bargaining enforcement and multilateral sanctions when is cooperation counterproductive scholars and policymakers generally assume that multilateral cooperation is a necessary condition for economic sanctions to be of any use however previous statistical tests of this assumption have shown that sanctions are more successful with lower levels of cooperation this puzzle calls into question established theories of economic statecraft as well as theories of international cooperation in this article i test possible explanations for the ineffectiveness of multilateral cooperation on sanctions events using james fearon s 1998 breakdown of cooperation into bargaining and enforcement phases as a framework for discussion the empirical results show that when multilateral economic sanctions fail their failure is due to enforcement not bargaining problems without the support of an international organization cooperating states backslide from promises of cooperation backsliding occurs because of domestic political pressures and uncertainty about the intentions of the other sanctioning countries backsliding causes an initial burst of cooperative behavior to decay over time without institutional support cooperation is worse than useless it is counterproductive this result suggests that international cooperation is a more fragile equilibrium than previously thought but undercuts realist arguments that international organizations are unimportant

does tourism influence economic growth a dynamic panel data approach on average tourism specialized countries grow more than others this is not consistent with the core of modern economic growth theory that suggests that economic growth is linked to sectors with high tech intensity and large scale in this article we use appropriate panel data methods to study the relationship between tourism and economic growth in general we show that tourism is a positive determinant of economic growth both in a broad sample of countries and in a sample of poor countries however contrary to previous contributions tourism is not more relevant in small countries than in a general sample this is a fully modified version of a working paper co authored by one of the authors

cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

the environmental economic impact of woodland a two stage hedonic price model of the amenity value of forestry in britain woodland is an important part of the environment providing economic benefits through its use in commercial timber production and through its value as an amenity as well as providing recreation for visitors woodland is also important to local residents for whom it provides leisure opportunities and a source of aesthetic enjoyment it is well known that the price of a house may reflect a household s willingness to pay to live near an environmental amenity such as a forest and to gain access to it the nature of this relationship may be examined by applying the hedonic price technique an econometric method which investigates house prices and the variation in structural and environment characteristics over space this study uses a two stage hedonic price model to explore the impact of forest type on house price and to estimate the demand for broadleaved woodland for a sample of houses adjacent to forestry commission land

discretionary accounting choices and the predictive ability of accruals with respect to future cash flows using a sample of restatement firms and a meet or beat model to classify firms as making discretionary accounting choices for opportunistic meet or beat op mb reasons we show that originally reported earnings and accrual components are less predictive of future cash flows relative to the restated numbers we find the opposite is true for firms classified as making discretionary accounting choices for non op mb reasons we consider a number of competing explanations for these latter results our findings are most consistent with the informational hypothesis weakly consistent with conservative motivated efficient contracting hypotheses but inconsistent with opportunistic contracting and misapplication errors of gaap explanations

tourism welfare and de industrialization in a small open economy this paper investigates the effects of an expansion of tourism on welfare output and factor prices in the host country using a general equilibrium international trade model in the absence of taxes foreign ownership and distortions an increase in foreign visitors will increase welfare only if the price of nontradables increases factor mobility and foreign ownership tend to reduce the gains from tourism while commodity taxes tend to increase them conditions under which an increase in tourism can lead to deindustrialization are also discussed copyright 1991 by the london school of economics and political science

a micro analysis of business travel demand this study tests two hypothesis 1 that tax deductibility and the dual benefit nature of goods on the business pleasure borderline increases the demand for business travel and 2 that this dual benefit decreases price elasticity the study uses expenditure microdata and contrasts the behaviour of business travellers and pleasure travellers both groups are assumed to have indentical tastes but the expenditure behaviour of business travellers is modified by the role of the business trip as a factor of production the linear expenditure system les allocation model is applied to expenditures on individual goods at a particular tourist destination business travellers are shown to have higher expenditures than pleasure travellers for food lodging and local transportation minimum quantities estimated by the les are also higher for business travellers uncompensated price elasticities of business travellers are significantly smaller than that of pleasure travellers for local transportation clothing a

intra year shifts in the earnings distribution and their implications for earnings management abstract previous findings that upward earnings management causes a kink in the distribution of annual earnings cannot be verified without a well specified benchmark for pre managed annual earnings we model shifts in the cumulative earnings distribution during the fourth quarter to explain the kink s formation logistic regression results show that compared to a control group a high proportion of firms with small cumulative profits or losses at the beginning of the fourth quarter report small annual profits rather than small annual losses this suggests that upward earnings management causes the kink and indicates which firms are likely to manage earnings upward

regimes and the limits of realism regimes as autonomous variables two distinct traditions have developed from structural realist perspectives the first the billiard ball version focuses purely on interaction among states the second the tectonic plates version focuses on the relationship between the distribution of power and various international environments it is the latter tradition that suggests why regimes may be important for a realist orientation however it also opens the possibility for viewing regimes as autonomous not just as intervening variables there may be lags between changes in basic causal variables and regime change there may be feedback from regimes to basic causal variables both lags and feedback suggest an importance for regimes that would be rejected by conventional structural arguments

