Purchasing power

About: Purchasing power is a research topic. Over the lifetime, 2714 publications have been published within this topic receiving 36866 citations. The topic is also known as: adjusted for inflation.

The price of cigarettes in the European Union

Abstract: BACKGROUND—A major factor influencing tobacco use is its price. Fiscal policies on tobacco are a key ingredient of any comprehensive control strategy, as they can be used to raise prices. The European Union (EU) developed directives to ensure some harmonisation of the fiscal pressure on tobacco across its member states. OBJECTIVES—To provide a simple comparison of tobacco prices in the EU, adjusting for the purchasing power of each currency. DESIGN—For price comparisons, a 20 units pack of Marlboro was the reference product, and data refer to April 2000. Purchasing power parities (PPP) for each member state currency have been compiled. These are currency conversion rates, which convert to a common currency and equalise the purchasing power of different currencies. MAIN OUTCOME MEASURES—Nominal prices of a Marlboro pack for each member state, and a price index, estimated taking as reference the EU mean. Adjusted prices and an adjusted price index have been estimated using PPP. RESULTS—Nominal prices show wide variation, with the cheapest pack in Portugal (59) and the most expensive in the UK (196); the range of variation is three-fold. However, PPP adjusted prices reveal a different distribution. In three countries adjusted prices are outliers, but all other countries make two clusters, one around the average EU index of 100, the other around a lower value of 85. CONCLUSIONS—These results suggest that fiscal harmonisation policies in the EU do not have an even effect at reducing availability by its impact in price. Keywords: cigarette price; fiscal policy; health policy; European Union.

Consumer market for functional foods in South Brazil.

Abstract: This study aims at investigating the consumer market for functional foods (FF) in Porto Alegre, South Brazil. Functional food is any healthy food claimed to have a health-promoting or disease-preventing property beyond the basic function of supplying nutrients. Health has been named as the most significant trend and innovation driver in the global food and drinks market. Brazil is one of the leading countries in food production and consumption, and the market for functional foods have been growing 10% per year, three times more than the market for conventional foods. Although this food category is considered mature in some developed markets (such as in Japan, in the Nordic countries and in the U.S), it is still unknown for many consumers, especially those located in developing countries. On the other hand, functional foods has been attracting the attention of multinationals and local food industries in Brazil, since innovation can significantly impact on their competitive advantages. Therefore, in this study, first we are going to identify the availability of functional food products in the local retail market, through observation techniques. Our aim is to confront consumers’ needs with local food companies’ market supply. Secondly, we investigate consumers’ motivations, attitudes and intention to buy functional foods, since the market demands a better understanding of this trend. A survey with 450 consumers was conducted and provided quantitative insights. Results indicate that the market for functional foods in Rio Grande do Sul is incipient, but it is developing fast. There are few local functional food products in the market, but those are attractive to consumers and indicate promising opportunities. The survey shows that interviewed consumers presented positive attitudes towards functional foods and enough purchasing power to buy it. Dieticians, nutritionists and other health professionals have high credibility and could help inform consumers about the benefits of particular categories of functional foods. Food industry itself is not regarded as the most trustworthy source, what indicates the need of more attention to this fact from a corporate point of view. Finally, this study shows that the understanding of Brazilian consumers is fundamental to help food companies define their strategies. To map the most accepted categories of functional foods is also important, aiming to avoid the "tentative and error" approach.

Alternatives to Fundholding

Abstract: The new Labour government in the United Kingdom is proposing to adapt the reforms begun by the last Thatcher government. In particular, it is proposing to abolish the most controversial element--general practitioner (GP) fundholding. It is looking for alternatives. The study reported here followed and evaluated several such schemes. While fundholders use their purchasing power directly to force change by threatening "exit" to another provider, other GPs have evolved ways of influencing decisions--enhancing their "voice." The authors develop a theory to predict the conditions favoring the relative success of exit and voice strategies in health purchasing, and describe alternative GP-based purchasing schemes and the reasons they evolved in six sample districts. In four of these districts and eight practices in each, fundholding and non-fundholding GPs were then asked to describe their intentions and the outcomes of the purchasing process in which they had participated. Four specialties were taken as examples. The authors compare the relative success of fundholders and non-fundholders in achieving their objectives.

Construction costs in The Netherlands in an international context

Abstract: OECD purchasing power parities (PPPs) are used regularly in strategic governmental policy papers to compare the performance of construction industries among countries. These PPPs suggest that the relative competitiveness of the Dutch construction sector is fairly weak compared with surrounding countries. This contradicts the general view that the Dutch construction industry is very productive and efficient, especially in house-building. For the member countries of the European Union the OECD uses data from Eurostat, the statistical office of the European Union. In this paper the methodology followed by OECD/Eurostat in their calculation of PPPs for construction is reviewed. The data for five European countries (Netherlands, Belgium, UK, France and Germany) are analysed. Next, the Eurostat results are placed alongside the results of other international building cost comparisons. The differences are observed and the conclusion is that the Eurostat PPPs do not reflect the real construction price or cost diff...

Food Security in Thailand: Status, Rural Poor Vulnerability, and Some Policy Options

Abstract: Agricultural development policy in Thailand over the past few decades has been importantly concerned not only with the country’s food security, but also with its export earnings. Thailand is a food surplus country at the macro level. In terms of food accessibility, however, especially at the household level, it remains a problem, particularly in the rural remote areas. A recent increase in food price and production cost has inevitably impacted on Thailand’s rural poor. With a declining purchasing power, these poor households face the risk of food insecurity as they may reduce the food intake of more nutritious food. The impact of rising food prices on agricultural households depends on whether they are net buyers of food. In the case of rice farming households, the share of net buyers was higher for households with smaller land holdings. Also, the poor rice farmers in Thailand were hardly hit by the higher production cost and input prices since their net profit largely declined. It is found that while nearly two-thirds of their operating cost was paid, they only received one-tenth from the rice sold . For overcoming future impacts of high food price and rising production cost on rural poor, a provision of off-farm employment and micro-credit facilities with technical assistance and proper farm management plans should be targeted to small farmers and the rural poor. In the longer-run, it is suggested that empowering small-scale farmer capacity building based on sufficiency economy concepts is necessary for further development. This can work if it is coupled with farm productivity enhancement through agricultural research investment and improvement of village-pool water resources including on-farm water resource management and investment.