Self-enforcing international environmental agreements with a stock pollutant

In this paper the stability of an International Environmental Agreement (IEA) among N identical countries that emit a pollutant are studied using a two-stage game. In the first stage each country decides noncooperatively whether or not to join an IEA, and in the second stage signatories jointly against nonsignatories determine their emissions in a dynamic setting defined in continuous time. A numerical simulation shows that a bilateral coalition is the unique self-enforcing IEA independently of the gains coming from cooperation and the kind of strategies played by the agents (open-loop or feedback strategies). We have also studied the effects of a minimum participation clause finding that for this case a self-enforcing IEA just consists of the number of countries established in the clause.JEL Classification: C73, D62, Q28 Corresponding author : Santiago J. RubioThis paper is based on chapter four of Begoña Casinos Ph. Dissertation. Financial support from the Instituto Valenciano de Investigaciones Económicas, the Ministerio de Ciencia y Tecnología under grant BEC2000-1432 and Fundación BBVAis gratefully acknowledged. We also appreciate the helpful comments of three anonymous referees, whose suggestions improved the paper. Regarding any remaining inadequacies, the usual caveat applies.     

Dynamic coordinating non-equilibrium

Neo-Walrasian conceptualizations and DSGE models are incompatible with the emergence of coordination and discoordination in economic activity. While many conceptualizations stemming from the Austrian tradition are generally consistent with these fundamental problems, their process driven approach is hampered by the use of equilibrium constructs. This paper argues for the adoption of formal models that avoid this problem by addressing the following questions. Why should Austrian macroeconomists model? Where do models fit in with respect to pure and applied theory? How to model without equilibrium? To answer this final question I present a structure that aids in the construction and communication of such models.     

Opening the black box: Finding the source of cost inefficiency

Parametric and nonparametric procedures are used to identify the apparent source of cost inefficiency in banking. Inefficiencies of 20–25% from earlier studies are reduced to 1–5% when, in addition to commonly specified cost function influences, variables reflecting banks’ external business environment and industry indicators of “productivity” are added. These productivity indicators explain most of the reduction in bank operating cost over 1992–2001 and was 5 times the reduction in the dispersion of inefficiency. Inefficiency appears stable over time because it is small relative to industry-wide cost changes occurring concurrently and because technology dispersion is imperfect.

Poverty traps in a frictionless world: The effects of learning and technology assimilation

We study an endogenous growth model of technology assimilation through an adaptive learning process defining the accumulation of technological knowledge among both workers and industrial clusters. The assimilation of new technology and the arrival rate of innovations are both based on the distance from the technological frontier to the current technological development level of the country. We illustrate how, even if technological innovations become immediately available to all countries, and absent educational and institutional frictions among countries, differences in technological development levels allow for the existence of poverty traps leading to the economic stagnation of technological laggards.     

Exploiting old customers and attracting new ones: The case of bank deposit pricing

Recent theoretical contributions suggest that deposit interest rates should be higher in geographic areas characterized by greater in-migration and lower for depositors at banks with greater shares of existing (or so-called “locked-in”) depositors. These hypotheses are tested using a rich data set obtained for the Spanish banking industry. Results confirm that, all else equal, banks offer higher deposit rates in territories characterized by greater in-migration, and also that they tend to offer lower rates, the larger the number of their locked-in depositors. These findings confirm the existence of the trade-off between exploiting old customers and attracting new ones.     

Local tax interaction and endogenous spatial weights based on quality of life

This paper studied the role of municipal quality of life as a driver of strategic tax interactions among local governments. A number of studies point out the existence of strategic interactions using spatial econometric models in which the spatial weights are mostly based on non-economic criteria or basic economic variables such as per capita gross domestic product (GDP). We propose the more sophisticated well-being indicator of municipal quality of life as the driver for these interactions. To deal with the potential endogeneity, we rely on instrumental variable estimators. The empirical analysis focuses on the main local tax in Spain (property) and on municipalities with more than 50,000 inhabitants, and it confirms the relevance of differentials in quality of life for the understanding of tax choices.     

Urban destination loyalty drivers and cross-national moderator effects: The case of Barcelona

The objective of this paper is to analyze the loyalty of tourists to urban tourism destinations, studying the differences existing on the basis of nationality of origin. The review of the academic literature identified perceived value and satisfaction as antecedents of loyalty. A theoretical model was constructed which was tested empirically with a total of 927 surveys of Italian and American tourists in the city of Barcelona. In the study of the data, structural equation models (SEM) were used, by means of a multi-group analysis. The empirical results show that the causal relationships among perceived value, satisfaction and loyalty and the moderating effect of nationality are partially confirmed. This study contributes to better knowledge of the processes that lead tourists to be loyal to an urban tourism destination.     

Outsourcing of advanced business services in the Spanish economy: Explanation and estimation of the regional effects

The use of advanced business services has become an essential element for competitiveness in modern economies in which traditional competitive advantages based on prices, lower labour costs or the abundance of natural resources are being replaced by new advantages based on higher quality, greater knowledge or the use of information and communication technologies (ICTs). Within this context certain services (computing, communications, human resources, engineering, consulting or management) are generally outsourced so as to exploit the advantages derived from specialisation and division of labour, as well as those of economies of scope and scale. However, some businesses, sectors or regions appear to have very different patterns of outsourcing advanced producer services. This paper presents an explanation of elements of business outsourcing decisions applied to the Spanish economy, applying discrete response models to the information obtained in a survey elaborated by the authors. The data thus obtained have enabled us to identify differences between the Spanish regions in the tendencies of businesses to use internal or external advanced services.