Predicting technical effciency in stochastic production frontier models in the presence of misspecification: a Monte-Carlo analysis

This paper provides a theoretical explanation for the sensitivity of technical efficiency measures to the choice of functional specification in stochastic production frontier models. It is shown that inappropriate functional specifications translate into a misspecification in the conditional mean of the stochastic frontier regression model. This misspecification, in turn, results in estimates of technical efficiency, confidence intervals and production elasticities being biased, even asymptotically. Monte-Carlo simulations reveal that the severity of the bias depends on the functional specification and the percentage contribution of the variance of technical inefficiency to the total variance of the composed errors.     

Multiple Job Holding,Skill Diversification,and Mobility

In this article, we investigate the interrelated dynamics of dual jobholding, human capital, occupational choice, and mobility, using a panel sample (1991–2005) of UK employees from the British Household Panel Survey. The evidence suggests that individuals may be using multiple jobholding as a conduit for obtaining new skills and expertise and as a stepping‐stone to new careers, also involving self‐employment. Individuals doing a different secondary job than their primary occupation are more likely to switch to a new primary job in the next year, and a job that is different than their current primary employment. The results show that there are human capital spillover effects between primary and secondary employment.     

Diferencias de satisfacción con el trabajo en Europa según nivel salarial

Los datos de seis olas (1996–2001) del Panel de Hogares de la Unión Europea (PHOGUE) indican que los trabajadores que cobran salarios bajos están mucho menos contentos que los que perciben una remuneración alta en el sur de Europa, si bien no ocurre lo mismo en los países del norte. Los empleos europeos de remuneración modesta no son forzosamente malos, aunque sí lo son en algunos países donde un sector de los trabajadores sufre de lleno el doble infortunio del trabajo mediocre con salario bajo. Las diferencias nacionales obedecen a las características propias de la transacción entre flexibilidad y seguridad, por lo que es esencial impulsar políticas que mejoren la calidad del trabajo.     

The Role of Upstream‐Downstream Competition on Bundling Decisions: Should Regulators Force Firms to Unbundle?

We develop an upstream–downstream model to analyze downstream firms' incentives to bundle. In our framework, the upstream firms are content providers (such as television stations) and the downstream firms are system operators (such as cable/satellite operators). We show that an a la carte regulation (i.e., a regulation that forces downstream firms to unbundle) leads to higher consumer surplus, if the unregulated equilibrium exhibits pure bundling (PB). Hence, our model predicts that in the television industry, which is mainly characterized by PB, an a la carte regulation will be beneficial for the consumers. If, on the other hand, the unregulated equilibrium is characterized by mixed bundling, then an a la carte regulation will increase consumer welfare provided that demand for multiple purchases is strong.     

The Tourism Workforce and Policy: Exploring the Assumptions using Crete as the Case Study

The size of the tourism workforce has grown rapidly to the extent that today, travel and tourism is considered to be the world's largest employer. The potential of tourism for generating jobs in areas where there are few other alternatives for employment has resulted in many governments electing to expand their tourism industry. Nevertheless, tourism has been criticised for creating part-time, seasonal, low quality and informal jobs often occupied by migrants and females. This paper sets out the main characteristics of the tourism workforce as reported by academic papers, identifies whether the same characteristics are evident on the island of Crete (Greece), and discusses the issues surrounding tourism policy formulation in relation to the tourism workforce of Crete. The conclusion is that very often jobs in tourism are judged, and responses formulated, on a normative (value laden) basis (an ideal) without full consideration being given to the actual (technical) underpinnings and implications.     

Tourism in Crete: A Form of Modernisation

Tourism in Crete is an irreversible phenomenon that has resulted in a process of change under the form of modernisation. This modernisation has both positive and negative consequences. Specifically, tourism has been transformed into a primary source of income and employment generation for the island and has improved the quality of life for the locals. However, tourism development was directed to the increase of demand through the increase of the numbers of beds, as well as the concentration of tourist arrivals in space and time, rather than the balanced development of the tourism industry. In effect, various social and environmental strains have resulted, such as environmental degradation, cultural pollution, commercialisation of human relations and negative demonstration effects. It is the aim of this paper to review past studies, having examined various aspects of tourism in Crete in order to investigate the costs and benefits associated with the modernisation of the island through tourism expansion and to provide recommendations for future development.     

Market and Welfare Effects of Mandatory Country‐of‐Origin Labeling in the U.S. Specialty Crops Sector: An Application to Fresh Market Apples

This study provides a new framework of analysis of the market and welfare effects of mandatory country‐of‐origin labeling (MCOOL) for fruits and vegetables that accounts for heterogeneous consumer preferences, differences in producer agronomic characteristics, and retailer market power. The market and welfare effects of MCOOL are shown to be case‐specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results for the U.S. market of fresh apples indicate that domestic producers are the most likely beneficiaries of MCOOL, followed by domestic consumers. Being unable to exercise market power on consumers or suppliers of fresh apples, retailers will lose if the implementation of MCOOL entails fixed costs. Imports of fresh apples decline after MCOOL introduction.     

Modelling the distribution of the extreme share returns in Singapore

This study aims to model the probability distribution of the extreme daily share returns in Singapore Stock Exchange over the period 1973 to 2005. For that reason the suitability of the Generalized Extreme Value (GEV), Generalized Pareto (GP) and Generalized Logistic (GL) distributions are investigated. The empirical results indicate that the GL distribution best fitted the empirical data over the period of study. Using the too much celebrated GEV and GP distributions for risk assessment could, therefore, lead to underestimation of the extreme risk which could potentially lead to inadequate protection against catastrophic losses.