Testing for the Presence of Moral Hazard Using the Regulatory Reform in the Car Insurance Market: Case of Korea

The aim of this paper is to investigate the presence of the moral hazard phenomenon in the Korean car insurance market. In the context of natural experiment, I examine whether the regulatory reform introduced in 2000 generates significant difference in accident probability between before and after the reform. Further, I analyse the different effects of regulatory reform on different parts of the outcome distribution. In any case, I do not find the significant effects of regulatory reform on accident probability.     

The privatization of Korea’s Incheon International Airport

This study looks at the possible effects of the planned privatization of Incheon International Airport, Korea. To accomplish this, it uses a Delphi analysis involving nearly 50 experts to assess six possible scenarios that, for example, look at airport strategy and planning, financial, operations and approach facilities, and fees.     

Mature consumers’ patronage motives and the importance of attributes regarding HMR based on the food-related lifestyles of the upper middle class

The objectives of this study are to explore the food-related lifestyle segments of the mature market, to identify its socio-demographic characteristics, and to investigate the differences in their attitudes toward Home Meal Replacement (HMR). A survey was conducted of adults 55 years of age and older living in Seoul, South Korea. Out of the 600 distributed questionnaires, 361 were retained for final analysis, which is a response rate of 60%. Cluster analysis identified five consumer segments. Significant differences were found among the five segments in terms of socio-demographic characteristics and attitudes toward HMR. This study shows operators of HMR the patronage motives and attributes that each segment values when considering HMR.     

OPTIONAL REAL-TIME PRICING OF ELECTRICITY FOR INDUSTRIAL FIRMS

Abstract. This paper proposes a pricing mechanism, optional real-time pricing (RTP), with day-ahead hourly prices, that exploits the potential offered by a competitive wholesale power market. When an electric utility offers the option to its industrial customers, the retail prices are based on an existing Hopkinson tariff and expectations as to the wholesale market's next-day hourly spot prices. The proposed RTP mechanism is Pareto-superior to the tariff in that it assures both the utility and the customer of profits that will be at least as great as under the tariff.     

Latin America After the Argentine Crisis: Diminishing Financial Market Integration

Original Papers

Latin America After the Argentine Crisis: Diminishing Financial Market Integration     

Chinese lessons: state-owned enterprises and the regulation of foreign investment in Canada

A recent influx of Asian investment is changing the character of the Canadian oil and gas industry and reviving old debates on the regulation of foreign investment. Particular attention has been placed on investment by state-owned enterprises (SOEs), driven in part by public suspicion about investment from China, which has been the largest source of SOE capital flows to Canada. Recent amendments to the Investment Canada Act have made SOE investment more difficult and have raised questions about the country’s attractiveness as an investment destination. This paper makes the case for non-discrimination of SOEs in the investment review process. In the context of a policy framework that is fundamentally supportive of inward foreign direct investment (FDI), the Canadian government does not require a set of redundant measures to protect against the relatively low risk of undesirable investment.     

The effects of ethical leadership on manager job satisfaction,commitment, behavioral outcomes,and firm performance

This study investigates the effects of ethical leadership on a hotel middle manager's job satisfaction and affective commitment, which in turn influence that manager's behavioral outcomes (e.g., extra effort and turnover intention) that can also impact the hotel's performance. Mail surveys were distributed to 30 U.S. hotels, representing more than 8 different national and international brands, and 324 middle managers participated in the survey. This study demonstrates that executives’ ethical leadership is positively related to their middle managers’ job satisfaction and their affective organizational commitment. Middle managers’ job satisfaction is positively related to organizational commitment, but job satisfaction does not necessarily lead to their willingness to exert extra effort. The positive linkage between middle managers’ extra effort and the hotel's competitive performance is also confirmed.     

Understanding the Decline of China's State Sector

MOCT-MOST: Economic Policy in Transitional Economies -