Political Economy of Property Tax Reform: Hawaii's Experiment with Split‐Rate Property Taxation

Economic theory suggests that switching from a general property tax to a split‐rate tax increases land use efficiency and stimulates urban core development while preserving the environment and reducing urban sprawl. Under split‐rate property taxation, land is typically taxed at a significantly higher rate than improvements. Beginning in 1965 Hawaii experimented with a statewide split‐rate property tax system to encourage economic growth and effect land reform. The experiment was ended in 1977. Following the transfer of property taxing powers to the counties in 1978, some counties brought back the split‐rate property tax at times. Since 2006, Kauai County has adopted the unusual practice of taxing improvements at a higher rate than land for most property classes. This article chronicles and explains the rationale behind Hawaii's state and county experiments with split‐rate property taxation.     

Virtual borders

Numerous studies have documented substantial deviations from the law of one price for consumer goods. However, in most cases small transaction costs can explain these violations. In our study, we purposely focus on a market where such frictions are minimal, namely online bookselling in the US and Canada. We exploit the high frequency nature of the data to disentangle nominal rigidities from market segmentation and show that while firms seem to respond to domestic competitive pressure, there is no evidence that they react to fluctuations in the relative price of foreign competition following exchange rate movements. In addition, we cannot identify any significant impact on sales volume stemming from variations in international relative prices. Hence, our results suggest that even in an environment with minimal frictions, international market segmentation is extensive and responsible for violations of the law of one price.     

The physical Properties of marine sediments as inferred from Wavelet Correlation Analysis

Seismic waves traveling in the water/sediment or sub-bottom sediment interface have been the subject of considerable interest in underwater acoustics in recent years. Some progress has been made in understanding the propagation and attenuation characteristics of interface waves in different geological environments. However, the generating mechanisms are poorly understood. In particular, what is the acoustic-seismic energy conversion process? As seismic waves involve both time and space parameters it should be able to relate directly the propagation characteristics of the ocean bottom interface waves to the shear properties of the sediments over the propagation area. To address these problems we have applied the wavelet correlation method (WCR) to examine the variations of bottom characteristics and their role in coupling waterborne sound into the sea bottom. To confirm the validity of the developed modeling technique, we applied the wavelet correlation analysis for synthetic seismograms and field data. In this discussion paper we present images of the first and second shear modes and the interface wave component as a function of arrival time and frequency. We also discuss the possibility of inverting phase and group velocity information directly from the wavelet cross-correlation function and propose the way of using the WCR method to predict physical dynamic parameters of marine sediments.     

Education choice under uncertainty: Implications for public policy

We analyse how progressive taxation and education subsidies affect schooling decisions when the returns to education are stochastic. We use the theory of real options to solve the problem of education choice in a dynamic stochastic model. We show that education attainment will be an increasing function of the risk associated with education. Furthermore, this result holds regardless of the degree of risk aversion. We also show that progressive taxes will tend to increase education attainment.     

The potential of anime for destination marketing: fantasies,otaku, and the kidult segment

While a substantial body of literature exists on film tourism, there is a lack of research attention bridging the potential of Japanese anime on real-world destination marketing. The implications of anime tourism can extend far beyond geographic boundary as the worldwide anime market is diversifying, providing novel opportunities for destination marketing organizations in other countries. To address this research gap, this paper first defines anime versus animated films to clarify the definition of anime for the tourism literature, and then draws out theoretical differences between the two types of entertainment within a cinematic perspective to highlight their conceptual boundaries across place, protagonist, and production. This paper suggests that the ways in which these three aspects are manifested in anime versus films are very different: anime settings are more fantasy-orientated than most films; viewers develop their self-identity (i.e. as an ‘otaku’) during childhood and adolescence; and anime productions can be extended with new series to create more enduring engagement to develop the kidult segment. This paper contributes to the literature by connecting the aforementioned cinematic aspects as a basis for elaboration of how differences among the three dimensions could be directly related to potential destination marketing activities.     

Commercial bank mutual fund activities: Implications for bank risk and profitability

This paper examines the risk structure of bank holding companies and the effect of mutual fund activities on bank risk and profitability over the period 1987–1994. Findings from structural change tests indicate a significant decline in bank risk occurred near the mid-point of the study. Results from a confirmatory factor analytic model employed to examine the impact of mutual fund activities on banks suggest that mutual fund activities moderated bank industry systematic risk during the sample period. Mutual fund activities also increased the profitability of banks. These results suggest that mutual funds represent a productive avenue of expansion for bank holding companies.     

How stigmatized are dismissed chief executives? The role of character questioning causal accounts and executive capital in dismissed CEO reemployment

Research Summary: Despite the prevalence of CEO dismissal, theory only briefly explores its consequences. Past research indicates few fired CEOs regain employment. We suggest dismissal stigmatizes executives; however, stigmatization is greatest when character questioning causal accounts exist, which affect the likelihood of regaining a CEO position. Furthermore, we argue that reputational and social capital provide signals of executive quality that moderate the level of stigmatization experienced when character questioning causal accounts exist. Following 280 dismissed CEOs, we find that social capital increases the likelihood of rehiring for those with character questioning causal accounts, but negatively impacts those without causal accounts. Alternatively, we find reputational capital positively influences those without causal accounts, while having a slight negative relationship for those with causal accounts. Managerial Summary: Dismissed CEOs often desire second chances to run companies; however, few are ever afforded the opportunity. We explore what allows some dismissed CEOs to regain employment as a CEO. We find that reasons surrounding a CEO's dismissal influence such prospects depending on the CEO's prior reputation and social capital. In particular, social capital through elite education increases the likelihood of regaining a position when the CEO's character is called into question. Alternatively, a strong reputation increases the likelihood of regaining a CEO position when a CEO's character has not been called into question. These findings suggest that dismissed CEOs can regain a CEO position; however, this likelihood is strongly influenced by how others perceive the executive and their concerns about prior behavior.