Diesel price convergence and mineral oil taxation in Europe

Estimates of the output gap are useful for identifying the sustainable level of noninflationary output growth in countries with a flexible exchange rate regime. For nations with a fixed exchange rate, however, domestic prices are inexorably linked to the prices of its main trading partners and are unlikely to bear little relation to the output gap. This article uses data on 45 developed and developing countries between 1970 and 2004 to show that a positive output gap in a country with a fixed exchange rate is more liable to be reflected in an imbalance on the external current account.     

Nontourism services in Barbados: 1970–97

This paper initially refers to some of the classifications of services used by various authors, followed by the components that comprise nontourism services in Barbados and their linkages to the other sectors of the Barbados economy. Using regression analysis, variables that may influence nontourism services in the long and short run are then identified. In the long run, the variables that impact nontourism services are relative real incomes, tourist arrivals, merchandise imports, commercial bank credit, relative prices, and government policy. The short run is influenced by relative real incomes, tourist arrivals, and merchandise imports. Since tourist arrivals influence nontourism services in the long and short run, Barbados must still focus on tourism activity to maximize its foreign exchange potential from nontourism services.     

Problematising ‘Festival Tourism’: Arts Festivals and Sustainable Development in Ireland

This paper problematises the term ‘festival tourism’. It conceptualises festivals as socially sustaining devices and argues that while they frequently function as tourist attractions, their social significance extends far beyond tourism. Using empirical material gathered in two case study arts festivals in Ireland, the paper demonstrates how festivals can contribute to arts development by inter alia creating demand for the arts, enhancing venue infrastructures, encouraging local creativity and animating local involvement. The paper contends that arts festivals, irrespective of their initial objectives almost inevitably develop tourist profiles over time and it proceeds to examine how changing tourism priorities in the two festivals studied impact upon sustainable festival practices. The findings suggest that tourism emerged as a key force promoting festival growth and expansion. It was found to be associated with increased revenue flows but also with increased arts activity on a year-round basis and with an improved venue infrastructure in both places. However, problems were identified with respect to the quality of the relationship forged between the festivals and local populations in the respective places. The paper concludes by arguing that festivals’ engagement with tourism needs to be carefully managed in the interests of promoting the socially sustaining function of festivals and of encouraging sustainable approaches to tourism development.     

An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory Perspective

Stakeholder theory provides a framework for investigating the relationship between corporate social performance (CSP) and corporate financial performance. This relationship is investigated by examining how change in CSP is related to change in financial accounting measures. The findings provide some support for a tenet in stakeholder theory which asserts that the dominant stakeholder group, shareholders, financially benefit when management meets the demands of multiple stakeholders. Specifically, change in CSP was positively associated with growth in sales for the current and subsequent year. This indicates that there are short-term benefits from improving CSP. Return on sales was significantly positively related to change in CSP for the third financial period, indicating that long-term financial benefits may exist when CSP is improved.     

Consumer Adaptation Strategies: From Austrian Shilling to the Euro

On 1st January 2002, in 12 countries of the European Union, euro notes and coins replaced existing national currencies. The currency changeover required citizens to adapt in various ways. They had to learn to handle new coins and notes, and evaluate prices in the new currency. Data on how these tasks were performed by Austrians are presented. In particular, Austrian consumers applied four different strategies to establish price intuition for the euro: a conversion strategy, an intuitive strategy, an anchor strategy, and a marker value strategy. Data on these strategies show that their application varies across socio-demographic characteristics, differs with purchase situations, relates to euro attitudes, and changes over time. Although the introduction of the euro took place about 5 years ago, the adaptation process is still ongoing.     

Performance and Strategy: Simultaneous Equations Analysis of Long-lived Firms

A simultaneous equations model of performance, strategy and size is tested using fieldwork evidence on long-lived firms in Scotland. Estimation is by I3SLS, with correction for sample selection bias. The contributions of this paper are that it: (a) grounds estimation on fieldwork evidence; (b) calibrates performance and competitive strategy; (c) tests and models endogeneity; and (d) computes robust trade-off elasticities between firm size and performance. It shows how this trade-off provides the entrepreneur with two strong incentives: (i) to seek greater efficiency typically by an increase in the human capital of the ‘core’ workforce; (ii) to achieve higher levels of performance by adopting more diverse competitive strategies.     

L’Évaluation économique de l'investissement dans la conservation des sols: Le cas des aménagements antiérosifs dans le bassin versant du lac Lagdo au Cameroun

This article presents an analysis of the economic impact of erosion control facilities on farm operations in the watershed of Lake Lagdo in Cameroon. Over the past several decades, erosion control facilities, which are erosion control techniques, have been introduced in Cameroon. No assessment of the impacts of these on farm operations had yet been made. Drawing on data from a survey carried out in 2007 and 2008 and a switching regression model, the study concentrates on the effectiveness of the production factors of parcels of land with and without erosion control facilities. The comparison of the average crop yields of the operations in our sample that either adopted or did not adopt such facilities shows a significant difference, representing up to 10% of the value of the farm production. Proof of a positive selection bias is also found, indicating that the farms with above‐average crop yields are more likely to adopt erosion control facilities. Such facilities on the parcels of land also provide an advantage in terms of increasing the productivity of inputs. The analytical approach developed and the positive conclusion of the selection bias can be pertinent to assessing other soil conservation technologies promoted in the area.