Purpose – The effects of social learning and network externalities in the diffusion of a new product imply that there should be local spillovers from existing owners to new adopters in a closely-related community. Using the 1999 durable consumption survey data in rural China, this paper examines the importance of local spillovers in the diffusion of two major durable goods, washing machine and ...

This paper presents estimates of the degree of returns to scale using nonparametric measures of primal and dual productivity for 2-digit US manufacturing industries. As part of the analysis, the cyclical behaviour of primal and dual productivity measures are considered, time-varying markups are allowed for, and the small sample properties of the instrumental variables estimator used to derive t...

Market innovations following the financial reforms of the early 1980’s relaxed collateral constraints on household borrowing. This paper examines the contribution of this development to the macroeconomic stabilization that occurred shortly thereafter. The model combines collateral constraints on households with heterogeneity of thrift in a calibrated general equilibrium setup. We use this tool ...

Truncated and censored regression models are useful when the dependent variable is observed in some ranges but not in others. A classical example is Tobin’s (1958) study of household expenditures, in which expenditures on durable goods were seen to generally increase with income, but a non-trivial number of households had no expenditures on durable goods. The problem, in this case, is how to mo...

Does the existence of secondary markets for durable goods affect price and allocation on primary markets? We study competitive equilibria for durable goods where the possibility of future trade on secondary markets does not affect consumer behaviour in the primary market, provided consumers are exponential discounters. If consumers are hyperbolic discounters, however, secondary markets are no l...

As markets expand, new modes of purchasing are being made available to customers. Especially, after the growth of internet, the modern era could be that of virtual markets. This paper studies the online purchasing intention of consumers in the city of Vadodara, Gujarat, India for Durable Goods. In India, people have tended to purchase small items, electronic items which are of lesser value. Gen...

Product-centric information management is a key concept in understanding the interoperability between increasingly intelligent and autonomous goods in distributed computing architectures. In the same way as consumers are an important source of data in contemporary platforms, products — especially durable and capital goods — can be considered equally valuable for industries that have not yet bee...

The one-sector Solow-Ramsey model is the most popular model of long-run economic growth. This paper argues that a two-sector approach, which distinguishes the durable goods sector from the rest of the economy, provides a far better picture of the long-run behavior of the U.S. economy. Real durable goods output has consistently grown faster than the rest of the economy. Because most investment s...

Traditional management thinking and research has generally regarded the new and used durable goods markets as independent, addressing analytical issues in each in isolation. This static perspective however is limited, as in fact the new and used markets for durable goods should be linked in a dynamic fashion, and the actions in the market for new goods will have repercussions in the used goods ...

Article history: Received 25 November 2013 Received in revised form 17 June 2015 Available online 13 July 2015 JEL classification: O33 O31 E22