Endogenous Consumption Research Articles

Aerobic granulation and resource production under continuous and intermittent saline stress

Three sequential batch reactors (SBR) were operated to evaluate salt addition's impact on granulation, performance, and biopolymer production in aerobic granular sludge (AGS) systems. System R1 was fed without adding salt (control); system R2 operated with saline pulses, i.e., one cycle with salt (2.5 g NaCl/L) addition followed by another without salt; and R3 received continuous supplementation of 2.5 g NaCl/L. The results indicated that the reactors supplemented with salt presented higher concentrations of mixed liquor volatile suspended solids (MLVSS) and better settleability than R1, showing that osmotic pressure contributed to biomass growth, accelerated granulation, and improved physical characteristics. The faster granulation occurred in R2, thus proving the beneficial effects of intermittent salt addition through alternating pulses. Salt addition did not impair the simultaneous removal of carbon, nitrogen, and phosphorus. In fact, R2 showed better carbon removals. In conclusion, continuous or intermittent (pulsed) supplementation of 2.5 g NaCl/L did not lead to increased production of extracellular polymeric substances (EPS) and alginate-like exopolymers (ALE). This outcome could be attributed to the low saline concentration employed, a higher food-to-microorganism (F/M) ratio observed in R1, and possibly greater endogenous consumption of biopolymers in the famine period in R2 and R3 due to the greater solids retention time (SRT). Therefore, this study brings important results that contribute to a better understanding of the effect of salt in continuous dosing or in pulses as a selection pressure strategy to accelerate granulation, as well as the behavior of the AGS systems for saline effluents.

Counter-cyclical price promotion: Capturing seasonal changes in stockpiling and endogenous consumption

Counter-cyclical price promotion: Capturing seasonal changes in stockpiling and endogenous consumption

An extension of the hypothetical extraction method: endogenous consumption and the armington treatment of imports

The hypothetical extraction method (HEM) is the tool of choice for identifying underlying economic interdependencies. It provides critical information to policymakers regarding the strategic role of different sectors. However, the standard implementation of the HEM does not include the impact that falls on the price structure as a result of the substitution between domestic and imported products that takes place after the extraction of a sector or industry, in this case. We propose to overcome this limitation by extending the HEM using an Armington-Leontief model with endogenous consumption. Unlike the perfect substitution assumption typical of the standard HEM, the Armington assumption with endogenous consumption implies that the shift from domestic inputs to imports affects the cost functions. Therefore, both quantities and prices become endogenous in the ‘post-extraction' equilibrium. We also argue that HEM indicators should be expanded beyond the typical output-related indicators, i.e. value-added, employment, or pollutant levels, so that summary indices of the type more commonly used in economics, such as welfare indicators, are used. We implement this novel approach using the latest input–output data for Spain in 2016.

Endogenous Consumption and Metered Paywalls

This paper studies the optimal design of a paywall when consumers endogenously determine their amount of content consumption.

Estimating sentiment and risk in a consumption model: a factor analysis approach

Abstract This empirical paper deals with the impacts of sentiment about the future, short-run risk, and long-run risk in a dynamic economic model of optimal consumption decisions with Schroder and Skiadas [(1999) Journal of Economic Theory 89, 68–126.] continuous-time stochastic recursive preferences. The empirical strategy combines both a latent factor method and a democratic orthogonalization technique. The latent factor method is applied to a large database of macroeconomic indicators, and a democratic orthogonalization technique is used to separate the relative importance of sentiment about the future and long-run risk channels in shaping optimal consumption decisions. The empirical results suggest that consumers with recursive preferences are not indifferent to long-run uncertainty shocks to future consumption prospects. Endogenous consumption variations are driven by a multicomponent mechanism, where on average, the sentiment component accounts for 15.33%, the short-run risk accounts for 16.89%, and the long-run risk pertains to 34.51%.

