Research

Abstract: The study explores the impact of brand-level information contained in media advertising on consumer decision-making when purchasing non-durable experience goods. Utilizing a random coefficient discrete-choice model on the ready-to-eat cereal industry, I consider the effects of advertising via nationwide media on consumer choices. Building on previous studies, I propose a new group of instrumental variables for addressing endogeneity and incorporating demographic household information on the consumers who purchased. I discuss strategic marketing implications for businesses, arguing that high brand awareness comes from extensive advertisements through multiple channels. The results suggest that carbohydrate-related features, in particular, need to be carefully advertised to children-orientated ready-to-eat cereal products. In addition, advertised brands have higher loyalty, and consumers are less sensitive to their prices.

Abstract: The study explores the impact of second-generation rent control, also known as rent stabilization, on the housing market in the Twin Cities by using the two-way fixed difference-in-difference (DiD) approach and event study strategy. Rent regulations are differentiated in Saint Paul and Minneapolis, where two cities are considered natural groups close enough to share similar demographic and geographic features, allowing exploration policy intervention on housing market indices over time. The study primarily focuses on the monthly home value affected by the rent stabilization at the neighborhood level. A triple difference-in-difference (DDD) model is employed for the robustness test. The results suggest that rent stabilization depresses the values of smaller homes more substantially, whereas larger homes face less direct policy-induced devaluation. The dynamic effect reveals that regulatory interventions can distort property market valuations, particularly for homes that are more susceptible to changes in investor expectations and future rental constraints. Moreover, the policy has less direct impact across building structures, including single-family homes and condominiums.

Abstract: Inflationary shocks directly impact the decisions made by individual consumers regarding everyday purchasing decisions of nondurable goods that are repurchased regularly. Using data from NielsenIQ , this paper examines these purchasing decisions in response to the high inflation experienced in 2022 following the COVID-19 pandemic. By examining how individuals adjust their consumption patterns in response to price increases, this study offers valuable insights for policymakers and businesses seeking to better understand and respond to inflation-driven changes in purchasing behavior. A fixed effects model with instrumental variables is employed to address potential endogeneity, and the results reveal that the impact of inflation on households is not uniform. Instead, consumer responses vary significantly across demographic groups and product categories.