battery service, making the BaaS model more profitable when battery cost or degradation rate is excessively low. Thirdly, we show that the firm under BaaS always benefits from the decrease of battery degradation rate. However, a lower battery degradation rate may reduce the firm’s profit under BaaP because of the cannibalization effect from the secondary market.

Influences of Gender, Age and Income Differences on Consumers’ Purchase Items

This paper studies whether gender, age and income differences matter for in-store purchases of selected non-durable and durable consumer goods in the Southwest region of the State of Louisiana. Primary data are collected by face-to-face interviewing of randomly selected adult population within the age groups 15 years to 64 years, and above. Using the collected primary data for categorical variables, -tests are implemented for six separate null hypotheses of statistical independence between/among variables of interest. The results reveal that only gender difference matters the most for in-store purchases of both non-durable and durable goods in the region. Age and income differences to have no significant influences on such purchases. As the findings suggest, the regional in-store retailers should focus more on female shoppers to promote sales of non-durable goods. At the same time, they should focus more on male shoppers for promotion of sales of durable goods in the region. Due cautions are in order for any kind of generalization of the findings of this study, given the extreme regional characteristics of the primary data. Key Words: Retail Sales, In-Store, Non-Durable Goods, Durable Goods, Shoppers, Age, Gender, Income JEL Classifications: D10, D11, D12

India's Transition to a Cashless Economy

Cash contribution to the Indian economy has been significant throughout the country's history in a variety of industries, including banking, e-commerce, consumer durables, biotechnology, automobiles, cement, and associated industries. But now is the moment to integrate the concept of "cashless" into all of these industries, which facilitates quicker, simpler, and more effective commerce. The efforts seek to boost the use of digital technology across a number of industries, including healthcare, education, and agriculture, as well as to foster an atmosphere that will support start-ups. The expansion of the digital ecosystem has been significantly aided by the rise in internet and smartphone use in India. Overall, the move towards a cashless economy in India promises enhanced financial inclusion, reduced corruption, and increased tax revenue. Government efforts and societal support indicate a promising trajectory towards a digitally empowered India.

Pre-marital homeownership as self-protection against divorce risks: Evidence from China's property division regime change

This paper examines the effect of uninsurable divorce risks on individuals' pre-marital homeownership by using an exogenous shift of the property division regime upon divorce from an equal-division regime to a title-based regime in China. This shift in 2011 aimed at protecting individuals' pre-marital assets, leading singles who worry about divorce risks to purchase a home prior to marriage. We find that singles' probability of owning a house prior to marriage increases by 3.2% in response to a one standard deviation increase in the divorce rate of their residing provinces. This effect is greater for female singles and singles above 30. Furthermore, the effect is stronger for singles with higher incomes, and singles living in the province with higher house prices. The empirical patterns are consistent with singles adopting pre-marital housing as a self-protection mechanism if they perceive great divorce risks after the regime shift in 2011. Our results provide important implications that housing serves not only as a durable consumption or an investment, but also as a self-protection mechanism against uninsurable divorce risks.

Fireside Chats: Communication and Consumers’ Expectations in the Great Depression

Abstract This paper shows how policy announcements can be used to manage expectations. Using regional variation in radio exposure, I evaluate the impact of FDR’s 1935 Fireside Chat, in which he showcased the introduction of important social policies, establishing a new expansionary cycle of the New Deal. I document that cities with higher exposure to the announcement exhibited a significant increase in spending on durable goods. The estimated effect is consistent with changes in expectations in line with the policies announced. This paper shows the power of communication as a policy tool.

MORTGAGE LENDING AS A FACTOR OF SOCIAL AND ECONOMIC DEVELOPMENT OF THE COUNTRY

A mortgage and a mortgage loan are components of the mortgagesystem, the evolution of which dates back several millennia. During this period, there was a transformation of views on the mortgage -from a pledge -a plot of land to an understanding of the mortgage as a financial instrument in the mechanism of socio-economic development of the country.In the lands of Ukraine, the mortgage system arises and develops simultaneously with the development of banking. At the end of the 19th and the beginning of the 20th centuries. a network of mortgage banks was formed on the territory of Ukraine, and mortgages acquired credit functions and turned into a supply channel for investments in agriculture. In the modern period, a mortgage loan is an effective tool in the mechanism of development of the market economy. Mortgages not only stimulate the construction of new housing and provide housing for the country's population on a market basis, but also launch the mechanism for the development of the securities market, the banking and insurance market, and allow the creation of additional jobs in the construction industry and in the production of consumer durables. The action of the mortgage has a multiplicative effect and allows to achieve a significant socio-economic effect, is a factor in the birth of the middle class in societyand a prerequisite for the formation of social well-being. A key role in the development of mortgage lending in the modern period is played by the state program "eOselia", which began working in Ukraine in October 2022 and allowed to obtain a mortgage loan from 3% to 7% per annum. Since the beginning of the "eOselia" program in Ukraine, mortgage loans in the amount of more than 13 billion hryvnias have been issued, and more than 8,500 families have benefited from this program.Adapting the work of the mortgage system to the conditions of war, the aggravation of security risks and demographic changes, requires the participants of the mortgage market to improve the business models developed in pre-war times, to look for new forms for the restoration of mortgage lending, to conduct constant monitoring of social, political and economic factors. The adaptation mechanism on the part of the state provides for the strengthening of legal control over all elements of mortgage lending and maximum support through the transparency of pricing for mortgage loans.

The Wikipedia effect: Analyzing investor attention for strategic investment decisions

The industries with the highest increase in Wikipedia page views are the telecommunications, consumer durables, and high-technology sectors. On average, firms with increasing views have higher returns, lower earnings per share, and higher price-to-earnings ratios. Moreover, long-short investment strategies using changes in Wikipedia page views yield profitable portfolio returns, outperforming the market. Factor model regressions demonstrate that these portfolios exhibit positive abnormal returns relative to various benchmark models. In particular, the high-minus-low portfolio shows statistically significant alphas that common risk factors cannot explain. The findings suggest that changes in firms’ Wikipedia page views are a valuable indicator of stock performance.