Legal Restrictions in Personal Loan Markets

This study examines the pricing of personal loans in the form of second mortgages to determine whether state-specific default laws have an effect on the availability and cost of that debt. We examine the pricing of loans to higher risk borrowers and whether borrowers in states that limit lender ability to seek default remedies pay higher credit costs. Our results indicate that, for the most part, lenders rationally price loans to higher risk borrowers. However, when we focus on borrowers with low credit scores, the results indicate that mean actual loan rates are higher than those predicted by our model. The results also indicate that state-specific default laws have an effect on the price of credit. Finally, the results show that there is a greater degree of error in the pricing of second mortgage loans to borrowers with low credit scores than to borrowers with high credit scores.     

Modeling the Conditional Probability of Foreclosure in the Context of Single-Family Mortgage Default Resolutions

Both empirical and pricing-simulation models of mortgage default focus on foreclosure in a one-step decision framework. Such models are misspecified to the extent that mortgage default and foreclosure are two separate decisions or events, where foreclosure is but one outcome of a default episode. This study examines the dynamics of mortgage borrower default episodes using a large sample of FHA-insured single-family mortgages. We estimate the influence of borrower characteristics, mortgage terms, and economic conditions on probabilities of various resolutions, highlighting under what conditions foreclosure is more likely to result from mortgage default.     

A Product and Process Model of the Technology-Sourcing Decision

The technology‐sourcing decision traditionally has examined the choice either to innovate internally or to acquire technology from outside sources. The increasing complexity of this decision requires a move beyond the simple “make‐versus‐buy” dichotomy. We seek to test factors that influence the technology decision of subsidiaries for product and process technology across the continuum of options from internal development to outsourcing. We also explore concordance between the research streams of new product development and technology sourcing. Regression models are used to analyze data from 187 subsidiaries that suggest product and process technology development decisions sometimes are associated with similar factors and at other times they diverge. In particular, we find that external product and process technology acquisition decisions are associated negatively with differentiation goals and associated positively with product dynamism. While external product acquisition is associated negatively with a low cost goal and positively with increasing distance between primary marketing and R&D operations, external process technology acquisition is associated positively with high competitive intensity. Implications include the following: (1) While external product technology acquisition may provide quicker or even less expensive initial solutions, external reliance makes it difficult to maintain a long‐term positional advantage; (2) When greater distances separate key functional activities, external partners may provide solutions that are more responsive to local consumer needs, and the potential for improved communication may allow for quicker adaptation and increased flexibility; (3) In highly dynamic product situations, internal development, while providing greater control, can be expensive and can result in technologies that are not accepted by the marketplace; and (4) As competitive intensity increases, strategic imperatives may reduce the focus on product design and development and may require increasing concentration on manufacturing costs and efficiencies.     

REIT Capital Budgeting and Equity Marginal q

Equity marginal  q  is the change in the market value of a company's equity in response to a one-unit unexpected change in its asset base. Hence, it is a profitability index that evaluates a firm's capital budgeting decisions at the margin. We estimate the equity marginal  q  for real estate–managing public corporations, namely, real estate investment trusts (REITs), in an attempt to understand how the various costs and benefits of being a public corporation play a role in managing this important asset class. Using the universe of equity REITs for the period from 1993 to 2005, we find that REITs with greater idiosyncratic volatility, higher stock turnover and smaller bid-ask spread have a higher equity marginal  q . In addition, both the holdings of institutional investors and their investment horizons are respectively positively related to equity marginal  q.  With these firm characteristics taken into account, firm size is found to be negatively related to equity marginal  q . Our findings are economically important as well, because the equity marginal  q  ratio alone accounts for approximately one-third of the total REIT shareholder wealth change during the study period.     

Economic Depreciation of Residential Real Estate: Microlevel Space and Time Analysis

Three elements in the study of real estate depreciation that warrant further consideration are uncovered: the spatial variation of depreciation on a micro scale, the variability of depreciation within a single market across time and the recognition of land value as an influence in modeling real property prices. Taken together, these three dimensions provide an opportunity to further expand the understanding of residential economic depreciation while enhancing the predictive power of real estate market models. The analytical results, utilizing a land-value-adjusted hedonic model, indicate that both the intramarket location and the year in which the property sold have significant impacts on the observed rate of economic depreciation. Such information is vitally important to policymakers and others interested in accurate modeling of real estate markets.     

Willingness to pay for flying carbon neutral in Australia: an exploratory study of offsetter profiles

Although voluntary carbon offsets have played a key role in the response to addressing climate change in the aviation sector, little is known about consumer preferences for such offsets and their offsetting behaviour in Australia. This paper developed and applied a choice modelling study to measure the economic values of aviation carbon mitigation and to identify major factors influencing air travellers’ voluntary climate action. Results show that respondents have a mean willingness to pay (WTP) of AU$21.38 per tonne of CO₂ reduced in the form of voluntary carbon offsets per person. Female travellers might have a higher economic value of carbon mitigation than male counterparts while climate sceptics who are less likely to be carbon offsetters might in fact hold a higher WTP value than non-sceptical travellers. The findings suggest that in terms of WTP the best profile of offset projects might be renewable energy projects in developing countries, of which resulting carbon credits can reduce company legal liabilities. Positive support was found for mitigation measures by airlines, with technological efficiencies more strongly supported than operational practices and biofuels. This paper challenges previous understandings of environmentally motivated behaviour, and notes that behaviour profiles are still evolving.     

The role of cognitive appraisal,emotion and commitment in affecting resident support toward tourism performing arts development

Abstract

While residents’ perceptions of tourism development have been widely explored through a rational cost-benefit lens, little is known about residents’ emotional responses and their influences on resident support toward tourism development. By integrating cognitive appraisal theory and affect theory of social exchange, this study examines the psychological factors (cognitive appraisals, emotions, and commitment) that underlie residents’ behaviors toward Tourism Performing Arts (TPA) development. Based on a survey of 435 residents undertaken in Yangshuo, China, the results reveal that outcome desirability, fairness and coping potential are significant antecedents differentiating resident positive and negative emotional responses toward TPA developments. Commitment was found to moderate the relationship between resident negative emotions and supportive behaviors and played a significant role in shaping resident behaviors. Additionally, resident support was found to be influenced by negative emotions rather than positive emotional responses toward TPA development. The findings have implications for alleviating resident hostility, cultivating commitment toward specific types of tourism, reducing community conflicts and obtaining local support for sustainable tourism development.     

Understanding the Motivation and Travel Behavior of Cycle Tourists Using Involvement Profiles

Bicycle tourism is a growing niche tourism market which has potential economic, social, and environmental outcomes for individual participants and host communities. However, there has been a lack of research into heterogeneity of this market and their respective motivations and behavior. This article applies the concept of enduring involvement, in conjunction with tourist motivational theory, to segment and better understand cycle tourist behavior and intentions. A total of 564 completed questionnaires was collected from an online survey of bicycle club members in Australia. Respondents were segmented into five initial clusters by their level of enduring involvement. A number of significant differences were found on their travel motivations, travel behavior, and behavioral intentions, as well as their sociodemographics and cycling behavior. The results lend support to the application of enduring involvement in a tourism context to better understand the behavior of niche markets which include popular leisure pursuits. Recommendations as a result of the findings are made for product development and marketing communication, while future research opportunities are also outlined.     

Using GDSS to examine the future European automobile industry

Group decision support systems (GDSS) are interactive computer software that supports both group communication and decision making. A prototype GDSS named DELAWARE, was applied to collect judgment and opinion from experts, on the future business environment of the automobile industry in Europe. This article describes the communication processes and the decision-making content embodied within the DELAWARE application