an agenda for the design and study of international environmental agreements abstract the combination of a general greening of international political debate and the events of 1992 at the rio earth summit have led to great interest in the question of global environmental protection while it is recognized that international environmental agreements ieas are the means by which the earth s fragile environment is most likely to be protected this recognition has been recent hence there is very little formal research on the design and study of ieas as such in this paper i propose and describe a research agenda for the design and study of ieas very generally i propose that we frame the iea design question as a problem in mechanism design we will then be able to use inter alia the theory of common agency and the theory of hierarchies to generate interesting new theoretical and practical insights into the workings of ieas

how resilient is la reunion in terms of international tourism attractiveness an assessment from unit root tests with structural breaks from 1981 2015 even if local policymakers increasingly claim that tourism is one of the key factors of future economic development for the french small island la reunion international tourist arrivals are observed to be locked in a stagnation phase since the beginning of the 2000s starting from this stylised fact this article aims to study if this phenomenon results from major external events hurting this economy regularly next by using univariate unit root procedures with structural breaks we test for evidence of permanent or transitory effects of external shocks on international tourist inflows total by source markets and by category over the period 1981 2015 finally the empirical analysis allow us to reject the null of a unit root then stagnation of tourism arrivals to la reunion is not due to exogenous shocks but probably results from endogenous impediments within the domestic tourism industry and unsuitable public policies

accounting measurement price earnings ratio and the information content of security prices a number of papers for example beaver lambert and morse 1980 beaver lambert and ryan 1987 collins kothari and rayburn 1987 and freeman 1987 have documented that stock prices lead accounting earnings these investigations have led to the conclusions that prices provide information about earnings ahead of time and that earnings capture events that affect security prices with a lag the study of p e ratios has supported those conclusions and also produced additional insights beaver and morse 1978 have shown that pie ratios not only predict future earnings changes but they also identify transitory aspects of current earnings investors utilize other information in setting prices which provides both a prediction of future earnings and an indication of whether current earnings are representative of future earnings thus a comparison of price to earnings in a p e calculation can indicate the extent to which current earnings are transitory 1 in this paper we show that information in prices that leads future earnings is contained in financial statements while accrual accounting

tourism in the gambia some issues in development policy abstract the paper deals with a number of issues arising from the design and implementation of tourism policies and programs in the gambia it gives a description of tourism in the gambian economy and discusses the reasons for success in this sector a number of recommendations are put forward related to the need to increase earnings from tourism and to reduce the incidence of black markets the overall conclusion of the paper is that a shift toward more cautious and flexible policies would benefit the tourism sector in the gambia and thus make the programs intended to assist this sector more effective it is on that basis that the country will attract more foreign tourists and improve the standards and quality of products the programs must also be executed in a careful sensitive and planned manner that ensures the cooperation of the local communities

economies of scale in the australian tourism industry the measurement of economies of scale in the tourism industry has not been done to this point as tourism is not a specific industry according to international statistical standards among many industries related to tourism four sectors accommodation transport retail trade and recreational services across six states and two territories from 1997 to 2007 are studied as they contribute nearly 70 of tourism output in australia by comparing regression results from the cobb douglas c d production function and the translog production function we find that there is evidence of increasing returns in transport retail trade and recreational services at the industry level however accommodation is characterized by constant returns to scale at the industry level as accommodation is responsible for the biggest share of tourism output this suggests that overall the tourism sector is not characterized by increasing returns we also find that the degrees of returns to scale from the c d and translog product

demand elasticities of tourism in singapore abstract in 1983 the un economic and social commission for asia and the pacific set up a study to investigate the relationship between prices of tourist goods and tourist inflow in singapore the analysis was carried out on a world level using amalgamated data for 15 nations also individually for each of the five major tourist generating countries determinants of demand considered were income exchange rates shopping and hotel prices and local disturbances tourism demand is found to be highly income elastic whereas effects of prices and exchange rate movements vary between countries two out of three disturbance factors significantly reduced demand

the effect of audit adjustments on earnings quality evidence from china we examine how adjustments to earnings during year end audits affect measures of earnings quality there are four key findings first audit adjustments cause earnings to become smoother and more persistent second the adjustments result in higher accrual quality third audit adjustments have a larger negative effect on signed accruals than absolute accruals fourth the adjustments do not reduce the discontinuity in the earnings distribution around zero these findings are of interest to researchers who use earnings properties as proxies for earnings quality and audit quality however we caution that our findings for china may not generalize to other countries

tourism and income distribution evidence from a developed regional economy abstract the ways in which tourism consumption affects income distribution involves three channels changes in prices earnings of households and government revenues in this paper we focus our analysis on the latter two channels through a social accounting matrix sam model of galicia for the year 2008 this sam which is elaborated with a special design for the evaluation of tourism policies incorporates data for a wide variety of households eight different types disaggregated by level of income two governments regional and central four types of taxes four wage earners classified by education skill and 29 sectors among other figures furthermore with the purpose of going deeper into the distributive effects the traditional multiplicative and additive sam multiplier decompositions are presented results show that the positive effects on all income groups are significant however high income households benefit more than low income ones contributing to a slight increase in income inequality within the region

