Residential Fixed Investment and the Macroeconomy: Has Deregulation Altered Key Relationships?

Financial deregulation in 1980 potentially altered key relationships between residential fixed investment (RFI) and key macroeconomic variables. This study uses a vector error correction model to examine relationships between RFI, money, interest rates, and output in pre-deregulation and post-deregulation sub-periods. Results indicate short-term interest rate shocks account for much of RFI variability pre-deregulation. After deregulation, long-term FHA interest rate shocks better account for RFI movements. Results also show that, in the post-deregulation era, RFI shocks have increased predictive power for overall gross domestic product movements. Thus, the study finds altered relationships between RFI and macroeconomic variables.     

Adventure Sports and Tourism in the French Mountains: Dynamics of Change and Challenges for Sustainable Development

Despite their historical links, there have always been profound contradictions in the relationship between sport and tourism in France and Europe in terms of behaviour and development models. The end of the 1980s and the beginning of the 1990s marked a certain narrowing of this divide, with a gradual blurring of the boundaries between tourism and sport, and an increasing hybridisation of activities and reference models. This change was due on the one hand to the increasing demand for 'active tourism', breaking with the cultural and geographical conformism of conventional holidays and trips, and on the other hand to the appearance of 'leisure sports' held in new esteem following the development of a whole range of new or revived activities (climbing, mountain biking, canyoning, parascending, rafting, hydrospeed), which no longer resisted 'touristification.' In this process, the crisis which affected winter sports in France during the second half of the 1980s played a far from negligible role by stimulating a systematic search for diversification in the supply of tourism 'products', with respect both to seasonal aspects and to the target clientele and activities. Thus, while a crisis was shaking the foundations, the renewal in the supply of leisure sports was contributing to a revival of mountain tourism, particularly in the summer. The result of this upheaval was that leisure sports, which until then had been largely marginal to tourism, were placed at the very centre of the touristic system.     

From colonization to national territories in continental West Africa: the historical geography of a transport infrastructure network

This paper argues that in order to study the geohistory of a transport infrastructure network it is necessary to identify the link between networks and territorial scales during a given period. It focuses on the creation of road and rail networks in French West Africa during the colonial period and in the land-locked States during the national period, which involves post-independence development policies. The network is perceived in this paper as the manifestation of the political will to facilitate traffic within a delimited space. Within the colonial and then the national periods roads and railways were thus constructed as part of a process that can be interpreted as the outcome of a compromise between a territorial project and the capacity to implement it. This geohistorical study thus allows us to identify, with reference to the link between borders and networks, the successive geographical linkages (railway and port combinations with their subsequent branches, national roads, economic roads, external connections) which have been applied in the delimited spaces in question. This exercise has concentrated particularly on continental West Africa.     

Option pricing and replication with transaction costs and dividends

This paper derives optimal perfect hedging portfolios in the presence of transaction costs within the binomial model of stock returns, for a market maker that establishes bid and ask prices for American call options on stocks paying dividends prior to expiration. It is shown that, while the option holder's optimal exercise policy at the ex-dividend date varies according to the stock price, there are intervals of values for such a price where the optimal policy would depend on the holder's preferences. Nonetheless, the perfect hedging assumption still allows the derivation of optimal hedging portfolios for both long and short positions of a market maker on the option.     

Risk sharing in the Middle East and North Africa

This study investigates welfare gains and channels of risk sharing among 14 Middle Eastern and North African (MENA) countries, including the oil‐rich Gulf region and the resource‐scarce economies such as Egypt, Morocco and Tunisia. The results show that for the 1992–2009 period, the overall welfare gains across MENA countries were higher than those documented for the Organization for Economic Cooperation and Development (OECD) nations. In the Gulf region, the amount of factor income smoothing does not differ considerably when output shocks are longer lasting rather than transitory, whereas the amount smoothed by savings increases remarkably when shocks are longer lasting. In contrast, both factor income flows and international transfers respond more to permanent shocks than to transitory shocks in the non‐oil MENA countries. The results also show that a significant portion of shocks is smoothed via remittance transfers in the economically less‐developed MENA countries, but not in the oil‐rich Gulf and OECD countries. Finally, for the overall MENA region, a large part of the shock remains unsmoothed, suggesting that more market integration is needed to remedy the weak link of incomplete risk sharing.     

Rankings of Economics Faculties and Representation on Editorial Boards of Top Journals

Two lists of economics departments are developed on the basis of editorial board representation on economics journals. Editorial board representation is shown to have a positive correlation with other previously published rankings of economics departments.     

Credit rationing or overlending? An exploration into financing imperfection

Small and new firms are deemed to be unable to obtain sufficient bank loans. This idea finds a strong theoretical support in credit rationing theory. However, this is vigorously challenged by De Meza and Webb (1987, 2000) suggesting that firms can benefit from an excess of credit, i.e. overlending. Credit rationing or overlending? The contribution of this empirical article is twofold: to our knowledge, it is the first to make an attempt in measuring the relative importance of these two types of financing imperfection and to explore factors leading to one or the other. We exploit a rich panel data set on the access to bank credit for new French businesses during the mid-1990s. Our results show that credit rationing was not highly spread among French new firms. The story told by De Meza and Webb (1987) appears to be a much more realistic model. In addition, we identify factors, linked to the starter, the project or the industry, that are closely associated with credit rationing and/or overlending. Most factors enter into a consistent relation: when they are positively (negatively) associated with credit rationing, they are negatively (positively) associated with overlending.     

Congestion and Optimal Immigration Policy

This paper presents a model to explain the stylized fact that many countries have a low ratio of migrants in their population while some countries have a high ratio of migrants. Immigration improves the income of the domestic residents, but migrants also increase the congestion of public services. If migrants are unskilled and therefore pay low taxes, and the government does not limit access to these services, then the welfare of the domestic residents decreases with the number of migrants. Visa auctions can lower the cost of immigration control and substitute legal migrants for illegal migrants. If the government decides to limit the access of migrants to public services, immigration control becomes unnecessary and the optimal number of migrants can be very large.     

The theory of met expectations applied to expatriate adjustment: the role of crosscultural training

This study will test two hypotheses to determine whether the formation of expectations (prior to the global assignment) affects expatriates' adjustment. This study utilized a sample of seventy-three expatriates who completed questionnaires approximately ten months after arriving in their host countries. All the expatriates had predeparture cross-cultural training, but the training varied in perceived relevance. The expatriates were assigned either to countries where their native language was spoken (e.g. Americans in the UK) or to countries where their native language was not spoken (e.g. Americans in France). The results of the mediated regression analysis suggest that the more tailored and relevant the pre-departure cross-cultural training, the more expectations were either met or positively exceeded. Analyses suggest that both cross-cultural training and the language spoken in the host country affect the accuracy of expatriates' expectations prior to the assignment - and that having accurate expectations, in turn, positively affects cross-cultural adjustment. The results from this study encourage organizations to develop programmes that will ensure their expatriates have realistic expectations prior to their global assignments (e.g. through tailored cross-cultural training).