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Article
Publication date: 8 May 2023

Narvada Gopy-Ramdhany and Boopen Seetanah

Mauritius’s residential real estate sector has undergone an increase in foreign investment over the past decades. This study aims to establish if the increasing level of foreign…

Abstract

Purpose

Mauritius’s residential real estate sector has undergone an increase in foreign investment over the past decades. This study aims to establish if the increasing level of foreign real estate investments (FREI) has increased land demand and land prices. The study also aims to depict whether the relation between FREI and land prices prevails at an aggregate and/ or a regional level.

Design/methodology/approach

Data from 26 regions, classified as urban, rural and coastal is collected on an annual basis over the period 2000 to 2019, and a dynamic panel regression framework, namely, an autoregressive distributed lag model, is used to take into account the dynamic nature of land price modeling.

Findings

The findings show that, at the aggregate level, in the long-term, FREI does not have a significant influence on land prices, while in the short term, a positive significant relationship is noted between the two variables. A regional breakdown of the data into urban, rural and coastal was done. In the long term, only in coastal regions, a positive significant link was observed, whereas in urban and rural regions FREI did not influence land prices. In the short term, the positive link subsists in the coastal regions, and in rural regions also land prices are positively affected by FREI.

Originality/value

Unlike other studies which have used quite general measures of FREI, the present research has focused on FREI mainly undertaken in the residential real estate market and how these have affected residential land prices. This study also contributes to research on the determinants of land prices which is relatively scarce compared to research on housing prices.

Details

International Journal of Housing Markets and Analysis, vol. 17 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 5 September 2024

Jiami Liang, Jiejian Feng and Yalan Liu

This paper aims to study how the timing of these decisions affects the total profit and the individual profits of the two agents.

Abstract

Purpose

This paper aims to study how the timing of these decisions affects the total profit and the individual profits of the two agents.

Design/methodology/approach

This paper study a supply chain for a network good where there is a manufacturer and a retailer. The manufacturer determines its wholesale price and its share in the retailer’s advertising cost while the retailer decides the retail price and the advertising cost.

Findings

This paper finds that a stronger network externality leads to higher prices and higher advertising efforts. This increases the profits of both manufacturer and retailer, but the manufacturer’s share of advertising costs depends on the order in which the supply chain enterprise make their decisions, the strength of network externality and the effect of advertising determines which decision timeline results in a higher price and greater advertising effort. The manufacturer prefers the price decision to be made before the advertising decision, while the retailer prefers these decisions to be made simultaneously.

Research limitations/implications

Although this paper studies the price and advertising decision-making order preferences of channel members based on network externalities, this research can also be expanded from the following aspects based on network effects. First, network externality affects advertising cooperation between both parties in the situation such that the pricing power of retail prices is transferred from the retailer to the manufacturer and the retailer relies on revenue sharing (revenue sharing contract, nonwholesale price contract. Second, the manufacturer dominates the issues in the supply chain, but in reality, a retailer can also be the dominator or there are no dominators (Nash equilibrium). Finally, it is possible to consider pricing and advertising decisions in situations where two manufacturers or retailers compete.

Practical implications

When the price is reasonable, advertising investment is the main determinant of product sales. The greater the intensity of network externalities the more retailers will be willing to invest in advertising. An increase in the intensity of network externalities may not necessarily enhance manufacturers’ motivation or cooperative advertising, but it depends on the decision-making sequence. The strength of network externalities determines the decision-making sequence preferences of supply chain channel members whose preferences vary leading to conflicts of interest.

Originality/value

The impact of cooperative advertising or decision sequence on corporate decision-making has not been considered. To fill this gap, the paper integrates network externality and supply chain cooperative advertising models, focusing on the impact of network externality on pricing and advertising decisions, as well as on the sequence of decisions.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 12 December 2023

Robert Mwanyepedza and Syden Mishi

The study aims to estimate the short- and long-run effects of monetary policy on residential property prices in South Africa. Over the past decades, there has been a monetary…

Abstract

Purpose

The study aims to estimate the short- and long-run effects of monetary policy on residential property prices in South Africa. Over the past decades, there has been a monetary policy shift, from targeting money supply and exchange rate to inflation. The shifts have affected residential property market dynamics.

Design/methodology/approach

The Johansen cointegration approach was used to estimate the effects of changes in monetary policy proxies on residential property prices using quarterly data from 1980 to 2022.

Findings

Mortgage finance and economic growth have a significant positive long-run effect on residential property prices. The consumer price index, the inflation targeting framework, interest rates and exchange rates have a significant negative long-run effect on residential property prices. The Granger causality test has depicted that exchange rate significantly influences residential property prices in the short run, and interest rates, inflation targeting framework, gross domestic product, money supply consumer price index and exchange rate can quickly return to equilibrium when they are in disequilibrium.

