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This paper evaluates consumption-based poverty in the United States using Consumer Expenditure Survey data. The poverty measures rest upon micro-theoretic foundations of utility maximizing behavior and a complete demand system. The Translog model (Christensen et al., 1975) is used to replicate and extend Slesnick’s (1993) measures of poverty into the late 1990s. Consumption-based poverty analysis is extended by computing Sen (1976) indexes, which provide more complete measures of poverty than simple headcount ratios. The robustness of Slesnick’s results is tested under alternative assumptions concerning shares of services between housing and other durables across time.

Using official and household survey data, the purpose of this paper is to analyze the size of middle class in rural China, its trend and geographical distribution. Determinants or drivers of changes in the size of middle class are explored.

An absolute definition of middle class, adjusted by rural purchasing power parity (PPP) and spatial price index, is employed to measure the size and geographic distribution of rural middle class in 1988, 1995, 2002, and 2007. Biprobit models and OLS models are estimated to investigate the determinants and consumption behavior of middle class in rural China.

Major findings include: in 2007, as many as 398 million rural residents or almost 54 percent of China's rural population belonged to the middle class; the size estimate of China's rural middle class based on income is broadly consistent with that based on assets; factors enhancing the probability of a household entering the middle class include human capital, political capital and non‐farming employment while industrialization, urbanization and development of TVEs also play significant roles; and the middle class not only consume more, but also consume more durables.

A limitation of the paper is the use of 2002 data. However, more recent data are not available.

The size of the middle‐class is crucial for the stability of China, and the growth of the middle class in rural China is crucial for rebalancing the Chinese and global economy. Thus, the measurement results, the identified drivers, and the consumption behavior of rural middle class revealed in this paper can help shed light on nurturing middle class and adjusting development strategy for China to achieve a more sustainable and balanced economic growth.

Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long periods. The purpose of this paper is to link two strands of literature for the first time by uncovering systematic linkages between the payment method (upfront cash vs loan) used for purchase of durable goods and the replacement timings for the same.

The authors predict that cash purchases are more likely to have shorter replacement horizons compared to loan purchases and propose a psychological mechanism that accounts for the same. Their arguments are based on how the strength of coupling, which is the degree of psychological association between payment and consumption, depends on the payment method and differentially influences the consumption experience and consequently leads to different replacement horizons. They conduct a field study to test their predictions and find support for their model.

The authors find that individuals who financed their durable goods purchases using loan, expressed their intentions to replace the goods after longer period than those who financed their durable goods with cash down payment. As loan installments remind people of painful thoughts of payment, they tend to reduce the dissonance by positively evaluating both retrospective and anticipated usage experiences. This dissonance reduction mechanism eventually leads to reduced willingness to let go of the durable.

Marketers are faced with a tradeoff between increasing purchase likelihood versus ensuring long-term post-purchase satisfaction. In this paper, the authors uncover the psychological mechanisms that can explain how payment method chosen to pay for a durable can have direct effect on post-purchase consumption experiences and subsequently in the replacement intentions. This finding is crucial for marketers who are interested in planning the product line launches and other post-purchase engagement strategies such as buy-back scheme and upgrades.

Understanding the psychological mechanisms that explain individual’s likelihood to replace their durable goods allows policymakers to design appropriate interventions to induce more sustainable and efficient use of durable goods in the market. While on one hand, marketers might be interested in increasing sales of their product line by inducing faster replacement of older product versions, environmentalists nudge towards the opposite. This paper provides a possible way to achieve the dual objectives.

While past research on downstream effects of payment methods on behavioral outcomes focused only on consumables, the authors focus on durable goods. Further, they identify the effect of payment method on both psychological and behavioral outcomes.

The purpose of this paper is to present a selection model that adopts several important criteria, enabling a durable goods franchiser to select franchisees that are most appropriate.

Questionnaires based on selection criteria are identified from modified Delphi Technique and then sent to experts and decision makers. Major criteria weights are analyzed using the analytic hierarchy process and entropy. Final weights are then determined using the compromised weighting method.

This study has demonstrated that the durable goods sector in Taiwan emphasizes the condition of a franchisee personal condition more than its store location, and our results further indicate that a franchiser should emphasize finance and business ability when selecting franchisees. Additionally, consumer purchasing power, individuals passing by and parking convenience are all important factors for selecting a franchisee.

Analysis results indicate that the proposed selection model enables a franchiser to select franchisees more reasonably by allowing them to operate effectively.

In the wake of the Stiglitz Commission, we assess German economic well-being by considering income, wealth and consumption. A decomposition approach is used to test for corresponding inequality differences of these well-being dimensions. Total inequality is decomposed into within- and between-group inequality (via a normalised coefficient of variation). The decompositions are categorised into those that refer to socio-demographic characteristics (place of residence, age, household type) and those belonging to different well-being (sub-)categories (potential and net income, expenditure and wealth categories). The empirical analyses are performed for Germany using the 2008 German Sample Survey of Income and Expenditure. By decomposing German well-being inequality in great detail, we shed light on its dimensions. Our analyses illustrate that it is necessary to consider all well-being dimensions to make statements about the material well-being of private households or individuals.

