Exploring the interaction between incubators and industrial clusters: the case of the itri incubator in Taiwan

This article aims to explore the interaction between incubators and industrial clusters, which is an important linkage for local development but has not been analyzed in the literature. A model is proposed to describe this interaction. The Industrial Technology Research Institute (ITRI) Incubator within the Hsinchu industrial cluster, the core of Taiwan's technology industries, is considered to be an empirical case. This case is investigated with the proposed model and methods including data analysis, in–depth interviews, manager surveys and stakeholder analysis. It was found that the clustering effect in the Hsinchu industrial cluster is main factor in the ITRI Incubator's development. The ITRI Incubator in turn reinforces the cluster in some aspects as feedback. This result confirms the existence and importance of this interaction in local development. It is recommended that government officials and incubator managers take account of this interaction in operating an incubator program and utilize the proposed model to analyze the incubator's contributions to its industrial cluster.     

Generating Enhanced Fishery Rents by Internalizing Product Quality Characteristics

This paper demonstrates howadditional rents are generated in a fisherycharacterized by intraseasonal variation infish characteristics, including size,condition, and composition. Based on anexpanded conceptual model of the optimalharvest rule, fish characteristics affect preand post harvest production yields and outputprices. A dynamic empirical model, which uses asystem of quality characteristics and anhedonic equation, illustrates the complexrelationships and management choices associatedwith internalizing seafood qualitycharacteristics in a hake fishery. The modelretains the regulated open access managementsystem, but controls intertemporal andintersectoral quotas, production portfolios,and total allowable catch. Results demonstratethat including revenue-side effects frominternalizing fish quality can generatesignificantly greater rents and reduce therelative benefits of increased productionyields. If excluded, bioeconomic models canunderestimate the level of regulatory rentdissipation and overemphasize managementobjectives such as full utilization, whichcould misdirect processing decisions and resultin a suboptimal resource management plan.Implications for data collection,multidisciplinary analysis, and improvements inmarine resource management are discussed.     

Do Mothers Matter? A Comparison of Models of the Influence of Mothers' and Fathers' Educational and Occupational Status on Children's Educational Attainment

The first objective of this article is to clarify which model best captures the structure and trend of the influence of social origin on children's education. The second objective is to analyse how general conclusions on historical trends in educational reproduction change if we add mother's status background to the model. Six contrasting hypotheses are derived fromthe body of literature dealing with models on families' socioeconomic status. All hypotheses are translated into empirical models and their explained variance is compared. A pooled data set is used that contains data from the Netherlands, West Germany, and the USA. The Modified Dominance Model, that distinguishes the influence of the highest from thelowest status parent, has the best model fit. Regarding the second objective we see that adding the mother's influence to that of the father's does not change general conclusions on trends in educational reproduction. Over time the influence of both parents decreases continuously. However, the influence of the mother's education and occupational status on children's educational attainment is substantive.     

The Austrian current account deficit: Driven by twin deficits or by intertemporal expenditure allocation?

The evidence presented in the paper rejects the twin deficit hypothesis for the Austrian current account balance during the last two decades. The results are based on an estimate of a vector error correction model including quarterly data for the current account balance and potentially relevant variables driving its dynamics. We compute the variance decomposition of the current account's forecast error and its generalized impulse responses to shocks in the innovations of the system. The results in favor of intertemporal expenditure reallocation cannot be reproduced within a second analysis including the current account and a measure of net output, however. The estimated implicit current account balance, interpreted as the discounted expected change in future net output, does not follow the actual behaviour of the current account. First version received: June 1999/Final version received: March 2001     

Equipment replacement policy: a survey

Over the past ten years there has been a considerable increase in application of theoretically correct measurement methods in determining the economic life of equipment. Approximately 89% of the firms surveyed have equipment replacement policies. The discounted rate of return method is the most widely used in determining the service life of equipment; the MAPI formula is not widely used. Difficulties in applying a replacement policy can be classified into three groups: operational, organizational, and economic. The problems mentioned most often are operational. In organizational difficulties there is usually a lack of coordination between staff and line managers. Economic problems are generally the limited funds available for equipment replacement. Formal educational programs are lacking for the development of equipment replacement managers. For the firms having replacement policies, individuals with engineering degrees are preferred over those in other disciplines for the management of the equipment replacement policy.     

Current Account, Capital Formation and Terms of Trade Shocks: a Revisit of the Harberger-Laursen-Metzler Effect

This paper extends the Blanchard model of a closed-economy to a three-good (exportable, importable and non-tradable goods) open-economy model with capital accumulation and uncertain lifetimes to study the impacts of terms of trade shocks on the current account. The simulation results show that a model with uncertain lifetimes is more appropriate to describe a small open economy like Taiwan at the steady-state equilibrium than a model with infinite lifetimes. We find that the Harberger-Laursen-Metzler effect is discernible for temporary or permanent terms of trade shocks. Furthermore, the steady state is a saddle point and the speed of convergence of capital and consumption is quite low.     

ADVERSE SELECTION IN ELECTRONIC MARKETS: EVIDENCE FROM ONLINE STAMP AUCTIONS

We analyze adverse selection costs in online stamp auctions, based on a comparison of prices on eBay with those of matched stamps at a specialty stamps auction site in the U.S., Michael Rogers, Inc. (MR), which we know a priori has low quality uncertainty. We find that buyer prices are 10–15% lower on eBay as compared to MR, and the price difference, increases with the value of the stamps. Consistent with this adverse selection discount we find that the seller reputation mechanism on eBay has an economically modest, although statistically significant, effect on auction price and probability of sale.     

Fair value disclosures and crash risk

In response to the public criticism of the inadequate disclosures mandated by SFAS No. 157, Fair Value Measurements, the FASB issued ASU (Accounting Standards Update) 2010–06, Improving Disclosures about Fair Value Measurements, and ASU 2011–04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements, in an effort to increase the reporting transparency. We examine whether the increased fair value disclosures required by these two updates effectively decrease crash risk, defined as the frequency of extreme negative stock returns. In support of the hypothesis, we find that increased transparency from these updates reduces crash risk among U.S. banking firms and that the reduction is greater in banks that have a higher level of Level 3 financial assets.     

How to catch their attention? Taiwanese flashpackers inferring their travel motivation from personal development and travel experience

Backpackers first appeared in the seventeenth century. The twenty-first century has witnessed the rise of a new backpacker subculture given the changing times: one that is closely related to technology use is called flashpackers. The research discussed in this article explores the relationships between travel experience, personal development, and travel motivation of flashpackers. The study uses convenience sampling taken in the lobby of Taiwan Taoyuan International Airport. A total of 400 questionnaires were issued and 375 valid questionnaires were recovered; the rate of return was 93.8%. The results of this study are the following: (1) there are differences between travel experience and travel motivation for Taiwan’s flashpackers; (2) there is a relationship between personal development and travel experience of Taiwan’s flashpackers; (3) there is a correlation between personal development and travel motivation for Taiwan’s flashpackers; and (4) personal development moderately affects the relationship between travel experience and travel motivation for Taiwan’s flashpackers. This study contributes to the tourism industry by enhancing direct targeting of customers, and it provides hospitality and travel agency managers with the means to determine appropriate marketing strategies for flashpackers.