On the Phelps–Koopmans theorem

We examine whether the Phelps–Koopmans theorem is valid in models with nonconvex production technologies. We argue that a nonstationary path that converges to a capital stock above the smallest golden rule may indeed be efficient. This finding has the important implication that “capital overaccumulation” need not always imply inefficiency. Under mild regularity and smoothness assumptions, we provide an almost-complete characterization of situations in which every path with limit in excess of the smallest golden rule must be inefficient, so that a version of the Phelps–Koopmans theorem can be recovered. Finally, we establish that a nonconvergent path with limiting capital stocks above (and bounded away from) the smallest golden rule can be efficient, even if the model admits a unique golden rule. Thus the Phelps–Koopmans theorem in its general form fails to be valid, and we argue that this failure is robust across nonconvex models of growth.     

On Ramseyʼs conjecture

Studying a one-sector economy populated by finitely many heterogeneous households that are subject to no-borrowing constraints, we confirm a conjecture by Frank P. Ramsey according to which, in the long run, society would be divided into the set of patient households who own the entire capital stock and impatient ones without any physical wealth. More specifically, we prove (i) that there exists a unique steady state equilibrium that is globally asymptotically stable and (ii) that along every equilibrium the most patient household owns the entire capital of the economy after some finite time. Furthermore, we prove that despite the presence of the no-borrowing constraints all equilibria are efficient. Our results are derived for the continuous-time formulation of the model that was originally used by Ramsey, and they stand in stark contrast to results that – over the last three decades – have been found in the discrete-time version of the model.     

Decomposition of Technological Change and Factor Bias in Indian Power Sector: An Unbalanced Panel Data Approach

Technological change and factor bias in the Indian power sector are analyzed using a translog cost function. Various components of technological progress and factor bias are identified and estimated, using a 21 year unbalanced panel data of Indian states and union territories. Heterogeneity across states is incorporated in the model using a variance component model. Appropriate corrections are made for unbalanced panel data. Empirical results show that the annual average rate of technological progress has been 2.4% for the country as a whole. Accumulation of knowledge and increasing scale are found to be the major factors contributing to technological progress. In contrast, the effects of factor price changes and fixed capital accumulation on technological progress have been unfavorable. Pure factor bias measure indicate saving in the use of fuel and labor, and increased use of materials. Tests are performed to check the curvature properties of the underlying technology.     

The new urban landscape: Developers and edge cities

In this paper we model the decisions of an edge city developer who chooses business district capacity and location strategically to maximize profits. The developer competes against a core city with historically given downtown capacity for employment and, implicitly, residential population. Moving nearer the core city enhances production efficiency by increasing the efficiency of the exchange of information between businesses in the core and edge city. On the other hand, it increases typical residential rents and commuting costs (and hence wages demanded by employees) and weakens the developer's local monopsony power. The developer's choice of location and capacity play out in a complex but fascinating fashion, depending on the historical capacity of the downtown.     

Competitive strategy in remanufacturing and the impact of take-back laws

This paper examines the impact of take-back laws within a manufacturer/remanufacturer competitive framework. Take-back laws require that firms take responsibility for the collection/disposal costs of their products. We consider two alternative implementations of take-back laws that are distinguished by the degree of control that the manufacturer has on returns sold to the remanufacturer. In one implementation, known as collective WEEE take-back, the manufacturer has no control over returns sold to the remanufacturer. The other implementation, known as individual WEEE take-back, gives complete control to the manufacturer.We develop a general two-period model to investigate questions of interest to policy-makers in government and managers in industry. Our results suggest that, in some settings, enactment of collective WEEE take-back will result in higher manufacturer and remanufacturer profits while simultaneously spurring remanufacturing activity and reducing the tax burden on society. A negative effect is higher consumer prices in the market. In other settings, we find that collective WEEE take-back introduces a structural change to the industry—creating an environment where remanufacturing becomes profitable when it is not profitable without a take-back law. With respect to individual WEEE take-back, we find that the manufacturer often benefits from allowing the remanufacturer to enter the market, though from a government policy-maker perspective, there are clear risks of monopolistic behavior.     

Can the built environment explain gender gap in cycling? An exploration of university students' travel behavior in Toronto,Canada

The benefits of cycling as a healthier and more sustainable transportation alternative to private automobile is emphasized in both literature and policy. One key policy challenge in improving cycling rates is the significant gender gap in cycling that exists across urban regions in North America. In this study, travel behavior of >10,000 students attending four universities in Toronto, Canada, was analyzed to explore gender-based differences in cycling uptake. The mode share for cycling was higher for non-commute trips (9%) when compared to commuting trips to universities (7.6%). In addition, men had higher cycling rates than women, for both commute and non-commute trips. Results from binomial logistic regression models indicate that the built environment-related correlates were different between male and female students, and between commute and non-commute trips. Access to bicycle lanes or cycle tracks was found to increase the odds of female commuter cycling. This effect, however, was moderate in the neighborhoods with higher land use mix. Further, high-speed traffic was a significant barrier to cycling among female commuters. Noticeably, our analysis did not find major gender-based differences in the coefficients relating to travel attitudes and preferences. The findings provide a Canadian comparison to the limited international research on this topic, as well as offer new insights particularly relating to cycling for non-commute trips. The results identify potential avenues for policy intervention regarding the promotion of healthy and sustainable travel behavior among post-secondary students, and more broadly, the millennial generation.     

Destination brand experience and visitor behavior: the mediating role of destination brand identification

ABSTRACT

Destination branding has emerged as a critical tool for achieving competitive advantage through various conceptualizations, focusing on various aspects of branding. This research examines the role of destination brand experience (DBE), a new conceptualization, in assessing the holistic and unified view of tourism destinations. The conceptual model proposed in this research has been validated using structural equation modeling, based on the primary responses collected from 312 and 262 foreign visitors for study 1 and study 2 respectively, conducted at two different tourism destinations in India. Findings of both the studies suggest that various dimensions of DBE have a varied influence on destination brand identification (DBI), which subsequently affects both tourists’ trust and loyalty toward tourism destinations. In addition, DBI emerges as an important mediator for the relationship between DBE and destination trust (DT) as well as DBE and destination loyalty (DL). The study provides several implications for destination marketers about building trust and loyalty among tourists using DBE and DBI.     

Warranty as a Signal of Quality: The Moderating Effect of Consumer Knowledge on Quality Evaluations

Prior research has shown that consumers use warranties as a signal of quality. This article explores whether prior knowledge moderates consumers' utilization of warranty information in evaluating product quality. In particular, we examine how prior knowledge impacts the relative use of warranty information when consumers are already aware of firm reputation. Indeed, we find that the extent to which warranty information is used in quality evaluations varies with prior knowledge. We report the results of two experiments, which somewhat surprisingly suggest that, for experts, a better warranty leads to perceptions of higher quality, regardless of firm reputation. Novices on the other hand, tend to perceive a better warranty as a signal of higher quality only when the firm is reputable but not when its reputation is low.