Oligopolistic equilibrium and financial constraints

We model a dynamic duopoly in which firms can potentially drive their rivals from the market. For some parameter values, the Cournot equilibrium outcome cannot be sustained in an infinitely repeated setting. In those cases, there is a Markov perfect equilibrium in mixed strategies in which one firm, eventually, will exit the market with probability one. Producer surplus in the maximum collusive outcome is greater under bankruptcy consideration, because the outcome that maximizes joint profits is skewed in favor of the more efficient firm. Consumer surplus and social welfare also increase in many cases, although those effects are generally ambiguous.     

Financing Preferences of Spanish Firms: Evidence on the Pecking Order Theory

This paper analyses some of the empirical implications of the pecking order theory in the Spanish market using a panel data analysis of 1,566 firms over 1994–2000. The results show that the pecking order theory holds for most subsamples analyzed, particularly for the small and medium-sized enterprises and for the high-growth and highly leveraged companies. It is also shown that both the more and the less leveraged firms tend to converge towards more balanced capital structures. Finally, we observe that firms finance their funds flow deficits with long term debt.     

A Cross-Section Analysis of the Income Elasticity of Housing Demand in Spain: Is There a Real Estate Bubble?

Much attention has been given to claims that real estate prices in Spain are overvalued in relation to income and how plummeting house prices can jeopardize the economy (The Economist, 2003 and IMF, 2004). The measure of income elasticity on housing expenditure is often of considerable interest to applied researchers and policy makers in real estate economics, but the problem of omitted variables in some estimation techniques can lead to severe biases. In this paper we estimate the income elasticity of the demand for housing in Spain based on the cross-section of prices and income in fifty Spanish provinces from 1996 to 2002. In comparison to long-run equilibrium models fitted with time-series data, our results show a much weaker role of income growth as a vehicle for house price increases in the long run. According to our estimates, the rate of growth of house prices in Spain between 1998 and 2003 points to a real estate bubble with prices above the long-term equilibrium level.     

Social welfare and competitiveness

The predominant narrative of globalisation is that it has led to a decline in the power of the nation state and an increase in the power of markets. Others note that the power of the state has increased along some dimensions, even as it has lost economic power. Both of these literatures, however, tend to be too reductive by focusing on the national scale. In contrast, this paper argues that globalisation may reconfigure, respatialise, and potentially increase the economic and political power of certain states. This hypothesis is tested empirically through reference to Chinese engagement in the Southern African country of Zambia using data obtained from in-depth interviews conducted with government officials, Chinese business owners, employees and other key informants.     

New Headings – Old Problems: The Evolution and Future of the EU Budget

Despite its political signifi cance the size of the European Union’s budget is rather modest: the expenditures make up less than one per cent of the EU’s Gross National Income. This article aims to examine the long-term problems linked to the budget. Critical analysis of characteristic features of the EU budget is particularly important, as we argue the Multiannual Financial Framework 2014-2020 maintains the “old” problems, and we suggest that a more comprehensive long-term reform is necessary. Under such circumstances, it is worthwhile to refl ect on the tasks, functions and structural problems of the budget and on how to use available resources in a more structured and effi cient way.     

Gastronomy as a tourism resource: profile of the culinary tourist

The aim of this paper is to explore the characteristics and motivations of culinary tourists whose destination is the city of Córdoba (Spain) while attempting to determine whether gastronomy is an important aspect of the trip or if it is perceived simply as a secondary activity. Fieldwork was carried out among a series of restaurant establishments in the city of Córdoba. A demand survey was conducted in 10 particular establishments that were selected among those offering local dishes and which are regularly visited by tourists and the questionnaire was distributed among clients obtaining 206 valid answers. Our results reveal the strengths and weaknesses of Córdoba's restaurant sector. While 10% state that the cuisine is one of the main reasons for visiting the city, 68% believe that the local cuisine is an important but not an essential aspect of their trip and the rest view it as being secondary. These three types of tourists exhibit different kinds of motivation. This suggests that strategies should be designed and developed to promote gastronomy as one of the city's chief tourist attractions. Good tourism management based on initiatives such as the creation of culinary routes could be an alternative for implementing strategies aimed at the social and economic development and promotion of particular areas, for example turning typical food from rural areas in certain regions into a marketable attraction.     

Inbound tourism and long-run economic growth

There is an upsurge of literature investigating the relationship between inbound tourism expansion and economic growth with special emphasis on developing countries. Some countries – such as Spain and Italy – can be taken as examples of demonstrating such a successful trajectory. This paper provides an empirical investigation of the evolution of the Spanish and Italian economies and their respective tourism sectors from the 1950s and 1960s, respectively. This research is theoretically based on the literature on demand-based growth and the methodology adopted is that of the integration, cointegration and multivariate Granger causality tests. The results show the influencing role of inbound tourism for both economies.     

Leisure-tourism and amenity migration: transformations observed in the semiarid mountain region of Northern Chile

ABSTRACT

In the last years, the mountain regions of Chile have started to be perceived as a destination for leisure-tourism activities and the development of amenity migration processes. Through semi-structured interviews and meetings conducted among key actors, locals and migrants, this work examines how the local community perceives the main consequences that current leisure-tourism and/or amenity migration processes have started to create in four local communes in the semi-arid region from the North of Chile. While local inhabitants acknowledge the development opportunities these processes entail, they are also starting to perceive effects on the identity of their communities as well as disparities, both in terms of territory and local governance. Studying the consequences of these processes may promote mitigation or adaptation measures to reduce the number of new conflicts and strengthen solidarity, both socially and territorially.     

Matricvariate and matrix multivariate T distributions and associated distributions

Several distributions are studied, simultaneously in the real, complex, quaternion and octonion cases. Specifically, these are the central, nonsingular matricvariate and matrix multivariate T and beta type II distributions and the joint density of the singular values are obtained for real normed division algebras.