Carl E. Enomoto

Crimes and violence in Mexico: Evidence from panel data

Abstract Drug-related violence is now an everyday occurrence in Mexicos northern border-states. While it often appears that all crimes are on the rise in the border region, the actual number of alleged offenders caught and brought to court differs significantly for different types of crime. Using panel data for Mexicos 31 states plus the Federal District from 2004 to 2008, it was found that there were more alleged offenders caught per 100,000 inhabitants involving theft, property damage, and carrying prohibited arms, in Mexicos northern border-states compared to interior states. The effects of other socioeconomic variables on crime in Mexico, such as GDP, incarceration rates, births to single mothers and expenditures on public security, were also examined.

Advertising's Unintended Consequence

The purpose of our study is to explore what relationship, if any, exists between advertising and economic growth. Endogenous growth theory (Romer 1990) is proposed as a possible solution to this 50-year debate. Using endogenous growth theory, we develop a model that links advertising to incentives for business innovation and for overall levels of information and knowledge in society. Results indicate that advertising expenditures offer significant explanatory power for long-term economic growth for a panel of 64 countries. This study contributes to the debate in two major ways: (1) by empirically showing that on a macrolevel, advertising expenditures and economic growth are related; and (2) by developing a theoretical economic growth model that demonstrates that not only are advertising expenditures related to economic growth, but that they can bring about economic growth. Finally, by providing a refinement of how marketing actions may positively affect the economy, the study contributes to the broader debate of advertisings role in society.

Product Quality and Price Regulation: A General Equilibrium Analysis

Utilizing a general equilibrium framework, this paper studies the economic effects of price regulation in competitive market structures. The analysis considers both the short-run and long-run implications of price regulation upon factor rewards and allocaticns and upon the production of quality. It also characterizes the adjustment path to a competitive long-run equilibrium. The positive relation between regulated price and the production of quality is described, and the identification of who gains and who loses and how resource allocations are affected is shown to depend upon factor intensity rankings.

Macroeconomic adjustments for debt-laden economies: The central American experience

Abstract In this article we formulate a simple economic model to analyze the effects of changes in the money supply, the national government deficit, and the exchange rate, on foreign debt and the debt-income ratio of four Central American countries: Costa Rica, El Salvador, Guatemala, and Honduras. The model was estimated using annual data from 1960 to 1992. Our results indicate that currency devaluation, contractionary monetary policy, and national government deficits financed through foreign aid, lead to lower debt and debt-income ratios.

Product quality regulation: a general equilibrium analysis

Utilizing a general equilibrium framework, this paper studies the economic effects of product-quality regulation in competitive ma rket structures. The analysis considers both the short-run and long-r un implications of such regulation upon factor rewards and allocation s and upon product price. It also characterizes the adjustment path t o a competitive long-run equilibrium. The positive relation between r egulated quality and product price is described, and identification o f who gains and who loses and how resource allocations are affected i s shown to depend upon factor intensity rankings.

Non-price competition in the US airline industry: a VAR model

Purpose The purpose of this paper is to analyze the extent to which major US airlines respond to one another in quality of service improvements. Design/methodology/approach Utilizing monthly data, the authors estimate a five-equation vector autoregressive model to determine which airline leads or follows others in quality of service improvements. Findings This study found that the five major airlines make interrelated decisions when responding to customer complaints concerning flight problems, over-sales, reservations, ticketing, boarding, and customer service. Every airline either responds to or influences the changes in customer complaints faced by at least one other airline, while some airlines do both. However, only one such relationship was found when examining if airlines change the percent of flight delays they have control over in response to changes in flight delays faced by another airline. Practical implications The number of passenger complaints against an airline can be influenced by the airline, as can the number of carrier-caused flight delays. The industry leaders in responsiveness to consumer complaints are US Airways and United. However, airlines do not, as a group, respond to the carrier-caused delays of their competitors. The prescription to improve airline service vis-a-vis flight delays is simple: tell passengers why flights are delayed. To protect or gain market share, airlines would compete for customers by minimizing flight delays in a similar manor to how they respond to customer complaints. Originality/value No other paper that the authors are aware of has addressed the issue of identifying leaders and followers in the US airline industry regarding changes in service quality as reflected by changes in passenger complaints and flight delays.