Consumption externality, efficiency and optimal taxation in one-sector growth model

In an economy with consumption externalities, existing studies find that a competitive equilibrium is efficient in the long run and remains efficient in transitions if preferences are homothetic. This paper revisits the efficiency issue in an otherwise standard one-sector growth model where consumption externalities affect a utility via their effects on the time preference. We find that even if preferences are homothetic, the externality changes the marginal rate of substitution between now and future and leads to a disparity in the intertemporal elasticity of substitution between the centrally planned economy and a decentralized economy. As a result, a competitive equilibrium is inefficient in transition dynamics. We characterize an optimal tax/subsidy structure that enables the allocation in a decentralized economy to replicate the social optimum.     

Pricing and hedging of quanto range accrual notes under Gaussian HJM with cross‐currency Levy processes

This study analyzes the pricing and hedging problems for quanto range accrual notes (RANs) under the Heath‐Jarrow‐Morton (HJM) framework with Levy processes for instantaneous domestic and foreign forward interest rates. We consider the effects of jump risk on both interest rates and exchange rates in the pricing of the notes. We first derive the pricing formula for quanto double interest rate digital options and quanto contingent payoff options; then we apply the method proposed by Turnbull (Journal of Derivatives, 1995, 3, 92–101) to replicate the quanto RAN by a combination of the quanto double interest rate digital options and the quanto contingent payoff options. Using the pricing formulas derived in this study, we obtain the hedging position for each issue of quanto RANs. In addition, by simulation and assuming the jump risk to follow a compound Poisson process, we further analyze the effects of jump risk and exchange rate risk on the coupons receivable in holding a RAN. © 2009 Wiley Periodicals, Inc. Jrl Fut Mark 29:973–998, 2009     

The impact of military technology transfer on economic growth: international evidence

The purpose of this article is to measure the impact of military technology transfer on economic growth for 67 selected countries during the period 2000 to 2005 through the application of the Malmquist productivity index, which is broken down into efficiency change and technical change. Our main findings are as follows. First, technology diffusion is all-pervading in half of the sampled countries due to pure efficiency and scale efficiency changes. Second, a higher-income level and an excess of arms imports lead to innovative activities. Third, middle-income countries have higher efficiency and pure efficiency changes; these contribute to higher total productivity change. Finally, after separating the impact of capital investment from that of arms imports, the diffusion of military technology has a more positive and substantial impact on economic growth, thereby revealing the presence of externalities between countries.     

Corporate Philanthropy,Research Networks,and Collaborative Innovation

Using a unique data set of corporate philanthropic activities, we find that direct giving activities are positively associated both with higher levels of innovation and innovation that is more influential, collaborative, and original. Our results suggest that much of what is ostensibly promoted as philanthropy actually reflects research‐related networking activities. The effect of direct giving on innovation is more pronounced in more opaque firms and more innovative and competitive industries. These findings provide evidence of the distinct motives by which firms choose between direct giving and foundation giving. Our study suggests that firms can use direct philanthropy to expand firm‐boundaries by developing innovation with research partners.     

Lobbying, corruption and “optimal” tariff

This paper explores how a government officer enacts “optimum” import policy when confronting lobbies on trade policies from both domestic and foreign firms in a transition economy. Two results are found: firstly, if the inducement from the foreign firm on the government officer works, then the optimum tariff is negative, that is, import subsidy. However, this subsidy will turn to a positive tariff rate with the increasing lobbying inducement from domestic firms. Secondly, zero tariff duty is not an optimum choice under most circumstances. Besides, an asymmetric result is that when these two firms’ marginal costs are different, the optimum policy is to levy an import tariff on the one whose marginal cost is relatively small, while the other firm will get an import subsidy.     