The effect of inflation on income inequality: Evidence from a non-linear dynamic panel data analysis in indonesia

This research investigates the impact of inflation on income inequality in Indonesia. This study is part of a comprehensive examination investigating which monetary policy can be utilized to lessen inequality. As a central bank objective, inflation can influence the distribution of income, wealth, and endogenous consumption, hence defining inequality. This study employed dynamic panel data analysis for linear autoregressive data using the generalized method of moments (GMM) for both first differences GMM (FD-GMM or AB-GMM) and system GMM (Sys-GMM or BB-GMM) with regional data from 58 cities in 2010-2020. The Arellano-Bond estimator reveals a positive and statistically significant association between inflation and inequality. When inflation rises, the purchasing power of the poor will decline, while the wealthiest will benefit as their non-cash assets proliferate. This study finds, indirectly, that Indonesia’s monetary policy can play a crucial role in lowering income distribution gaps. As one of the nations with an inflation-targeting framework, the Indonesian Central Bank can target the inflation rate by considering inequality. The ITF becomes the most effective monetary policy for stabilizing prices and promoting economic stability. The ITF reduces income inequality by reducing inflation rates. The study also finds that, similar to other emerging nations, economic growth in Indonesia exacerbates inequality. Poverty can be reduced by increased economic growth, but the positive impact of development on the wealthy is significantly more significant than on the poor. Therefore, economic expansion increases inequality.

Insights into the denitrifying phosphorus removal decay processes by profiling of the response mechanism of denitrifying phosphate-accumulating organisms to starvation stress

Starvation conditions were inevitably encountered by biological wastewater treatment systems. Four anaerobic starvation periods (5, 10, 16 and 20 days) were conducted to investigate the response mechanism of denitrifying phosphate-accumulating organisms (DPAOs) in order to dissect denitrifying phosphorus removal (DPR) decay processes. The denitrifying phosphorus removal performance suffered with the decay rate of 0.162 ± 0.022 d−1 during 20-day starved duration. Metabolic activity decay was responsible 93.20 ± 0.11% for the damaged DPR performance, while biomass decay contributed to 6.79 ± 0.68%. The genus Dechloromonas affiliated to DPAOs exerted stronger survival adaptability to starvation with the abundance increasing from 1.98% to 3.15%, depended upon the endogenous consumption of intracellular polymers. In view of PHA-driven DPR mechanism of DPAOs, the metabolic activity was restricted by the depletion of available PHA. These results revealed the poorer stability but preponderant recovery of DPR system encountering with starvation.

Demand-led growth decomposition: an empirical investigation of the Brazilian slowdown in the 2010s

Abstract The empirical investigation on countries' long-term growth usually relies on growth accounting methods, which are based on a supply-led approach, where factors accumulation are the main countries' growth constraints. This approach, however, ignores the importance of effective demand in explaining the long-term dynamics. Conversely, Keynesians stress the centrality of effective demand to explain why some countries present high growth rates for prolonged periods and others do not. They account for different views on the determinants of demand growth, such as exports dynamics, income distribution and public investment. The aim of the paper is twofold. Firstly, it extends the SDA method – a method that allows us to identify sources of changes in input–output matrices – to account for endogenous consumption and import-substitution impacts, and, secondly, it applies this method to understand the Brazilian slowdown in the 2010s. Based on a Miyazawa–Leontief framework, it is possible to identify the importance of each of the demand factors in explaining countries' growth, considering both the autonomous sources of demand and their potential to spread through the economy via their multiplier effects. The application of this extension to investigate the Brazilian slowdown in the 2010s shows the importance of natural resource exports, public investment and absorption of domestic demand in different sub-periods. Based on these findings, we discuss the possibility of Brazil to restore its growth potential through specific demand stimulus, such as infrastructure investments.

Endogenous consumption driving and sustainability of macroeconomic development in post-coronavirus China

ABSTRACT The outbreak of Covid-19 has generated a significant impact on China’s national economies. In Post-Coronavirus China, the macro-economic development situation must be undergone new and substantial changes with a trend from a production-driven economy to a consumption-driven economy. With the proposal of China’s strategy of expanding domestic demand, endogenous consumption has become the main driving force of current economic growth. With the transformation and upgrading of the consumption structure and the continuous promotion of structural reforms on the supply side, the essential role of consumption in economic development will be more sustainable. The new model for China’s economic and social development is to cultivate new consumer markets, continuously increase people’s income level and consumption capacity, and accelerate the construction and growth of crucial consumptions. It should become a new and long-term policy for China’s macro-economic development.

