Jointly Held Investment Options and Vertical Relationships

Review of Industrial Organization - We find the optimal time for exercising a jointly held investment option. When the input market is competitive, the investment can take place earlier, later, or...     

Protection versus Promotion: An Empirical Investigation

Using Turkish industry-level data from 1983 to 1990, we find that politically organized industries receive both higher protection and promotion than unorganized ones. Tariff rates are decreasing (increasing) in the import-penetration ratio and the absolute value of the import-demandelasticity for organized (unorganized) industries. Subsidy rates are decreasing (increasing) in the output-supply elasticity for organized (unorganized) industries. The results are consistent with the predictions of the Grossman–Helpman model and its extension in this paper. The mix of protection and promotion is inversely related to the ratio of their respective marginal deadweight cost measures.     

A strategic market game with seigniorage costs of Fiat money

Summary. A model that includes the cost of producing money is presented and the nature of the inefficient equilibria in the model are examined. It is suggested that if one acknowledges that transactions are a form of production, which requires the consumption of resources, then the concept of Pareto optimality is inappropriate for assessing efficiency. Instead it becomes necessary to provide an appropriate comparative analysis of alternative transactions mechanisms in the appropriate context. Received: September 5, 2000; revised version: May 3, 2001     

Destination image,on-site experience and behavioural intentions: path analytic validation of a marketing model on domestic tourists

Despite its contribution to the national economy, domestic tourism is one of the most neglected and under-researched forms of tourism in the literature. This study tested an integrated path model examining the interrelationships between destination image, perceived quality, satisfaction and behavioural intentions, using domestic tourists who visited Eilat, Israel. The findings support the hierarchical relationships between image, quality, satisfaction and behavioural intentions. In addition, the affective image component was found to exert a far greater impact on the overall destination image than the cognitive component. The study establishes a better understanding of domestic tourists’ destination image and behavioural intention formulation. It also provides a number of implications for destination managers targeting the voluminous domestic segment.     

DETERMINANTS OF SOVEREIGN BONDS RATINGS: A ROBUSTNESS ANALYSIS

Several studies have attempted to deduce the determinants of sovereign bond ratings. In this study, Extreme Bounds Analysis is applied to approximately 30 factors proposed by the literature in order to assess their robustness with a focus on the relative importance that economic and political variables receive in the shaping of the ratings. We find that policies that constrain the public sector are among the most robust. Variables such as rule of law, openness to economic flows, central bank independence, and market friendly policies are found to be more robustly correlated with the ratings than foreign reserves, fiscal deficit, sovereign bond yields, and economic growth.     

Demographic Transition and Fertility Rebound in Economic Development*

Recent evidence on the “fertility rebound” offers credence to the idea that, from the onset of early industrialization to the present day, the dynamics of fertility can be represented by an N-shaped curve. An overlapping generations model with parental investment in human capital can account for these observed movements in fertility rates during the different stages of demographic change. A demographic transition with declining fertility emerges at the intermediate stage, when parents engage on a child quantity–quality trade-off. At later stages, however, the process of economic growth generates sufficient resources so that households can rear more children while still providing the desirable amount of education investment per child.     

Residents' place image: a cluster analysis and its links to place attachment and support for tourism

While there is a plethora of studies segmenting the lucrative tourism market, limited attention has been given to identifying potential segments of local residents based on their image of the place they live in as a tourist destination. This study aims to address this gap by (a) clustering local residents of a tourist destination based on their images of that place; and (b) identifying whether those image-based resident groups share similar/different levels of place attachment and intentions toward tourism (support for tourism, intention to recommend it to others). Analysis was based on a sample of 368 residents of Eilat, Israel. The findings suggest the presence of three resident groups with different images of Eilat – called Nature Aesthete, Appreciator, and Critical – and provide support that these groups exhibit dissimilar levels of attachment and intentions/behavior toward tourism. The Appreciator (residents with the most favorable image) were reported exhibiting higher levels of place attachment, support for tourism and were more likely to recommend their place to others as a tourist destination than the Critical (residents with the least favorable image). The implications of these findings to tourism theory and practice are discussed.