earnings management and accounting income aggregation quarterly earnings allow aggregation into annual earnings in four different ways fiscal year earnings is one measure of annual earnings the others being earnings for annual periods ending at interim quarter ends we investigate earnings management in fiscal year earnings relative to these alternative measures of firms annual earnings we confirm prior findings in burgstahler and dichev 1997 earnings management to avoid earnings decreases and losses journal of accounting and economics 24 99 126 of discontinuities around zero and prior year earnings in histograms of earnings subsequent research questions whether these discontinuities are evidence of earnings management using histograms of our alternative annual earnings measures we offer evidence suggesting earnings management is responsible for the discontinuities

tourism development and economic growth a closer look at panels abstract this paper applies the new heterogeneous panel cointegration technique to re investigate the long run comovements and causal relationships between tourism development and economic growth for oecd and nonoecd countries including those in asia latin america and sub sahara africa for the 1990 2002 period on the global scale after allowing for the heterogeneous country effect a cointegrated relationship between gdp and tourism development is substantiated it is also determined that tourism development has a greater impact on gdp in nonoecd countries than in oecd countries and when the variable is tourism receipts the greatest impact is in sub sahara african countries additionally the real effective exchange rate has significant effects on economic growth finally in the long run the panel causality test shows unidirectional causality relationships from tourism development to economic growth in oecd countries bidirectional relationships in nonoecd countries but only weak relationships in asia our empirical findings have major policy implications

evidence that the zero earnings discontinuity has disappeared abstract discontinuities in earnings distributions at zero have been widely cited as evidence of earnings management but not without controversy recent research suggests discontinuities may be mere artifacts of certain research design choices we find that the well known zero earnings discontinuity disappears soon after passage of the sarbanes oxley act sox and has not returned we also find that neither the discontinuity nor its disappearance require the effects of widely cited alternative non earnings management explanations for the zero earnings discontinuity

the information content of losses abstract this study hypothesizes that because shareholders have a liquidation option losses are not expected to perpetuate they are thus less informative than profits about the firm s future prospects the results are consistent with the hypothesis they also show that the documented increase in the earnings response coefficent as the cumulation period increases appears to be due exclusively to the effect of losses the liquidation option effect extends to profitable cases where earnings are low enough to make the option attractive alternating explanations for the low informativeness of losses such as mean reversal of earnings are not supported by the tests

r d cooperation in smes the direct effect and the moderating role of human capital abstractwe analyse the determinants of r d cooperation for smes in italy we introduce in the literature human capital as one of the main determinants of r d cooperation concentrating on its moder

consumer behaviour theory and empirical evidence a survey this survey is designed to emphasize the relationship between empirical a nd theoretical considerations in the analysis of consumer behavior a lthough it focuses primarily on analysis at the individual or micro l evel it tries where possible to draw implications for the estimati on of aggregate relationships the importance of micro level analysis stems from the rapid expansion in available panel and survey data se ts this development has generated its own theoretical and empirical issues many of which are raised in this survey copyright 1988 by royal economic society

the articulation of price earnings ratios and market to book ratios and the evaluation of growth this paper interprets the price earnings ratio pie and the marketto book ratio pib and describes how they articulate it also describes the role of book rate of return on equity the ratio of their denominators in the determination of the ratios and the relation between them although both are reported regularly there is not a common understanding of these issues for example the pie ratio has been interpreted as an earnings growth indicator cragg and malkiel 1982 and litzenberger and rao 1971 a risk measure ball 1978 and an earnings capitalization rate graham dodd and cottle 1962 boatsman and baskin 1981 and alford 1992 derivations based on the gordon 1962 model describe it as determined by return on equity beaver and morse 1978 show that this ratio indicates transitory earnings the molodovsky effect from molodovsky 1953 it has also been interpreted as an indicator of mispriced stocks basu 1977 and jaffee keim and westerfield 1989 and as a product of accounting principles craig johnson and joy 1987 the p b ratio received less academic attention until fama and french 1992 traditionally it was interpreted as indicating expected return on equity see for example graham dodd and cottle 1962 this interpretation is given expression in the standard formula reconciling price to book value in preinreich 1938 edwards and bell 1961 and peasnell 1982 for example like pie p b has been modeled as a growth

earnings management erroneous inferences based on earnings frequency distributions a vast literature following hayn 1995 and burgstahler and dichev 1997 attributed the so called discontinuities in earnings distributions around zero to earnings management despite recent evidence that these discontinuities are likely caused by other factors researchers and teachers continue to point to the shapes of these distributions as evidence of earnings management we provide three sets of further evidence that these discontinuities are likely caused by factors other than earnings management 1 we provide as an example a detailed analysis of the severe effects of sample selection in a recent study this study erroneously concludes that the shape of an earnings distribution is evidence of earnings management 2 we provide a simple explanation for the shape of the earnings distribution that is most often cited as evidence of earnings management the relation between earnings and prices differs with the magnitude and the sign of earnings and 3 we provide further examples that support the main point of our paper evidence beyond the mere shape of a distribution must be brought to bear before researchers can draw conclusions regarding the presence absence of earnings management