Cognitive bias in anticipating mortality risk affects the subjective quality of life and consumption-related lifestyle

ABSTRACT How does attitude to death influence consumption level and profiles and conversely? The database is a representative follow-up of Korean respondents from 2006 to 2016. Satisfaction with quality of life is combined with endogenous consumption level, consumption patterns, deviation from expected mortality—the propensity for dying—, and wealth. Exogenous variables include sex, age, education, children, place of residence, and employment. Satisfaction decreases with age; women are less satisfied and anticipate higher mortality than men. Older people anticipate an age-specific mortality rate that increases only linearly with age, while mortality actually increases exponentially. This cognitive bias, due to the fact that people perceive linear progressions but find it difficult to project themselves over time, leads them to overestimate their satisfaction in terms of quality of life, thus creating a protective effect on well-being, to the detriment of accurate economic visibility of the life cycle.

Biomarkers of Platelet Activation and Their Prognostic Value in Patients in Sepsis Associated Coagulopathy

Introduction:Sepsis-associated disseminated intravascular coagulation (SAC) is associated with marked hemostatic changes including transient thrombocytopenia due to their enodogenous activation / consumption. Platelets are decreased in SAC and exhibit compromised function. Patients with SAC are at an increased risk of thrombosis and / or bleeding. The widespread activation of platelets contribute to vascular occlusions, fibrin deposition, multi-organ dysfunction, contributing to a two-fold increase in mortality. At this time there is no single biomarker or laboratory test that can effectively diagnose SAC; however, the International Society on Thrombosis and Hemostasis (ISTH) has introduced a scoring system based on laboratory parameters such as platelet count, clotting time, and levels of markers of thrombosis to calculate SAC severity in terms of DIC score. Measurement of activation markers that describe the interplay between inflammation and platelet function may provide insight into the pathogenesis of SAC. The purpose of this study was to measure markers of platelet function in the plasma of patients with clinically established SAC and to determine their association to disease severity and outcome.Materials and Methods:Plasma samples from 103 adult intensive care unit (ICU) patients with sepsis and suspected disseminated intravascular coagulation (DIC) were acquired from the University of Utah Hospital at the time of ICU admission as well as on days 4 and 8. Samples with relevant clinical information were transported to Loyola University Chicago under an IRB-approved protocol and stored at -80˚C prior to analysis. Plasma samples from healthy individuals (n=50) were purchased from George King Biomedical (Overland, KS). DIC scores were calculated using the ISTH scoring algorithm which incorporates platelet count, D-Dimer, INR, and fibrinogen. Patients were categorized as having no DIC, non-overt DIC, or overt DIC. Plasma levels of CD40L, von Willebrand Factor (vWF), platelet factor-4 (PF-4), and microparticles (MP) were quantified using commercially available ELISAs performed according to manufacturer instructions.Results:Markers of platelet activation were significantly elevated in patients with sepsis alone and with suspected DIC compared to normal healthy individuals on ICU day 0 (p<0.001). Levels of platelet-associated biomarkers were compared between survivors and non-survivors. PF-4 was significantly decreased in non-survivors compared to survivors (p = 0.0156). No other significant variations based on survival or based on DIC score category were observed.Since platelet count is often dramatically reduced in patients with DIC, the relationship between platelet count and levels of markers of platelet activity was also evaluated. Patients were stratified based on platelet count and levels of markers were compared between groups. CD40L, vWF, PF4, and MP showed significant variation based on platelet count, with all markers exhibiting stepwise elevation with increasing platelet count (Table 1).Conclusion: Markers of platelet activation were significantly elevated in patients with SAC compared to healthy individuals. This increase was independent of platelet count, underscoring the importance of activation processes to this disease process. Of the markers studied, PF4 showed significant difference based on DIC score or mortality, and differentiated the non-survivors compared to survivors. Levels of CD40L, vWF, PF4, and MP showed significant association with platelet count, increasing in a stepwise manner with increases in platelet count. These studies also suggest that the markers of platelet activation in SAC are primarily regulated by the number of circulating platelets and may be independent of the factors leading to their endogenous consumption. [Display omitted] DisclosuresNo relevant conflicts of interest to declare.