The purpose of this paper is to examine the financial risks posed by energy and environmental markets and how these risks are addressed by current regulatory regimes and legislation. This assessment should be of interest to academics, practitioners, regulators and policymakers.

The first half of the paper provides a theoretical conceptualisation of the financial risks energy and environmental markets pose by drawing on established academic literatures on financial regulation and energy markets. The second half of the study provides a legislative analysis of the evolving approach to the financial regulation of energy and environmental markets. Drawing on “grey” literatures, this assessment critically appraises the array of current policy initiatives that have the potential to affect the financial regulation and operation of energy and environmental markets.

The theoretical conceptualisation of financial risks identified macroeconomic and energy systemic as the principal risks posed by energy and environmental markets. The legislative analysis contains various conclusions, prominent amongst which are: that the EU will play an increasingly important role in the financial regulation of energy and environmental markets through bodies such as ACER and ESMA; and that it is essential the boundaries of regulatory responsibility between energy and financial regulators are assessed to ensure activities leading to risk do not fall between the remits of responsibility.

There is a dearth of academic work on the financial regulation of energy and environmental markets, while prior policy and regulatory analyses have focussed on specific markets or products. This belies the interrelationships and, in some cases, the integration of these risks and the nature of financial crises. To amend for this omission we provide a holistic assessment of these legislative and policy developments.

This article is a short survey of research carried out into the principal economic factors influencing the demand for tourism services. It is clear that sociological variables such as age, occupation and educational level also play a role in influencing total demand, but there is evidence that sociological variables may be more significant in determining the destination or the type of tourism undertaken, rather than the decision to travel (Todt, 1964, and Przeclawski, 1976). It is therefore likely that the total demand of an origin country for all destinations is best explained by economic variables.

Presents a discussion on the nature of environmentalism and the nature of enterprise. It argues that while, superficially, these concepts might appear to be contradictory, on examination key communalities become evident. Crucially, both are recognised to be social processes which are based on the notion of value. In environmentalism the value of economic growth per se is questioned. It challenges ideas about what society should consider to be valuable; about whether quality of life is more important than standard of living. Entrepreneurship is argued to be about the creation of value, first at a social level in terms of new products or services, and second, at an individual level in terms of the production of idiosyncratic values, such as self‐satisfaction and gratification. The paper proposes, and demonstrates, by examples, that changes in social evaluations, brought about by “greening”, mean that new entrepreneurial opportunities have arisen to develop new businesses. Consequently, these new businesses are embedded in, and valorised by, the emergent social values. Given that they are also energised and motivated at a personal level they are seen to be both viable and environmentally sustainable.

This paper aims to present a forecast for renewable energy production in the USA. Growth curves are used to conduct the forecasts.

The analysis is based upon a literature review, supplemented by collection of secondary data. The study then focuses on applying the Pearl growth curve.

The authors' results show that biomass energy production is growing the fastest followed by geothermal and wind. Additionally, the forecast for solar energy production shows little to no growth over the next two decades.

If the US government hopes to achieve its goals in renewable energy, considerable funding and incentives will have to be put forth to accelerate the growth of renewable energy. Since the biomass technology is already growing nicely it makes sense to put the additional resources behind the other three technologies to close the 10.3 percent gap being forecasted. The government also needs to put more funding into dual renewable plants such as wind or solar combines with pumped hydro, this will ensure environmental and reliability are both maintained. Finally, for renewable energies to be competitive in the long term, considerable research needs to go into driving down the cost so there is not a need for subsidies.

This study provides value in providing a forecast for expected future growth for renewable energy sources.

The New Rural Cooperative Medical Scheme (NRCMS), implemented in China since 2003, has greatly increased the access of the poor to health services and alleviated the hardship caused by catastrophic medical payments. Both the precautionary saving theory and the Buffer‐Stock saving theory would predict a positive effect of this event on consumption. The purpose of this paper is to empirically study the effects of medical insurance on durables consumption in rural China.

Using China Health and Nutrition Survey (CHNS) data, the authors study the effects of medical insurance on durable goods consumption in rural China through a panel binary choice model.

It is found that households with medical insurance have a significantly higher level of durables consumption, and their probabilities of purchasing durables increase by 2.0 per cent‐4.4 per cent, which support the precautionary saving theory and the Buffer‐Stock saving theory.

Unlike previous studies, the authors focus on the effects of medical insurance on the consumption of durables, which have a big weight in household wealth and are more sensitive to income uncertainty.