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on Tourism Economics |
| By: | Chia-Lin Chang (Department of Applied Economics, Department of Finance, National Chung Hsing University Taichung, Taiwan); Hui-Kuang Hsu (Department of Finance and Banking National Pingtung Institute of Commerce, Taiwan); Michael McAleer (Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam and Tinbergen Institute, The Netherlands, Department of Quantitative Economics, Complutense University of Madrid, and Institute of Economic Research, Kyoto University.) |
| Abstract: | This paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data from 1 July 2008 to 29 June 2012 for 999 firms are used, which covers the Global Financial Crisis. The empirical findings indicate that there are size effects on volatility spillovers from the exchange rate to firm performance. Specifically, the risk for firm size has different effects from the three leading tourism sources to Taiwan, namely USA, Japan, and China. Furthermore, all the return series reveal quite high volatility spillovers (at over sixty percent) with a one-period lag. The empirical results show a negative correlation between exchange rate returns and stock returns. However, the asymmetric effect of the shock is ambiguous, owing to conflicts in the significance and signs of the asymmetry effect in the two estimated multivariate GARCH models. The empirical findings provide financial managers with a better understanding of how firm size is related to financial performance, risk and portfolio management strategies that can be used in practice. |
| Keywords: | Tourism, Size effects, Small-firm effects, Financial performance, Spillover effects, MGARCH, VARMA, BEKK. |
| JEL: | C22 G32 L83 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1301&r=tur |
| By: | Benner, Maximilian |
| Abstract: | When thinking about clusters, primarily agglomerations of manufacturing and related service industries come into mind. Yet, clustering in tourism is as salient as in few other industries. Tourism clusters are an empirical fact. Considering the high relevance of tourism to many regions and nations, linking cluster and tourism policy seems worth considering. For this, a special theory of tourism cluster policy is needed, as tourism offers some particular characteristics that set it apart from other industries. On the basis of an analysis of these specifics, this article develops a toolbox for cluster policy specifically aimed at agglomerations in the tourism industry. It offers an overview of ways to use tourism agglomerations for the economic development of nations and regions, including rural ones. |
| Keywords: | clusters; cluster policy; tourism economic growth; regional policy; rural development |
| JEL: | O18 L83 R11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43924&r=tur |
| By: | Sumit Kunnumkal; Kalyan Talluri |
| Abstract: | The choice network revenue management model incorporates customer purchase behavior as a function of the offered products, and is the appropriate model for airline and hotel network revenue management, dynamic sales of bundles, and dynamic assortment optimization. The optimization problem is a stochastic dynamic program and is intractable. A certainty-equivalence relaxation of the dynamic program, called the choice deterministic linear program (CDLP) is usually used to generate dyamic controls. Recently, a compact linear programming formulation of this linear program was given for the multi-segment multinomial-logit (MNL) model of customer choice with non-overlapping consideration sets. Our objective is to obtain a tighter bound than this formulation while retaining the appealing properties of a compact linear programming representation. To this end, it is natural to consider the affine relaxation of the dynamic program. We first show that the affine relaxation is NP-complete even for a single-segment MNL model. Nevertheless, by analyzing the affine relaxation we derive a new compact linear program that approximates the dynamic programming value function better than CDLP, provably between the CDLP value and the affine relaxation, and often coming close to the latter in our numerical experiments. When the segment consideration sets overlap, we show that some strong equalities called product cuts developed for the CDLP remain valid for our new formulation. Finally we perform extensive numerical comparisons on the various bounds to evaluate their performance. |
| Keywords: | Optimization Techniques; Programming Models; Dynamic Analysis; Air Transportation ; Sports; Gambling; Recreation; Tourism; Production Management |
| JEL: | C61 L93 L83 M11 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1349&r=tur |
| By: | Hans R. A. Koster; Piet Rietveld; Jos Van Ommeren |
| Abstract: | We test the impact of historic amenities on house prices and sorting of households within cities. Conservation area boundaries enable us to employ a semiparametric regression-discontinuity approach to measure the impact of historic amenities. The approach allows for household-specific preferences. Conditional on neighbour attributes, the price difference at the conservation boundary is about 3 percent. Internal historic amenities are also important, as listed houses are about 6 percent more expensive. It is shown that rich households sort themselves in conservation areas and in listed buildings, because they have a higher willingness to pay for historic amenities. The results contribute to an explanation for the substantial spatial income differences within cities. |
| Keywords: | historic amenities, sorting, conservation areas, semiparametric regression-discontinuity design, hedonic price method |
| JEL: | R14 R21 R31 R38 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0124&r=tur |
| By: | Stephens, Heather; Partridge, Mark |
| Abstract: | Regional migration and growth are increasingly associated with high-quality in situ natural amenities. However, most of the previous U.S. research has focused on the natural amenities of the Mountain West or the South. The Great Lakes, with their abundant fresh water and natural amenities, would also appear well-positioned to provide the foundation for this type of economic growth. Yet, while some parts of the western Great Lakes region are prime examples of amenity-led growth, other areas in the eastern Great Lakes may not have capitalized on their natural amenities, perhaps because of their strong industrial legacy. Using a unique county-level dataset for the Great Lakes region (including Indiana, Illinois, Michigan, Minnesota, New York, Ohio, Pennsylvania, and Wisconsin), we test whether growth in the region is associated with proximity to lake amenities and whether there are offsetting industrial legacy or pollution effects. We also examine whether amenities have additional attraction value for those with high levels of human capital. Consistent with theory that suggests that natural amenities are normal or superior goods, we find that coastal areas in the region are positively associated with increases in shares of college graduates. However, we find little evidence that lake amenities contribute to broader household migration, especially after 2000. Based on these results, there may be opportunities to leverage Great Lake amenities to support economic growth in terms of attracting individuals with high levels of human capital who are most likely to make quality of life migration decisions. |
| Keywords: | Regional growth; natural amenities |
| JEL: | O18 |
| Date: | 2012–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43903&r=tur |