Changes in consumer spending behavior during the COVID-19 pandemic across product categories

We examine changes in online consumer spending during the COVID-19 pandemic. Specifically, we compare consumer spending on various product categories before the pandemic started to after. Unlike previous work, we not only look at the different consumer demographic profiles but also different product categories, providing a better understanding of spending behavior. E-commerce has been a favorite way of shopping for consumers before the pandemic, while some demographic groups were reluctant to use e-commerce. However, as pandemic-related restrictions on physical shopping were put in place, consumers found e-commerce the only way to shop for many essential products. As such, consumer online spending changed. We employ freshly released Canadian Perspectives Survey Series (CPSS) data on consumer spending by Statistics Canada. We examine the association between various demographic factors and the change in online spending empirically. Our findings indicate that, compared to their counterparts, younger consumers are more likely to have increased online spending on product categories related to internet connectivity and streaming services. Female consumers exhibit increased online spending on similar products, in addition to online learning services and home exercise equipment. Consumers living in urban areas exhibit a higher probability of increased online spending on computers, smartphone devices, internet connectivity, and food delivery services. Consumers with at least one child exhibit a similar trend. Larger households exhibit a considerable increase in the probability of increased online spending on food delivery services. Lastly, consumers with higher education exhibit a higher probability of increased online spending on products related to online learning and streaming services.

Economies of scale in constructing plant factories with artificial lighting and the economic viability of crop production

Since the introduction of LED lamps a decade ago, the plant factory with artificial lighting (PFAL) has been expected to be a savior that overcomes the food crisis, brings food safety, and enhances environmental friendliness. Despite such high expectations, the diffusion of commercial crop production in PFALs has been slow. It has been said that the main reason for this is the huge initial investment required to construct PFALs. This situation has attracted studies to access the economic feasibility of the crop production in PFALs. One thing strange in these studies is that they pay little attention to the scale of their PFALs. PFALs are factories so that they would be subject to economies of scale. If so, the scale of PFALs is an important factor that determines the economic feasibility of plant production in PFALs. However, no study has thus far attempted to examine whether economies of scale exist in the construction of PFALs. To fill this gap, this paper tries to examine, based on the data on the investment cost of PFAL construction collected from various countries and regions in the world, whether economies of scale exist in PFAL construction and, if yes, how it affects the economic viability of the plant production in PFALs by searching for the minimum scale that ensures PFAL crop production economically viable. The results show that economies of scale exist in PFAL construction, and that the production of lettuce, PFALs' most popular crop, is now well on a commercial basis with the technology level of the most advanced PFAL operators, but strawberries has not reached that stage yet. It is also shown that crop production in PFALs is highly sensitive to changes in the yield and the price of the crops: A 30% decline either in the yield or the price of lettuce would easily bring PFALs bankruptcy. It is discussed that the optimum scale of PFALs would depend not only on the economies of scale but also on the transaction costs, such as the costs of searching and keeping a sufficient number of buyers who offer good and stable crop prices.

Does Smartphone Use Improve the Dietary Diversity of Rural Residents? Evidence from Household Survey Data from 5 Provinces

The use of smartphones has profoundly changed the consumption patterns and living conditions of rural residents, but there is little research on how smartphone use affects the food consumption patterns of rural residents. This paper uses survey data from 1047 farmers from five Chinese provinces in 2020 to investigate the impact of smartphone use on the dietary diversity of rural residents, the underlying mechanism, and the corresponding group-level heterogeneity. The study finds that smartphone use has a significantly positive effect on the dietary diversity of rural residents and that the dietary diversity scores of rural residents who use smartphones to access the internet are a significant 4.2% higher than those of rural residents who do not. The results are robust to the use of instrumental variables and propensity score matching to account for potential endogeneity. The income effect and the transaction cost effect are the two mechanisms by which smartphone use improves the dietary diversity of rural residents. Compared with elderly residents and members of low-income households, young and middle-aged people and members of high-income households are more likely to use smartphones to improve their dietary diversity. The following recommendations for further improving the dietary diversity of rural residents are made: continue to increase the internet penetration rate and smartphone coverage rate in rural areas, conduct public welfare lectures on smartphone usage and nutrition and health knowledge, and improve the e-commerce distribution infrastructure in rural areas.

COVID-19 pandemic and liquidity commonality

This paper shows how the US, UK, Germany and China are financially connected through their stock market liquidity in the COVID-19 pandemic. Using high frequency data on transaction costs, we identify a decrease in stock market liquidity and an increase in liquidity commonality amongst these countries after the World Health Organisation (WHO) declared the global pandemic. Furthermore, there is increased transmission of liquidity shocks from the country with higher COVID new cases and COVID-related death cases, indicating that markets are more connected with increased outbreak severity. Our results suggest that COVID-19 intensifies liquidity risk and worsens the vulnerability of individual stock market's liquidity to aggregate liquidity shocks in financial markets.

Making or buying evidence: Using transaction cost economics to understand decision-making in public school districts

We propose transaction cost economics theory as a tool for exploring when school administrators rely on information from two types of sources: internal sources like their own colleagues, and external sources like researchers and government agencies. The theory's application is illustrated in a comparative case study of two public school districts in Michigan. Consistent with the theory's predictions, the smaller, homogeneous, high-performing district used more external sources of information, while the larger, diverse, low-performing district used internal sources of information. We conclude by identifying some strengths and limitations of the theory, which can serve as starting points for debate.

Health care development: integrating transaction cost theory with social support theory

The emergence of Web 2.0 technologies has already been influential in many industries, and Web 2.0 applications are now beginning to have an impact on health care. These new technologies offer a promising approach for shaping the future of modern health care, with the potential for opening up new opportunities for the health care industry as it struggles to deal with challenges including the need to cut costs, the increasing demand for health services and the increasing cost of medical technology. Social media such as social networking sites are attracting more individuals to online health communities, contributing to an increase in the productivity of modern health care and reducing transaction costs. This study therefore examines the potential effect of social technologies, particularly social media, on health care development by adopting a social support/transaction cost perspective. Viewed through the lens of Information Systems, social support and transaction cost theories indicate that social media, particularly online health communities, positively support health care development. The results show that individuals join online health communities to share and receive social support, and these social interactions provide both informational and emotional support.