When are Forest Visits Valued the Most? An Analysis of the Seasonal Demand for Forest Recreation in Poland

While the demand for forest recreation has been a topic covered in many studies, little attention has been paid so far to seasonal demand. In a forest context, the seasonal analysis is particularly interesting because of inter-temporal change in forest attributes throughout the year which can influence trip-taking behavior. In this paper, the model of seasonal forest visitation is developed to provide a richer understanding of the role played by seasonal fluctuation on a distribution of forest social benefits. The analysis is based on an on-site survey conducted in four forests in Poland. Results show that the most valuable forest trips are those taken in fall and that seasonal trips are separable.     

An analysis of consumption behaviour of foreign tourists in Ireland

The objective of this article is to analyse the consumption behaviour of foreign tourists in Ireland. Based on the Almost Ideal Demand System, five demand systems are estimated, four representing the major source markets of tourists to Ireland, namely from Britain, North America, Mainland Europe and Rest of the World; and one aggregate model based on a pooled sample. Each system included six commodity aggregates representing the major consumables of tourists. Estimated models were statistically significant and the derived elasticities are theoretically consistent and empirically plausible. While there are some variations in the consumption patterns of tourists from different source markets, reflecting differences in consumer preferences and consumption habits, in general, tourist demand for the various Irish tourism goods and services is found to be price inelastic. This finding is consistent with a priori expectations, as tourists are obliged to consume whatever is available at the destination they visit. The lack of substitutes and perfect information on product markets offer limited consumption opportunities for the tourists. Nonetheless, the cross-price elasticity values for all commodities across the source markets indicate gross complementarity, which suggests that latent price sensitivity exists in the background. This is an area that needs further investigation and this finding may have significant, yet unknown, consequences for repeat visitation.     

Estimating the wetland rental fee: a case study involving a Taiwan wetland

Wetlands provide many functions that are both economic and recreational and are valuable in terms of their ecological diversity, while at the same time being nonmarket value products. The purpose of this study is to estimate the optimal wetland rental through estimations of both the demand and supply functions in relation to wetland. The wetland supply function is directly estimated based on the data provided by the owners of the wetland, while the estimation of the wetland input demand function involves using the bootstrapping and contingent visitation approaches. Such estimation approaches could also be applied to other nonmarket value products that give rise to environmental externalities. The estimation of rental fee could provide a long-term leasing contract that gives the landlord with a particular rent to lease their lands to support a wetland eco-tourism park to maintain wetland for substantial management. Several environmental management policy implications are also addressed.     

Lifetime Earnings, Discount Rate, Ability and the Demand for Post–compulsory Education in Men in England and Wales

Human capital theory suggests educational investments are made based on expected returns over the lifetime. Most other work in this field, particularly using British data, is based on demand models estimated in reduced form, with no earnings measures, or crudely constructed earnings measures, based on one or two earnings observations per individual.
We present a structural model of demand for educational investment which includes estimates of earnings paths for educational options as determinants of educational choice. This provides us with directly interpretable parameter estimates. The discount rate is also determined within our demand model.
Ability controlled earnings profiles are estimated by matching individuals from the General Household Survey to individuals in similar occupations from the National Child Development Survey (NCDS).
Our results show that expected earnings profiles vary according to observed ability and educational choice. Results from the demand model show that expected lifetime earnings have a significant impact on educational choice.
Other socio–demographic factors, particularly social class, also exhibit significant influences on the education decision. We estimate the discount rate to be lower than reported in other studies.     

Demand for sexual services in Britain: Does Sex Education Matter?

On survey data from 1999 to 2001 and 2010 to 2012, we estimate the demand for commercial sex among British men. We estimate a zero‐inflated count model, which takes into account the probability of not participating in the sex market and number of times with a prostitute. We find that sex education in school has a negative and significant role in the demand for paid sex. We also find that men with a typical middle‐class income are more likely to buy sex. Travelling abroad or living in London increases the likelihood of British men buying sex.     

ω‐Homothetic Preferences: Theory and Applications

This paper develops a new class of homothetic preferences which generate Marshallian demand curves for individual goods which can be concave, convex or linear in own price under the assumption that agents treat aggregate price indices as given (as in Dixit‐Stiglitz, 1977). The preferences are represented by a cost function which has two parameters: one determining the curvature of the Marshallian demand; the other determining the elasticity of demand when all prices are equal. The elasticity of demand varies with relative prices. Illustrative examples are given of Cournot duopoly and exchange rate pass‐through.     

