Retail Leasing: The Determinants of Shopping Center Rents

The determinants of lease rentals are of fundamental importance to real estate researchers and practitioners. Retail leases are unique in that they typically have two rental components: a base rent and an "overage" rent equal to a percentage of the tenant's gross sales above some threshold level. In this paper, we develop and test a simple cash flow model of retail lease valuation that predicts that base rents are lower with higher percentage rent rates and are higher with greater threshold levels of sales. Using a sample of shopping center leases, regression analysis indicates that these tradeoffs are observed in the market.     

Interpersonal Stress Reactions and Service Quality Responses among Hospitality Industry Employees

Work stress is now recognised as a major issue in the human resource management arena, for both staff and management. Within the hospitality industry context, service quality issues are beginning to assume major importance in the success of many operations. This study has sought to understand interpersonal conflict work stress responses associated with hospitality industry employee-management conflict, together with approaches to service quality issues among a sample of Australian hospitality industry domain was the sole predictor of the clearer and more autonomous work role stress response, and the management service quality domain was the predictor of the better management communication stress response. Better communication by management presented as the dominant stress response, and was found to be particularly associated with femalae hospitality industry employees. Implications of these findings for both hospitality industry employees and for hospitality industry management are explored.     

Evaluating the Relative Impact of Fiscal Incentives and Trade Policies on the Returns to Manufacturing in Taiwan, 1955–1995*

In the present paper, an integrated cash flow model is developed to examine the relative impact of tax incentives, financial subsidies, and macroeconomic variables on the profitability of industrial investments. It allows for the variables in the model to interact with each other. An application of the model is carried out for Taiwan, which has implemented a variety of fiscal incentives over the past 40 years. The principal policy conclusion is that trade and macroeconomic policies are much more important than income tax incentives or subsidized finance policies in determining the success of Taiwan's industrialization process. The effects of all of the fiscal incentives are found to be much smaller than those of the trade policies or the fundamental trends in macroeconomic variables such as the movement of the real exchange rate and the real wage rate.     

Virtual schools

Virtual schools have already made their appearance. This paper examines the factors which promote or slow the spread of virtual schools. Technological change, economic rationalism, and the suitability of conventional schools for the information age are identified as reasons for the continued growth of virtual schools. Conversely, the identification of an appropriate pedagogy, the lack of required teaching skills, concerns for the reshaping of human values, socialisation, and the continued need for student supervision are seen as reasons why virtual schools will not rapidly overtake conventional ones. It is concluded that virtual schools will continue to increase in the 21st century, and that appropriate planning must be made for their impact.     

Immigration and the Australian Macroeconomy: Perspective and Prospective

Australia has long been a nation of immigrants. The economic purposes of migration and its economic consequences are major public policy issues. This selective review of research looks at the macroeconomic dimensions of this issue for Australia.     

To Bundle or Not to Bundle: Firms’ Choices under Pure Bundling

We examine the economic implications of pure bundling under the settings of monopoly and duopoly. We show that under monopoly and pure bundling of goods with independent demands, the bundled price is strictly less than the sum of the unbundled prices. In the setting of duopoly and Nash prices, we examine whether bundling can be used as a tool to deter entry. In contrast to the findings of previous studies, we show that with low entry costs, entry is deterred by unbundled as opposed to bundled sales. With high entry costs, however, the incumbent chooses to bundle.