Structuring Mortgages for Macroeconomic Stability

ABSTRACTWe study mortgage design features aimed at stabilizing the macroeconomy. We model overlapping generations of borrowers and an infinitely lived risk‐averse representative lender. Mortgages are priced using an equilibrium pricing kernel derived from the lender's endogenous consumption. We consider an adjustable‐rate mortgage with an option that during recessions allows borrowers to pay only interest on their loan and extend its maturity. The option stabilizes consumption growth over the business cycle, shifts defaults to expansions, and enhances welfare. The cyclical properties of the contract are attractive to a risk‐averse lender so that the mortgage can be provided at a relatively low cost.

Structuring Mortgages for Macroeconomic Stability

We study mortgage design features aimed at stabilizing the macroeconomy. We model overlapping generations of mortgage borrowers and an infinitely lived risk-averse representative mortgage lender. Mortgages are priced using an equilibrium pricing kernel derived from the lender's endogenous consumption. We consider an adjustable-rate mortgage (ARM) with an option that during recessions allows borrowers to pay only interest on their loan and extend its maturity. We find that this maturity extension option stabilizes consumption growth over the business cycle, shifts defaults to expansions, and is welfare enhancing. The cyclical properties of the maturity extension ARM are attractive to a risk-averse lender so the mortgage can be provided at a relatively low cost. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Millennials and the Take-Off of Craft Brands: Preference Formation in the U.S. Beer Industry

We conduct an empirical case study of the U.S. beer industry to analyze the disruptive effects of locally-manufactured, craft brands on market structure, an increasingly common phenomenon in CPG industries typically attributed to the emerging generation of adult Millennial consumers. We document a generational share gap: Millennials buy more craft beer than earlier generations. We test between two competing mechanisms: (i) persistent generational differences in tastes and (ii) differences in past experiences, or, consumption capital. Our test exploits a novel database tracking the geographic differences in the diffusion of craft breweries across the U.S.. Using a structural model of demand with endogenous consumption capital stock formation, we find that heterogeneous consumption capital accounts for 85% of the generational share gap between Millennials and Baby Boomers, with the remainder explained by intrinsic generational differences in preferences. We predict the beer market structure will continue to fragment over the next decade, over-turning a nearly century-old structure dominated by a small number of national brands. The attribution of the share gap to consumption capital shaped through availability on the supply side of the market highlights how barriers to entry, such as regulation and high traditional marketing costs, sustained a concentrated market structure. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Endogenous Consumption and Metered Paywalls

Digital content platforms increasingly implement paywalls to generate subscription revenues, but putting content behind paywalls reduces consumption and advertising revenues. This research analyzes optimal paywall design when consumers endogenously decide their consumption. We find that under moderate ad rates, a metered paywall under which a limited amount of content is provided for free is optimal when consumers display sufficient heterogeneity in their costs of consuming content. When ad rates increase, one typically expects platforms to offer more free content and thus generate higher ad revenues. Instead, we find that sometimes offering less free content and lowering the price can attract new subscribers, generating even higher revenues. Further, the optimal amount of free content may decrease or increase in consumers’ valuation for content, depending on ad rates. As consumers’ valuation increases, their willingness-to-pay for subscription and their desire for content consumption increases. The former effect dominates under low ad rates and incentivizes the platform to provide less free content, but the opposite is true under high ad rates. Counterintuitively, we also find that total content consumption can increase with the proportion of light users, because the platform may strategically raise its meter limit to increase ad revenues from non-subscribers.

