Comparing a Traditional IRA and a Roth IRA: Theory Versus Practice

Financial planners often advise their clients to first take advantage of employer‐sponsored 401(k) plans, especially those with matching employer contributions. They often recommend next that clients consider a traditional or Roth IRA, depending on their current eligibility and tax bracket. Generally, the traditional IRA tends to be preferable to the Roth IRA if one expects to be in a lower tax bracket during the retirement versus the contribution years. This preference could be impacted by the theoretical or the practical assumptions one could make as to the tax bracket effect, minimum distribution requirements, and the impact of withdrawals on the amount of Social Security benefits taxed. This research compares the traditional and the Roth IRA, examining both the theoretical and practical assumptions of client behavior. The results indicate that the best choice between the types of IRAs depends on whether the investor's actual behavior is consistent with theory or practice.     

Tourism Innovation in the Global South: Evidence from the Western Cape,South Africa

A research gap exists for the conceptual strengthening, measurement and analysis of innovation at the tourism firm and systems levels, especially in the context of the global South. This paper investigates tourism innovation in the Western Cape region of South Africa. In particular, the nature and types of innovation by tourism firms and system actors are interrogated. It is revealed that innovation by tourism firms is widespread, albeit is largely incremental in nature. The main contribution of this research is the development of an expanded evidence‐based tourism innovation typology from a cross‐sectoral survey of tourism firms and qualitative interviews undertaken with tourism system actors. In addition, recommendations are provided regarding measurement of innovation in tourism. Copyright © 2016 John Wiley & Sons, Ltd.     

Intergenerational Mobility Research: Current Challenges and Future Directions

This article discusses major challenges facing intergenerational mobility research in three main domains: (1) the (dis)connection between theory and empirical applications; (2) data gaps; and (3) measurement concerns. In doing so, it highlights theoretical and empirical extensions to better describe, explain and predict complex intergenerational transmission processes in the light of new and rapid administrative data linkages, more mature survey data and other forms of big data. The article concludes with future directions for research.     

W. Arthur Lewis lecture: Should there be a marshall plan for eastern europe?

The desirability of massive financial aid to support the transition of East European countries to market economies is considered in the light of structural adjustment experience of Latin American countries. It is argued that, politically, an autonomous state is necessary to guide the restructuring. The democratization of Eastern Europe decreases the autonomy of the state. Economically, recent experience in Latin America and Eastern Europe has demonstrated that reforms take place during periods of stringency rather than affluence. It is therefore argued that trade and foreign investment are preferable to generous aid.     

Economic policy and income distribution in China

"Using the Kakwani interpolation method to reconstruct rural and urban size distributions, the authors present Lorenz curve estimates for Chinese income distribution by period, 1952-1986. The level of inequality is one of the lowest in the world. The change in inequality over time conforms to the experience of other less-developed countries. Although rural inequality increased after 1978, national inequality fell, due to a reduction in the rural-urban income gap."