Christian H. Kuhlgatz, Jiaqi Huang and Gerrit Antonides
The purpose of this paper is to evaluate the effects of price and income changes on food and nutrient demand of rural households by including own-produced food and production-side…
Abstract
Purpose
The purpose of this paper is to evaluate the effects of price and income changes on food and nutrient demand of rural households by including own-produced food and production-side effects in the demand estimation to correct potential measurement bias in the income and price elasticities for rural households in underdeveloped areas. Simulation results of income and grain price changes on food and nutrition security are provided for economic nutrition security policy applications.
Design/methodology/approach
This study analyzes survey data of 1,555 households from underdeveloped rural areas of China to find out how price and income changes affect food and nutrition insecurity of rural households. The authors employ the quadratic almost ideal demand system (QUAIDS) in a two-stage budgeting framework, using quality adjusted prices that were retrieved with regressions of the difference between the unit value surveyed at household level and its village average on household characteristics. The bias correction is implemented by using an augmented IV (instrumental variable) method, in which each market price is instrumented with farm-specific variables. Important macro- and micronutrient elasticities are computed for (a) households with agriculture as main income and (b) other households (of which still many have agriculture as a side business). Finally, the authors use these elasticities to simulate how changes in income or grain prices affect the food and nutrition security in the studied areas.
Findings
In general, food income elasticities of agricultural households are at a higher level than those for other households, and so are the food price elasticities. Income changes also have a greater nutritional effect on agricultural households than on other households. Nutrient income elasticities ranged from 0.22 (energy) to 0.27 (Vitamin A) for agricultural households and from 0.19 (energy) to 0.23 (Vitamin A) for other households. Grain price increases have greater effect on nutritional status of non-agricultural households, while a grain price reduction is not clearly favoring the nutritional situation of a particular household group.
Originality/value
This demand study contributes to the literature by taking into account differences in consumption of own production between households and the potential endogeneity of prices resulting thereof. The authors also demonstrate that merely reporting nutrient elasticities might not be sufficient for policy recommendations, and simulations should be reported as a valuable addition.
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Gerrit Antonides, H. Bas Amesz and Ivo C. Hulscher
Studies adoptions of four different payment systems in ten countries during 1988‐96. Adoption curves are estimated from secondary data concerning ATMs and banker’s cards. Usage of…
Abstract
Studies adoptions of four different payment systems in ten countries during 1988‐96. Adoption curves are estimated from secondary data concerning ATMs and banker’s cards. Usage of a previously introduced payment system appeared to affect the adoption of a system innovation. Based on the shape of the adoption curves and the estimation of external and internal influences from the social system, it was concluded that the adoption process was almost exclusively driven by internal influences, i.e. social learning. Draws conclusions for the introduction of the smart card.
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Jantine Voordouw, Margaret Fox, Judith Cornelisse‐Vermaat, Gerrit Antonides, Miranda Mugford and Lynn Frewer
Food allergy has potential to affect direct, indirect and intangible economic costs experienced by food allergic individuals and their families, resulting in negative impacts on…
Abstract
Purpose
Food allergy has potential to affect direct, indirect and intangible economic costs experienced by food allergic individuals and their families, resulting in negative impacts on welfare and well‐being. The purpose of this paper is to develop an instrument to assess these economic costs of food allergy at household level and to conduct an exploratory analysis of potential economic impact.
Design/methodology/approach
A case‐controlled postal pilot survey was conducted using a self‐completion instrument. Cases had either clinically or self‐diagnosed food allergy. Controls were obtained from households in which none of the members had food allergies.
Findings
The instrument appeared sensitive to the economic cost differences between households with and without food allergic members. Direct costs of health care were significantly higher for cases than for controls. Similar differences were identified for indirect cost of lost earnings, and costs due to inability to perform domestic tasks because of ill health. Intangible costs (self‐reported health status and well‐being), indicated significantly lower subjective well‐being for cases.
Research limitations/implications
Larger sample sizes will be needed to reliably assess the size of impact, cross‐cultural variation in costs, and whether costs vary according to severity of food allergy or between diagnosed versus self‐reported food allergy. The costs effectiveness of diagnostic methods or interventions may also be assessed using this instrument. If economic costs of food allergy are significant in the population further consideration from a public health policy perspective will be required.
Originality/value
To date, economic impact of food allergy on individuals and households has not been quantified. The paper addresses this.
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The purpose of this paper is to investigate the relationship between individual investors’ level of sophistication and their expectations of risk and return in the stock market.
Abstract
Purpose
The purpose of this paper is to investigate the relationship between individual investors’ level of sophistication and their expectations of risk and return in the stock market.
Design/methodology/approach
The author combines survey and registry data on individual investors in Sweden to obtain 11 sophistication proxies that previous research has related to individuals’ financial decisions. These proxies are related to a survey measure regarding individual investors’ expectations of risk and return in an index fund using linear regressions.
Findings
The findings in this paper indicate that sophisticated investors have lower risk and higher return expectations that are closer to objective measures than those of less-sophisticated investors.
Originality/value
These results are important, since they enhance the understanding of the underlying mechanisms through which sophistication can influence financial decisions.