scholarly journals Dynamic analysis of source-based preferences: the case of imported beer in China

2021 ◽  
Vol 123 (13) ◽  
pp. 362-383
Author(s):  
Andrew Muhammad ◽  
Anthony R. Delmond ◽  
Frank K. Nti
Keyword(s):  
Habit Formation ◽  
Alcoholic Beverage ◽  
The United States ◽  
Demand Model ◽  
Chinese Market ◽  
Content Type ◽  
Foreign Products ◽  
Beer Consumption ◽  
Long Run ◽  
Demand Sensitivity

PurposeChinese beer consumption has undergone major changes within the last decade. The combination of a growing middle class and greater exposure to foreign products has resulted in a significant increase in beer imports. The authors examined transformations in this market and how beer preferences have changed over time. This study focuses on changes is origin-specific preferences (e.g. German beer and Mexican beer) as reflected by habit formation (i.e. dynamic consumption patterns) and changes in demand sensitivity to expenditure and prices.Design/methodology/approachThe authors estimated Chinese beer demand – differentiated by source – using a generalized dynamic demand model that accounted for habit formation and trends, as well as the immediate and long-run effects of expenditures and prices on demand. The authors employed a rolling regression procedure that allowed for model estimates to vary with time. Preference changes were inferred from the changing demand estimates, with a particular focus on changes in habit formation, expenditure allocating behaviour, and own-price responsiveness.FindingsResults suggest that Chinese beer preferences have changed significantly over the last decade, increasing for Mexican beer, Dutch beer and Belgian beer. German beer once dominated the Chinese market. However, all indicators suggest that German beer preferences are declining.Originality/valueAlthough China is the world's third largest beer importing country behind the United States and France. Few studies have focused on this market. While dynamic analyses of alcoholic beverage demand are not new, this is the first study to examine the dynamics of imported beer preferences in China and implications for exporting countries.

Dynamic and frequency connectedness across Islamic stock indexes, bonds, crude oil and gold

2019 ◽  
Vol 12 (3) ◽  
pp. 306-321 ◽  
Author(s):  
Nader Trabelsi
Keyword(s):  
Crude Oil ◽  
The United States ◽  
Asia Pacific ◽  
Volatility Spillover ◽  
Content Type ◽  
Time Frequency ◽  
Volatility Spillovers ◽  
Long Run ◽  
Portfolio Managers ◽  
Stock Indexes

Purpose This paper aims to investigate the connectedness of Islamic Stock Markets in five regional financial systems, namely, the United States, the United Kingdom, Europe (EU), GCC (Gulf Cooperation Council) and APAC (Asia-Pacific Countries), and across different asset classes (i.e. bonds, gold and crude oil). Design/methodology/approach This methodology is inspired by Diebold and Yilmaz (2012) and Barunlik and Krehlik (2017) for performing dynamic variance decomposition network and for studying time–frequency dynamics of connectedness at different frequencies. Findings Results show that the nature of connectedness over the past decade is time–frequency dynamics. The decomposition of the total volatility spillovers is mostly dominated by the long-run component. Furthermore, dominant regions are the largest contributors of spillover index, with the lowest contribution in the system coming from the GCC market. Results also reveal a slightly higher volatility spillover index of Islamic than conventional equity indexes. Finally, the system that encompasses commodities and Islamic finance instruments, generates the much lower volatility spillover. Originality/value The findings have significant implications for portfolio managers who are interested in being able to predict asset returns, as well as for policymakers who are concerned with market stability.

Revisiting the tourism-economic growth nexus: evidence from the United States

2019 ◽  
Vol 31 (9) ◽  
pp. 3779-3798 ◽  
Author(s):  
David N. Aratuo ◽  
Xiaoli L. Etienne ◽  
Tesfa Gebremedhin ◽  
David M. Fryson
Keyword(s):  
Economic Growth ◽  
Exchange Rates ◽  
The United States ◽  
Impulse Response Functions ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
The Usa ◽  
State And Local ◽  
Exchange Rate Shocks

