A method for reducing information asymmetry in destination–airline relationships

We propose a measure of business risk in air travel demand at the route level that can reduce information asymmetry during route development negotiations between tourism destinations and airlines. Aviation-exposed risk (AER) conveys information about the level of uncertainty with regard to air travel demand from an airline’s perspective. Using AER, tourism destinations and air service development teams can evaluate their risks from the perspective of the airline and its network. From there, an assessment can be made as to the value of air services in certain circumstances, including whether a direct underwrite or risk share between airlines and destinations is viable and necessary. By applying a portfolio analysis to an airline’s network, we find evidence that AER does indeed mimic the actual capacity distribution of the network. This provides support for AER as a useful risk measure to be used in practice.     

Reactions to Shocks and Monetary Policy Regimes: Inflation Targeting Versus Flexible Currency Board in Sub‐Saharan Africa

The paper examines the monetary policy actions through which central banks in sub‐Saharan Africa have tried to eliminate the negative impacts of the shocks facing their economies. We compare two different monetary policy regimes: a currency board regime (in the CFA zone) and an inflation targeting policy regime (Ghana and South Africa) when central banks respond to demand, supply, and fiscal shocks. We extend the usual forecasting and policy analysis system models to replicate the economic features of these economies during the period 2002–12 and to evaluate the impact of several policies in response to these shocks. We find that both policies are inappropriate in helping the economies escape from the effects of negative demand shocks, both are essential when negative shocks to primary balance occur, while inflation targeting dominates the currency board regime as a strategy to cope with positive shocks to inflation.     

When Hosts Become Guests: Return Visits and Diasporic Identities in a Commonwealth Eastern Caribbean Community

The broad intent of this paper is to further contribute to the existing literature that addresses VFR tourism. It suggests that the return visit may ultimately be positioned as a form or type of travel within the larger category of VFR tourism, but a form or type that has built within it a more clear understanding of historic and social contexts and processes. The other broad intent of the paper is to highlight the importance of the relationship between the returning visitor, originating from diasporic communities abroad, and the host community as a stage for the negotiation of identities. The return visit is shown to reflect such underlying processes yet continue to incorporate aspects of individual motivation, which when taken together demonstrate the fluidity of diasporic spaces and transnational identity structures. Using data obtained from ethnographic fieldwork among social networks within the Commonwealth Eastern Caribbean community in Toronto, Canada, it is suggested that return visits are used to retain social histories and contextualise social and cultural backgrounds after migration. The implications for VFR tourism and the relationship between diasporas, transnationalism and tourism are discussed, as is a conceptual model of the return visit.     

Capacity Depreciation, Implicit Rental Price, and Investment Demand for Farm Tractors in Canada

Among the different factors pertaining to the demand for durable inputs in agriculture, the way the input depreciates over time is an important issue. This study investigates four alternative capacity depreciation patterns for farm tractors. While published estimates from government agencies implicitly assume convex capacity depreciation patterns, the results of this study demonstrate that the use of agricultural engineering data which depict a concave rather than convex pattern better reflect farmers' investment decisions. An implicit rental price measure is also proposed to account for the fact that the purchase price of a durable input is not an appropriate measure of the implicit rental cost of the asset.
Parmi les facteurs déterminants de la demande pour les biens durables en agriculture, la rapidité avec laquelle I'intrant se déprécie est certainement importante lors des décisions d'investissement. La présente etude analyse quatre différents scénarios de dépréciation pour les tracteurs agricoles au Canada. Bien que les données publiées par les agences gouver-nementales supposent implicitement que les biens durables se déprécient à un taux annuel constant, les résultats de cette etude montrent que I'utilisation de données basées sur la valeur productive de I'intrant telle que calculée sur une base expkrimentale donne de meil-leurs résultats statistiques dans I'estimation de la demande pour les tracteurs agricoles. De plus, une mesure du coût implicite de I'intrant est également proposée pour tenir compte du fait que le prix d'achat n'est pas une mesure appropriée dans I'analyse de la demande pour un bien durable.     

Analyse de la libéralisation des échanges de quotas entre le Québec et l'Ontario dans le secteur laitier

L'objectif de cette étude est d'estimer les fonctions d'offre et de demande & quota de lait & transformation au Québec et en Ontario et d'évaluer les impacts potentiels d'un marché des quotas entre ces deux provinces. Les fonctions d'offre et de demande sont estimées par la méthode des moindres carrés à deux étapes et ce, pour quatre marchés, soit les marches des quotas produits et non produits dans chaque province.
Les résultats montrent que la flexibilityé de la demande est en général plus élévie en valeur absolue que celle de l'offre. Les résultats indiquent de plus que l'offre de quotas est élastique par rapport aux prix. Le modèle est utilisé pour simuler l'ouverture des marchés entre le Québec et l'Ontario. Les résultats indiquent que si un marché des quotas avait existé en 1992, le Québec aurait vu son quota de mise en marché augmenter de 3,4 % durant l'année, au détriment de l'Ontario qui aurait vu le sien diminuer d'environ 5,1%.