Subjective Well-Being Around Retirement

This paper studies the effect of both retirement and unemployment on life satisfaction, using subjective satisfaction indicators from the German Socio-Economic Panel. Moreover, we analyze how accurate individuals anticipate changes in satisfaction around retirement, as well as the correlation between the forecast error in life satisfaction and the labor market status. Being unemployed has a significant negative effect on life satisfaction; (in)voluntary retirement on the other hand has no significant effect on life satisfaction. A new finding is that unemployed individuals underestimate future life satisfaction. That is, their current labor market status has temporary negative effects on well-being, but, after 5 years, individuals are happier with their life than previously anticipated. We find no effects of (in)voluntary retirement on the forecast error.     

Shared ownership and pricing in a network switch

We observe that many wholesale switches in automated teller machine (ATM) networks are jointly owned by their members and that this tends to occur more frequently when the wholesale industry is highly concentrated. We also observe that network switches are ‘natural monopolies’, their costs being largely fixed and their demand exhibiting substantial network externalities. Motivated by these observations, we model the competition for members between wholesale switches and the role joint ownership can play in attracting members. The model analyzes both the adoption decision (which network a bank chooses to join) and the subsequent pricing of switch and ATM services. We compare competition between two solely owned switches with competition between one solely owned and one jointly owned switch. Our analysis shows that a more concentrated structure results under the latter and that retail prices are higher. This calls into question the leniency of antitrust policy toward jointly owned structures.     

Broadcasting,Attendance and the Inefficiency of Cartels

The English Premier League is a cartel of soccer teams that collectively sells the rights to broadcast its matches. Despite considerable demand for their product from broadcasters, the clubs agreed to sell only a small fraction of the broadcast rights (60 out of 380 matches played each season between 1992 and 2001). The clubs have explained this reluctance by claiming that increased broadcasting would reduce attendance at matches and therefore reduce cartel income. However, this paper produces detailed econometric evidence to show that broadcasting has a negligible effect on attendance and that additional broadcast fees would be likely to exceed any plausible opportunity cost. The paper concludes that a more likely explanation for the reluctance to market their rights is the failure of the cartel to reach agreement on compensation for individual teams.     

German stock market dynamics

This article estimates generalized ARCH (GARCH) models for German stock market indices returns, using weekly and monthly data, various GARCH specifications and (non)normal error densities, and a variety of diagnostic checks. German stock return series exhibit significant levels of second-order dependence. Our results clearly demonstrate that for both weekly as well as monthly return series the Student-t distribution is superior to the standard normal distribution. In particular, the estimated GARCH-t models appear to be reasonably successful in accounting for both observed leptokurtosis and conditional heteroskedasticity from German stock return movements.     

Influences of destination social responsibility on the relationship quality with residents and destination economic performance

Based on extant research, this study proposes a model that integrates destination social responsibility (DSR), relationship quality with local residents (i.e. overall community satisfaction, resident trust, and resident identification), and destination economic performance. With survey data collected from a well-known ancient town in South China, this study determined that DSR could enhance the relationship quality between the destination and its residents, which could then improve economic performance in a general manner. Implications for tourism planners and destination management organizations as well as for interested researchers are presented at the end of this study.     

Strategic travel planning toward future emission targets—A comparative analysis of 20 Swedish municipalities applying the CERO model

Organizations displaying best practices for attaining proactive sustainability targets at local level are of major importance as role models in the transition toward a sustainable transport system. This study summarizes results and conclusions from 20 municipalities in Sweden that have implemented the so called CERO analysis in order to adapt to future emission targets for travel. The overall aim of the study is to identify factors explaining why some municipalities are more successful than others in a benchmarking comparison.

The results indicate that commuting by car is by far the most dominant source of emissions, constituting on average 76% of total annual travel emissions (including both commuting and business travel). In order to reduce these emissions, travel planning programs within organizations must address both commuting conditions and business travel conditions to reduce car dependence for work travel, e.g., employees using private cars for business trips most likely also use their own cars for commuting. To identify potential success factors as regards emissions-efficient travel, three comparative statistical analyses were conducted: grouping municipalities with low emissions in relation to the total average; analysis of car commuters' willingness to change travel mode; and before-and-after analyses of municipalities implementing specific action plans. The results revealed that municipalities conducting follow-up studies 2 years after implementing travel planning programs all lowered their total CO₂ emissions, by on average 10% during a 2-year period. Overall, these municipalities achieved redistribution to alternative travel modes but also reduced total travel mileage.     

Modifying the RPI-X Regulatory System to Include Profit-sharing

This paper aims to contribute to the economic theory of RPI-X (price-cap) regulatory systems which include profit-sharing between a company and its customers. The particular focus is on whether profit-sharing can be introduced in an investment-neutral manner, and on whether there is scope to choose a profit-sharing system which maximises the expected customer rebate. Using a model of a company choosing optimal capacity in the face of uncertain demand and subject to price-cap regulation, it is shown that the potential exists for profit-sharing to be investment-neutral, and it is suggested that the expected customer rebate is maximised for an investment-neutral system which is effectively a cap on profits at a specified level.     

An Assessment of the Impact of Implementing the European Commission's Agenda 2000 Cereal Proposals for Specialist Wheatgrowers in Denmark

This paper undertakes an assessment of the impact of implementing the European Commission's Agenda 2000 cereal proposals for specialist wheatgrowers in Denmark. The economic model of a representative farm developed in Rygnestad and Fraser (1996) is extended to include a model of nitrate leaching and then used to simulate the impact of implementing the proposals. The results of this simulation are compared and contrasted with those of the sectoral and regional impact studies reported in European Commission (1998b). In particular, the proposals are shown to have an environmentally-beneficial effect in terms of reduced nitrate leaching, with the magnitude of this effect dependent both on the quality of land and on the ex ante set-aside rate.