Is the public sector too large in an economy with club goods? A case when consumers differ in both tastes and incomes

In an archetypal economy with a single private good and a single shared good, the latter represents the public sector. With the shared good a club good, we ask if second-best (SB) provision of it is too small, as usually claimed for pure public goods. When consumers differ only in exogenous incomes, if the club good is a superior good in a single-club economy, overprovision in the SB occurs if club good demand is convex in income. We show this can extend to an economy where consumers differ in both tastes and incomes, depending on the covariances between consumers' incomes and their relative strength of preference for the club and private goods, and the covariances between incomes and taste parameters.     

New development: Exploring public service markets

The authors explain why public service markets are fundamentally different from regulated utilities markets by looking at the product characteristics, market structure, funding oversight and legal arrangements in such markets. They highlight the issues which will be important as marketized delivery becomes increasingly mainstream in public services provision.     

Where is Urban Politics?

We outline the rationale for reopening the issue of the spatiality of the ‘urban’ in urban politics. There is a long tradition of arguing about the distinctive political qualities of urban sites, practices and processes. Recent work often relies on spatial concepts or metaphors that anchor various political phenomena to cities while simultaneously putting the specificity of the urban itself in question. This symposium seeks to extend debates about the relationship between the urban and the political. Instead of asking ‘what is urban politics?’, seeking a definition of the urban as a starting point we begin by asking ‘where is urban politics?’. This question orients all of the contributions to this symposium, and it allows each to trace diverse political dimensions of urban life and living beyond the confines of ‘the city’ as classically conceived. The symposium engages with ‘the urban question’ through diverse settings and objects, including infrastructures, in‐between spaces, professional cultures, transnational and postcolonial spaces and spaces of sovereignty. Contributions draw on a range of intellectual perspectives, including geography, urban studies, political science and political theory, anthropology, cultural studies, sociology, planning and environmental studies — indicating the range of intellectual traditions that can and do inform the investigation of the urban/political nexus.     

The Market's Valuation of Fraudulently Reported Earnings

This study examines the market valuation of accounting earnings during the period before it is publicly revealed that the earnings are fraudulent. Using both cross‐sectional and time‐series valuation models, we first find that the market accords less weight to earnings when the accounting numbers are fraudulent. We also show that the market better anticipates the presence of fraud when there is information in the public domain indicating a high ex‐ante risk of fraud. Our findings suggest that investors are able to accurately assess the probability of fraud and that such assessments affect the market's valuation of earnings even before it is publicly announced that fraud has occurred.     

Unionization and the Pattern of Nonunion Wages: Evidence for the UK

This paper presents the first examination of the effect of unionisation on the distribution of nonunion wages in the UK. We test a hypothesis that has received considerable attention in the US: that the threat of unionisation leads nonunion firms to increase the earnings of their lowest paid workers, so compressing their internal wage distribution. In aggregate we find little support for this hypothesis in the UK and suggest that the supportive evidence from the US may be a function of the absence of suitable linked employer-employee data.     

Globalisation,airline alliances and tourism: A strategic perspective

The forces driving globalisation have impelled the majority of international airlines to enter into strategic alliance arrangements. Strategic alliances have enabled airlines to work around structural problems of the industry, particularly foreign ownership restrictions, national regulatory constraints and constraints on building up networks. The history of alliances, to date, shows them to be changing and unstable. Alliances will probably continue to be a feature of the international airline industry, but the forms and membership of alliances may well change further in the future. Further deregulation and liberalisation of the industry could mean that alliances become less important in the future, if deregulation allows mergers and acquisitions of airlines across national borders. Two scenarios of possible futures are presented, with an assessment of their impacts on tourism, as an aid to strategic analysis.     

Tourist perception of environmental impact

This study investigated the relationship between measured environmental impact and tourists' perception of it, at ten sites in Central Australia. A positive relationship between annual visitation to a site and measurable impact was found, despite the small amount of tourism impact in the area. Tourists' perception of impact varied in degree. A majority identified relevant environmental threats (tourism or introduced species), while a smaller proportion suggested management options to address track spreading, the major impact identified by this study. Overall, environmental conditions were rated lower at sites with a higher intensity of impacts, reflecting some tourists' ability to distinguish impacts.     

Fisheries Management Under Cyclical Population Dynamics

Cycles in environmental conditions (e.g., sea-surface temperature) directly impact fish growth. This paper extends the classical Gordon-Schaefer fishery model by replacing the constant growth rate with a cyclical growth rate. The optimal harvest rate is shown to fluctuate, but the cycle of the harvest rate lags the cycle of the biological growth function with the highest harvest rate occurring after biological conditions start to decline. Simulations contrast various fishing policies and illustrate the proclivity to crash a fishery if it is wrongfully managed as if there is a constant growth rate with i.i.d. environmental shocks. Finally, we show that small cyclical fluctuations in one species can result in large fluctuations in the optimal harvest rate of another species if the fish species are interlinked through predator-prey relationships.