Economic Effect of Zoning Regulations on Korea's Small and Medium‐Sized Retailers*

In this paper, we investigated the economic effects of zoning regulations on the retail industry in Korea. We estimated the changes in the number of sales for retail stores using a panel regression analysis for stores in traditional markets. This analysis was conducted to examine the benefit of zoning regulations on retail stores. Our results show that the zoning regulations (called Traditional Commercial Activity Protection Zones) have contributed to an improvement in the actual business performance of small independent retailers. We found that the amount of sales for each store clearly increased on average in the areas designated as Traditional Commercial Activity Protection Zones where there was no market entry of mega supermarket chains (called SSM in Korea). We also present evidence that the effects of this policy differ geographically: the effects were stronger for small and medium cities than for large metropolitan cities. These results suggest that zoning regulations enacted by the government to protect traditional markets and small retailers should also consider regional differences when assessing policy effectiveness.     

Effects of consumer cohorts and age on meat expenditures in the United States

Meat demand is likely influenced by the birth cohort and age of the individual. In this study, we examine the demand for beef, pork, poultry, and other meat in the United States using the 1984–2012 Consumer Expenditure Survey and the almost ideal demand system with the incorporation of age, period, and cohort (APC) effects. We find that the model with APC effects performs better than the models without APC effects. The results indicate that cohorts born in earlier time periods are expected to purchase significantly less poultry compared to cohorts born in later time periods, when they are measured at the same age. Over the life cycle, purchase of poultry is expected to increase with age while the opposite is true for red meat. We also find that the own-price elasticity for beef is highest among the products examined, while the own-price elasticity for other meat is lowest and the inclusion of APC effects increases the absolute value of the own-price elasticities for beef, pork, and poultry, but reduces the own-price elasticity for other meat. Our forecasts indicate that the aggregate poultry purchase will continue to increase until 2022, while the aggregate purchase of red meat will slightly increase until 2017, but will either decrease or stay at same level from year 2017 to 2022.     

Evaluation of the Survey of Professional Forecasters in the Greenbook’s Loss Function

Journal of Quantitative Economics - We aim to find a forecast in the Survey of Professional Forecasters (SPF) that is closest to the Greenbook forecast of the Federal Reserve Board. To do it, we...     

Factor Heterogeneity,Factor Market Imperfection and Trade

This paper develops a tractable model of examining how factor heterogeneity and imperfect factor market interact for determining a pattern of trade. Institution plays a crucial role for the interaction. In my work, firm productivity is defined as a composition of factor productivity and technology. Thus, input selection should affect the pattern of Melitz’s intra-industry allocation due to the incurring transaction cost. For a simple model, I assume two factors (labor and capital) and two sectors, which are relatively less institution-dependent and relatively more institution-dependent. When the economy is open, effect of the transaction cost on income distribution is more drastic for an institutionally underdeveloped country. Depending on institutional quality, the economic openness reallocates resource across countries through job creation or job destruction. The job turnovers redistribute income between heterogeneous labors within countries. The income redistribution is catalyzed by international mobility of capital. As a result, income disparity is widened between the institutionally developed country and the institutionally underdeveloped country. This paper can contribute to the literature of institution and international trade.     

Poverty in US Lesbian and Gay Couple Households

Poverty is a widely researched topic in economics. However, despite growing research on the economic lives of lesbians and gay men in the United States since the mid 1990s, very little is known about poverty in same-sex couple households. This study uses American Community Survey data from 2010 to 2014 to calculate poverty rates for households headed by different-sex versus same-sex couples. Comparing households with similar characteristics, the results show that those headed by same-sex couples are more likely to be in poverty than those headed by different-sex married couples. Despite that overall disadvantage, a decomposition of the poverty risk shows that same-sex couples are protected from poverty by their higher levels of education and labor force participation, and their lower probability of having a child in the home. Lastly, the role of gender – above and beyond sexual orientation – is clear in the greater vulnerability to poverty for lesbian couples.     

Chaebol,Unions, and the Profitability of Korean Firms Before and After the Crisis

Before the 1997 crisis, Korean firms destroyed shareholder value and chronically produced nonperforming loans for financial institutions. In particular, chaebol‐affiliated and unionized firms did so, with lower profitability among the financially unsound firms. Chaebol and unions thus functioned as institutional devices whereby managers and workers undermined the interest of taxpayers as well as shareholders. After the crisis, firms no longer destroy shareholder value or produce nonperforming loans. Chaebol‐affiliated and unionized firms have higher profitability among the financially unsound firms. Chaebol and unions have thus ceased to function as institutional devices whereby managers and workers undermine the interest of shareholders and taxpayers. Copyright © 2013 John Wiley & Sons, Ltd.     

Enhancing customers’ brand loyalty via branded hotel apps

Many hotels have launched their own branded mobile applications to develop relationships with customers. Yet, research examining the benefits of branded hotel apps on brand loyalty is scant. The current research investigates the role of branded hotel apps on brand loyalty through customer engagement and brand trust in the hotel industry, based on uses and gratifications theory. Results identified cognitive and social benefits of the branded hotel apps positively influenced customer engagement and brand trust. Hedonic benefits positively influenced customer engagement and they indirectly influenced brand trust through customer engagement. Both customer engagement and brand trust positively influenced brand loyalty. Moreover, mediation effects of customer engagement and brand trust were identified. Results highlight how branded hotel apps serve as a facilitator of brand loyalty, providing theoretical and managerial implications.     

Progression,Stability, or Decline? Sociological Mechanisms Underlying Change in Specialization Among Birdwatchers

Using a panel of American birdwatchers collected in 1997 and 2002, we tested the extent to which birdwatchers progressed over a five-year period. The impact different career contingencies and life course events had on predicting change in birdwatchers' behavior, skill, and commitment was also examined. Findings indicated that although progression characterized some birdwatchers' participation, involvement by others was better characterized by stability or decline, which was true for each of the indicators used to measure specialization. Career contingencies and life course changes had only a moderate influence on predicting change in the specialization indicators over time. Support from family members and retirement were the best predictors of change in specialization.     

Estimating the Economic Impact of Convention and Exhibition Businesses,Using a Regional Input–Output Model: A Case Study of the Daejeon Convention Center in South Korea

Past research on the economic impact of convention and exhibition businesses has neglected disaggregated expenditures of these consumer groups. The primary reason for this neglect is that estimating the economic impacts of these businesses is complicated and requires comprehensive surveys of various consumer groups. Thus, this study estimated expenditures based on surveys to different consumers such as convention and exhibition visitors, convention and exhibition organizers, and exhibitors. This study also employed a regional input–output (I–O) model and then matched the types of expenditure patterns with the I–O table. Survey results show that exhibition visitors spent the largest amount (US$153 million), followed by convention attendees (US$48 million), convention organizers (US$47 million), exhibition organizers (US$3.3 million), and exhibitors (US$2.8 million). The results of the I–O model indicate that the Daejeon Convention Center generated US$488 million of output impact, US$102 million of income impact, US$233 million of value added impact, and 10,211 jobs.