experience as a barrier to contestability in airline markets contrary to one of the predictions of the contestability hypothesis price in deregulated u s passenger airline markets is related to actual competition from diversifying former intrastates and newly established carriers more important former intrastates have a larger impact on price than do newly established firms a result consistent with these markets being imperfectly competitive because of an industry experience barrier to entry unlike actual competition a measure of potential competition has no effect in constraining price copyright 1989 by mit press

concentration potential entry and performance in the airline industry airline markets do not satisfy the theoretical conditions for perfect contestability and theory does not indicate which deviations from perfect contestibilty significantly affect performance thus the effect of potential entry on performance in airline markets is explored empirically the best model for explaining fares is found to be one in which the measure of market concentration takes into account not only the number and size distribution of incumbents but also the number of potential entrants not significantly disadvantaged due to economies of scale and scope the hypothesis that all city pair markets are perfectly contestable is rejected coauthors are richard l johnson andrew s joskow gregory j werden and michael a williams copyright 1989 by blackwell publishing ltd

new development approaches and the adaptability of international agencies the case of the world bank certain realist views of the international economic regime construe international financial agencies as straightforward reflections of the power and interests of nation states however the world bank s responsiveness to a wide range of demands for new development priorities and approaches also depends on the compliance of its huge staff the staff s discretion in shaping implementing discrediting or resisting these approaches requires an organizational theoretic analysis of the sources of acceptance of or resistance to particular initiatives role set theory accounts for many of the motivational sources of resistance the capabilities to resist new initiatives through bureaucratic politics can be understood through march and simon s emphasis on the importance of absorbing uncertainty on the basis of these theories and findings on attitudes expressed by bank staff strategies can be developed to enhance the bank s responsiveness to such initiatives as greater emphasis on the alleviation of poverty theory and findings also provide a basis for speculating on the characteristics required of an international agency to warrant treating it as an autonomous variable in the international system

gdp management to meet or beat growth targets abstract we apply the discontinuity methodology from the accounting literature to a political economy setting of gdp reporting and examine whether chinese local governments manage regional gdp numbers we find strong evidence of discontinuities around zero in the distribution of actual minus target gdp growth rates the frequencies of just meeting or beating gdp growth targets are about five four times the frequencies of just missing targets at the prefecture province level the results are stronger for governors with longer tenures and those without political connections to higher level officials as well as for local governments with more resources under their control

potential competition in the deregulated airlines using a new and unique data set this paper applies a systems approach to the study of potential competition prices and entry relations in airline city pair markets consistent with limit pricing models future entry is directly influenced by current prices current prices thus appear to provide an important signal to potential entrants about the probability of profitable entry while results indicate the existence of barriers to entry these barriers appear to have no independent effects on price beyond there effect on actual competition through increases in concentration copyright 1990 by mit press

the ubiquity of room taxes abstract this article examines the case for the imposition of room taxes and attempts to explain their ubiquity the room tax is analysed using the main criteria for assessing taxes and is compared to property tax the extent of room tax imposition is surveyed and the possibilities of evasion are discussed

a ricardian excursion to bermuda an estimation of mixed strategy equilibrium while there is a rich theoretical literature on mixed strategy equilibria there has long been doubt with regard to the actual prevalence of scuh equilibria the objective of this paper is to empirically demonstrate a mixed strategy equilibrum in a model of ricardian rent generation the oligopolistic resort hotel industry in bermuda is used as the illustrative case

determinants of demand for international tourist flows to turkey abstract this article describes the development and findings of a set of models used to identify the most important of the following selected variables influencing international tourist flows to turkey per capita income relative prices relative exchange rate promotional expenditure the turkish government has invested a substantial amount in promoting foreign tourism and special events eg political unrest the demand for travel was measured both by the number of tourists and by the total tourist expenditure data were obtained from secondary sources and analysis was by least squares multiple regression income price and exchange rate were found to be important factors but the impact of promotional expenditure was minimal

structural power the limits of neorealist power analysis realism explains the ruling of the international system through the underlying distribution of power among states increasingly analysts have found this power analysis inadequate and they have developed new concepts most prominently structural power the usage of structural power actually entails three different meanings namely indirect institutional power nonintentional power and impersonal power only the first however is compatible with the current neorealist choice theoretical mode of explanation this is the basic paradox of recent power approaches by wanting to retain the central role of power some international relations and international political economy theory is compelled to expand that concept and to move away from the very theory that claims to be based on power neorealism does not take power seriously enough at the same time these extensions of the concept are themselves partly fallacious to account simultaneously for the different meanings of structural power and to avoid a conceptual overload this article proposes that any power analysis should necessarily include a pair or dyad of concepts of power linking agent power and impersonal governance finally it sketches some consequences of those concepts for international theory

sphere of flying the politics of international aviation international civil aviation appears to be a pertinent yet largely overlooked issuearea to study in the light of recent discussions about the changing international system in this article the evolution of the international aviation system from its inception early in this century is analyzed in terms of regime changes three different regime periods are delineated and possible explanations of the observed regime changes are discussed on the face of it the development of international aviation seems to conform with the overall global trend toward complex interdependence yet it also raises a number of questions concerning interdependence that might be addressed in the study of other issue areas these concern the links between politico economic issue areas and military security the degree of harmony or conflict associated with interdependence and the role of states generally and the united states in particular under conditions of complex interdependence

