MEGA‐EVENTS AND TOURISM: THE CASE OF BRAZIL

Mega‐sporting events such as the Fédération Internationale de Football Association (FIFA) World Cup are expensive affairs. Host countries often justify the spending required to stage these events by predicting that mega‐events will draw large numbers of tourists. This paper analyzes monthly foreign tourist arrivals into Brazil between 2003 and 2015 and finds that the 2014 FIFA World Cup increased foreign tourism by roughly 1 million visitors. This number far exceeded expectations, but we show that roughly a quarter of this increase in foreign tourism was caused by the fortuitous advancement of Argentina's national team, and potential hosts should not count on the event to consistently produce out‐sized tourism figures. We conclude that on‐field results can greatly influence FIFA World Cup tourism. (JEL L83, F14)     

On the incidence of commissions in auction markets

We analyze the welfare consequences of an increase in the commissions charged by intermediaries in auction markets. Commissions are similar to taxes imposed on buyers and sellers, and standard economics suggests that both sellers and buyers are made worse off by the tax. However, we show that when the buyers' participation constraint binds and when sellers set optimal reservation prices, the level of commissions correlates to participation and reservation prices in such a way that participating buyers strictly gain from higher commissions.     

Salvador Allende's development policy: Lessons after 50 years

Last year, 2020, was the 50th anniversary of the opening of the ‘Chilean road to socialism’ by Salvador Allende. Although the Allende government is the political reference for the 'socialism of the 21st century’ in Latin America, international supporters tend to disregard the primary cause of its downfall, focusing instead on the circumstances of Allende's death. This article explains the link between the Allende government's development policies and its macroeconomic outcomes between 1970 and 1973. It finds that Chile's economic collapse had an endogenous cause related to government policies. This supports the views of Mises and Hayek on the feasibility of socialist economic policies. Policymakers and commentators should recognise essential lessons from the Chilean experience to learn from past errors and effectively promote Latin America's economic development.     

Gut issue

Unions are willing to strike over it, and companies are ready to draw the line, too. Now both sides are turning to Congress to fix the health insurance mess. This is the first of two articles on responses to the growing health care crisis. A report on state efforts begins on p. 708.     

Does performance explain mutual fund flows in small markets? The case of Portugal

We study the performance reaction of investors in a specific small market context. Our sample includes all Portuguese open-end equity funds that invested in stocks issued by Portuguese companies in the period December 1993–June 2009. Instead of the convex flow–performance relationship usually documented for the US, we find an absence of reaction to past performance. We find no evidence to support the “smart money effect”, given that capital flows do not favour next period performance winners. We also document persistence of fund flows. Our results are consistent with the idea that large financial intermediaries have the capacity “to drive” their customers to funds with larger fees.     

Enhancing Corporate Environmental Performance Through Reporting and Roadmaps

Managing the carbon footprint of companies and addressing their respective decarbonization plans is a challenging endeavour. The aim of this study is to help companies better understand the issues around decarbonization and environmental performance by suggesting a holistic management process on which they could embark. This process comprises two crucial steps, which are (a) sustainability reporting and (b) low‐carbon roadmaps. These steps are covered and further developed based on a detailed study of the UK food retail sector. This sector is relevant due to its economic and environmental importance, but most importantly it has a significant record of available environmental reports in the public domain and a large potential to influence consumers, policy makers and multiple supply chains. Sustainability reporting is assessed by analysing environmental KPIs disclosed in corporate social responsibility (CSR) reports, and then these are compared against industry standards. This analysis highlights a general lack of consistency and transparency in CSR reporting of UK food retailers. Consequently, a low‐carbon roadmap based on relevant KPIs and on the ‘backcasting’ framework is presented as a case study in order to showcase how a hypothetical UK food retailer can employ a low‐carbon roadmap. The case study demonstrates that ambitious environmental targets are achievable if robust corporate action plans are followed. Furthermore, the case study indicates that capital might be misallocated in favour of highly visible environmental stores and on‐site energy generation technologies, whilst more could be done by applying energy efficiency measures that have the potential to deliver substantial carbon savings. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

David Dubinsky,the International Ladies’ Garment Workers’ Union and the Limits of Social Democratic Trade Unionism

Unlike Parmet’s (2005) well-written and thoroughly researched biography and many other generally admiring books and articles on David Dubinsky, the former International Ladies’ Garment Workers’ Union (ILGWU) president from 1932 to 1966, this essay contends that even though Dubinsky initiated important developments within the ILGWU and fought heroically against Nazism and Fascism, his right-wing social democratic worldview was ultimately divisive to the achievement of national and international working class unity. Dubinsky’s political positions become evident through his vigorous anti-Communism which he engaged in with regards to his dealings with Communists in the ILGWU, the Congress of Industrial Organizations, and the American Labor Party. Moreover, the exporting of his anti-Communism abroad via the American Federation of Labor’s Free Trade Union Committee and the International Confederation of Free Trade Unions damaged international working class unity through the sabotaging of radical trade unionism not only in Western Europe but in nations around the globe. Understanding Dubinsky’s anti-Communism is the key for ultimately comprehending the garment union leader’s politics.     

Collective Action and the Sustainability of Co-Production

Abstract

This article addresses the sustainability of citizen/user participation in the provision of public services, often referred to as co-production. Co-producing public services not only promises to limit cost, but it also requires a change in the relations and behaviour of public servants and citizens/users, in order for the latter to make a long-term commitment to co-production. The article notes that Olsen proposes two logics of collective action, not just one. Focusing on small group interaction can provide an important strategy for achieving sustainable co-production, particularly of enduring welfare services. However, Ostrom criticizes too simplistic approaches based on size alone for promoting social cooperation in collective action situations. She proposes seven structural variables of importance in resolving social dilemmas. Several of them can also be perceived as factors that facilitate sustainable citizen participation in co-production. Some additional factors are also considered important for sustainable co-production, like the nature of the service itself, organizational diversity, a dialogue between the staff and clients, and facilitating small group interactions in large organizations. This article concludes that governments should develop more flexible, service-specific and organization-specific approaches for promoting co-production, rather than looking for simple ‘one size fits all’ solutions to the challenges facing public service delivery, particularly of enduring welfare services. It also proposes a research agenda on sustainable co-production.