A visitors' evaluation index for a visit to an archaeological site

This study aims to propose and validate a visitors’ evaluation index (VEI) that captures service evaluation in the context of a visit to an archaeological site. Drawing on the literature on the concepts of ‘service quality’, ‘service experience’, ‘service convenience’, and ‘visitor's satisfaction’, the study develops a measurement index that includes the specific components of service evaluation associated with a visit to an archaeological complex. To validate the proposed VEI, the paper describes an empirical study of 1021 visitors to the Roman archaeological site of Italica, located in Santiponce (Spain). Following structural equation modelling (SEM), the results validate the proposed structure of four theoretical components in the VEI: (i) ‘service experience’; (ii) ‘service quality’; (iii) ‘access sacrifices’; and (iv) ‘effort sacrifices’. Of these, ‘service experience’ is found to be the major contributor to the robust VEI proposed and validated in the study.     

Occupational Regulation in the European Union: Coverage and Wage Effects

We present the first EU‐wide study on the prevalence and labour market impact of occupational regulation in the European Union. Drawing on a new EU Survey of Regulated Occupations, we find that licensing affects about 22 per cent of workers in the European Union, although there is significant variability across member states and occupations. On average, licensing is associated with a 4 per cent higher hourly wage. Using decomposition techniques we show that rent capture accounts for one‐third of this effect and the remainder is attributed to signalling. We find considerable heterogeneity in the wage gains by occupation and level of educational attainment. Finally, occupational licensing increases wage inequality. After accounting for composition effects, licensing increases the standard deviation of wages by about 0.02 log points.     

Exchange rate regimes in the transition economies

D. Mario Nuti illustrates the extraordinary progress made by central and eastern European economies in their trade and exchange regimes. Surprisingly, instant convertibility of exchange rates was established. In spite of diverse exchange rate regimes they have all experienced initial severe undervaluation - the cost of speed and of unrestricted trade - followed by rapid real revaluation and incipient protectionism. Since 1994 an embarras de richesse has appeared: high capital inflows which are either inflationary or costly to sterilise. Lower interest rates are recommended.     

The Rise in Orientation at Collective Bargaining Without a Formal Contract

While firm participation in collective bargaining between unions and employers’ associations has been decreasing in Germany over the last two decades, orientation at collectively bargained wages has increased in popularity. Orientation implies that employers claim to set wages according to collective agreements but they are not formally bound by the respective bargaining contract, and in fact, I observe that they pay significantly lower wages than firms that are formally covered. Dynamic nonlinear panel estimation applied to establishment‐level data shows that this orientation is a stepping stone into formal participation. However, the decline in formal participation and the opposing rise in orientation are mostly due to a changing establishment composition rather than to behavioral transitions.     

Budgeting in Times of Economic Crisis

This article examines how corporate reliance on budgets is affected by major changes in the economic environment. We combine survey and archival data from the economic crisis that began in 2008. The results indicate that budgeting became more important for planning and resource allocation but less important for performance evaluation in companies affected more strongly by the 2008 economic crisis. Additional evidence from interviews and data gathered in a focus group further illustrate these results and show the changes organizations have introduced to respond to the economic crisis. Taken together, and contrary to more general conclusions from the literature such as an overall increase or decrease in the importance of budgeting, we find that companies emphasize certain budgeting functions over others during economic crises.     

Deep and Proximate Determinants of the World Income Distribution

This paper studies the deep and proximate determinants of the evolution of the cross-country distribution of GDP per worker in the period 1960–2008 by a novel method based on an information criterion. We find that countries of our sample follow three distinctive growth regimes identified by two deep determinants, namely life expectancy at birth in 1960 and the share of Catholics in 1965, and that each regime is characterized by non-linearities. Growth regimes appear to be the main cause of the increased inequality and polarization, while technological catch-up, proxied by the initial level of GDP per worker, acts in the opposite direction. Finally, human capital marginally reduces polarization, while investment rates and employment growth have no distributional effect.     

Current Accounts in the Long Run and the Intertemporal Approach: A Panel Data Investigation

This paper is a theory‐based study of the long‐run determinants of the current account (CA). For many OECD economies after the Second World War, there has been more long‐run variation in the CA data than is emphasised by a ‘Permanent Income’ version of the intertemporal approach that is based on consumption‐smoothing and that allows only transitory CA imbalances. A theoretical model of the CA is developed, based on the ‘broader’ variant of the intertemporal approach that stresses the long‐term component of the CA. We find that some key theoretical predictions hold, while others fail, validating the approach but also pointing to its limitations.     

When and why attribute sorting affects attribute weights in decision-making

Information about alternatives often appears in a multi-option multi-attribute table, with the alternatives hierarchically sorted on attribute levels. This research shows that the choice of the primary sorting attribute can affect peoples' evaluations. Three studies show that the attribute on which options are primarily sorted becomes more important in preference formation, but only if this attribute is hard to evaluate. This sorting effect disappears if attribute level evaluation is rendered easier. Eye-movement data further show that the time to evaluate a given attribute level, a proxy for evaluation effort, mediates the effect of choice of sorting attribute on attribute weight in option evaluation.     

Pigouvian tax,abatement policies and uncertainty on the environment

The paper examines the effects of environmental uncertainty on Pigouvian tax and abatement policy used, either separately or contemporaneously, to counteract pollution. We discuss these effects by introducing three kinds of risk: risk on the environmental quality, risk on the impact of pollution and risk on the impact of abatement. For each case we determine the conditions ensuring that risk increases the size of public intervention and provide an economic interpretation and some parallelisms with other risk problems. The last part of the paper generalizes some of our results to the case of N-th order risk changes.