Optimizing the Information Outsourcing Practices of Primary Care Medical Organizations Using Entropy and TOPSIS

As clinics strive to select information technology contractors that meet their particular outsourcing needs, the medical sector urgently needs evaluation criteria for outsourcing to information technology contractors to alleviate unnecessary risks and achieve an excellent performance. Therefore, this work presents an entropy combined technique for order preference by similarity to ideal solution (TOPSIS)-based decision-making method for clinics to objectively assess the quality of an information technology supplier when outsourcing their medical information needs, as an alternative to previous decision-making approaches based on subjective evaluations. Each sub-criterion for outsourcing vendors is evaluated using the Delphi method. Moreover, results of interviews with experts are integrated with the entropy method to calculate each criterion of an objective evaluation weight for medical information system (MIS) vendors. Furthermore, a TOPSIS-based survey is designed using comparison to effectively respond to MIS outsourcing demand scores for each item. Furthermore, the proposed entropy and TOPSIS-based decision-making method can provide administrators in hospital clinics with a decision-making and evaluation criteria that actively encourage the medical sector to outsource its information technology needs to contractors.     

Projected Images of Major Chinese Outbound Destinations

This study aimed to explore the projected images of major outbound destinations based on popular travel magazines in China. Travel articles on Hong Kong, Macau, Japan, South Korea, Vietnam and Taiwan from 2006 to 2008 were content analyzed. Japan was reported on most, and the projected images of the six destinations are dominated by leisure and recreation, and culture, history and art. Correspondence analysis was used to examine relationships between destinations and popular image attributes. The results showed that South Korea and Macau had distinct projected images, whereas Japan, Taiwan, Hong Kong and Vietnam shared many similar image attributes. Practical implications for destination marketing organizations are provided.     

Structuring critical success factors of airline safety management system using a hybrid model

With the global trend of legal requirement for a performance-based Safety Management System (SMS), to develop and implement an SMS to deliver services has become the most important goal within the airline industry. Yet there found some discrepancies concerning the use and the manner that SMS was being explained and taught. Therefore, this research aims to develop a quantitative evaluation model, which identifies the key components of airline SMS and considers the interaction between key components. To explore the core value of SMS, an extensive review regarding SMS components are firstly conducted and summarized from major aviation organizations and authorities, and then Grey Relational Analysis is used to group and select key components. After the critical components are derived, Decision Making Trial Evaluation Laboratory and Analytic Network Process are employed to analyze and map out all kinds of interactions among critical components and dimensions systematically. An empirical study is presented to illustrate the application of the proposed methods. From the results of the combined approaches, Organization is the most important dimension in SMS, which begins with Policies that convey to all staff the top managers’ vision on safety.     

Divergence in Variety Seeking: An Exploratory Study Among International Travelers in Asia

ABSTRACT

Variety seeking is a tendency in consumer behavior in which the consumer alternates between different makes of the same item in the quest for diversity. Variety seeking and exploratory behaviors help explain tourists’ consumption behavior and choice-making methods. Some studies have focused on the choice of food, restaurants, theme parks, travel activities, or destinations, but only a few have taken place within an international context. In this study, the influence of variety seeking and exploratory buying on travelers’ consumption behavior within an international context is analyzed. In essence, Asian travelers are compared with Western travelers. Several factors, which help explain divergence in variety seeking, are included in the analysis. The results demonstrate that variety seeking and an exploratory tendency have a significant relationship with travelers’ consumption behavior (for both Asian and Western travelers). In general, customers who have a high tendency for variety seeking are less loyal; however, there is no discernible difference between Asian and Western tourists in this regard.     

Market segmentation of fresh meat shoppers in Taiwan

Fresh meat product retailing at traditional markets in Taiwan causes concerns over meat safety issues.The agricultural administration has established programmes to raise consumer awareness of potential risks of fresh meat that have remained at room temperature for several hours. Although supermarkets sell chilled and frozen meat products, the majority of grocery shoppers in Taiwan still prefer purchasing fresh meat products at traditional markets where meat is displayed on counters or hung on hooks. This study utilizes survey data to segment meat shoppers in Taiwan. Results indicate the shoppers who purchase meat products at supermarkets tend to continue shopping at that location. Potential shoppers of supermarkets, who may switch from traditional markets to supermarkets for meat products, are identified and the major concerns of this group are the meat safety issues. Factors that influence the possibilities of selecting supermarkets for meat products are examined.