tourism and economic development a survey this article surveys the literature on tourism and economic development identifying the contribution that tourism can make to development including foreign currency income and employment and the costs that it entails single equation and system of equations models for estimating tourism demand are provided indicating developing countries potential to benefit from increasing expenditure on tourism but their susceptibility to deterioration in price competitiveness the main sectors of tourism supply transportation tour operators travel agents and accommodation are examined and the importance of cross country integration between firms is highlighted the article argues that many of the problems associated with the use of environmental resources for tourism stem from market failure and it considers methods for increasing sustainably the returns from them

assessing indirect tax reform in a tourism dependent developing country summary the paper investigates the effects of reform of the current structure of indirect taxes in mauritius a relatively tourism dependent economy it uses a computable general equilibrium model to explore the relative efficiency of changing sales tax rates on tourism and nontourism related sectors and allowing for equity considerations the efficiency of tax reforms are also distinguished for cases where tourist arrivals are exogenously set and where they endogenously adjust to changes in relative prices the simulation results show that the tourism sectors are currently undertaxed additionally taxing tourism sectors is found to be the most socially efficient means of raising tax revenue

taxing tourism in developing countries abstract although tourism is an important industry in many developing countries where tax revenues are often in short supply surprisingly little attention has been paid to the taxation of the tourist industry this paper argues that in principle there is a strong economic case in many but not all countries for taxing tourism more than at present but that the nature of the industry and administrative difficulties severely limit what can be done in practice this analysis and a review of the fiscal instruments available to most developing countries suggest three main conclusions first more attention should be paid to introducing adequate charging policies where possible second special taxes on hotel accommodation are generally the key to tourist taxation and third there is little reason to provide special incentives for investment in the tourist industry

the gatt and the regulation of trade barrier regime dynamics and functions since the second world war complex and changing sets of norms and rules have governed trade relations among most countries they have largely originated from a unique and accidental international organization the general agreement on tariffs and trade gatt we have labeled these norms rules and decision making mechanisms the gatt regime or global trade barriers regime the importance that gatt members have attached to certain norms has shaped the regime s procedural mechanisms rules and implementation of rules classifying those norms as sovereignty or interdependence norms we posit that the strength or autonomy of the regime can be established by analyzing the prominence of the interdependence norms in the issue area we close by exploring some of the functions of the regime in international trade and political relations

do scaling and selection explain earnings discontinuities abstract earnings distributions commonly exhibit statistically significant discontinuities at zero earnings which are widely interpreted as evidence of earnings management to avoid a loss in contrast durtschi and easton 2005 durtschi and easton 2009 assert that discontinuities are instead explained by some combination of prior researchers choice s of scaling and sample selection as well as a scaling related effect due to a systematic relation between the sign of earnings and market prices resolution of the conflicting interpretations of discontinuities is important because 1 it affects how investors regulators and scholars view earnings management and 2 it demonstrates the importance of a close linkage between theory and research design choices we point out that de provide no evidence that scaling or selection create discontinuities but only evidence showing that changes in scaling or selection eliminate discontinuities we demonstrate why the research designs used by de eliminate discontinuities and why alternative designs using the same data yield statistically significant discontinuities that cannot be attributed to either scaling or selection

is tourism an engine for economic recovery theory and empirical evidence abstract the purpose of this study is to examine the causal relationships between tourism development and economic growth for this purpose the dumitrescu and hurlin 2012 technique was employed to analyze the casual link between tourism development and economic growth in seven european countries the results showed that there is bidirectional causality between growth in tourism receipts and economic growth suggesting that economic growth and tourism development are interdependent and that tourism development stimulates economic growth and vice versa in these countries theoretical and practical implications are discussed within the realms of growth conservation feedback and neutrality hypotheses

earnings management to avoid earnings decreases and losses this paper provides evidence that firms manage reported earnings to avoid earnings decreases and losses specifically in cross sectional distributions of earnings changes and earnings we lind unusually low frequencies of small decreases in earnings and small losscs and unusually high frequencies of small increases in earnings and small positive income we find evidence that two components of earnings cash flow from operations and changes in working capital are used to achieve increases in earnings we present two theories based on stakeholder use of information processing heuristics and prospect theory about the motivation for avoidance of earnings decreases and losses

international tourism and export instability export diversification has been suggested as a strategy for decreasing the level of export earnings instability which is experienced by many developing countries in recent years the international tourism sector has made an increasingly important contribution to the economies of many low income countries this article examines whether diversification into the non traditional tourism sector has succeeded in decreasing the instability of export earnings it was found that although tourism has the advantage of high growth rates and is a major source of foreign currency receipts earnings from international tourism did not bring about a significant decrease in the instability of export earnings of most of the developing and industrialised countries considered furthermore a net increase in the instability of earnings from tourism and merchandise exports occurred in a number of countries and may be a particular problem in small open developing economies

