Journal of Advances in Economics and Finance

6

Authors: Elham Darbandi, Sayed Saghaian

In a competitive market, a rise in output prices at the wholesale level is expected to be transferred to the consumers via retailers. We have an asymmetric price transmission when an increase in the producer price transfers faster and stronger to the consumers comparing to a reduction in the producer price. The research question here is how product heterogeneity and differentiation can affect the price transmission in the carrots markets. Carrots consumption in the U.S. has been increasing significantly over the past few decades. We investigate the price linkages of carrots at terminal and retail levels for two different qualities of this product, organic and conventional. According to the VECM model results, the speed of price adjustment in the conventional carrot market is 0.354 in absolute value, while for the organic carrot market it is 0.026. This result is an indication of asymmetric price transmission with respect to speed. It shows that the price adjustment in the organic carrot market is relatively slow, pointing to inefficiency in this market. These results have important policy implications, especially in case of price shocks, there could be differential welfare consequences for both consumers and producers.

7

Authors: Li Hui

The global financial crisis and the outbreak of the banking crisis in the Eurozone have had a great impact on the macro economy. The influence of macroeconomic uncertainty on monetary policy has become the focus of scholars' research. Based on data from 2011 to 2016, public information indices and macroeconomic variables were used to construct the SVAR model. The effects of quantitative monetary policy and price monetary policy on the achievement of output targets and price targets under uncertainty conditions are analyzed. The impact of the acquisition of public information on the effectiveness of monetary policy was explored, which indirectly confirmed the effect of uncertainty on policy under the influence of information.

9

Authors: Chuntao Wu, Mai Xianmin, Tingting Yuan, JingTing Yuan

This paper studies the effects of tourism development on innovation and diversification of ethnic handicrafts in a newly development natural disaster tourism site – Beichuan Qiang Tourism Area in Sichuan, China. Beichuan was one of the worst-affected regions during the Great Sichuan Earthquake of May 12, 2008. Fieldworks including site visit, participation and observation, semi-structure interview with the local elites and tourists’ questionnaire survey are methods used by this paper. The results indicate that tourism development has leaded to a diversity of the embroidery handicrafts and is re-shaping the embroidery industries now. It is argued that local Qiang embroidery enterprises should decrease the cost and tailor the products to increase the sales. The higher quality and authenticity of embroiders’ product should be emphasized so that tourists can see the reason for the higher price of the local hand-made products.