Ram N. Acharya

Online banking applications and community bank performance

Purpose – The purpose of this paper is to examine the impact of online banking intensity on the financial performance of community banks.Design/methodology/approach – This study estimates online banking intensity and bank performance indices using a combination of primary and secondary data. Online banking intensity is specified as a latent construct and estimated using web feature data collected from bank websites. An empirical profit function of a nonstandard Fourier flexible form is estimated using banks financial data to derive a theoretically consistent performance measure. The actual impact of online banking on performance is measured by regressing the profit efficiency index against a number of correlates including online banking intensity measure.Findings – Study results indicate that the increasing use of internet as an additional channel of marketing banking services has significantly improved the financial performance of community banks.Practical implications – These results show that online b...

Asymmetric farm–retail price transmission and market power: a new test

A finite mixture model is used to estimate farm–retail price transmission in the US fresh strawberry market. Results suggest two distinct pricing regimes associated with off- and peak-harvesting seasons. The market power parameter is significant in the peak-harvest regime, but not in the off-peak regime. Moreover, price changes are transmitted completely throughout the marketing channel in the off-peak regime when the market power parameter is zero, but not in the peak-harvest regime when the market power parameter is positive. This suggests that produce buyers are more apt to exercise market power when farm supplies are abundant than when they are scarce, and that the exercise of such power causes the farm–retail price linkage to become asymmetric.

Mixed and pure sharecropping in Nepal: empirical evidence supporting the traditional hypothesis

We analyse differences in input and output intensities across three comparative tenure regimes in Nepal, using two test methods: an F-test based on Hotellings T2 statistic, and a test which adapts Shabans (1987) methodology to include plot size and crop type. Our results reveal statistically significant differences in the three alternative systems of property rights assignments, which have implications for economic theory and policy relating to tenure systems.

Designing a Better Fair: How Important Are the Animals?

The opportunity to interact with animals is a potentially unique opportunity offered at the fair. Unfortunately, animals carry inherent risks that offer challenges for fair managers. By better understanding consumer preferences for specific fair attributes (e.g., opportunities with animals), fair managers can work to design a more appealing fair. This study explored respondents’ preferences toward fairs using a discrete choice experiment. Results suggest that including or improving fair amenities (opportunities with animals, amusement rides and related activities, cultural exhibits, and entertainment shows) positively influenced respondent utility, while increased admission cost and travel time negatively influenced respondent utility.

Examining the CRB index as a leading indicator for US inflation

This article analyses historical movements in the commodity futures market and its relationship to inflation. Specifically, the relationship between the Commodity Research Bureau (CRB) index and US inflation is investigated. The results show that the CRB index continues to be an effective early indicator of inflation. However, as the composition of the US economy changes, the CRB should continue to realign the index to maintain its long-term viability.