coordination versus prisoners dilemma implications for international cooperation and regimes the study of political institutions in general and international cooperation in particular has been beneficially influenced by the prisoners dilemma pd game model but there is a mistaken tendency to treat pd as representing the singular problem of collective action and cooperation by relaxing the assumptions of 2 2 games and developing an alternate model of the coordination game i show how some cooperation problems have very different properties from those found in pd the analytical results of the two games are compared across several important dimensions number of strategies available number of iterations of the game numbers of players and the distribution of power among them the discussion is illustrated with specific problems of international cooperation and the implications of alternative cooperation problems for the formation and performance of international regimes are explored the basic solutions for pd and coordination have divergent ramifications for the institutionalization stability and adaptability of regimes and for the role of hegemony in the international system however the coordination model does not replace the pd model but complements and supplements it as a way to understand the diversity of political institutions these results are widely applicable to areas of politics beyond international relations

who co operates for innovation and why an empirical analysis abstract in recent years there has been growing interest in co operative arrangements for innovation with some commentators arguing innovation is no longer the province of individual firms but depends increasingly on collective action this paper examines the response to the uk s version of the second european community innovation survey cis 2 to investigate the patterns of co operation between innovating firms and external partners the analysis shows the relationship between innovation and co operation is not straightforward from a subjective i e firm based perspective it is clear that most firms still develop their new products processes and services without forming formal co operative arrangements for innovation with other organisations however firms that engage in r d and that are attempting to introduce higher level innovations i e new to the market rather than new to the firm innovations are much more likely to engage in co operative arrangements for innovation consequently if an objective i e innovation based perspective is taken which weighs innovations by their significance then it is likely that a significant proportion of high level innovations are developed through co operative arrangements although unfortunately the cis 2 does not indicate the direct significance of these arrangements to the development of the innovations in summary the extent of co operative arrangements for innovation appears to depend on the type of firms being considered and on what is meant by innovation

in search of complementary assets the determinants of alliance formation of high tech start ups abstract why do new technology based firms ntbfs cooperate starting from teece s teece d j 1986 profiting from technological innovation implications for integration collaboration licensing and public policy research policy 15 285 305 conceptual framework and taking advantage of subsequent literature on alliance formation in the resource and competence based tradition and in the social structure perspective we derive an empirical model that aims at highlighting the inducements and obstacles that these firms face in alliance formation according to firm specific characteristics and the nature of the alliance in particular a distinction is made between exploitative commercial alliances and explorative technological alliances the econometric estimates based on a large sample of italian young high tech firms that are observed from 1994 to 2003 provide strong evidence supporting two key intuitions of teece s work first the combination of specialized complementary assets appears to be a key driver of the formation of exploitative commercial alliances by ntbfs more specifically patent holding affects positively the likelihood to establish commercial alliances but this propensity is found to rapidly decrease with firm size suggesting that as long as ntbfs become larger and possess specialized commercial assets their urge for commercial alliances diminishes second following the parallelism set forth by teece between search for alliance partners and access to external financing the analysis indicates that potentially beneficial alliances may not take place because of the high transaction costs faced by smaller ntbfs in this respect our results clearly support the view that sponsor institutions as public research organizations venture and corporate venture capitalists may sensibly reduce these costs and that their role crucially depends on both the identity of the sponsor and the type of alliance

does tourism promote cross border trade we estimate a simultaneous bivariate qualitative choice model of arizona agribusiness firms propensity to trade and visit as a tourist the cross border state of sonora mexico venture business visits quantified through the tourism equation were found to have the largest impact on a firm s propensity to trade tourist visits have a greater impact on trade when combined with other firm attributes such as age perceived need for geographic diversity foreign language fluency and firm size than if considered alone our results suggest that there is a role for government agencies to play in overcoming imperfect information related to trade opportunities through facilitating exploratory business venture and tourist visits

co operative r d why and with whom an integrated framework of analysis abstract firms use r d partnerships to access knowledge and build global r d networks this article develops an integrated framework to examine the determinants of the choice of partners with which firms co operate on r d this resource based perspective underscores the interactions between three major questions why co operate who does and with whom it argues in particular that the choice of partners is dictated by the complementary resources which the latter command the framework is then expanded to predict the relative efficiency of r d co operation with different partners including suppliers clients rivals academic institutions and foreign firms the empirical analysis which is based on responses to france s version of the second european community innovation survey cis 2 strongly supports the overall framework of analysis

modelling us tourism demand for european destinations abstract an almost ideal demand system model is used to examine us demand for tourism in european destinations the model provides policy makers with useful information concerning the sensitivity of tourism demand to changes in relative prices exchange rates and expenditure the results show that price competitiveness is important for us demand for france italy and spain but is relatively unimportant for the uk france and italy are regarded as substitutes by us tourists as are spain and italy as us expenditure rises the market shares of spain and the uk decline while france and italy benefit the demand modelling and forecasting indicate that in the absence of a tourism price index the choice between alternative price indices does not have a significant effect on the results

