Higher energy cost and the demand for restaurant services — a time-series analysis

Energy cost impact on demand for the restaurant services is examined using a broad base multi-variable regression model with special attention given to the lag structure and timing of the effects. The results reveal no negative impact of higher energy costs on demand. On the contrary, a slight positive delayed impact is evident over the short-run suggesting that, on margin, eating out may have been used as a compensatory recreational activity as a temporary substitute to other, more energy intensive, recreational activities.     

Public policy for reducing tax evasion: implications of the Yule–Simpson paradox

The current study exhibits a new implication of the Yule–Simpson paradox with public policy repercussions. We construct Laffer curves of local property tax collection based on aggregated data and group division to residential land uses in Jerusalem. Results indicate that based on aggregated (dis-aggregated) data, the location of owner-occupiers and renters who pay a relatively high rate tariff will be on the upward-sloping (downward-sloping) part of the Laffer curve. Consequently, statistical test outcomes support Laffer’s controversial claim that for the few upper-brackets taxpayers, an efficient collection is associated with tax reduction rather than tax increase.     

THE NEGLECTED AND SMALL FIRM EFFECTS

This paper addresses the empirical question of whether the differential attention which companies receive affects the capital asset pricing process. The degree of attention was measured by research concentration rankings based on the number of analysts regularly following the firm's securities. The results suggest: (i) that there is a “neglected firm effect” in terms of superior performance for less researched companies and (ii) that the neglected firm effect persists over and above the small firm effect; namely, the excess returns are not fully attributable to size. The ex-post capital asset pricing model is unable to account for the differences in return across security research ranking. Several possible explanations for the results are considered but not tested.     

The Chicken and Egg Problem: Obesity and the Urban Monocentric Model

The Journal of Real Estate Finance and Economics - Recent medical studies have examined ways to offer enhanced spatial planning opportunities to increase a person’s level of physical...     

Mean Reversion and Momentum: Another Look at the Price-Volume Correlation in the Real Estate Market

Based on behavioral finance and economics literature, we construct a theoretical framework in which consumers of newly constructed housing units perceive prices to follow a stochastic mean reversion pattern. Given this belief and the high carrying cost maintained by real estate developers, potential buyers opt to either exercise immediately or defer the purchase. We simulate the model within a real option framework by which we show that the optimal time to wait before exercising a purchase is positively related to the price level; hence, a negative (positive) correlation between transaction volume and price level (yield) emerges. Observing data on housing prices and new construction sales in Israel for the years 1998–2007, we apply an adaptive expectation regression model to test consumers’ belief in both mean reversion and momentum price patterns. The empirical evidence shows that while consumers’ demand pattern is simultaneously consistent with the belief in both momentum and mean reversion processes, the effect of the latter generally dominates. Moreover, while the data does not allow for testing the volume and price-level correlation, it does provide support to the positive volume-price yield correlation.     

Money illusion and inflation management in tourism: The hotel industry case

Using regression analysis, this study examines the relationship between inflation, room rates, capacity utilization, and profitability in the hotel industry. The results show that room rates and nominal profits have been strongly related to inflation while occupancy rates and real profits have been independent of inflation over the twenty year period examined. Findings suggest general absence of money illusion implying effective inflation management policies.     

Generating search directions in multiobjective linear programming using the analytic hierarchy process

The algorithm presented in this paper describes an interactive approach for generating search directions in multiobjective linear programming problems (MOLP). The approach is based on using the AHP to assign priorities to vertices adjacent to those that are in the basis, as generated by the simplex method. Using these priorities, an approximate gradient is found that is used to weigh the objective functions during the next iteration. The novel feature of the algorithm is that the decision-maker (DM) is not required to provide interactive inputs to implicit preference questions concerning his objectives, but instead considers explicit evaluation of adjacent possible improvements to generate the next step in his most preferred direction.     

Giving at the close: Experimental evidence on cooperation in contributing to a public good

We present a simple dynamic model of contributions to a public good. We test the model by conducting a public good game experiment and fundraising experiment among religious Jewish students for the procurement of sustainable supplies for their campus synagogue. The results of the experiments show a high level of cooperation; particularly, the results of the public good experiment show that contributions are above the predicted optimum. Nevertheless, in accordance with the economic theory, we find that the contribution path is upward sloping and contributions increase with the benefit of the public good. Our findings also suggest that the level of contributions and their path are affected by peer and gender effects.     

A university budget problem: a priority-based approach

The budgeting problem in a university environment is considered, using the Analytic Hierarchy Process (AHP) developed by Saaty. This approach allows the priorization of all relevant budget considerations both from the benefit to the school's future evolution and from the cost of operation viewpoints. This approach allows using the derived priority structure to arrive at a budget allocation. In addition to the systematic manner by which this budget is determined, the approach also provides an “audit trail” that is very important in explaining the specific allocation.