A critical comparison of tourism policies of Hong Kong and Singapore — an avenue to mutual learning

This study examines how mutual learning can potentially enhance the destination competitiveness and sustainability of Hong Kong and Singapore. By comparing the recent tourism policies of the two city states, and by interviewing key government officials, major industrial players, academic experts and representatives of international tourism organisations, it was found that both governments can learn from each other in various aspects. The Hong Kong government can learn from its Singapore counterpart the recognition and proactive support it provides to the industry, its visionary leadership, and its eagerness to learn. At the same time, the Singapore government can learn from Hong Kong in promoting entrepreneurship within the tourism industry. Copyright © 2008 John Wiley & Sons, Ltd.     

Cheaper by the bundle: The interaction of frictions and option exercise in variable annuities

Typical Variable Annuity products combine complex baseline contracts at substantial fees with optional guarantees. We argue this product design aligns with the benefits of bundling to the provider, to the extent that the baseline option features can reduce total replication value. This is possible due to market frictions, and particularly taxation rules, affecting policyholder exercise behavior. We demonstrate the relevance of this mechanism in the context of popular withdrawal guarantees, both theoretically and empirically. Specifically, we show that in the presence of personal taxes, adding on a common death benefit at baseline may decrease the total contract value to the provider.