Quantifying the Economic Value of Warranties: A Survey

Abstract This paper is a review of the most recent literature regarding the econometric modelling of the impact of warranties on demand. The reviewed literature is limited to the papers that apply the random-coefficient logit model based on Berry, Levinsohn and Pakes (1995) to estimate differentiated products demand. An important feature of these demand system models that is a clear advantage to earlier demand functions is to account for the endogeneity of prices. We focus on those model specifications that take into account endogeneity of both prices and warranty. Another goal for modelling the effect of warranties is to explore the economic rationale for warranty provision. Four theories have been proposed in the literature: insurance, sorting, signalling and incentive theories. This paper aims at decomposing the effect of these theories, to account for different underlying assumptions and to separately determine the implications as presented in the recent literature

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Testing Structural Changes in the U.S. Whitefish Import Market: An Inverse Demand System Approach

Agricultural and Resource Economics Review ◽

10.1017/s1068280500004937 ◽

2013 ◽

Vol 42 (3) ◽

pp. 453-470 ◽

Cited By ~ 20

Author(s):

Frank Asche ◽

Dengjun Zhang

Keyword(s):

New Species ◽

System Approach ◽

Structural Changes ◽

The United States ◽

Demand System ◽

On Demand ◽

The Impact ◽

A New Species ◽

The U.S ◽

Structural Shifts

The seafood market has changed substantially in recent decades, becoming increasingly globalized. This has led to introduction of new species and new sources of fish in most markets. We estimate a seafood demand system that, unlike models in previous studies, accounts for potential structural shifts caused by these market changes. We investigate the impact of tilapia as a new species and China as a new source on demand for imported whitefish in the United States. The results indicate that price flexibilities change substantially over time and that the structural shift takes place over a prolonged period.

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The Impact Of Price Changes And Trends On Demand For Meat In Nigeria

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v2i12.3872 ◽

2011 ◽

Vol 2 (12) ◽

Author(s):

Gbolahan Solomon Osho ◽

Matthew Uwakonye

Keyword(s):

Consumer Choice ◽

Meat Consumption ◽

Demersal Fish ◽

Demand System ◽

Relative Prices ◽

Price Elasticities ◽

On Demand ◽

Time Period ◽

Normal Goods ◽

The Impact

This study determines the responsiveness of demand for meat to variations in prices and incomes on the basis of food demand data for the time period between 1980 to 2001 using an Almost Ideal Demand System (AIDS) model. These findings are reasonable given the position that beef holds as the dominant and traditional meat in Nigeria. These elasticities also imply that beef and chicken are luxury goods, while other fish and demersal fish are normal goods for Nigeria households consistent with the findings of previous studies. With the exception of some cross-price elasticities, the majority of the price elasticities exhibit the expected signs and magnitudes. This indicates that demand for beef and other meat Nigeria is very price elastic. In general, the results suggest that own-prices as well as incomes are the predominant factors determining consumer choice and meat consumption patterns in Nigeria rather than relative prices.

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Analyzing the demand system for beer in the US: an application of the random coefficient logit model using scanner data

10.14264/9efa95f ◽

2020 ◽

Author(s):

◽

Han Wang

Keyword(s):

Logit Model ◽

Random Coefficient ◽

Demand System ◽

Scanner Data ◽

The Us ◽

Random Coefficient Logit

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Water in the economy of Tamil Nadu, India: more flexible water allocation policies offer a possible way out of water-induced economic stagnation and will be good for the environment and the poor

Water Policy ◽

10.2166/wp.2006.0001 ◽

2006 ◽

Vol 8 (1) ◽

pp. 1-13 ◽

Cited By ~ 6

Author(s):

Ramesh Bhatia ◽

John Briscoe ◽

R. P. S. Malik ◽

Lindy Miller ◽

Smita Misra ◽

...

Keyword(s):

Water Allocation ◽

Water Policy ◽

Tamil Nadu ◽

Economic Value ◽

The State ◽

Allocation Policy ◽

Rural And Urban ◽

State Income ◽

Important Exception ◽

The Impact

The state of Tamil Nadu, India, is in the grips of a water crisis, with demand far outstripping supply. As the economy of the state grows, this crisis is going to become ever more serious. To date the focus of state water policy has been on trying to augment supplies, from within the state (even from desalinization) and from neighboring states. In addition, the water use is regulated in a way that does not encourage the highest value uses. International experience shows that supply-side measures must be complemented by demand-side measures and that practice must move away from fixed, command-and-control allocation policies towards flexible allocation mechanisms, which facilitate the voluntary movement of water from low to high-value uses. This study addresses the question of whether such a change in allocation policies is worth doing. It addresses this question by developing optimization models for each of the 17 river basins in Tamil Nadu (including an assessment of the economic value of water in different end-uses – agriculture, domestic and industry), then using an input–output model embedded in a social accounting matrix (SAM), to assess the impact of these changes on the state economy and on different rural and urban employment groups. The results suggest that a shift to a flexible water allocation system would bring major environmental, economic and social benefits to the state. Compared with the current “fixed sectoral allocation” policy, a flexible allocation policy would, in 2020, result in 15% less overall water used; 24% less water pumped from aquifers; 20% higher state income; with all strata, rich and poor, benefiting similarly, with one important exception, that of agricultural laborers.

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Zastosowanie modelu logitowego do analizy czynników wpływających na bezrobocie wśród ludności wiejskiej

Zeszyty Naukowe SGGW - Ekonomika i Organizacja Gospodarki Żywnościowej ◽

10.22630/eiogz.2015.110.18 ◽

2015 ◽

pp. 33-42 ◽

Cited By ~ 1

Author(s):

Dorota Kmieć

Keyword(s):

Labor Market ◽

Rural Population ◽

Household Income ◽

Logit Model ◽

Demographic Characteristics ◽

Explanatory Factors ◽

Personal Competencies ◽

The Impact

The paper attempts to identify the causes of unemployment among the rural population. Logit model was used to determine the size of the impact of explanatory factors examined the situation in the labor market. The following potential predictors were considered: socio-demographic characteristics and household income, improving one’s skills through training and personal competencies.

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