Purchasing Power Research Articles

Impact of the Discount Rate on Long Life Pavement Capital Improvements: A Discussion of the Financial Inputs

One of the most influential characteristics of a life cycle cost analysis (LCCA) is the discount rate. This paper looks at the impact of using a real discount rate that does not take into account the individual inflation rates for each commodity, the decline of the purchasing power of the agency’s dollar value, and the rate of transportation dollars being deposited for programming. A premise in using the real discount rate is the use of constant or real dollars when looking at future activities. Constant dollars essentially equate the future purchasing power of the dollar to be the same as today’s purchasing power. The paper will demonstrate that this is not the case which is further substantiated by the adjustment in contract price that many State transportations agencies allow for this purpose. Most agencies assume a 30-year Treasury rate as the basis when computing their real discount rate for use in pavement type selection. An improved approach would be to look at the agency’s projected funding levels on an annual basis as the rate of return for their investment and using individual commodity rates of inflation to account for future expenditures. This would account for anticipated deposits that can be programmed for future work.

The Effect of Coronavirus (COVID-19) on Purchasing Power, Unemployment, and Income in Indonesia: Reviewed from the Perception of Indonesian

The Covid-19 pandemic has tremendously impacted economic activity in many countries, including Indonesia. The impact greatly felt by the community is declined purchasing power, unemployment, and increased poverty. Therefore, this study aimed to describe the impact of the pandemic on the decline in people's purchasing power, unemployment, and increased poverty due to reduced economic activity in Indonesia. A survey method was used with a quantitative approach involving 850 selected respondents. Data were collected using a questionnaire distributed through google form media. The data analysis showed that Coronavirus positively and significantly affects purchasing power and unemployment but negatively and significantly affects income or poverty. Furthermore, Coronavirus and unemployment have a partial negative and significant effect on income, but purchasing power has a positive and significant effect. Therefore, purchasing power and unemployment mediate the positive and significant effect of Coronavirus on income.

The Role of BNPL application in Boosting Consumer Purchasing Power During Economic Downturns: An Analytical Review and Strategic Implications

This study explores the influence of Buy-Now-Pay-Later (BNPL) application on consumer purchasing power during economic downturns. By providing a buy-now-pay-later option, BNPL application offers consumers financial flexibility that is particularly crucial in times of economic uncertainty. The research employs both quantitative and qualitative methods to analyze data from consumer surveys and expert interviews. Results indicate that BNPL application significantly enhances consumer spending capacity by allowing deferred payments, thus maintaining purchasing activity even during financial strains. However, potential risks such as increased consumer debt are also discussed. The study concludes with strategic implications for e-commerce platforms and policymakers, suggesting ways to maximize the benefits of BNPL application while mitigating its drawbacks. This research contributes to a deeper understanding of financial technologies in supporting consumer spending and offers actionable insights for future economic resilience.

The Effect of Price, Public Purchasing Power And Consumption Level on Rice Commodity Inflation in Pangkalpinang City

The purpose of this study is to analyze the effect of price, purchasing power and consumption level on rice commodity inflation in Pangkalpinang City. Rice is a staple food in Indonesia, including in Pangkalpinang, so weakening prices and purchasing power can significantly affect consumption and inflation levels. The method in this study uses a quantitative method with secondary data sourced from the Central Statistics Agency (BPS) and other related agencies in Pangkalpinang City. Data analysis in this study uses regression analysis which aims to determine the relationship between price variables, purchasing power, consumption and inflation. The results of the study indicate that there is a significant influence between rice prices and people's purchasing power on rice consumption levels and inflation in Pangkalpinang. The results of this study are expected to be a reference for local governments and related parties in formulating effective policies to maintain price stability and public welfare, as well as mitigating the negative impacts of inflation.

PLAIN PAVEMENT; AN ECONOMIC ALTERNATIVE

The paper "Plain Pavement; An Economical Alternative" by Ralph C. Blum and Clinton E. Solberg examines the economic pressures faced by state transportation departments and the innovative measures implemented to reduce costs in highway construction. Focusing on the Wisconsin Department of Transportation (WDOT), the study details the transition from steel-reinforced concrete pavement to non-reinforced plain concrete pavement (PCP) in a 20-mile segment of Interstate Highway 43. This shift resulted in a significant cost reduction of $1.6 million. The authors discuss the historical context and economic analysis that influenced the decision, emphasizing the need for cost efficiency due to the declining purchasing power of state dollars and increasing construction material costs. The paper explores the construction process, the performance and maintenance of plain versus reinforced pavements, and the long-term economic and operational benefits. It concludes that the use of PCP not only offered immediate financial relief but also maintained quality and durability, making it a viable economic alternative for future highway projects. The findings suggest that PCP could potentially offer a sustainable model for managing limited resources while addressing the need for infrastructure development. (Abstract generated by AI tool ChatGPT 4)