Purpose The purpose of this study is to investigate the causal linkages between tourism and economic growth in the USA and determine how they respond to shocks in the system. Design/methodology/approach The study uses a variety of time series procedures, including the bounds test, Granger causality test, impulse response functions and generalized variance decomposition to analyze the relationship between monthly tourist arrivals (TA) to the USA, real gross domestic product (GDP) and real effective exchange rates. Findings Results suggest that GDP Granger causes TA in the USA in the long run, indicating the economy-driven tourism growth hypothesis. Additionally, a shock to GDP generates a positive and significant effect on TA that persists in the long-run, while exchange rate shocks only have a significant effect in the first six months. Research limitations/implications Different tourism sectors may exert different degrees of influence on the economy. The use of aggregate data on TA in the analysis assumes homogeneity in the industry, thus, only represents the average relationship between tourism and GDP. Practical implications This study provides insight that shapes the investment, marketing, sustainability decisions of the public and private sectors aim at increasing tourist flows to drive economic development at the national, state and local levels. Originality/value Though several studies have examined the factors influencing the international tourist demand of the USA, this is the first to investigate the causal relationships between tourism, GDP and exchange rates for the USA. It is also the first in the US tourism literature to account for the nature of interactions between the three variables because of innovations in the system.

scholarly journals Export Tax Reform and the Competitiveness of Imported Soybeans in China

2019 ◽  
Vol 51 (3) ◽  
pp. 511-525 ◽  
Author(s):  
Andrew Muhammad ◽  
Constanza Valdes
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
Import Demand ◽  
Chinese Market ◽  
Long Run ◽  
Export Tax ◽  
Export Taxes ◽  
Short Run ◽  
Demand Changes

AbstractExport tax reform in Argentina could improve its competitiveness in China’s soybean market, displacing exports from competing countries like Brazil and the United States. We examined the factors that determine China’s demand for imported soybean products and how export taxes could affect exporting countries. Using import demand and vector autoregression estimates, we conducted simulations of China’s import demand assuming the elimination of export taxes in Argentina. Results indicated that Argentine soybean products could realize gains in the Chinese market, but only in the short run. Projected import demand changes in the long run were insignificant for all exporting countries.

scholarly journals An Econometric Demand Model for Florida Green-skin Avocados

2015 ◽  
Vol 25 (3) ◽  
pp. 405-411 ◽  
Author(s):  
Edward A. Evans ◽  
Fredy H. Ballen
Keyword(s):  
The United States ◽  
Persea Americana ◽  
Demand Model ◽  
Long Run ◽  
Recent Outbreak ◽  
Production Area ◽  
Price Flexibility ◽  
The Mean ◽  
Hass Avocado ◽  
The Impact

This article develops an inverse demand model for Florida green-skin avocados (Persea americana). Information from the model is used to assess the likely impact on growers’ prices resulting from a reduction in the supply of Florida green-skin avocados due to a recent outbreak of a deadly fungus in the Florida commercial avocado production area. Consideration is also given to the increased supply of green-skin avocados imported to the United States from the Dominican Republic (DR), as well as the increased availability of ‘Hass’ avocado in the U.S. market. The estimated own price flexibility of –0.551 evaluated at the mean suggests that Florida avocado prices are not very responsive to changes in quantity supplied. A reduction in the quantity supplied is likely to bring about a less than proportionate rise in the price. Moreover, any noticeable rise in prices due to the impact of the disease is likely to be short lived and may be insufficient to cover additional grove management costs. In the longer run, prices are expected to revert closer to their long-run trend (or decrease) as a result of increased shipments from the DR, and further increases in the availability of ‘Hass’ avocados.

Israel will seek US recompense for Gulf jet sales

2020 ◽  
Keyword(s):  
United States ◽  
Prime Minister ◽  
The United States ◽  
Special Relationship ◽  
Content Type ◽  
Election Result ◽  
Long Run ◽  
The Us

Significance This includes 50 F-35 stealth jets, 18 MQ-9 Reaper drones and thousands of bombs and missiles. The deal was part of the September 15 Emirati-Israeli normalisation agreement and followed consultation, required by law, with Israeli Prime Minister Binyamin Netanyahu. His late announcement of this led political rivals to accuse him of misleading the Israeli public. Impacts Despite Tehran’s concerns about the deal and Gulf-Israeli ties, the UAE is too vulnerable to risk embarking on hostile action against it. In the long run, Israel could lose some of its regional deterrent capability, if its qualitative advantage becomes less marked. The ‘special relationship’ between Israel and the United States will remain firm despite the deal and the US election result.

