Spending Growth With Vertical Fiscal Imbalance: Decentralized Government Spending In Norway, 1880–1990

Vertical fiscal imbalance, decentralized responsibility of spending with centralized financing, creates a common pool problem with spending pressure towards central funds. A model of decentralized government spending under vertical fiscal imbalance is developed, and the importance of national political characteristics for internalization of costs and spending level is investigated in an econometric analysis of Norway during 1880–1990. We argue that in a parliamentary democracy, the internalization of costs is influenced by the party fragmentation of parliament. This is confirmed by the econometric analysis using a Herfindahl index as a measure of fragmentation and political strength.     

Marginal paradises: Bungalow tourism on the islands of Southern Thailand

In a longitudinal comparative study, some current issues concerning the nature, penetration, and impact of youth tourism on two beaches on two differentially developed islands in southern Thailand are examined. The beaches are “marginal paradises”—touristic paradises marginal to both the life plan of the tourists and the ecology and economy of the native society. Contrary to a widespread idea, vacationing youth tourists seek mainly “recreational” experiences, resembling those sought by most mass tourists, and show marked narcissistic tendencies. They have few relations among themselves or with the natives. Superficial native friendliness covers up a deeper resentment of the foreigners; while nude bathing causes inter-cultural misunderstanding, animosity finds expression in tourist- oriented crime. Though tourism development is of the small scale “craft” type, its benefits for the surrounding native villages are few, especially on the more developed island, where urban businessmen control the beach. The study lends some support to the multi-lineal model of touristic development, with the two beaches mainfesting differential development dynamics     

Estimating economic relations from incomplete cross-section/time-series data

Authors dealing with combined cross-section/time-series data usually assume that complete time-series exist for all units under observation. In the context of micro data, however, this may be a very restrictive assumption. The paper is concerned with problems of model specification and estimation when the data at hand are incomplete time-series from a sample of micro units. Particular attention is paid to a situation where the sample of micro units ‘rotates’ over time. The main results are compared with those derived by Nerlove and others for the standard specification with complete cross-section/time-series data. Some illustrative examples based on data from Norwegian household budget surveys are also given.     

Mortgage Shoppers: How Much Do They Save?

Survey evidence suggests that many U.S. and European consumers do not spend a lot of time comparing mortgage products. We show, however, that mortgage shopping is associated with a substantial monetary payoff, using a unique data set from a website where borrowers (not the lenders) can post their complete set of received mortgage rate offers. A borrower who shops for five mortgage offers is able to save 7,078 euros in net present value on average. The potential savings suggest suboptimal mortgage shopping as the opportunity cost of time to renegotiate additional quotes is unlikely to be that high.     

The impact of tourism on the physical environment

Cohen Erik “The Impact of Tourism on the Physical Environment”, Annals of Tourism Research, Vol. V, No. 2, April/June 1978, pp. 215–237. While moderate and well-distributed tourism may help to upkeep attractions and preserve the environment, tourism as a mass industry poses new environmental risks. This paper is a first attempt to assess systematically the environmental impact of tourism and to spell out the principal factors on which this impact depends: the intensity of tourist site-use, the resiliency of the eco-system, the time perspective of the developers and the transformational character of touristic developments. The environmental dynamics of the tourist ecological sub-system are shown to consist of a constant expansion at the margins and intensification at the mature core, leading to the creation of “contrived” attractions both at the core (as “natural” attractions decline) and the margins (to supplement meager “natural” attractions as tourism expands into less attractive regions). Two major types of measures for environmental protection are discussed: those protecting the environment for tourism and those protecting it from tourism. The need for the second type of measures is emphasized, particularly in developing countries, which face greater environmental risks from tourism than the developed ones.     

The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance

Some scholars have suggested recently that a market‐oriented culture leads to superior performance, at least in part, because of the new products that are developed and are brought to market. Others have reinforced this wisdom by revealing that a market‐oriented culture enhances organizational innovativeness and new product success, both of which in turn improve organizational performance. These scholars do not reveal, however, through which new product development (NPD) activities a market‐oriented culture is converted into superior performance. To determine how critical NPD activities are for a market‐oriented firm to achieve superior performance, our study uses data from 126 firms in The Netherlands to investigate the structural relationships among market orientation, new product advantage, the proficiency in new product launch activities, new product performance, and organizational performance. We focus on product advantage—because product benefits typically form the compelling reasons for customers to buy the new product—and on the launch proficiency—as the launch stage represents the most costly and risky part of the NPD process. Focusing on the launch stage also is relevant because it is only during the launch that it will become evident whether a market orientation has crystallized into a superior product in the eyes of the customer. The results provide evidence that a market orientation is related positively to product advantage and to the proficiency in market testing, launch budgeting, launch strategy, and launch tactics. Product advantage and the proficiency in launch tactics are related positively to new product performance, which itself is related positively to organizational performance. Market orientation has no direct relationship to new product performance and to organizational performance. An important implication of our study is that the impact of a market orientation on organizational performance is channeled through the effects of a market orientation on product advantage and launch proficiency; subsequently through the effects of product advantage and the proficiency in launch tactics on new product performance; and finally through the effect of new product performance on organizational performance. These channeling effects are much more subtle and complex than the direct relationship of market orientation on organizational performance previously assumed. Another implication of our study is that the impact of a market orientation on performance occurs through the launch activities rather than being pervasive to all organizational processes and activities. A reason for this finding may be that NPD is the one element of the marketing mix that predominantly is the responsibility of the firm, whereas promotion and distribution often are in control of organizations outside the firm (e.g., advertising agencies, major retailers) and whereas the channel or the market often dictates the price. Both implications provide ample opportunities for further research on market orientation and NPD.