The effect of government highway spending on road users' congestion costs

Policymakers attempt to reduce the growth of congestion by spending billions of dollars annually on our road system. We evaluate this policy by estimating the determinants of congestion costs for motorists, trucking operations, and shipping firms. We find that, on average, one dollar of highway spending in a given year reduces the congestion costs to road users only eleven cents in that year. We also find that even if the allocation of spending were optimized to minimize congestion costs that it still is not a cost-effective way to reduce congestion. We conclude the evidence strengthens the case for road pricing.     

A Case Study of Gambling Involvement and Its Consequences

Gambling has attracted minimal recent research in leisure studies. Focusing on Indigenous Australian gambling, this article draws on theoretical frameworks in leisure and gambling to develop gambling involvement profiles. Using qualitative methods, 169 Indigenous Australians were interviewed. Thematic analysis generated three typical gambler profiles—light, binge and heavy gamblers—distinguishable by different gambling behaviors, motivations and consequences. Analysis of the dimensions of leisure involvement revealed that light and heavy gamblers differed according to importance/interest, pleasure, centrality, self-expression, social bonding, risk probability, and risk consequence. The article demonstrates the application to gambling of certain leisure involvement constructs.     

Capturing the volatility smile of options on high-tech stocks—A combined GARCH-neural network approach

A slight modification of the standard GARCH equation results in a good modeling of historical volatility. Using this generated GARCH volatility together with the inputs: spot price divided by strike, time to maturity, and interest rate, a generated Neural Network results in significantly better pricing performance than the Black Scholes model. A single Neural Network for each individual high-tech stock is able to adapt to the market inherent volatility distortion. A single Network for all tested high-tech stocks also results in significantly better pricing performance than the Black-Scholes model. Dr. Gunter Meissner (gmeissner@hawaii.rr.com) is president of Derivatives Software, www.dersoft.com, and associate professor of finance at the Hawaii Pacific University; Noriko Kawano, MSIS, is currently working as a software engineer at Hawaii Dental Service. The article was presented at the eighth Asia Pacific Finance Conference, Shanghai, July 2000.     

Thresholds in the process of international financial integration

The financial crisis has re-ignited the fierce debate about the merits of financial globalization and its implications for growth, especially for developing countries. The empirical literature has not been able to conclusively establish the presumed growth benefits of financial integration. Indeed, a new literature proposes that the indirect benefits of financial integration may be more important than the traditional financing channel emphasized in previous analyses. A major complication, however, is that there seem to be certain “threshold” levels of financial and institutional development that an economy needs to attain before it can derive the indirect benefits and reduce the risks of financial openness. In this paper, we develop a unified empirical framework for characterizing such threshold conditions. We find that there are clearly identifiable thresholds in variables such as financial depth and institutional quality—the cost-benefit trade-off from financial openness improves significantly once these threshold conditions are satisfied. We also find that the thresholds are lower for foreign direct investment and portfolio equity liabilities compared to those for debt liabilities.     

Quality of Education,Economic Performance and Institutional Environment

This paper addresses two questions. First, how does the quality, rather than the quantity, of education impact economic performance? Second, does the quality of education have a larger impact on economic performance in countries with better institutions (i.e., social and political variables which affect economic outcomes)? Using data from more than fifty countries, we observe that there is a positive relationship between the quality of education and GDP per capita. In addition, we find that the quality of education has a more beneficial effect on GDP per capita in countries with better law and order conditions, government stability, and overall institutional environment. These results remain unchanged under various scenarios.     

Voices from Costa Rica: exploring youth perceptions of tourism and the influence of tourism on identity formation and cultural change

Tourism has become a rapidly growing phenomenon in Costa Rica over the past two decades, with a rate of foreign tourists per capita of 0.46 (one of the highest rates in the Caribbean basin). As tourism increases, it is clear that the impacts will continue to be a major change-agent, especially for small communities in Costa Rica. To explore youth perceptions of the impacts of tourism on their culture and community and to better understand the ways in which tourism influences the formation of cultural identity, this qualitative Photovoice study focuses on youth ages 10–16 living in a Costa Rican community. Through the participants’ photographs and discussion, four themes emerged, including economic impacts resulting from tourism, the preservation and loss of culture and history, the importance of respecting the land, and injustice resulting from tourism development. The youth demonstrated the ways in which their experiences and personal histories related to tourism are intertwined with their sense of identity and pride for their community and culture. The results emphasize the relevance of exploring cultural identity within youth populations and support the assertion that tourism generates significant cultural change, which in turn influences youths' past, present, and future perceptions of their community and culture.     

Sustainable livelihood principles and urban greening in informal settlements in practice: A case of Zandspruit informal settlement,South Africa

This article looks to investigate the practice of using the ‘sustainable livelihood approach’ in a multifaceted urban greening project, Trees for Homes. The urban greening project was implemented to improve the quality of life and help marginalised citizens of an informal settlement in South Africa to adapt to climate variability through tree planting. We explored the actual execution of the independent techniques being utilised in the implementation of the Trees for Homes project and how it can promote sustainable livelihood objectives in the Zandspruit informal settlement in South Africa. Using a qualitative approach, the study was able to effectively apply sustainable livelihood principles. It was also found, however, that the multi-level principle was limited by the lack of political muscle which is endemic to many disempowered poor citizens of developing economies. Although the project was successful in many ways, political vulnerability within the development cycle threatens the longer term sustainability of the project outcomes.     

Share Tenancy, Ownership Structure, and Prevented Planting Claims in Crop Insurance

A conceptual model based on opportunity cost and expected utility principles establishes linkages between the likelihood of prevented planting claims in crop insurance and existing share leasing arrangements/internal farm business structures. Results of heteroskedastic probit estimation procedures indicate that simpler internal business structures and more dominant farmer–tenant leasing position can increase the probability of submitting a prevented planting claim.