China's FDI reform will increase capital inflows

2019 ◽  
Keyword(s):  
Foreign Investment ◽  
Market Access ◽  
The United States ◽  
Capital Inflows ◽  
Foreign Firms ◽  
Trade Surplus ◽  
Content Type ◽  
China Trade ◽  
Long Run ◽  
The Right

Subject Reform of foreign investment laws in China. Significance US-China trade talks resume in Washington this week, though little detail has emerged to support reports that the two sides are making progress on core issues such as 'forced technology transfer' -- the requirement for a foreign investor to yield intellectual property in return for market access. A new law on foreign investment was passed at the National People’s Congress on March 15 and takes effect in January next year. The law establishes “national treatment” for foreign enterprises, to improve market access and treatment. Foreign firms and officials have generally described the new law as a step in the right direction, but not far enough. Impacts The new law should help ease tensions with Washington by giving US firms the greater market access they demand. Further ahead, increased inflow of capital might reduce China’s trade surplus with the United States. Greater capital inflows will not necessarily boost overall GDP growth in the long run.

scholarly journals Asymmetric demand patterns for products with added nutritional benefits and products without nutritional benefits

2016 ◽  
Vol 50 (9/10) ◽  
pp. 1672-1702 ◽  
Author(s):  
Ji Yan ◽  
Kun Tian ◽  
Saeed Heravi ◽  
Peter Morgan
Keyword(s):  
Brand Equity ◽  
Scanner Data ◽  
Demand Model ◽  
Price Changes ◽  
Content Type ◽  
Demand Pattern ◽  
Price Increases ◽  
Demand Sensitivity ◽  
Nutritional Benefits ◽  
Demand Patterns

Purpose This paper aims to investigate consumers’ demand patterns for products with nutritional benefits and products with no nutritional benefits across processed healthy and unhealthy foods. This paper integrates price changes (i.e. increases and decreases) into a demand model and quantifies their relative impact on the quantity of food purchased. First, how demand patterns vary across processed healthy and unhealthy products is investigated; second, how demand patterns vary across nutrition-benefited (NB) products and non-nutrition-benefited (NNB) products is examined; and third, how consumers respond to price increases and decreases for NB across processed healthy and unhealthy foods is investigated. Design/methodology/approach Here, a demand model quantifying scenarios for price changes in consumer food choice behaviour is proposed, and controlled for heterogeneity at household, store and brand levels. Findings Consumers exhibit greater sensitivity to price decreases and less sensitivity to price increases across both processed healthy and unhealthy foods. Moreover, the research shows that consumers’ demand sensitivity is greater for NNB products than for NB products, supporting our prediction that NB products have higher brand equity than NNB products. Furthermore, the research shows that consumers are more responsive to price decreases than price increases for processed healthy NB foods, but more responsive to price increases than price decreases for unhealthy NB foods. The findings suggest that consumers exhibit a desirable demand pattern for products with nutritional benefits. Originality/value Although studies on the effects of nutritional benefits on demand have proliferated in recent years, researchers have only estimated their impact without considering the effect of price changes. This paper contributes by examining consumers’ price sensitivity for NB products across processed healthy and unhealthy foods based on consumer scanner data, considering both directionalities of price changes.

Exchange rate effect on money demand in Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Iffat Zehra ◽  
Muhammad Kashif ◽  
Imran Umer Chhapra
Keyword(s):  
Exchange Rate ◽  
Money Demand ◽  
Demand Model ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Non Linear ◽  
Short Run ◽  
Nardl Model