Pengaruh Pendapatan Asli Daerah dan Pajak Daerah dan Kemiskinan pada Pertumbuhan Ekonomi di Gorontalo

This study aims to analyze the influence of Local Own-Source Revenue (Pendapatan Asli Daerah, PAD), regional taxes, and poverty levels on economic growth in Gorontalo Province during the 2013– 2024 period. PAD and regional taxes are essential indicators of a region's fiscal independence in funding development, while poverty acts as an impediment that can reduce productivity and consumer purchasing power. The research employs quantitative analysis using secondary data obtained from the Central Bureau of Statistics (BPS) and regional financial reports. The results indicate that PAD and regional taxes have a significant positive impact on economic growth, while poverty levels have a significant negative effect. Increased PAD and regional tax revenues contribute to public investment, infrastructure development, and social services, supporting economic activities. On the other hand, high poverty levels slow down economic growth due to limited purchasing power and reduced participation in productive activities. In conclusion, optimizing PAD and regional tax management, along with effective poverty alleviation policies, is crucial to fostering inclusive and sustainable economic growth in Gorontalo. This study is expected to serve as a reference for local governments in formulating more targeted economic development strategies.

Digital technologies and consumer perception in the Croatian market

Today’s consumers are guided by several internal and external factors that shape their preferences when purchasing products and services. Many disruptions, such as the pandemic and legal, economic, and financial disruptions, have occurred in recent years on a global and economic level. First, the COVID-19 pandemic with numerous consequences on all aspects of human life; second, the sudden outbreak of the war in Ukraine, which shapes new international trade policies; and, finally, the accession of the Republic of Croatia to the Schengen area with the introduction of a new official currency are just some of the global events that influence consumer behavior. Under such uncertain conditions, the levels of stress, fear, panic, and anxiety are high among consumers because confidence in producers has been lost, and prices are expected to rise dramatically. The question is whether such negative perceptions could be prevented or mitigated through digital technologies that could give consumers an insight into price changes during crises and help them overcome or even mitigate the fear of reduced purchasing power. This paper explores consumer perceptions of how the COVID-19 pandemic, the war in Ukraine, and a new currency have influenced consumer behavior, whether they have changed it, and to what extent. The research also examined how consumers’ negative perceptions can be mitigated by applying digital solutions. The second part of the paper presents empirical results collected through detailed research to complement the theoretical background with practical data.

Study of the Total Ownership Cost of Electric Vehicles in Romania

Due to the significant increase in the number of EVs, this manuscript presents a study of the total ownership cost of electric vehicles in Romania. The total cost of ownership (TCO) includes the initial purchase price, maintenance costs, power prices, and government incentives or subsidies unique to the market in Romania. The TCO was calculated for battery electric vehicles (BEVs) and internal combustion vehicles (ICEs). Several vehicles were selected for the study, representing the models with the highest sales in Romania and a similar price range. The results show that EVs have a lower TCO compared with internal combustion vehicles if the battery replacement cost for EVs is not considered in the analysis. If this cost is considered, the TCO for the BEVs has a significant increase due to the high cost of the battery. Another analysis performed regards the CO2 emissions. These are higher for ICEs compared to BEVs, so the BEVs help reduce emissions.

Analysis of financial risk protection indicators in Sri Lanka for pediatric surgery.

To investigate the incidence of the Sri Lankan pediatric population who seek emergency surgical services and who are subsequently at risk of impoverishment and catastrophic expenditure. Prospective data collection at a tertiary pediatric Sri Lankan hospital of direct out-of-pocket (OOP) medical and nonmedical expenses related to pediatric surgical interventions. Catastrophic expenditure and risk of impoverishment were respectively described as expenses superior to 10% of household income and falling below the impoverishment line due to income drop. PPP = purchasing power parity: I$ 3.65, I$ 2.15, and national poverty line (NPL). Distribution of income were estimated using a gamma distribution. Two hundred and twenty pediatric patient surveys completed by carers were collected. Two hundred had complete data for analysis. Ninety-six patients required emergency procedures; the others underwent elective surgeries. The overall direct medical and nonmedical expenses (total direct=TD) mean per patient was I$116.6 and the overall indirect expenses mean per patient was I$94.9. 53.2% were affected by catastrophic expense. 85% (n=170) of the study population was below the NPL. Receiving surgical care would impact up to 74.1% at the NPL threshold and up to 87.1% at the I$3.65 PPP/day limit. If pediatric surgery care is required, 25.9% of the Sri Lankan population is at risk of impoverishment or catastrophic expenditure. There is need for financial aid.

