'In Delay There Is No Plenty': The Consumer Welfare Cost of Franchise Reform Delay

The Consumer Welfare Cost of Cable 'Build-out' Rules

SSRN Electronic Journal ◽

10.2139/ssrn.777465 ◽

2005 ◽

Cited By ~ 1

Author(s):

George S. Ford ◽

Thomas M. Koutsky ◽

Lawrence J. Spiwak

Keyword(s):

Consumer Welfare ◽

Welfare Cost

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Impact of rising food prices on consumer welfare in the most populous countries of South Asia

International Journal of Social Economics ◽

10.1108/ijse-01-2016-0016 ◽

2017 ◽

Vol 44 (8) ◽

pp. 1062-1077 ◽

Cited By ~ 1

Author(s):

Shafque Aftab ◽

Muhammad Rizwan Yaseen ◽

Sofia Anwar

Keyword(s):

South Asia ◽

Low Income ◽

Consumer Welfare ◽

Income Group ◽

Food Prices ◽

Welfare Cost ◽

Compensating Variation ◽

Content Type ◽

Food Items ◽

Vulnerable Consumers

Purpose The purpose of this paper is to evaluate the welfare cost resulted from an increase in food prices in the three most populous countries of south Asia (Pakistan, India and Bangladesh). Design/methodology/approach The effect of rising food prices on consumer welfare is analyzed by using the compensating variation technique. The measurement of the total consumer welfare effect requires the estimation of price elasticities which are calculated by using linear approximation version of the almost ideal demand system. Findings The results indicate that cereals (wheat, rice) are relatively price inelastic. However, protein-rich food items like chicken and mutton are relatively more income elastic where consumer welfare declines in all countries mainly for cereals and milk, as these food items are relatively less elastic to price fluctuations. Social implications Pakistan, India and Bangladesh represent together about 37 percent of the total world undernourished population. This study suggests that government should target the most vulnerable consumers (low-income group) to improve the income level in these countries. Originality/value It is the first effort to estimate and compare that how food inflation affects the consumer welfare in the most populated countries of South Asia. This type of study is also important for the policy planners to overcome the welfare cost under different setting of price and income so it is an effort toward this direction.

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The Micro and Macro of Managerial Beliefs

10.31235/osf.io/fctsb ◽

2020 ◽

Cited By ~ 1

Author(s):

Jose Maria Barrero

Keyword(s):

Rational Expectations ◽

Asset Price ◽

Heterogeneous Firms ◽

Adjustment Costs ◽

Consumer Welfare ◽

Sales Growth ◽

Firm Level ◽

Managerial Decisions ◽

Managerial Beliefs ◽

Growth Volatility

This paper studies how biases in managerial beliefs affect managerial decisions, firm performance, and the macroeconomy. Using a new survey of US managers I establish three facts. (1) Managers are not over-optimistic: sales growth forecasts on average do not exceed realizations. (2) Managers are overprecise (overconfident): they underestimate future sales growth volatility. (3) Managers overextrapolate: their forecasts are too optimistic after positive shocks and too pessimistic after negative shocks. To quantify the implications of these facts, I estimate a dynamic general equilibrium model in which managers of heterogeneous firms use a subjective beliefs process to make forward-looking hiring decisions. Overprecision and overextrapolation lead managers to overreact to firm-level shocks and overspend on adjustment costs, destroying 2.1 percent of the typical firm’s value. Pervasive overreaction leads to excess volatility and reallocation, lowering consumer welfare by 0.5 to 2.3 percent relative to the rational expectations equilibrium. These findings suggest overreaction may amplify asset-price and business cycle fluctuations.

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