Originality/value

There are limited arguments whether the inflation targeting monetary policy framework in South Africa has prevented residential property market boom and bust scenarios. The study has found that the implementation of inflation targeting framework has successfully reduced booms in residential property prices in South Africa.

Details

International Journal of Housing Markets and Analysis, vol. 17 no. 7
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 17 September 2024

Changyao Song, Tingting Yin, Qian Zhi, Jiaqian Gu and Xinjian Li

Land is the basis for economic development as well as tourism development. There is a close relationship between tourism development and the land market. However, research on the…

Abstract

Purpose

Land is the basis for economic development as well as tourism development. There is a close relationship between tourism development and the land market. However, research on the effect of tourism development on land prices is insufficient. This paper aims to investigate the effect and mechanism of tourism development on land prices.

Design/methodology/approach

The econometric paradigm is the main research method. Fixed effect models, instrumental variable models and mediating effect models are introduced to examine the impact of tourism development on land prices. The data include three types: land transaction data, city-level data and scenic spot data. More than 360,000 samples of land transactions for 284 prefecture-level cities in China from 2007 to 2021 are applied.

Findings

Tourism development can significantly increase land prices. This conclusion holds after using instrumental variables to address endogeneity and testing for robustness. Meanwhile, tourism development’s effect on land price is influenced by land type, city type, city tier and city location. The land price increase effect of tourism is more significant for tourism land, tourist cities, central cities and Western cities. The paper also reveals the mechanisms of the public service enhancement effect, infrastructure upgrading effect and environmental optimization effect in tourism development’s effect on land price.

Originality/value

The study contributes to the literature on the relationship between tourism development and land market. The generality and specificity of tourism development’s effect on land price are revealed from the micro and macrolevel research level. The findings enrich the literature on tourism price effects, point to rational ways to optimize and regulate land prices and provide new ideas for land-market development.

Article
Publication date: 30 August 2024

Mamta Dhanda, Sunaina Dhanda and Bhawna Choudhary

The purpose of this paper is to study the influence of inflated energy prices on the capital structure of Indian manufacturing corporations and to investigate whether the capital…

Abstract

Purpose

The purpose of this paper is to study the influence of inflated energy prices on the capital structure of Indian manufacturing corporations and to investigate whether the capital structure of Indian firms is driven by demand shocks or supply shocks during the study period.

Design/methodology/approach

After conducting a thorough review of the capital structure and inflation-based research studies, panel data-based regression model and correlation matrix have been used as statistical tools for Indian manufacturing sector available with the Centre for Monitoring Indian Economy Prowess database.

Findings

The results suggest that variables like the presence of inflated energy prices had adversely influenced the capital structure of Indian corporations. Not only this, the study also highlights that factors pertaining to the demand shock had induced Indian corporations to have higher debt levels in the capital structure.

Practical implications

This study has laid some ground work to explore the influence of inflation on capital structure of Indian firms upon which a more detailed evaluation could be based.

Originality/value

To the best of the authors’ knowledge, this study is the first that explores the influence of inflated energy prices on the capital structure of manufacturing firms in India by using the most recent data.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 5 February 2024

Rizka Amalia Nugrahapsari, Abdul Muis Hasibuan and Tanti Novianti

This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers…

Abstract

Purpose

This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers and consumers.

Design/methodology/approach

The research used annual series data from 1991 to 2021 and employed inferential, simulation, and descriptive analyses. The two-stage least squares (2SLS) of 19 simultaneous equations were used to estimate parameters.

Findings

The results indicate that free trade policies and restrictions have influenced the citrus industry, leading to a reduction in Indonesian citrus imports, and increased consumer and producer prices. However, eliminating import tariff policies on citrus from China and import restrictions increased producer surplus while decreasing consumer surplus, government revenue, and total welfare. Therefore, trade policies should be combined with non-trade policies such as citrus region development policies and advancing cultivation technology.

Originality/value

This study provides empirical evidence for the Indonesian government to formulate effective citrus trade and development policies. It emphasizes the importance of carefully considering the impact of trade policy on the citrus industry and the need to implement non-trade policies such as citrus zone development policies and advancing cultivation technology to benefit both producers and consumers.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0148

Details

International Journal of Social Economics, vol. 51 no. 10
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 2 September 2024

Abdul Quadir, Alok Raj and Anupam Agrawal

The purpose of this paper is to investigate the impact of demand information sharing on products’ greening levels with downstream competition. Specifically, this study examine two…

45

Abstract

Purpose

The purpose of this paper is to investigate the impact of demand information sharing on products’ greening levels with downstream competition. Specifically, this study examine two types of green products, “development-intensive” (DI) and “marginal-cost intensive” (MI), in a two-echelon supply chain where the manufacturer produces substitutable products, and competing retailers operate in a market with uncertain demand.