Binding Sale and Purchase Agreement and Power of Attorney Over Land in the Perspective of the Principle of Horizontal Separation

This study explores the application of the horizontal separation principle in land ownership and transfer in Indonesia, focusing on the Binding Sale and Purchase Agreement (PPJB) and the power of attorney in land transactions. The horizontal separation principle, derived from customary law, ensures that land ownership does not automatically include ownership of buildings or plants on the land. This research examines how this principle affects legal processes related to land rights transfers and the challenges it poses in the context of sale and purchase agreements. By analyzing legal documents, court rulings, and relevant literature, the study identifies key issues such as ambiguous ownership rights and procedural complications that arise from the separation principle. The findings highlight the need for legal clarity and reform to enhance property rights protection and dispute resolution effectiveness in Indonesia's land law system.

CRYPTOCURRENCY AS A HEDGE AGAINST INFLATION

This paper investigates the potential of cryptocurrencies, particularly Bitcoin and Ethereum, as viable hedges against inflation, in comparison to traditional assets like gold. In light of increasing global inflation, fueled by economic crises and expansive monetary policies, investors are seeking dependable strategies to safeguard their purchasing power. Cryptocurrencies have attracted interest due to their finite supply and decentralized characteristics, which could theoretically position them as suitable inflation hedges. Nonetheless, their significant volatility and speculative traits raise concerns about their reliability in fulfilling this role. This research consolidates insights from three prominent studies on the relationship between cryptocurrency and inflation, analyzing their methodologies and outcomes to evaluate the effectiveness of cryptocurrencies as inflation hedges. In summary, although cryptocurrencies may occasionally respond positively to inflation surges, their volatility and speculative nature hinder their ability to serve as consistent inflation hedges. The findings indicate that cryptocurrencies are currently more suited as high-risk speculative investments rather than reliable stores of value against inflation. Keywords :- Cryptocurrencies , Inflation hedge , Bitcoin , Volatility , Speculative investment , Purchasing power , Gold , Decentralization , Asset reliability, Economic crises

Investigating young consumers’ acceptance of hemp fiber textiles and apparel: an analysis of Partial Least Squares Structural Equation Modeling

Purpose Concerns over environmental degradation, alongside the global legalization of hemp cultivation, have prompted applications of hemp-derived textile products. However, research examining consumers’ acceptance of such products is lacking. It is critical to understand how young consumers adopt these products as they prioritize sustainability and lead the future purchasing power. Thus, this study aims to investigate young consumers’ perceptions, attitudes, and purchase intentions regarding hemp fiber textiles and clothing based on the Theory of Consumption Value and the Spiral of Silence Theory. Design/methodology/approach A US-based research company was hired to recruit survey participants, yielding 314 valid data. Data analysis, including Exploratory Factor Analysis and Partial Least Squares Structural Equation Modeling, was conducted using the R programming language and RStudio software. Findings Purchase intentions of hemp-based clothing and textiles among young consumers are influenced by attitude, perceived social value and future trend perception. Perceived social value also impacts attitude and future trend perception. High environmental involvement correlates with positive attitudes. Consumers’ subjective knowledge of hemp and objective knowledge regarding hemp fiber impact their perceptions of future trends in such products. Originality/value This research represents a seminal consumer study focusing on the resurgence of industrial hemp fiber textiles and clothing. This study empirically validates the significant role of social factors in young consumer acceptance of such products at both personal and societal levels. This study expands current knowledge and provides actionable insights for practitioners.

