An interdisciplinary approach to regional land use analysis using GIS, with applications to the Atlantic Zone of Costa Rica

Policy makers and other stakeholders concerned with regional rural development increasingly face the need for instruments that can improve transparency in the policy debate and that enhance understanding of opportunities for and limitations to development. To this end, a methodology called SOLUS (Sustainable Options for Land Use) was developed by an interdisciplinary team of scientists over a 10-year period in the Atlantic Zone of Costa Rica. The main tools of SOLUS include a linear programming (LP) model, two expert systems that define technical coefficients for a large number of production activities, and a geographic information system (GIS). A five-step procedure was developed for GIS to spatially reference biophysical and economic parameters, to create input for the expert systems and the LP model, to store and spatially reference model output data, and to create maps of both model input and output data. SOLUS can be used to evaluate the potential effects of alternative policies and incentive structures on the performance of the agricultural sector. A number of practical applications demonstrate SOLUS's capability to quantify trade-offs between economic objectives (income, employment) and environmental sustainability (soil nutrient balances, pesticide use, greenhouse gas emissions). GIS-created maps visualize the spatial aspects of such trade-offs and indicate hotspots where local goals may conflict with regional goals.     

Wealth effects on consumption in financial crises: the case of Norway

A dynamic consumption function, where consumption in the long run is determined by households’ disposable income and wealth, has been superior to the Euler equation in explaining the development of Norwegian aggregate consumption over several decades. This period covers the years of financial deregulation in the mid 1980s, the banking crisis around 1990 following the deregulation and the current international financial crisis. In the current version, long run consumption is homogeneous in income and wealth and there is also a significant effect from after-tax real interest rates. A change in the correlation pattern between real interest rates and wealth, which is related to a change in the monetary policy regime, is the reason why both variables need to be included in the long run relationship in order to explain the development over the period 2005q1–2008q4.     

Price rules, wage indexing, and optimal monetary policy

There has been a recent increased interest in a monetary price rule. This paper analyzes the efficiency of such a monetary rule within the context of a rational expectations macro model. We compare the price rule with the standard money rule and interest rate rule. We find that as the supply shock variance approaches zero the price rule dominates both a money and interest rate rule. We then investigate the efficiency of these alternative money rules when we allow wage indexation to the price level.     

Airline mergers and their effect on network structure

The Airline Deregulation Act of 1978 introduced high-level competition into the US domestic industry. The resulting network changes have created a deluge of research, largely focused on the hub-and-spoke structure. Over 15 years have passed since deregulation, and the industry still appears somewhat unsettled. Recent concerns of domestic carriers include downsizing of some hubs, and discussions of further consolidation of operations. Mergers may be the answer for airlines with shrinking markets within the US transportation system. This study examines the effect on network structure created by the merger of two carriers from the perspective of hub structures, accessibility and geographic coverage.     

Marginal and total production cost indices: Theory and applications

We show that the total cost of production index and the marginal cost of production index may be used to illuminate the course of an industry's evolution. Each of these summary statistics conveys different bits of information about the industry. Theoretical properties of the indices are compared, and then the indices are applied to data from the steel industry to illustrate how changes in the indices over time reflect fundamental changes in industry conditions.The refereeing process of this paper was handled through W. Eichhorn.     

Job Creation, Job Destruction, and the International Division of Labor

The authors incorporate equilibrium unemployment due to imperfect matching into a model of trade in intermediate inputs. Firms are assumed to be price‐takers and their size is given by technology. Firms enter the market as long as expected profits cover the search cost they incur initially; jobs are endogenously destroyed by random shocks that affect firms’ price–cost margins. Trade increases productivity in the final good and then demand for each intermediate input. Steady‐state unemployment is reduced after trade integration because the rate of job destruction is reduced, which in turn induces an indirect positive effect on job creation. A more volatile environment faced by firms does not necessarily increase unemployment. However, the rate of job destruction unambiguously rises, and rises more under free trade.     

Choosing how to pay: The influence of foreign backgrounds

Is having a foreign background a relevant factor in choosing between payment instruments in consumer point-of-sale transactions after migration? We analyze this question using a unique diary survey in which both participants with a Dutch and a foreign background documented their daily purchases. We present several pieces of evidence suggesting that foreign backgrounds still influence the choice between payment instruments after migration to the Netherlands. For instance, we find that first-generation migrants from a number of countries that can be seen as cash-oriented are more likely to use cash in the Netherlands. At the same time, second-generation migrants have similar payment habits as individuals with a Dutch background. This finding suggests that payment behavior is not passed on between generations, but affected by host country payment habits. Finally, we suggest that, in this context, special information campaigns to increase debit card usage will not have clear net social benefits.     

The long and short of asking questions about income: a comparison using data from Hungary

A lot of research on income mobility and income inequality is based on survey questions about income. Various question formats are being used. Researchers seem to assume that the actual format used delivers the best estimate of the “true” income. However, surprisingly little empirical support is available for this claim. We implemented an experimental design using the short and long versions of income questions in a Hungarian survey. Results show an overall positive difference between the long and short version. The differences are related to the income components (wages and salaries, transfers, and assets), and respondent characteristics, controlling for the effect of the order of the two versions of income questions. Based on the results, we provide some recommendations for implementing income questions in surveys.     

State-controlled economies vs. rent-seeking states: Why small and medium enterprises might support state officials

This study examines the reasons for support that small and medium enterprises (SMEs) provide to government representatives of their choice (in the form of donations, influence through their networks, information and votes). The study tests stakeholder and social capital approaches as legitimate explanations for SMEs’ relationships with state representatives in different transition economies, specifically Belarus and Ukraine. The study shows that the stakeholder approach is sensitive to business environments and more applicable in a rent-seeking state where the parties perceive value in their exchange. Social relations motivate the SMEs’ support in both types of transition economies.     

Sectoral Effects of Monetary Policy: The Evidence from Publicly Traded Firms

This article examines the impact of monetary policy on net sales of publicly traded firms in various sectors of the U.S. economy. We find that monetary policy has a heterogeneous effect on firms in different industries, with the strongest effect on firms in Retail and Wholesaling. Balance sheet characteristics, especially size, influence the impact of policy. Larger firms in several industries are able to mitigate the effect of policy. We find mixed results for firms' working capital, short‐term debt ratio, and leverage ratio with respect to the operation of the credit channel of monetary transmission mechanism.