An Average Derivative Estimation of Stochastic Frontiers

This paper utilizes the average derivative estimation of Stoker (1986) and the pesudo-likelihood estimation of Fan, Li, and Weersink (1996) to estimate a semiparametric stochastic frontier regression, y = g(x) + , where the function g(.)is unknown and is a composite error in a standard setting. The proposed semiparametric method of estimation is applied to data on farmers' credit unions in Taiwan. Empirical results show that the banking services of the farmers' credit unions is subject to economies of scale, but high degree of cost inefficiency in operation.     

The contribution of vacations to quality of life

The contribution of vacations to people’s life satisfaction and Quality of Life (QOL) has recently attracted substantial attention among tourism researchers. Yet, most QOL scales do not include vacations: 7% explicitly measure vacations whereas 42% only include items relating to vacations within the broader Leisure domain. Leisure and vacations, however, differ substantially in nature with leisure referring to regular home-based activities and vacations being infrequent leisure activities away from home. As a consequence of the common amalgamation of vacations with leisure, there is limited knowledge about the specific contribution of vacations to people’s QOL. The present study (1) presents empirical evidence for the contribution of vacations to QOL, (2) determines the extent of this contribution, and (3) investigates variation in the extent to which vacations contribute to the QOL of different people. Results indicate that vacations contribute to the QOL of the majority of people, are as important a QOL domain as Leisure and People, and that QOL means different things to different people at different points in their life, representing an individual and dynamic concept.     

CROSS-SUBSIDISATION OF RURAL AREAS VIA UTILITY PRICING POLICIES*

Public utilities which apply roughly uniform prices to all consumers often engage in cross-subsidisation — charging prices which are below cost for consumers in low population density areas but above cost for consumers in high density areas. The distributional and allocative implications of this practice are examined and it is concluded that some cross-subsidisation may be justifiable on welfare grounds even where no externalities exist. There is, however, little empirical evidence released by utilities to enable assessment of the efficiency of their practices. If nothing else, we highlight the need for greater public disclosure of pricing practices by public utilities.     

The Role of the Internet in the Marketing of Independent Public Houses in the UK

The traditional public house has undergone significant change in the last three decades, making the transition from a male dominated drinking venue to a modern leisure provider. Many independent pubs now offer a variety of products and services to a range of market segments. In recent years there has been plenty of evidence of independent pubs embracing the concept of marketing in response to challenging competitive conditions and customer demands. Many have been very successful at implementing innovative marketing strategies for attracting and retaining customers. Promotional activity has also increased but appears to have been less innovative, concentrating mainly on word-of-mouth and sales promotions. The complex promotional mix used by many commercial organisations is beyond the budget of the majority of independent pubs. Advertising through the media of newspaper or radio is also too expensive and therefore independent pubs may have to seek alternative ways of making the consumer aware of their location and the hospitality that they offer. This paper seeks to explore the potential of the Internet as a marketing communications tool for independent pubs. A review of trade examples and a mini case study are presented to assess the extent to which independent pubs and customers have adopted this technology. The advantages of using this medium are discussed and examples of successful use of the Internet by independent pubs are presented. The problems of time, cost and IT expertise are considered as barriers to adoption.     

Responsible Alcohol Service: Ethics and the Licensee

This article notes the problems experienced in the UK due to excessive alcohol consumption. It offers a brief analysis of the public house sector and then considers the ideal ethical approach of the licensed retailers. Their legal requirements are established, together with the expectations of society. Using an already published source and some similar prime research, the actual performances of the licensees are examined, so as to assess to what extent these ethical expectations are achieved. Suggestions are offered as to how the issues of alcohol service can be best addressed.     

Health insurance and savings over the life cycle—a semiparametric smooth coefficient estimation

Individuals save for future uncertain health care expenses. This is less efficient than pooling health risk through insurance. The provision of comprehensive health insurance may raise welfare by providing the missing market to smooth out consumption through the life cycle. We employ a semiparametric smooth coefficient model to examine the effects of the introduction of the National Health Insurance in Taiwan in 1995 on savings and consumption over the life cycle. The idea is to estimate the coefficients of health insurance which vary with age. Our results suggest that younger households are more sensitive to the risk reductions, and that they demonstrate a greater response in the reduction of their precautionary saving. Copyright © 2004 John Wiley & Sons, Ltd.