Unravelling the Dynamics of Macroeconomic Variables and Infant Mortality in India Based on ARDL Model Analysis

The well-being of mothers and children serves as a vital indicator of a nation’s prosperity and is influenced by a range of factors, including macroeconomic variables such as Gross Domestic Product (GDP), unemployment, inflation, income, education, and healthcare expenditure. Escalating inflation precipitates higher food prices, amplifies household living costs, and diminishes purchasing power, consequently exerting a substantial impact on individuals’ nutritional and physical health. This study aims to examine the correlation between macroeconomic variables, specifically GDP per capita, Consumer Price Index (CPI), unemployment, and infant mortality in the Indian context. Despite the significance of this relationship, there exists a dearth of research on the association between macroeconomic variables and maternal and child mortality, particularly within the Indian context. Prior studies consistently underscore the indispensability of macroeconomic stability in achieving improved outcomes in maternal and child health. The analysis draws upon secondary data procured from reputable sources such as the World Bank and Reserve Bank of India (RBI), encompassing time series data about both the dependent variable, namely the infant mortality rate, and the explanatory variables. To investigate the impact of macroeconomic variables on infant mortality, the study employs the Autoregressive Distributed Lag (ARDL) Error Correction Model, which accounts for the interplay between the variables over time. Empirical findings establish the existence of long-term cointegration between macroeconomic variables and the infant mortality rate. However, in the short run, some variability in cointegration arises due to a multitude of factors, including policy interventions, demographic characteristics, and socio-cultural determinants. This study substantiates the proposition that sustaining macroeconomic stability and fostering economic growth play pivotal roles in attaining health sector objectives, particularly in emerging economies like India. Consequently, while formulating health policies, equal emphasis must be placed on measures aimed at stabilizing the economy to ensure favourable outcomes of such policies.

PENINGKATAN PENDAPATAN KELOMPOK TANI BERBASIS EKONOMI KREATIF DI NEGERI HATIVE BESAR KOTA AMBON

Community service activities (PkM) were carried out in Negeri Hative Besar Ambon City in Mei 2024, with the aim of transferring technological knowledge tiu the community regarding the creative economy. The activity stages carried out in PkM activities are the preparation and implementation stages og activities with the delivery of extension material with the title 1) Analysis of Agroforestry Farming Businnes Income 2). Creative and Innovative Product Packaging Design. Extension activities on the creative economy for farmer groups are used to improve the livelihoods of farmer groups and build alternative sustainable livelihoods, which contribute to increasing the welfare of farmergroups. The existene of farmer groups can facilitate coordination in activities related to the production and marketing of agroforestry products. One way to increase consumer purchasing power for products is to design and make packaging that is appropriate, attractive and hygienic. The impact received by farmer groups is that through PkM, farmer groups understand the importance of innovative values in developing farming businesses, both techonogy and creativity.

Factors Affecting Household Health Expenditures: Evidence from Iran

Abstract Background Productivity plays a crucial role in driving economic growth, and its primary determinant is human capital. Human capital, in turn, is influenced by health and education investments, leading both households and governments to allocate substantial resources toward these sectors. Understanding the factors influencing health expenses is vital for designing effective policies. Methods This study investigates the factors affecting health costs by analyzing data from various provinces in the Islamic Republic of Iran, spanning from 2006 to 2019. The data, sourced from the Statistics Center of Iran, was analyzed using the panel data approach to uncover the relationships between health expenditure and several key variables. Results The analysis revealed significant disparities in health expenditure among provinces. Sistan & Baluchestan had the lowest health expenditure per household, while Tehran reported the highest. Inflation emerged as a significant factor, having a negative impact on health expenses due to its influence on purchasing power. Conversely, the education and salary of household heads had a positive impact on health expenditure. Notably, economic growth did not exhibit a significant relationship with health expenses. Conclusions The study highlights the importance of education and income levels in shaping health expenditures, while inflation can curtail spending on health due to reduced purchasing power. Policymakers should consider these factors to ensure equitable and effective allocation of health resources. Key messages • Improving health and well-being, essential for comprehensive progress and human development, relies significantly on household health expenditure. • The efforts to enhance human capital should focus on reducing inflation.

Public spending on Energy innovations and CO2 impacts: Evidence from selected OECD countries

