Grace Periods in Sovereign Debt

This paper presents a theoretical analysis of grace periods in the context of an overhang of external debt creating a tax on domestic investment. The grace period arises as a Nash equilibrium strategy of the creditor in a dynamic, noncooperative game. Its length is shown to depend on the planning horizon of the parties, the discount factor and the growth prospect of the debtor country.     

All-or-nothing verdict as a screening device

An adversarial model of criminal trial is considered with threeverdict choices—innocent, guilty of moderate crime, andguilty of serious crime. Depending on the parties' access toevidence and initial beliefs in the courtroom about the possiblecrimes, the judge may agree to the defendant's request to eliminatethe verdict of moderate crime from jury deliberation if theprosecution brings the charge of serious crime. Though thisall-or-nothing verdict choice confers the defendant some manipulativepower, it is shown that such verdict choice may also screenout an overstated charge of serious crime. Conditions are derivedunder which screening is effective and powerful enough to generate(ex-ante) efficiency gains.     

Reconsideration of Economic Views of a Classical Empire and a Nation-State During the Mercantilist Ages

While the main aim of the economic policies of European nation-states was to use the power of the state to promote trade and economic growth and to build up national industries and manufacture, the Ottoman Empire continued to follow its provisionist, fiscalist, and traditional economic policies of land expansion in the early modern period. In Western Europe, this experience gave birth to a new class that gradually improved its trade ability and expanding industries and markets under a capitalist system. The Ottoman imperial policy was mostly concerned about the continuity of strong central authority and land expansion, which never meant improving the industry or trade concerns. Instead, the economic policies of the Ottomans were subsistence of the people, provisioning the major population centers, collection of taxes, and maintaining freedom of trade. The balance and stability in society explain the priority for the Ottomans in the economy. However, commercialization and profit explain the priority for the Dutch nation in the economy. This article elaborates the economic views of the Dutch Republic and the Ottoman Empire in the mercantilist ages.     

Engines of Liberation

Electricity was born at the dawn of the last century. Households were inundated with a flood of new consumer durables. What was the impact of this consumer durable goods revolution? It is argued here that the consumer goods revolution was conducive to liberating women from the home. To analyse this hypothesis, a Beckerian model of household production is developed. Households must decide whether or not to adopt the new technologies, and whether a married woman should work. Can such a model help to explain the rise in married female labour-force participation that occurred in the last century? Yes.     

Accurately Identifying and Comparing Sustainable Tourists,Nature-Based Tourists,and Ecotourists on the Basis of Their Environmental Concerns

The current study, using a confirmatory factor analysis, developed a multi-item scale consisting of 3 dimensions that exhibited necessary reliability and validity. Based on this Nature-Based, Eco- and Sustainable Tourists (NES)-scale, and by utilizing a cluster analysis, the study identifies 4 distinct segments among a sample of the Norwegian population: nature-based tourists, ecotourists, sustainable tourists, and mass tourists. The analysis shows that while the ecotourists make up the largest segment, the mass tourists represent the smallest segment. Using Analysis of Variance (ANOVA), the resulting 4 segments are later compared on the basis of their environmental concerns. The findings suggest that the ecotourists are the most environmentally concerned whereas the mass tourists are the least environmentally concerned. Finally, based upon the overall findings of the study, a new inductive model is developed. This model highlights the interaction between different types of alternative tourists and mass tourists, by showing, inter alia, that nature-based tourism has over the years become a form of mass tourism. Theoretical and practical implications of the study are also discussed.     

The effects of the military in politics on the inbound tourism: evidence from Turkey

In this paper, we analyze the effects of the military in politics on the number of tourist inflows from 71 countries to Turkey for the period from 1984 to 2014. We use the fixed-effects and the random-effects as well as the dynamic generalized methods of moments estimations. We find that a lower level of the relative military in politics (the difference between the source country and Turkey) positively affects the tourism inflows to Turkey. Specifically, one standard deviation reduction in the index of the relative military intervention in politics in Turkey leads to almost 7% increase in the tourism inflows.     

Interactions between tourism and financial sector development: evidence from Turkey

This article aims to examine the interactions between tourism growth and financial development in Turkey, which is a top tourist destination and has developed a well-functioning financial system over the last decade. The results confirm a long-term association between tourism development and financial development; foreign direct investments and foreign trade also impact this interaction. According to the results, tourism expansion in Turkey is mainly influenced by financial markets. The results also reveal that in Turkey, changes in tourism volume precede changes in financial volume. Thus, the major finding of this study is that tourism development and financial development in Turkey have a long-term and reinforcing interaction.     

On Creating and Claiming Value in Negotiations

This paper presents a negotiation model that includes value creation. It shows that creative negotiation efforts tend to intensify toward the deadline, and that the deadline is determined endogenously by the tension between two motives, creating more value and claiming from existing value. When the parties can present misleading offers in order to claim rather than create value, the outcome in early negotiation rounds may display an impasse where any proposal is rejected without inspection, while negotiation activities such as value creation through sincere offers and inspection of clauses intensify toward the deadline.