Erosion mitigation in the Waikato District,New Zealand: economic implications for agriculture

Soil erosion, in its various forms, is caused or aggravated by agricultural activities. Mitigation of surface erosion comprises the construction of shelterbelts, fencing, riparian buffering, and stock reduction. Mitigation of mass‐movement erosion, in turn, takes the form of spaced planting of trees to maintain a persistent, healthy, and complete ground cover. In this article, we assess the economic implications to agriculture of the adoption of mitigation alternatives for erosion control in the Waikato District, New Zealand. The Waikato District presents a spatial pattern of erosion that affects profitability of dairy, and sheep and beef enterprises. We use the Universal Soil Loss Equation and the New Zealand Empirical Erosion Model to estimate erosion figures that are then fed into an economic‐focused, nonlinear, partial equilibrium mathematical programming model of New Zealand land use. Different scenarios are constructed for surface and mass‐movement soil erosion targets ranging from 0% to 50% below baseline levels. We find that achieving surface erosion targets is more expensive than mass‐movement targets, and results in different responses in regional‐level costs, land use, enterprise net revenue, and adoption of mitigation alternatives.     

Von der Inflationsphobie bis zur „schwarzen Null“

The article examines some of the key statements of the supply-side economic theory that rejects debt-financed government investment programs for stabilizing high employment. It turns out that supply-side objections are not empirically proven. Subsequently, the author attempts to explain why nevertheless the supply-side paradigm stubbornly remains the prevailing theory in economics. It shows that the mechanisms of deliberative democracy in the economic decision-making in Germany do not work.     

Bundling attractions for rural tourism development

Tourism is often regarded as a viable solution to economic crisis, especially for remote areas without many development options. While many tourism destinations have strong cultural or heritage assets, not all destinations have primary attractions that can bring visitors to the region. Rather than developing special interest “themes”, rural areas that do not have enough of any one type of tourism resource to act as a primary draw may consider bundling different attraction types to increase visitation. The purpose of this study is to investigate the preferences of visitors to secondary heritage sites and explore the relationship between heritage tourism and alternative, non-heritage activities in rural areas. Findings revealed that motivation to visit small-scale heritage sites consisted of two dimensions: learning and recreation. The two motivational dimensions influenced visitors’ interest in different heritage attractions and likelihood of visiting heritage tourism “scenarios”. As for alternative activities, there was a cluster of “popular” activities that were enjoyed by both learning-oriented and recreation-oriented respondents, but recreation-oriented visitors were more interested in nature-based activities and sport-related activities than learning-oriented visitors. Findings can help rural communities improve secondary attractions and diversify their tourism product by bundling heritage attractions with non-heritage activities.     

Strip Clubs, “Secondary Effects” and Residential Property Prices

Municipalities regulate sexually oriented businesses (SOBs) through the “secondary effects” doctrine, which justifies limiting First Amendment speech protections inside SOBs. Negative effects of SOBs on nearby neighborhood quality are a frequently cited secondary effect. Little empirical evidence exists that SOBs generate such negative externalities. If SOBs generate negative externalities, then nearby property prices should decrease when a strip club opens. We estimate regression models of housing prices to determine the effect of new clubs on nearby residential property prices in Seattle, exploiting the termination of a 17‐year moratorium on openings and find no evidence that strip clubs have “secondary effects.”