Design/methodology/approach

The authors adopt the manufacturer-led Stackelberg game-theoretic framework and consider a multistage game. This study consider how retailers receive private signals about uncertain demand and decide whether to share this information with the manufacturer, who then decides whether to acquire this information at a certain given cost. This paper considers backward induction and Bayesian Nash equilibrium to solve the model.

Findings

The authors find that in the absence of competition, information sharing is the only equilibrium and improves the greening level under DI, whereas no-information sharing is the only equilibrium and improves the greening level under MI, an increase in downstream competition drives higher investment in greening efforts by the manufacturer in both DI and MI and the manufacturer needs to offer a payment to the retailers to obtain demand information under both simultaneous and sequential contract schemes.

Originality/value

This paper contributes to the literature by examining how the nature of products (margin intensive green product or development intensive green product) influences green supply chain decisions under information asymmetry and downstream competition.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 May 2023

Laura H. Atuesta and Monserrat Carrasco

Between 2006 and 2012, Mexico implemented a “frontal war against organized crime”. This strategy increased criminal violence and triggered negative consequences across the…

Abstract

Purpose

Between 2006 and 2012, Mexico implemented a “frontal war against organized crime”. This strategy increased criminal violence and triggered negative consequences across the country’s economic, political and social spheres. This study aims to analyse how the magnitude and visibility of criminal violence impact the housing market of Mexico City.

Design/methodology/approach

The authors used different violent proxies to measure the effect of the magnitude and visibility of violence in housing prices. The structure of the data set is an unbalanced panel with no conditions of strict exogeneity. To address endogeneity, the authors calculate the first differences to estimate an Arellano–Bond estimator and use the lags of the dependent variable to instrumentalise the endogenous variable.

Findings

Results suggest that the magnitude of violence negatively impacts housing prices. Similarly, housing prices are negatively affected the closer the property is to visible violence, measured through narcomessages placed next to the bodies of executed victims. Lastly, housing prices are not always affected when a violent event occurs nearby, specifically, when neighbours or potential buyers consider this event as sporadic violence.

Originality/value

There are only a few studies of violence in housing prices using data from developing countries, and most of these studies are conducted with aggregated data at the municipality or state level. The authors are using geocoded information, both violence events and housing prices, to estimate more disaggregated effects. Moreover, the authors used different proxies to measure different characteristics of violence (magnitude and visibility) to estimate the heterogeneous effects of violence on housing prices.

Details

International Journal of Housing Markets and Analysis, vol. 17 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Open Access
Article
Publication date: 4 September 2024

Milos Bujisic, Vanja Bujisic, Haragopal Parsa, Anil Bilgihan and Keyin Li

Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers…

Abstract

Purpose

Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers. Decoys are relatively higher-priced offerings that signal lower value than the other offerings in the consideration set. The purpose of this research is to investigate the influence of decoy pricing on consumer choices across various contexts in the foodservice and hotel industries.

Design/methodology/approach

Across the pilot and four main studies, the current research employs a sequential exploratory mixed-method design to investigate the influence of decoy pricing in the foodservice and lodging industries. The qualitative part of this research was based on two focus groups, followed by a pilot study and four main study experiments.

Findings

The results show that decoy pricing escalates consumers’ choices of more expensive product bundles in both restaurant and hotel cancellation policy contexts. However, decoy pricing does not increase the selection of more expensive hotel product bundles.

Originality/value

While decoy pricing has been utilized as an effective revenue maximization strategy for product placement in retail stores, less is known about how promotional advertisements with decoy offers influence hotel and restaurant customers to choose more costly options. Specifically, this is the first study that explores whether decoy pricing and product/service bundling can encourage customers to select more expensive offers in hotel and restaurant contexts, considering the types of hospitality bundles that may limit this effect.

Details

International Hospitality Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-8142

Keywords

Article
Publication date: 27 August 2024

Ömer Tuğsal Doruk

This study aims to explore a novel framework for housing price bubbles in the Turkish economy during the pandemic. It examines the probability of housing bubble formation relative…

Abstract

Purpose

This study aims to explore a novel framework for housing price bubbles in the Turkish economy during the pandemic. It examines the probability of housing bubble formation relative to the pre-pandemic period and identifies possible determinants of housing bubbles in the Turkish economy.

Design/methodology/approach

In this study, a two-stage novel estimation method is applied. In the first stage, bubble periods are identified through the right-tailed supremum augmented Dickey–Fuller test. In the second stage, the determinants of these bubbles are identified, and the housing bubble determinants during the COVID-19 pandemic are compared to the pre-pandemic period.

Findings

The findings indicate that there is an asset price bubble in the housing market during the pandemic period. Furthermore, mortgage credit expansion, mortgage credit rates and the depreciation of the Turkish Lira against the USD could increase housing bubble formation. However, housing sector sales to foreign investors do not contribute to housing bubble formation during the pandemic in the Turkish housing market.

Originality/value

To the best of the author’s knowledge, this is the first study to address the relative determinants of housing bubbles in an emerging market context during the pandemic.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

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