The relationship between public spending on Energy innovations (R&D of renewable and non-renewable energy, and energy efficiency) and CO2 intensity at constant purchasing power are investigated in this study. A Panel-NARDL model was used for the first time in 10 OECD countries (1990–2020) to evaluate the asymmetric relationship between energy innovative variables and CO2 impacts in the long and short run. In other words, this study aims to monitor how changes in public spending on R&D for renewable and non-renewable influence CO2 emissions. The results show that while an increase in the public budget for R&D of renewable energy will decrease the CO2 intensity in the long run, a positive relationship exists between these variables in the short run. Likewise, the result demonstrates that a cut in public spending on Fossil fuel R&D leads to an increase in the short horizon and a decrease in the long-run CO2 emissions per unit of GDP. The finding implies the substantial impact of R&D in both renewable and non-renewable energy on reducing CO2 emissions over time. In addition, CO2 emissions per unit of GDP respond positively to R&D public spending on energy efficiency. An increase in public expenditure on R&D of energy efficiency can induce economic activity and enhance CO2 emissions. All in all, the 30 years’ analysis of data from the selected OECD countries substantiates the right strategy of reducing the CO2 emissions of these countries by applying the public budget to promote R&D in energy sectors. This study results in contrast with those studies that found no relationship between R&D on renewable energy and CO2 impacts. Significance Statement This paper evaluated the asymmetric impacts of public spending on R&D of renewable energy and fossil fuel, and energy efficiency on CO2 intensity at constant purchasing power. Although a growing body of research has analyzed the impact of R&D on CO2 emission, research on the asymmetric effects of R&D public expenditure in energy sectors on CO2 emission is still narrow. Moreover, by employing Panel Nonlinear ARDL, we delve into the spillover impacts of selected OECD public budget on R&D over the short and long horizons. In addition, we estimate the impacts of both Renewable and non-renewable R&D budgets which help us to explore and compare the effectiveness of budget allocation on R&D with the strategy of reducing CO2 emission. Finally, this study found how the R&D and technology budget surging and declining in energy sectors would influence CO2 emission per unit of GDP.

Aesthetic Packaging and Purchase Intention

This research intends to investigate the elements of the aesthetic packaging of skincare products. The research proposed three independent variables namely colour, shape and visual weight, while purchase intention is adopted as a dependent variable. The respondents of this research are millennials who are the users of skincare and also have a purchasing power to choose the skincare products that are appealing to their eyes. The finding expects all the proposed hypotheses are supported and conclusion and recommendation are discussed at the end of the section.

Analysis Of Bankruptcy Prediction Using Springate, Zmijewski, Grover. And Altman Z-Score Models On Retail Companies Listed On The Indonesia Stock Exchange

The retail sector plays a significant role and contributes greatly to the national economy. The slowdown in domestic economic growth and decreased consumer purchasing power have significantly impacted the retail business in Indonesia. This is evident from the high number of retail companies declared bankrupt and many large retail companies closing their stores. The aim of this study is to assess the health level of retail companies, determine the differences in scores among the research models, and evaluate the accuracy of the Springate, Zmijewski, Grover, and Altman models. This research is a quantitative study with a descriptive approach. The research objects are retail companies listed on the Indonesia Stock Exchange during the period 2019-2021. Sampling technique used is purposive sampling. The results of this study indicate that the highest accuracy level is achieved by the Grover model with an accuracy of 77.7%, followed by the Zmijewski model with an accuracy level of 72.2%. Meanwhile, the Springate and Altman models have the same accuracy level of 66.6%.

Cash transfers and the Phillips curve: The case of Brazil during the pandemic

This paper investigates the linear and nonlinear effects of the pandemic period on the dynamics of the Brazilian inflation through the estimation of a hybrid Phillips curve. Despite the undisputed socio-economic benefits, cash transfers paid by the government to low-income families increased inflation, with an estimated coefficient similar in magnitude to the output gap. The backward-looking component decreased while the forward-looking component increased sharply, suggesting a shift in the price-setting behavior toward anticipating fluctuations in the business cycle. There was also a significant reduction in the flatness of the Phillips curve, as the output gap coefficient more than doubled during this period. These findings might be explained by the unprecedented combination of sectorial increases in demand, a decrease in aggregate supply, anticipated money supply growth, and loose monetary policy. They unveil an undesired side effect of cash transfers on inflation that adversely affected the purchase power of the program beneficiaries.

Parallel Currencies under Free Floating Exchange Rates: A Model Setting Out the Conditions for Stable Currency Competition

We use a theoretical model to set up the conditions for a country to attain monetary stability by allowing for two freely tradable currencies to circulate in parallel. For this parallel system to function properly, confidence in the good behavior of the monetary authorities in charge of the two currencies is key. Our model shows how a floating exchange rate between the two can keep the issuers of the local currency in check. The results from our model show the conditions under which a parallel currency system disciplines the issuers of the currencies and thus maintains their purchasing power. In non-volatile economies, it also discourages governments (or private issuers) from inflating one of the currencies as a means to raise seigniorage, as this policy results in the displacement of the currency from the market. When foreign payments shortfall—such as in Greece and Cyprus during the ‘euro crisis’ in the mid-2010s, or intractable hyperinflation—leave the country without a medium of exchange, our model shows how currency choice can restore monetary circulation and offer a path to achieving and maintaining monetary stability.