ASSESSING THE OLYMPIC GAMES: THE ECONOMIC IMPACT AND BEYOND

This study reviews the literature on the evaluation of the Olympic Games, within the broader framework of their significance as cultural assets and opportunities for endogenous growth and sustainable development of the host city. The study reviews the main approaches to the economic assessment of the Games, from the point of view of the underlying economic concepts and methodologies, as well as of the empirical results obtained. It focuses on the effects that are measured and on those, which even though important, are generally neglected. The methodologies utilized for the quantitative assessments of the Games are reviewed with special emphasis on impact and cost–benefit analysis, both on ex ante and ex post basis. The studies surveyed are analysed from the point of view of different sets of effects on the host city, and for a limited number of cases, on the host country. While the major focus is on hosting the Summer Olympics, some attention is also paid to the bidding cities, the Winter Olympics and the Paralympics. The general findings appear to be controversial with some hints of positive overall effects, but also with a well‐documented tendency to exaggerate the benefits and underestimate the costs of holding the Games in the ex ante versus the ex post studies. The survey finally suggests that ex post cross‐country econometric studies tend to catch sizable differential and persistent benefits ignored by individual studies, especially on macroeconomic and trade variables.     

Comparison of four common data collection techniques to elicit preferences

We compare four common data collection techniques to elicit preferences: the rating of items, the ranking of items, the partitioning of a given amount of points among items, and a reduced form of the technique for comparing items in pairs. University students were randomly assigned a questionnaire employing one of the four techniques. All questionnaires incorporated the same collection of items. The data collected with the four techniques were converted into analogous preference matrices, and analyzed with the Bradley–Terry model. The techniques were evaluated with respect to the fit to the model, the precision and reliability of the item estimates, and the consistency among the produced item sequences. The rating, ranking and budget partitioning techniques performed similarly, whereas the reduced pair comparisons technique performed a little worse. The item sequence produced by the rating technique was very close to the sequence obtained averaging over the three other techniques.     

TOURISM, TRADE AND DOMESTIC WELFARE

Abstract.  Tourism has been regarded as a major source of economic growth and a source of foreign exchange. It has also been viewed as an activity that imposes costs on the host country. Such costs include increased pollution, congestion and despoliation of fragile environments, and intra-generational inequity aggravation. One aspect that has been ignored is the general equilibrium effects of tourism on other sectors in the economy. This paper presents a model that captures the interdependence between tourism and the rest of the economy, in particular agriculture and manufacturing. An important result obtained is that the tourist boom may 'immiserize' the residents.     

The stability of money demand in the long-run: Italy 1861–2011

Money demand stability is a crucial issue for monetary policy efficacy, and it is particularly endangered when substantial changes occur in the monetary system. By implementing the ARDL technique, this study intends to estimate the impact of money demand determinants in Italy over a long period (1861–2011) and to investigate the stability of the estimated relations. We show that instability cannot be excluded when a standard money demand function is estimated, irrespectively of the use of M1 or M2. Then, we argue that the reason for possible instability resides in the omission of relevant variables, as we show that a fully stable demand for narrow money (M1) can be obtained from an augmented money demand function involving real exchange rate and its volatility as additional explanatory variables. These results also allow us to argue that narrower monetary aggregates should be employed in order to obtain a stable estimated relation.     

An Example of Data Technology Product: A Control Chart for Weibull Processes

This work proposes a new Shewhart-type control chart of the Weibull percentile (i.e. the reliable life) as a practical example of a product attained following the Data Technology (DT) approach. DT is briefly introduced as a new discipline defined apart from Information Technology (IT). Following this approach, some specific Bayes estimators are selected from literature and then used to build the above new chart. These estimators allow to improve the control making use of any available kind of data (statistical and non-statistical). The operative steps of DT approach are fully explained. The results are illustrated by means of a real applicative example.     

Equilibrium Unemployment Rate and Customs Union

This paper utilizes the macroeconomics concept of the equilibrium rate of unemployment for theorems on free trade and the formation of customs union. The notion of an equilibrium rate of unemployment appears in the literature on labour, macroeconomics, business cycles and trade theory. Such an equilibrium rate can be derived in a number of ways, for example, by introducing labor–leisure choice in the utility functions of the workers; a labor turnover model and/or by introducing shirking. We extend the two sector-two factor Heckscher–Ohlin–Samuelson model for a small open economy by relaxing the assumption of inelastic labor supply. Specifically, we consider the classical labor supply function obtained from the representative consumer's utility maximisation problem. This consideration allows for the existence of unemployment and we analyse the effects trade policies have on the equilibrium unemployment rate. Given the movement towards free trade (either via the implementation of GATT and/or formation of customs union) it is important to examine its implications for the equilibrium rate of unemployment.     

Discretionary enforcement and strategic interactions between enforcement agencies and firms: a theoretical and laboratory investigation

This paper presents a game theoretic morphological analysis of the strategic interactions between environmental enforcement authorities and polluting firms. The models explore the role of discretion that such authorities enjoy, either in deciding how to pursue environmental violations (investigative and prosecutorial discretion) or in judging them (judicial discretion). The purpose is to identify both the optimal firms’ behaviour in terms of compliance, and the enforcement authorities’ optimal strategies in terms of enforcement actions to undertake. Consistent with the setting of the game theoretic models, the role of the enforcement agencies in deterring firms from polluting is, then, empirically tested by means of laboratory experiments. Laboratory evidence on compliance behaviour of firms when faced with enforcement conditions predicted by the theoretical models set up is discussed for the different experimental treatments performed. Overall, we suggest that making environmental enforcement less predictable for the firms, and thus creating a degree of uncertainty for the violators, can actually encourage deterrence and, thus, improve compliance. Thus, a partly unpredictable enforcement strategy may generate more compliance than an environmental policy that is known with certainty in advance.     

How does public service motivation affect teacher self-reported performance in an education system? Evidence from an empirical analysis in Italy

Quality & Quantity - This paper deals with self-reported teacher performance, and the starting point is the relationship between teacher performance and the main determining factor, public...     

Tourism satisfaction and perspectives: an exploratory study in Italy

Quality & Quantity - The aim of the paper is to analyze the specific features of tourism in Italy through tourists’ behaviour and satisfaction level and to individuate future...     

The flexible coefficient multinomial logit (FC‐MNL) model of demand for differentiated products

We show FC‐MNL is flexible in the sense of Diewert ( 1974 ), thus its parameters can be chosen to match a well‐defined class of possible own‐ and cross‐price elasticities of demand. In contrast to models such as Probit and Random Coefficient‐MNL models, FC‐MNL does not require estimation via simulation; it is fully analytic. Under well‐defined and testable parameter restrictions, FC‐MNL is shown to be an unexplored member of McFadden's class of Multivariate Extreme Value discrete‐choice models. Therefore, FC‐MNL is fully consistent with an underlying structural model of heterogeneous, utility‐maximizing consumers. We provide a Monte‐Carlo study to establish its properties and we illustrate its use by estimating the demand for new automobiles in Italy.