How do informal farmland rental markets affect smallholders’ well‐being? Evidence from a matched tenant–landlord survey in Malawi

We estimate the efficiency and equity returns to farmland rental markets in Malawi using a matched tenant–landlord survey of smallholder farm households in four districts. Our sample allows us to more fully observe the landlord side of the rental market, which is almost always missing in previous studies. Our results suggest that land rental markets promote efficiency by facilitating a net transfer of land to more productive farmers. We also find that land rental markets promote equity as conventionally defined in the land markets literature, that is, by transferring land from land‐rich households to land‐poor households, and from labor‐poor to labor‐rich households. However, our study identifies some important challenges for land rental markets in this context. First, we find that tenants in our sample are wealthier than their landlord counterpart on average in all dimensions other than landholding. In addition, most landlords report the motive for renting out their land as either the need for immediate cash, or the lack of labor and/or capital to cultivate the plot that was rented out. These findings align with concerns about potential “stress renting” by poor landlords and suggest the value of defining equity along a broader set of dimensions other than simply equalizing the distribution of farmland and labor.     

Resort mystery shopping: A case study of hotel service

ABSTRACT

Mystery shopping is a common mode of improving customer service in retail and hospitality businesses, but researchers rarely utilize the methodology in academia. In these business entities, high-level quality standards are paramount to customer satisfaction, and mystery shopper reports have been found to be indicative of an organization’s service quality. This study employed a mixed-method approach, utilizing qualitative and quantitative procedures to examine a mystery shop program from within a resort hotel in the Southeastern US. The researchers used seven service principles which were established by the resort hotel. Mystery shoppers surveyed this specific service culture for a span of 13-months. The results suggested that managers need to re-examine service principles to ensure consistent employee performance and guest experiences.     

The Development of Undergraduate International Business Practicums in Small Business Schools: An Experiential Learning Framework

The value of the inclusion of experiential learning opportunities in international business education has been well established in the literature. We set out to examine industry-identified skills and experiences that could lead to enhanced employability and early career performance. Through our extensive review of theory, empirical work, leading programs, practicum channels, and our own qualitative study, we proposed frameworks to help guide small business schools best structure their undergraduate international business experiential learning offerings. Specifically, we suggest the establishment of tracks or concentrations with supplemental skill focus, emphasis on foreign language proficiency, and requiring at least two international internship or service learning practicums, preferably abroad, that include mini-consulting projects, presentations, and deliverables.     

HAYEKIAN ECONOMIC INFRASTRUCTURE AS A FOUNDATION FOR SUSTAINED PROSPERITY

Rather than debate whether technical advances have created a ‘new economy’, economists should focus on the more interesting and useful question: How do we create the sort of environment in which innovation and the productive use of new technology thrive, thereby creating economic prosperity? Such an environment is the product of government laying the appropriate infrastructure, manifested in the culture of the institutions it supports. This article discusses the features governments must incorporate into their institutions in order to build an economic infrastructure that promotes prosperity.     

United States income inequality: The concept of countervailing power revisited

This article uses some of the conceptual infrastructure associated with J.K. Galbraith’s “countervailing power” argument to explore the deep history of U.S. income inequality. Two explanatory variables—institutional power and distributive conflict—have played an integral role in the shifting patterns of U.S. income inequality since the late nineteenth century. The “commodified” power of large firms, manifested in aggregate concentration and the markup, exacerbates inequality while the “countervailing” power of organized labor, manifested in union density and strike activity, mitigates inequality. One implication of this research is that U.S. income inequality is unlikely to diminish unless the labor movement (or a comparable social movement) is strengthened.     

The Effect of Attribute Variation on Consumer Choice Consistency

We study the effect of shifts in attribute level differences on consumer choice consistency. Choice consistency is measured as the variance of the random error component in the consumer utility function: the smaller this variance, the higher choice consistency. We hypothesize that due to increased choice difficulty, choice consistency decreases if attribute level differences increase while average utility level differences between alternatives remain the same. In our empirical illustration we focus on the impact of price level shifts on choice consistency in conjoint choice experiments. Our results show that choice consistency decreases as price level differences increase and absolute price levels increase.     

The good news in short interest

Stocks with relatively high short interest subsequently experience negative abnormal returns, but the effect can be transient and of debatable economic significance. In contrast, relatively heavily traded stocks with low short interest experience both statistically and economically significant positive abnormal returns. These positive returns are often larger (in absolute value) than the negative returns observed for heavily shorted stocks. Thus, the positive information associated with low short interest, which is publicly available, is only slowly incorporated into prices, which raises a broader market efficiency issue. Our results also cast doubt on existing theories of the impact of short sale constraints.     

An in-depth exploration of residents’ perceived impacts of transient vacation rentals

ABSTRACT

The recent explosion of transient vacation rental (TVR) accommodations has been aided by websites like AirBnB, Vacation Rentals By Owner (VRBO), and HomeAway and this segment continues to grow in popularity. Many communities have enacted bans on TVRs with little empirical data to support decisions. This study explores TVR-related impacts as perceived by residents, and why those particular impacts are perceived. A series of 12 semi-structured, in-depth interviews of key resident stakeholders on Oahu, Hawai’i, United States (US) were conducted. Thematic analysis revealed residents perceived both positive and negative impacts in the economic, environmental, and sociocultural realms. Extended quotes from interviewees reveal the connection of perceived impacts to the presence of TVRs in residential zoned areas and the lack of a proprietor to manage the property and tourists like a traditional bed and breakfast (B&B). Findings provide a baseline for future research examining the unique impacts of this area of rapid tourism growth. Marketing implications are discussed.     

Experiments on Damage-Based Ambient Taxes for Nonpoint Source Polluters

This article presents experimental tests of a linear and a nonlinear ambient tax mechanism that involve modest information requirements for the regulator. When agents are not allowed to communicate, both tax mechanisms result in emission levels that approximate the social optimum. When agents can communicate, emissions are considerably below the optimum, but we show that the tax function can be scaled to achieve social efficiency. Finally, by disaggregating the overall efficiency measure, we show that changing the pollution threshold that triggers the tax increases the inefficiency resulting from variation in agent-level decisions, but does not affect average emissions.     

The effects of endowment size and strategy method on third party punishment

Numerous experiments have shown that people often engage in third-party punishment (3PP) of selfish behavior. This evidence has been used to argue that people respond to selfishness with anger, and get utility from punishing those who mistreat others. Elements of the standard 3PP experimental design, however, allow alternative explanations: it has been argued that 3PP could be motivated by envy (as selfish dictators earn high payoffs), or could be influenced by the use of the strategy method (which is known to influence second-party punishment). Here we test these alternatives by varying the third party’s endowment and the use of the strategy method, and measuring punishment. We find that while third parties do report more envy when they have lower endowments, neither manipulation significantly affects punishment. We also show that punishment is associated with ratings of anger but not of envy. Thus, our results suggest that 3PP is not an artifact of self-focused envy or use of the strategy method. Instead, our findings are consistent with the hypothesis that 3PP is motivated by anger.