Managing the international commons: Resource use and pollution control

The simultaneous management, in an international context, of free-access renewable resources and transboundary pollution, is examined in a dynamic game framework. First-best outcomes under international cooperation are determined and compared to noncooperative outcomes when countries follow linear Markov strategies. An international policy consisting of taxes on emissions and harvesting, with international redistribution of tax receipts, is used to achieve the cooperative solution. In addition, side payments may be required to prevent free riding and thus make the international policy implementable.Earlier versions of this paper were presented at the International WorkshopEconomic Aspects of International Water Resources Utilization in the Mediterranean Basin, Fondazione ENI Enrico Mattei, Milan, October 1993, and the Fifth Annual Conference of EAERE, Dublin, June 1994. I would like to thank Peter Berck, Charles Kolstad, Mordechai Schechter, and two anonymous referees for their valuable comments.     

Good practices on cost – effective road infrastructure safety investments

The paper presents the findings of a research project aiming to quantify and subsequently classify several infrastructure-related road safety measures, based on the international experience attained through extensive and selected literature review and additionally on a full consultation process including questionnaire surveys addressed to experts and relevant workshops. Initially, a review of selected research reports was carried out and an exhaustive list of road safety infrastructure investments covering all types of infrastructure was compiled. Individual investments were classified according to the infrastructure investment area and the type of investment and were thereafter analysed on the basis of key safety components. These investments were subsequently ranked in relation to their safety effects and implementation costs and on the basis of this ranking, a set of five most promising investments was selected for an in-depth analysis. The results suggest that the overall cost effectiveness of a road safety infrastructure investment is not always in direct correlation with the safety effect and is recommended that cost–benefit ratios and safety effects are always examined in conjunction with each other in order to identify the optimum solution for a specific road safety problem in specific conditions and with specific objectives.     

The Short‐term Determinants of Capital Flows for a Small Open Economy: The Case of Greece

This paper presents the factors driving capital flows inwards and outwards of a small open economy such as Greece during the period 1983–2009. Apart from the determinants of capital flows the possibility of speculative attacks is also considered. Applying the ordinary least squares (OLS) method it is found that variables linked to external factors such as the differential of domestic and foreign interest rates and financial crises, such as the Asian and Russian financial turmoil of 1997 and 1998 respectively, are the main factors influencing capital inflows and outflows in Greece during the period 1983–2009. Additionally the results of probit analysis support that the same factors are significant in determining the probability of speculative attacks to the Greek economy.     

Quality,Satisfaction and Customers’ Future Intention: The Case of Hotels’ Fitness Centers in Cyprus

In an era of fierce competition, financial hardship, and volatile customer expectations the hospitality industry is seeking out new revenue centers that can both enrich the customer experience, and contribute to financial success. Capturing the attention of the industry, fitness centers have become a fundamental component of the contemporary hospitality experience with numerous strategic, operational and tactical implications. Responding to the need for further empirical investigation, the study, by adopting a quantitative methodology, holistically investigates quality, satisfaction, and behavioral intention in fitness centers currently operating in upscale hospitality establishments in Cyprus. Findings suggest that satisfaction with the provision of fitness services in hotels is primarily associated with the dimensions of employee behavior and workout facilities. Moreover, workout facilities was the only quality dimension which was significantly associated with the respondents’ intention to renew their membership, whereas a strong relationship between satisfaction and future intention was substantiated.     

Asset Prices and the Financial Crisis of 2007–09: An Overview of Theories and Policies

The financial crisis of 2007–09 has led to a rethinking of the role of monetary and financial regulatory policy. It has also called into question the benefits of financial innovation and monetary policy that focuses solely on inflation and the output gap. This paper discusses financial instabilities in general, the recent financial crisis as well as the appropriate role of monetary and financial regulatory policy in dealing with asset bubbles. The paper concludes by evaluating appropriate policies to reduce the economic impact of future financial crises.     

Energy balance climate models and general equilibrium optimal mitigation policies

In a general equilibrium model of the world economy, we develop a two-dimensional energy balance climate model featuring heat diffusion and anthropogenic forcing driven by global fossil fuel use across the sphere of the Earth. This introduces an endogenous location dependent temperature function, driving spatial characteristics, in terms of location dependent damages resulting from local temperature anomalies into the standard climate-economy framework. We solve the social planner's problem and characterize the competitive equilibrium for two polar cases differentiated by the degree of market integration. We define optimal taxes on fossil fuel use and how they may implement the planning solution. Our results suggest that if the implementation of international transfers across latitudes is not possible then optimal taxes are in general spatially non-homogeneous and may be lower at poorer latitudes. The degree of spatial differentiation of optimal taxes depends on heat transportation. By employing the properties of the spatial model, we show by numerical simulations how the impact of thermal transport across latitudes on welfare can be studied.     

Ethical Behaviour of Tertiary Education Students in Cyprus

The purpose of this research was to investigate, for the first time, tertiary education students’ ethical judgements in the Republic of Cyprus academic environment. The authors developed and administered a quantitative questionnaire to a sample of 1,000 individuals currently pursuing accredited degrees at two tertiary institutions. Statistical analysis revealed four factors, named violation of school regulations, selfishness, cheating, and computer ethics that describe students’ ethical judgements in the academic environment. The results indicate that students exhibit the lowest tolerance with ethical issues relevant with selfishness and highest with issues relevant with computer ethics. In addition, a number of differences were revealed when the authors investigated the relationship between the four retained factors and variables such as gender, year of study, type of academic discipline, and religion. Finally, reflecting on the research findings, a number of practical recommendations are made mainly to educational institutions that wish to redefine their policies and procedures regarding ethics within their academic environment.     

The impact of information signals on market prices when agents have non-linear trading rules

Several methods have been developed for filtering seasonal influences and extreme returns in financial and economic time series. The theoretical support for these approaches is rather questionable since it focuses on the effects of shocks on prices and not on their sources. Removing such effects modifies the true generating system of market dynamics because of the non-proportional character of non-linearity. Thus, taking into account that the underlying process of economic time series is highly non-linear we cannot be certain a priori what the impact of new information will be on the dynamic structure of a system. The main contribution of this paper is to demonstrate using the methodology of simulations the eventual distortions in time series data arising from the arrival of news when agents follow non-linear trading strategies. We argue that if news can really modify the dynamical behaviour of a system, then the methodology of filtering exogenous distortions needs to be re-examined.