Entrepreneurial ability, income distribution, and international trade

This paper develops a two-sector model in which the firms in one sector are heterogeneous due to differences in the level of ability between entrepreneurs. Changes in prices lead to entry or exit of marginal firms and changes in the size of infra-marginal firms. The effects of endowment changes and output price changes are shown to depend on factor intensities of marginal and infra-marginal firms. Conflicts between entrepreneurs may arise over commercial policies if factor intensities differ sufficiently in the heterogeneous sector.     

Marketing Period Risk in a Portfolio Context: Theory and Empirical Estimates from the UK Commercial Real Estate Market

The role of selling (or marketing) period uncertainty in understanding risk associated with property investment is examined in this paper. Using an approach developed by Lin (2004), and Lin and Vandell (2001, 2005), combined with a statistical model of UK commercial property transactions, we show that the ex ante level of risk exposure for a commercial real estate investor is around one and a half times that obtained from historical statistics. The risk related to marketing time uncertainty can be reduced by constructing a portfolio. We find that at least ten properties are necessary to reduce this risk, assuming independence between marketing period risk and price risk. These findings have important implications for mixed-asset portfolio allocation decisions.      

INPUT QUALITY,RELATIONAL CONTRACTS AND INTERNATIONAL OUTSOURCING

Abstract. This paper presents a Ricardian trade model in which the quality of intermediate inputs affects the productivity of labour at the final production stage. The role of contracting frictions is shown by comparing the chain of comparative advantage obtained with full information with that resulting when the quality of inputs is affected by actions that are not verifiable in court. Conditions are derived under which parties can use the potential for repeat business (relational contracts) to sustain efficient production choices. These results yield predictions for how country and industry characteristics will affect the level of contracting frictions.     

Sensation‐Seeking Attributes Associated with Storm‐Chasing Tourists: Implications for Future Engagement

This study explores recreational storm chasing, a new form of niche tourism. In particular, this study examines sensation‐seeking traits associated with participants' socio‐demographics, storm‐chasing involvement and tour satisfaction levels. Results show that recreational storm chasers scored highest on Experience Seeking and lowest on Boredom Susceptibility sensation‐seeking dimensions. Correlation tests showed that several socio‐demographic, storm‐chasing involvement and tour satisfaction indicators are associated with Thrill and Adventure Seeking, Boredom Susceptibility, and Experience Seeking dimensions. Marketing and management implications of study results also are discussed. Copyright © 2011 John Wiley & Sons, Ltd.