Millennials and the Take-Off of Craft Brands: Preference Formation in the U.S. Beer Industry

We conduct an empirical case study of the U.S. beer industry to analyze the disruptive effects of locally-manufactured, craft brands on market structure, an increasingly common phenomenon in CPG industries typically attributed to the emerging generation of adult Millennial consumers. We document a generational share gap: Millennials buy more craft beer than earlier generations. We test between two competing mechanisms: (i) persistent generational differences in tastes and (ii) differences in past experiences, or, consumption capital. Our test exploits a novel database tracking the geographic differences in the diffusion of craft breweries across the U.S.. Using a structural model of demand with endogenous consumption capital stock formation, we find that heterogeneous consumption capital accounts for 85% of the generational share gap between Millennials and Baby Boomers, with the remainder explained by intrinsic generational differences in preferences. We predict the beer market structure will continue to fragment over the next decade, over-turning a nearly century-old structure dominated by a small number of national brands. The attribution of the share gap to consumption capital shaped through availability on the supply side of the market highlights how barriers to entry, such as regulation and high traditional marketing costs, sustained a concentrated market structure.

Structuring Mortgages for Macroeconomic Stability

We study mortgage design features aimed at stabilizing the macroeconomy. We model overlapping generations of mortgage borrowers and an infinitely lived risk-averse representative mortgage lender. Mortgages are priced using an equilibrium pricing kernel derived from the lender's endogenous consumption. We consider an adjustable-rate mortgage (ARM) with an option that during recessions allows borrowers to pay only interest on their loan and extend its maturity. We find that this maturity extension option stabilizes consumption growth over the business cycle, shifts defaults to expansions, and is welfare enhancing. The cyclical properties of the maturity extension ARM are attractive to a risk-averse lender so the mortgage can be provided at a relatively low cost.

Dependence of microalgae culture specific endogenous loss rate and gross productivity on irradiance

Microalgal growth rate is determined by the difference between gross productivity and endogenous biomass loss rate. Gross productivity is a function of surface irradiance and reaches the maximal value under saturating light intensity. Endogenous biomass consumption of microalgal cells is mainly due to the respiration which can be sub-divided into growth and maintenance respiration. The paper proposes equations for calculating microalgae culture gross productivity and specific loss rate based on production characteristics. Verification of the obtained equations was performed for Arthrospira platensis and Dunaliella salina cultivated under constant illumination with different irradiance. It was demonstrated that gross productivity and specific loss rate increase linearly with increasing irradiance. Specific loss rate varied from 0,01 to 0,58 h-1 in A. platensis and from 0,04 to 0,35 day-1 in D. salina. Specific maintenance respiration rate was determined to be 0,01 h-1 in A. platensis and 0,01–0,04 day-1 in D. salina. The proposed calculation method enables a sufficiently accurate determination of productivity and loss rates based on culture density dynamics measures.

Modified equation of chlorophyll content in microalgal biomass under light limitation

The paper presents a modified mathematical model of light-dependent chlorophyll concentration in the microalgae biomass. The basic model is based on the concept of biomass as a sum of reserve and structural components. Considering that part of the structural biomass can turn into a reserve, the minimum irradiation parameter (“photosynthesis compensation point”) is added to the basic equation. Verification of the model on experimental data for turbidostat cultures of Tetraselmis viridis and Arthrospira platensis allowed us to evaluate species-specific coefficients. The obtained coefficient values are similar for both species. The share of chlorophyll in structural biomass is about 2 %, the maximum share of structural forms of biomass is 84 %, the economic conversion factor of reserve biomass to structural is 80–90 %, and the maximum specific rate of photosynthesis is 14–20 times higher than the rate of endogenous consumption of biomass.

Comparison of the dynamics, biokinetics and microbial diversity between activated sludge flocs and aerobic granular sludge

This work aimed to compare the dynamics, biokinetics, and microbial diversity between activated sludge flocs (ASF) and aerobic granular sludge (AGS) whose systems were operated under similar experimental conditions in terms of inoculum, feeding, substrate source, etc. Therefore, the kinetic parameters involved in the organic matter removal, nitrification, denitrification, and dephosphatation were determined, as well as the microbial changes were assessed by metagenomics analysis. Regarding the kinetic parameter yield coefficient (Y), values of 0.55 and 0.36 g VSS/g COD were found for ASF and AGS, respectively, showing a higher sludge production in ASF and the importance of feast/famine periods for lowering sludge production in AGS systems. AGS presented a lower sludge production and a higher endogenous consumption rate than ASF. The activity of phosphorus-accumulating bacteria was remarkably higher in AGS. Although both biomasses were aerobic, their kinetic parameters had significant differences.