Implications of CO<Subscript>2</Subscript> emissions trading for short-run electricity market outcomes in northwest Europe

We examine the short-run implications of CO₂ trading for power production, prices, emissions, and generator profits in northwest Europe in 2005. Simulation results from a transmission-constrained oligopoly model are compared with theoretical analyses to quantify price increases and windfall profits earned by generators. The analyses indicate that the rates at which CO₂ costs are passed through to wholesale prices are affected by market competitiveness, merit order changes, and elasticities of demand and supply. Emissions trading results in large windfall profits, much but not all of which is due to free allocation of allowances. Profits also increase for some generators because their generation mix has low emissions, and so they benefit from electricity price increases. Most emission reductions appear to be due to demand response not generation redispatch.      

On the Functional Form of Engel Curves: The Australian Household Expenditure Survey 1975–76*

This paper considers the properties of a class of models which is based on the Addilog demand system. These models not only fulfil the adding-up criterion but also ensure that the predicted expenditures are non-negative and a subset of these models permits the existence of saturation levels for certain commodities. A goodness of fit comparison between this class and other systems of Engel curves favours the Addilog model. The estimated expenditure elasticities compare favourably with previous estimates of Australian household expenditure patterns and it is observed that the elasticities for health and alcohol and tobacco expenditures have decreased substantially from their levels in the late 1960s.     

THE POST-KEYNESIAN ‘DEMAND FOR CREDIT’ MODEL*

The post-Keynesian ‘demand for credit’ model is a well-cited piece of empirical evidence to support the contention that the money supply is endogenously rather than exogenously determined. In this paper, the model is critically examined and found to be problematic in several ways. Cointegration techniques are used to estimate a similar model using Australian data.     

A cost-benefit analysis of restoring the Em River in Sweden: valuation of angling site characteristics and visitation frequency

This article uses Cost-Benefit Analysis (CBA) to evaluate restoration scenarios aimed at improving angling on the Em River in Sweden. We find that none of the proposed projects are socially profitable when considering only values associated with angling. We rely on a Choice Experiment (CE) to derive utilities and estimate the monetary value of angling site characteristics and then also use the utilities derived in a visitation frequency using a two-stage budgeting approach. The visitation frequency is then used to extract values for fishing license sales and business-related income. The case study illustrates how CBA can provide useful insights into the potential economic returns of environmental restoration projects. Our case study also indicates that the results in terms of Willingness-To-Pay (WTP) and visitation frequency are general findings – i.e. they appear similar across angling sites – which is particularly useful from a policy point of view because it supports the use of benefit transfer for more cost-effective river management.     

Analysis of the supply and demand in the TFT–LCD market

A methodology for the analysis of the supply and demand in the Thin-Film Transitor (TFT)-liquid crystal display (LCD) market in 2004 is proposed. The quarterly history supply and demand data are collected from 63 factories in Taiwan, Korea, Japan, and China during 2000–2003. This method takes into the account supply, demand, and differences between supply/demand. For the supply, a heuristic approach is used to forecast the future supply. For the demand, a transfer function model is used to forecast the future demand. The difference analysis of the supply and demand shows that it can predict whether or not there appears to be a shortage in the market of 2004. In addition, three important managerial implications such as pricing strategy, product-mix decision, and customer's priority are discussed in this paper.     

Efficient price and capacity choices under uncertain demand: An empirical analysis

Traditional economic analyses of the peak-load problem typically assume an unrealistic degree of regularity in demand during well-defined peak and off-peak periods. This issue is addressed through a comprehensive statistical model that separates demand into its systematic and stochastic components. This model is combined with a traditional economic model and applied to local telephone service, leading to substantive conclusions relevant for managerial decisions as well as further research, among them:

? Neglecting the systematicand stochastic structure of demand may lead to inefficient tariffs. Efficient measured service structures typically price individual callsbelow incremental capacity cost.

? Industry wide capacity decision rules that are exclusively driven by blockage probability targets during narrowly defined time periods may be economically inefficient.

? For telephone service, spot pricing, which sets high prices during periods ofactual congestion, has the potential to be considerably more efficient than traditional tariffs that set high prices during periods ofexpected congestion.

     

On the Variable Money Demand Elasticity: The Case of Taiwan

This study attempts to examine the money-demand function for Taiwan by applying the BCEA model of Savin and White (1978). Major Findings are: (1) the conventional double-log form is inappropriate for Taiwan; (2) the income elasticity of money demand rose from 1.29 in 1969. 2 to 1.74 in 1988. 3, compared to a range of 0.6 to 0.8 estimated for the U.S.; and (3) the interest elasticity of money demand varied from ?0.25 ti ?0.62 during the same period. The author has also found that estimated income and interest elasticities of money demand for the U.S. varied widely during 1970-1987. [310]     

Unilateral Climate Policy: Harmful or Even Disastrous?

