Optimal Quotas, Price Competition And Products'' Attributes

We characterize the Nash equilibrium in the Hotelling model in the presence of an import quota. The optimal quota is identified and shown to be invariant to the mode of competition. We also prove that in the presence of a quota maximal differentiation is not achieved at equilibrium.     

International briefing 20: training and development in Andorra

This briefing investigates the status of the educational system and, more specifically, of continuing training in companies in the Principality of Andorra. Part of this analysis is based on a field study designed to explore and understand both the current situation and the training needs of the main sectors within the Andorran economy. A proposal for continuing training is posed, with reference to best practice from different countries, in particular Spain and France, which share geographic borders with the principality.     

ON THE APPLICATION OF EFFICIENCY ANALYSIS TO THE STUDY OF THE DIMENSIONS OF HUMAN DEVELOPMENT

This paper is an attempt to translate empirically some of the categorizations of human development reviewed by Alkire (2002) . It compares the estimates of human development obtained on the basis of Sen's (1985 ) capability approach, Narayan et al.'s (2000 ) dimensions of well‐being, Cummins (1996 ) domains of life satisfaction and Allardt's (1993 ) comparative Scandinavian welfare study. To obtain these estimates of human development use is made of techniques developed in efficiency analysis, an approach rarely applied to the study of consumption and standards of living (see, however, Lovell et al., 1994 ). Our database is the British Household Panel Survey. Our findings vindicate the multidimensional approach to human development but show a great empirical resemblance between the four conceptual approaches to well‐being.     

Monetary union in West Africa: who might gain,who might lose,and why?

Abstract.  We develop a model in which governments' financing needs exceed the socially optimal level because public resources are diverted to serve the narrow interests of the group in power. From a social welfare perspective, this results in undue pressure on the central bank to extract seigniorage. Monetary policy also suffers from an expansive bias, owing to the authorities' inability to precommit to price stability. Such a conjecture about the fiscal‐monetary policy mix appears quite relevant in Africa, with deep implications for the incentives of fiscally heterogeneous countries to form a currency union. We calibrate the model to data for West Africa and use it to assess proposed ECOWAS monetary unions. Fiscal heterogeneity indeed appears critical in shaping regional currency blocs that would be mutually beneficial for all their members. In particular, Nigeria's membership in the configurations currently envisaged would not be in the interests of other ECOWAS countries unless it were accompanied by effective containment on Nigeria's financing needs. JEL classification: E58, E61, E62, F33     

SKILL BIAS AND EMPLOYMENT FRICTIONS IN THE U.S. LABOR MARKET 1970–1990*

This article studies simultaneous changes in four labor market variables: the unemployment rates for college and high‐school graduates, the education wage premium, and the level of college participation. It develops an equilibrium search and matching model of the labor market where education is endogenously determined. Then the model is used to investigate quantitatively whether the change in the above labor market variables from 1970 to 1990 in the United States can be traced to changes in the environment. A skill‐biased change in technology together with an increase in employment frictions can explain much of the observed variation in these variables.     

Decentralized resource allocation and increasing returns

We study the possibility of designing a decentralized resource allocation mechanism that yields optimal solutions in economies with increasing returns. After a brief review of the mechanisms already designed to cope with nonconvexities, we find out that either they fail to provide efficient solutions in Koopmans' sense, or else they use extremely complex messages. The question arises whether it is possible to define a nonwasteful and privacy-preserving mechanism over a class of environments with increasing returns using finite-dimensional vectors as messages. We show that the answer is no.     

Social learning and costly information acquisition

Summary. Short-lived agents want to predict a random variable q\theta and have to decide how much effort to devote to collect private information and consequently how much to rely on public information. The latter is just a noisy average of past predictions. It is shown that costly information acquisition prevents an unbounded accumulation of public information if (and only if) the marginal cost to acquire information is positive at zero (C￠(0) > 0)(C^\prime (0) > 0). When C￠(0) = 0C^\prime (0) = 0 public precision at period n, _boxclose_boxclose\tau_n, tends to infinity with n but the rate of convergence of public information to q\theta is slowed down with respect to the exogenous information case. At the market outcome agents acquire too little private information. This happens either with respect to a (decentralized) first best benchmark or, for n large, with respect to a (decentralized) second best benchmark. For high discount factors the limit point of market public precision always falls short of the welfare benchmarks whenever C￠(0) > 0C^\prime (0) > 0. In the extreme, as the discount factor tends to one public precision tends to infinity in the welfare-optimal programs while it remains bounded at the market solution. Otherwise, if C￠(0) = 0C^\prime (0) = 0 public precision accumulates in an unbounded way both at the first and second best solutions. More public information may hurt at either the market or second best solutions.     

Destination Stakeholders' Perceptions of Volunteer Tourism: An Equity Theory Approach

This study explores destination stakeholders' perceptions of volunteer tourism (VT) using equity theory. In this paper, 26 semi‐structured interviews were conducted to understand individuals' needs, motivations, expectations and their assessments of inputs and outcomes. Equity theory sheds light on the micro‐level of interaction between residents and volunteers and demonstrates why and how residents of Cusco (Peru) with an active role in VT develop certain perceptions in direct encounters with volunteer tourists. The data reveal how perceptions differ according to the respondents' social roles within VT. Heterogeneity, dynamism and a fluctuation between materialities and affection are discussed as important outcomes of these interactions. Copyright © 2014 John Wiley & Sons, Ltd.     

Employee Turnover Intention in Travel Agencies: Analysis of Controllable and Uncontrollable Factors

High turnover rates have long been a problem and costly in many industries. Numerous studies have focused on the reasons for employee turnover; however, most have focused on the hospitality industry but scarce in travel agencies. Thus, this research aimed to examine the situation in travel agencies in Hong Kong. A sample of 200 frontline staff was selected by convenience sampling. The results indicated that five independent variables, namely, general job satisfaction, job hopping, job security, training opportunity and promotion opportunity are significantly related to turnover intention. The managerial implications of these findings and future research directions are also discussed. Copyright © 2014 John Wiley & Sons, Ltd.     

Market‐orientated Positioning of On‐farm Processed Foods as a Condition for Successful Farm Diversification

Farm diversification is stimulated within the reform of the common agricultural policy. On‐farm processing and direct marketing are options, but farmers often lack a marketoriented approach. This paper illustrates the problem by presenting a consumer survey regarding on‐farm processed yoghurt. Conjoint analysis is used to define the most preferred yoghurt in different market segments. Results of the price sensitivity meter are similar to the conjoint analysis. Farmers' price setting is not always adequate, which means that opportunities and additional income are lost. Providing the necessary assistance in collecting market information and commercial training is essential in obtaining sustainable benefits from on‐farm processing and direct marketing.