The sensitivity of tourism demand to exchange rate changes: an application to Swiss overnight stays in Austrian mountain villages during the winter season

This paper investigates the impact of the depreciation of the euro against the Swiss franc on tourism demand. The data consist of Swiss overnight stays in West Austrian ski resorts during the winter season. Using a panel error correction model, we found that the elasticity of tourism demand with respect to exchange rates is significantly larger than unity in absolute terms. In particular, the real exchange rate elasticity ranges between ?1.5 using the dynamic panel data model and ?2.2 for the long difference regression model. This indicates that Swiss winter tourists are highly sensitive to changes in exchange rates and relative prices. High elevation ski resorts benefit most from the depreciation of the euro against the Swiss franc. For Austrian ski resorts, tentative estimates suggest that the depreciation of the euro against the Swiss franc has led to an additional 173,000 overnight stays over the last four winter seasons.     

Relative demand for highly skilled workers and use of different ICT technologies

This study investigates the relationship between several indicators of ICT usage and digitalization and the relative demand for highly skilled workers. The data are based on two-digit industry-level information on seven European countries for the period 2001–2010. For manufacturing industries, static fixed-effects models show that the share of employees with internet broadband access, the diffusion of mobile internet access and the use of enterprise resource planning (ERP) systems and automatic data exchange combined with electronic invoicing are all significantly and positively related to skill intensity in the industries observed. For service industries, only mobile internet usage intensity is significant. Specifically for manufacturing, a 10-point increase in the percentage of firms using ERP systems is associated with an increase in the share of highly skilled workers by 0.4 percentage points. These estimates indicate that the increase in ERP system usage during the period studied accounted for 30% of the increase in the share of workers with a tertiary degree across manufacturing industries and countries. The results are robust with respect to the estimation method and the potential endogeneity of ICT.     

Visionary projects: a viable rationale for human space-flight?

Today's prevailing geo-political and socio-economic climate is proving unfavourable towards justifying on-going and future human space-flight programmes. Traditionally cited benefits, such as scientific and aconomic progress or political advantages, are widely deemed insufficient reasons for spending considerable amounts of public funds. A rationale for human space-flight, evoking visions such as exploitation of extraterrestrial resources or human exploration of space, has to cope with an unavoidable dilemma: attractive as they may appear, these projects are fraught with many grave uncertainties and risks. This paper attempts to answer the question over what, if any, significance such visionary projects may assume in justifying the continuation of human space-flight activities. We argue that, despite as yet unanswerable technological and economical questions, and despite the extremely long time-frames involved, it seems reasonable and, hence, justified to keep the option of being able to solve by means of humans in space the impending energy crisis in the coming century.     

Die ökologisch-ethische Berichtspflicht für Altersvorsorgeprodukte — eine Herausforderung für Finanzdienstleister

The German pension reform (Riester-Rente) of 2001 introduces a SRI (Socially Responsible Investing) disclosure regulation to provider of pension schemes. Providers are obliged to declare yearly how they take ethical, ecological or social criteria into account for capital investments of the collected premiums. The legislator intends an expansion of the market for sustainable investments. In the area of chances and risks a postal survey elicits the potential effects of these reporting duties on investment decisions.The majority of German financial service provider conducts product development and design on its own. Nevertheless ethical, ecological or social criteria play a rather middle to subordinate role. Reasons are: missing of approved standards for sustainable appraisal, a small demand, a difficult marketing and the assumption of an underdevelopment of value and return of sustainable investments. Most providers will only follow the prescribed reporting duties. Therefore financial service providers do not expect an explicit impulse, but certain stimulation in favour of sustainable development at the capital market.     

Pollution control with imperfectly observable emissions

In this paper, a model of environmental regulation with imperfect monitoring of emissions is presented. The regulator can use linear output taxes and emission taxes to influence the pollution level of a risk-averse firm. In contrast to the perfect monitoring case, a tax mix will usually be optimal. The relative weight depends on the degree of risk aversion and monitoring imperfection, and on technological factors.