This paper deals with possible foreign reactions to unilateral carbon demand reducing policies. It differentiates between demand side and supply side reactions as well as between intra- and inter-temporal shifts in greenhouse gas emissions. In our model, we integrate a stock-dependent marginal physical cost of extracting fossil fuels into Eichner and Pethig’s (Int Econ Rev 52(3):767–805, 2011) general equilibrium carbon leakage model. The results are as follows: Under similar but somewhat tighter conditions than those derived by Eichner and Pethig (Int Econ Rev 52(3):767–805, 2011), a weak green paradox arises. Furthermore, a strong green paradox can arise in our model under supplementary constraints. That means a “green” policy measure might not only lead to a harmful acceleration of fossil fuel extraction but to an increase in the cumulative climate damages at the same time. In some of these cases there is even a cumulative extraction expansion, which we consider disastrous.     

Scale and structure in economic modelling

In this paper an attempt is made to put together, within the same model, the supply and the demand side of the economic process. This is done by integrating the progress attained in two fields which have traditionally been considered separate: the input-output approach and the macroeconometric final demand approach. The composition of each traditional macroeconomic variable, determined within the model, is analysed into the functional headings which are peculiar for each variable (family budgets headings for personal consumption expenditures, investing sectors for investments, I-O sectors for output and so on). We can then identify for each variable a scale component - absolute level of the aggregated variable - and a structure component - its inner composition - which are mutually consistent. Two types of applications of the same model are then compared: simulation, where the parametric set is used to obtain the dynamic path of a specific scenario; and integrated impact multiplier analysis where scale and structure effects are evaluated with reference to all the potential behaviour of the system.     

Shocks and rigidities as determinants of CEE labour markets’ performance

In this article, the impact of real wage, productivity, labour demand and supply shocks on eight Central and Eastern European (CEE) economies from 1996–2007 is analysed with a panel structural vector error correction model. A set of long‐run restrictions derived from the dynamic stochastic general equilibrium (DSGE) model is used to identify structural shocks, and fluctuations in foreign demand are controlled for. We find that the propagation of shocks on CEE labour markets resembles that found for OECD countries. Labour demand shocks emerge as the main determinant of employment and unemployment variability in the short‐to‐medium run, but wage rigidities were equally important for observed labour market performance, especially in Poland, Czech Republic and Lithuania. We associate these rigidities with collective bargaining, minimum wage, active labour market policies and employment protection legislation.     

Access to credit and its determinants: A comparison of survey‐based measures

Measuring access to finance represents an important challenge in empirical studies. Due to data limitations, perception‐based indicators or the usage of finance are often used as approximations of access to finance. However, these approximations disregard firm‐specific differences in the demand for finance. We derive a direct measure of access to credit from firm‐level survey data and explicitly model credit demand. We study the determinants of access to credit and disentangle, in contrast to other measures, their effects on demand for and access to credit. We find that the usage of credit is not a sufficient approximation, while perception‐based indicators are surprisingly precise.     

The pricing of protected areas in nature-based tourism: A local perspective

This paper extends the literature on optimal pricing of recreation in protected areas by introducing price discrimination between groups of visitors and, given that the agency charges different prices to subsets of visitors, by including a distributional dimension that is particularly relevant for a national park agency receiving visitors from different origins. Other issues related to optimal entrance fees, including negative ecological impacts and positive spillover effects on local communities resulting from changes in visitation, are also discussed. Based on this model, the paper provides an estimation of optimal entrance fees and revenues for the Costa Rican system of protected areas.     

Stock prices and long-run demand for money: evidence from Malaysia

This paper investigates the money demand function for Malaysia in the 1971-1996 period using the multivariate cointegration and error correction model methodology. The results suggest that a stable long-run relationship exist between real M2, the interest rate differential, income and stock prices. Stock prices have a significant negative substitute effect on long-run as well as short-run broad-money demand (M2) and its omission can lead to serious misspecification in the money demand function. The analysis from the vector error correction model (VECM) and the Toda & Yamamoto (1995) causality tests find that money is endogenous and that there is at least a unidirectional relationship between stock prices and real M2. Stock prices Granger cause real M2 indirectly through income between interest rates and stock prices and stock prices and money stock. This paper comes to the conclusion that due to the endogeneity of money, M2 cannot be completely controlled by Malaysia's central bank. Therefore, in formulating future monetary policy, the response of money demand to stock prices should be considered.