Can Interest Rate Policy be Independent?

The conventional view is that interest rates are closely linked internationally and that larger countries determine monetary policy in smaller countries. In this article, Guglielmo Maria Caporale and Geoffrey Williams argue that this stylisation may not be accurate. The fundamental factors determining long-term interest rates are likely to be national rather than international. It may therefore be possible for domestic monetary authorities to pursue an independent interest rate policy indefinitely.     

Coherent modeling of mortality patterns for age-specific subgroups

Decisions in Economics and Finance - The recent actuarial literature has shown that mortality patterns and trajectories in closely related populations are similar in some respects and that small...     

Co-evolution in tourism: the case of Albergo Diffuso

An important aspect of competitiveness between destinations concerns the way in which historical and cultural heritage is used. Thus, the relationship between territories and firms grows stronger, shifting the focus on the innovation processes within and across destinations. To increase our understanding of how these processes take place in a tourism destination, more theoretical and empirical research is required. This paper aims to respond to this call by examining the central role played by the Italian phenomenon of Albergo Diffuso (AD) through a co-evolutionary approach, fertilized by the evolutionary economic geography literature. The study focuses on the dynamics of the relationship between this new hospitality model, territories and tourists, by analysing 14 case studies of ADs rooted in historical villages. Findings show that AD can be considered as a new sustainability-oriented hospitality model which, by creating synergies with its territory, positively affects the competitiveness of the destinations where ADs are located. The theoretical implications suggest that the creation and development of these innovative firms are the result of effective multi-level co-evolutionary adaptations, adding new elements to the existing literature on innovation in tourism. Moreover, implications for both entrepreneurs and policy-makers emerge, together with suggestions for future research.     

Using accessibility indicators and GIS to assess spatial spillovers of transport infrastructure investment

This paper proposes a methodology to measure spatial spillovers of transport infrastructure investment and to monetize them by distributing the costs of the infrastructures envisaged according to the regional distribution of the potential accessibility benefits. We use a transport master plan (the Spanish “Plan Estratégico de Infraestructuras y Transporte” 2005–2020, PEIT) as a case study for applying our methodology. In order to calculate and map regional spillovers, economic potential values are computed using network routines in a Geographic Information System (GIS) by comparing two scenarios: firstly, the scenario PEIT 2020; and secondly the scenario which includes the improvements envisaged for the year 2020 in all the regions except the region whose spillover effects are being analyzed. The differences between these two scenarios represent the potential spatial spillover effects of this region on the rest of the regions. This procedure is repeated for each of the Spanish regions in order to calculate a matrix of inter-regional spillovers in economic potential units. In a second step, this matrix is monetized by distributing the costs of the investment in infrastructures envisaged in the region according to the regional distribution of the economic potential benefits. This inter-regional matrix of investments flows characterizes the “inner”, “export”, and “import” values of each of the regional road investments. Subtracting from the direct investment the exports to other regions and adding the imports from other regions, an estimation of the real investment of the plan in each region taking into account all the spillover effects is obtained. This value can be compared with the direct investment in the region, analyzing whether one region has more or less direct investment than real. The proposed methodology makes it transparent which regions benefit more from national transport investment irrespective of where the investment occurs. The spillover matrix can be a valid instrument, especially in federal states or in the case of transnational projects, in the field of regional economics because it offers very useful information for both planners and policy makers.     

The implementation of road user charging and the lessons learnt: the case of Valletta,Malta

Whilst the theory on road pricing is well developed there are only a few schemes operating worldwide with others which have failed to be implemented. One scheme which has received relatively little attention is the Controlled Vehicular Access System (CVA) recently implemented in Valletta, Malta. This paper draws on the experience of Valletta with a move from a fixed annual charge (V-licence) for access into the city to a time-based road user charge implemented in May 2007. The aims of this paper are to identify the reasons why a fixed charge was initially introduced; to review the literature related to implementation of road user charging schemes around the world; to compare the V-licence with the CVA and identify the issues relating to the change from one scheme to another. Through the direct involvement of one of the authors in the design and implementation of the road user charge in Valletta, this paper is based on archival data, direct observation and qualitative interviews. This paper concludes on what lessons can be learnt from the case of Valletta for other cities contemplating the introduction of a road user charge.     

Preventive maintenance of road pavement with microsurfacing—an economic and sustainable strategy

To ensure a good quality level of road pavements, it is essential to perform preventive maintenance before they are irreparably damaged. Treatments for preventive maintenance are a solution that is recognized but still in the acceptance phase; effective models covering different combinations of techniques and intervention times and assessing economic and environmental benefits are lacking. The present study aimed to respond to the abovementioned issues, using microsurfacing as the subject of analysis. Several structures and different interventions were evaluated, conducting an economic analysis over their life cycles and an environmental study evaluation using emission factors. The most advantageous solution included the maximum possible number of treatments of preventive maintenance with microsurfacing applied consecutively. This scenario ensures economic and environmental benefits. Additionally, it became clear that it is economically advantageous to design pavements for longer lifetimes.