combining farrell frontier and hedonic travel cost models for valuing estuarine quality a 1992 survey of tennessee anglers was used to determine who is fishing and how often the species they fish for and how anglers perceive the regulatory structure the results are based on telephone interviews with 450 active licensed an glers nearly 81 of the anglers visited a tennessee reservoir in 1992 while 41 fished warm water streams 28 farm ponds and 22 trout streams over 60 pre ferred separate regulations for reservoirs active reservoir fishermen were more likely to support individual regulations the participants were evenly split on whether a proposed regulation which has public support should be imposed even if the manage ment agency does not feel the fishery would benefit eighty percent of the anglers indicated that existing fishing regulations were not complicated proc annu conf southeast assoc fish and wildl agencies 47 767 774 proper administration of fishery resources requires management authorities to have knowledge of the angler population served by the management agency specifically authorities should be aware of the type and intensity of angler activi ties and understand angler preferences concerning existing and proposed management alternatives to the degree that certain types of fishermen are less likely to support management policies authorities should target educational pro grams specifically at non supportiv e anglers to gain greater public support for biologically viable management strategies this study uses data gathered from a survey of tennessee anglers to deter mine who is fishing and how often the species they are targeting and how anglers perceive the regulatory structure we report the demographic factors of anglers which exhibit statistically significant relationships to angler support for the current

hubs and high fares dominance and market power in the u s airline industry this article estimates the importance of route and airport dominance in determining the degree of market power exercised by an airline the results indicate that an airline s share of passengers on a route and at the endpoint airports significantly influences its ability to mark up price above cost the high markups of a dominant airline however do not create much of an umbrella effect from which carriers with smaller operations in the same markets can benefit the article suggests a number of possible explanations for this asymmetry

life cycle of agrotouristic firms in sardinia this paper analyses the supply of an important form of rural tourism agrotourism at a level of each of the four provinces on the island of sardinia italy importantly an analysis is undertaken on the impact that legislation has had on the life cycle the analysis is framed into three main sections firstly the main legislative interventions introduced in sardinia by the local government that were aimed at regulating the supply of agrotourism are presented secondly a life cycle description is given based upon a literature review and a methodology presented thirdly the life cycle analysis and legislative impacts are combined using an econometric approach in terms of trend factors of the sardinian businesses over an extended period from 1986 to 2003 the analysis identifies that regional legislative actions have indeed had a significant impact in the evolution and dynamics of the supply of agrotourism on the island the quantitative methodology identifies some heterogeneity in modelling the trend for each of the four sardinian provinces and evidence exists indicating that agrotourism is entering a stagnation stage on the basis of the economic results obtained suggestions are given to both the private sector and public policy makers in agrotourism

what drives the choice of the type of partner in r d cooperation evidence for spanish manufactures and services abstractwe analyse the heterogeneity in firms decisions to engage in r d cooperation taking into account the type of partner competitors suppliers or customers and research institutions and the sector to which the firm belongs manufactures or services we use information from the technological innovation panel pitec for spanish firms and estimate multivariate probit models corrected for endogeneity which explicitly consider the interrelations between the different r d cooperation strategies we find that placing a higher importance to publicly available information incoming spillovers receiving public funding and firm size increase the probability of cooperation with all kind of partners but the role is much stronger in the case of cooperative agreements with research institutions and universities our results also suggest that r d intensity and the importance attributed to the lack of qualified personnel as a factor hampering innovation are key factors influencing positively r d cooperation

conservationist government policies and intergenerational equity in an overlapping generations model with renewable resources abstract this paper shows that in overlapping generations models incorporating renewable natural resources competition may lead to perpetually declining living standards in environments in which it is technically feasible to achieve intergenerationally equitable distributions of consumption first and second best conservationist government policies are examined these include forced nationalization of the entire stock of natural capital government open market purchases and sales of natural capital taxation of industrial use of resources and subsidies to private investments in natural capital

an econometric study of tourism demand the aids model of us and european tourism in mediterranean countries the almost ideal demand system aids model was used to estimate tourism expenditure allocation by us and west european countries among a range of mediterranean destinations the approach has the advantage of an explicit basis in consumer expenditure theory and by modelling the changes in the budget shares of expenditure among destinations provides new information relative to that provided by the traditional single equation approach the estimated model was econometrically satisfactory although symmetry and homogeneity were rejected in line with the findings of past studies of consumer demand the expenditure elasticities demonstrated considerable differences in tourism demand preferences between origin countries and between traditional and newly developing destinations the own and cross price elasticities indicated the importance of effective prices in determining the allocation of expenditure among destinations

war terror and the tourism market in israel a supply and demand model of the israeli hotel industry is developed distinguishing between its domestic and foreign sectors model simulations are employed to examine the impacts of war and terrorist incidents on tourist activity and hotel revenues foreign demand for israeli hotel stays is highly price elastic and income inelastic and moderately sensitive to terrorist events domestic demand is price inelastic income elastic and terror insensitive in the wake of terror attacks hotels supply or minimum prices to israeli tourists shift downward reducing local market prices and encouraging more local tourism however the magnitude of these shifts is minor and the local market thus provides little buffer for dropoffs in foreign tourism by permitting excess capacity in such fashion hotels respond rationally to the price inelasticity of local demand