PurposeThis paper aims to examine association of money demand with key macroeconomic variables in Pakistan. The paper also investigates the asymmetric effect of real effective exchange rate (REER) on money demand.Design/methodology/approachThe study employs both linear autoregressive distributed lag (ARDL) and non-linear autoregressive distributed lag (NARDL) model. Annual data from 1970 to 2018 is used which is subjected to non-linearity through partial sum concept. Empirical analysis is conducted to prove if money demand is influenced by currency appreciation or depreciation, for long and short run.FindingsCointegration test indicates existence of a long-run relationship between money demand and its determinants. Results from NARDL model suggest negative relation between money demand and inflation in long and short run. Real income shows positive but a very minimal and insignificant effect on money demand in long and short run. Impact of call money rates is statistically significant and negative on M1 and M2. Wald tests and differing coefficient sign confirm presence of asymmetric relation of REER in long run with M2, whereas in short run we observe a linear, symmetrical relation of REER with M1 and M2. Stability diagnostic tests (CUSUM and CUSUMSQ) verify stability of M2 demand model in Pakistan.Practical implicationsResults signify that role of money demand is imperative as a monetary policy tool and it can be utilized to achieve objective of price stability. Additionally, exchange rate movements should be critically examined by monetary authorities to avoid inflationary pressures resulting from an increase in demand for broad monetary aggregate.Originality/valueThe paper contributes to scarce monetary literature on asymmetrical effects of exchange rate in Pakistan. Impact of variables has been studied through linear approach, but this paper is unique since it attempts to explore non-linear relationships.

Wage–employment elasticity: a meta-analysis referring to Colombia

2020 ◽  
Vol 47 (6) ◽  
pp. 1495-1505
Author(s):  
Jhon J. Mora ◽  
Juan Muro
Keyword(s):  
United States ◽  
Developing Country ◽  
Meta Analysis ◽  
The United States ◽  
Real Wages ◽  
Employment Relation ◽  
Content Type ◽  
Long Run ◽  
Employment Elasticity ◽  
Wage Employment

PurposeThe article clarifies the wage–employment relation in a developing country. Several years ago, many articles in the United States indicated that the relation between increasing wages and increasing unemployment is unclear. These articles from the United States are insufficient to be applicable to all countries, especially developing countries such as Colombia where institutions and the wage–employment relation differ from those in the United States.Design/methodology/approachA meta-analysis methodology was used as 28 estimates of long-run wage–employment elasticity in Colombia from 1998 to 2016 were analyzed.FindingsThis article provides insights into how real wages affect employment. Despite publication biases, results showed that a 1% increase in wages results in a 0.11% decline in employment in the long run.Research limitations/implicationsDue to the publication bias, it is not considered how variables such as sectors, estimation strategies (panel data, partial adjustment, cointegration and non-linear least squares, among others), formal/informal urban sectors, government services and transportation, and qualified and unskilled workers affect the true elasticity value.Practical implicationsThis paper includes implications for public policy because the results are important to minimum wages policy in a developing country.Originality/valueThere are no studies regarding the wage–employment relation in a developing country. The empirical results obtained in this article are useful for regulators, policy makers and researchers to understand whether employment is affected by real wages.

Land tenure and profitability among young farmers and ranchers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrew W. Stevens ◽  
Karin Wu
Keyword(s):  
United States ◽  
Land Tenure ◽  
Fixed Effects ◽  
State Level ◽  
The United States ◽  
Rate Of Return ◽  
Farm Income ◽  
Content Type ◽  
Long Run ◽  
Livestock Farms

PurposeThe purpose of this article is to investigate how land tenure correlates with measures of profitability among young farmers and ranchers in the United States. The authors hypothesize that young producers who own a larger proportion of their operation face different incentives between short- and long-run returns than young producers who primarily rent their land. The authors analyze whether these differing incentives result in observable differences in various measures of profitability.Design/methodology/approachThe authors use state-level data from the Agricultural Resource Management Survey (ARMS) from 2003 to 2018 to estimate fixed-effects panel models correlating land tenure with the value of farm production, expenditures on repairs and maintenance, net farm income, total operator household income from farming, rate of return on assets (ROA) and rate of return on equity (ROE).FindingsThe authors find different correlations for crop farms and livestock farms, as well as different correlations for farms with the lowest and highest gross sales. For crop farms, renting land is associated with higher production, higher income, higher ROA and higher ROE. For livestock farms, renting land is associated with lower production.Originality/valueThis study rigorously investigates the role of land tenure specifically among young farmers and ranchers in the United States. By better understanding how land ownership affects profitability among beginning farmers and ranchers, policymakers will be able to better target public resources to support the next generation of producers.

Sign in / Sign up

Export Citation Format

Share Document