estimation of tourism demand by multivariable regression analysis evidence from kenya abstract between 1963 and 1982 tourism was one of the top three domestic exports of kenya knowledge of the variables which significantly influence kenyan tourism demand could help tourism policy makers in planning growth strategies the results of this study indicate that multivariable regression analysis has limited usefulness in identifying the significant factors which influence tourists decisions data problems and resulting multicollinearity cause unsuitable results in one case while model specification appears to be a problem in another the author concludes that quantitative studies should be supplemented by qualitative analysis in order for kenyan policymakers to make optimal decisions

internal r d expenditures and external technology sourcing abstract the paper examines the two way relationship between external r d activities and internal r d expenditures on a cross section of flemish r d active companies the analysis extends the classical explanatory variables like size diversification ownership structure and technological opportunities to include the impact of various external sourcing strategies r d cooperation and to a lesser extent r d contracted out are found to have a significant positive effect on internal r d but only if the companies have absorptive capacity in the form of a full time staffed r d department at the same time firms are found to be more frequently engaged in r d cooperation the more they spend on internal r d

the estimation of keynesian income multipliers at the sub national level 1988 the estimation of keynesian income multipliers at the sub national level applied economics vol 20 no 11 pp 1435 1444

a comparison of the moderating effect of tourism reliance on the economic development for islands and other countries abstract tourism is usually one of the top industries in most countries especially islands however there is some question as to whether there is a negative potential impact if a country relies too much on tourism as a means of economic development to the detriment of other industries such as manufacturing and agriculture the purpose of this paper is to examine the moderating effect of tourism reliance on the relationship between tourism development and economic development for regular countries and island economies including small island developing states sids this study uses quantile regression on panel data from the wdi database from 1995 through 2014 for all of the countries that report tourism and economic data the findings demonstrate that tourism reliance does have a moderating effect on the relationship between tourism development and economic development for all countries but mainly at higher levels of economic development

comparing benefit estimates from travel cost and contingent valuation using confidence intervals for hicksian welfare measures an approach to determining whether benefit estimates derived from the travel cost method and contingent valuation method are statistically different is presented unlike past comparisons compensating variation is estimated for both methods benefit comparisons are made more rigorous by use of confidence intervals which are developed using the same krinsky and robb simulation technique for both valution mothods the techniques are applied to deer hunting in california while point estimates of benefits from both truncated and untruncated adjusted travel cost methods are lower than the contingent valuation method the confidence intervals on the untruncated travel cost method do overlap the contingent valution method benefit estimates

an applied general equilibrium analysis of the economic effects of tourism in a quite small quite open economy a computable general equilibrium model is used to project the effects of tourism on the industrial and regional structures of the australian economy the most striking conclusion is that queensland usually thought to be the most tourism oriented of the australian states would be a net loser from an economy wide expansion of tourism as well as having a relatively large share of its gsp accounted for by tourist oriented activities queensland is also relatively heavily dependent on agriculture and mining traditional export sectors which are crowded out by the expansion of international tourism

tourism as a factor in development cooperation abstract where there is little or no industrial or agricultural base and no exploitable resource tourism may make a significant contribution to the economy of a developing country the eec provides aid to developing countries in three areas the southern mediterranean asia and latin america and africa the caribbean and the pacific the commission has produced guidelines for drawing up proposals and a typical example is presented in this article the eec also supplies high quality expertise to help define policy options and strategic plans and carry out agreed programmes long term success is more likely for specialized high income projects

earnings management the shapes of the frequency distributions of earnings metrics are not evidence ipso facto we provide evidence that the shapes particularly around zero of the frequency distributions of earnings metrics examined in the extant earnings management literature are affected by 1 deflation using for example price or market capitalization 2 sample selection criteria that lead to differential inclusion exclusion of observations to the left of zero versus observations to the right of zero implicit in studies focusing on firms followed by i b e s and explicit in studies partitioning on a variable differing between loss observations and profit observations 3 differences between the characteristics of observations to the left of zero and observations to the right of zero such as market pricing and analyst optimism pessimism or 4 a combination of these factors since the shapes of the frequency distributions of earnings metrics at zero are likely due to one of the above effects we conclude that the shapes cannot be used as ipso facto evidence of earnings management

from competition to collaboration the challenge of commercial class aircraft manufacturing sectoral analyses reveal an emerging tension between a global market and an anarchic political system and oblige scholars to examine the dynamic and reciprocal relationship between states and markets this analysis of commercial class aircraft manufacturing a strategic industry demonstrates how corporate behavior affects political choices and vice versa it suggests that corporate and political policymaking is a messy process first policymakers must respond to multiple and often conflicting demands from both domestic and international constituencies second they are influenced by a number of variables including ideology interest group activity consequences of previous policies perceptions about their state s position in the international system and available knowledge about how to realize specific goals sets of competing variables which act as centripetal and centrifugal forces are identified and analyzed in terms of how they have impelled corporations to seek transnational production arrangements three prototypical structures of international production are delineated and the potential consequences for states and corporations participating in each model are discussed the key objectives of the article are to encourage the use of multivariate analyses to explain change in the international system and to provoke further debate about the appropriate policies to pursue to achieve global economic competitiveness across a number of industry sectors