Tourism Economics Research Articles

Chinese third year

China's third nationwide seminar on tourism economics, sponsored by the Institute of Finance and Trade Economics, Chinese Academy of Social Sciences, was held in Zhengzhou, central China from 6–12 December 1983.Gao Dichen and Zhang Guangrui, who's 'China's tourism: policy and practice' appeared in Tourism Management, Vol 4, No 2, 1983 pp 75-84, report on the meeting.

Going Overseas for Higher Education: The Asian Experience

Over the quarter century from 1950 to 1978 the number of tertiary-level students studying in foreign countries increased from 107,589 to 842,705-nearly eight times.' Between 1968 and 1978, the most recent 10-year period for which data is available, the increase was nearly 250 percent. If a straight-line projection is fitted to past numbers, overseas students will number nearly 21/2 million by the year 2000. From a quantitative standpoint, studying overseas has become important only since World War II. During the early postwar years, the number of overseas students remained constant and was a modest proportion of the total number of students in the world's rapidly expanding higher educational institutions. However, in recent years, while the rate of increase in numbers of overseas students has been high, the rate of increase in numbers of places in the world's higher educational institutions has begun to level off. Thus, since the early 1970s, the number of overseas students as a percentage of all students in the world has increased somewhat: from 2.0 percent in 1968 to 2.3 percent in 1978. Though many observers have commented on the rapid postwar increase in the number of overseas students, few have tried to explain that increase, and no serious attempts have been made to explain the considerable national differences in the numbers of students from other countries in

Advertising as Information

This paper tries to show how the major features of the behavior of advertising can be explained by advertising's information function. For search qualities advertising provides direct information about the characteristics of a brand. For experience qualities the most important information conveyed by advertising is simply that the brand advertises. This contrast in advertising by these qualities leads to significant differences in its behavior. How does advertising provide information to the consumer? The producer in his advertising is not interested directly in providing information for consumers. He is interested in selling more of his product. Subject to a few constraints, the advertising message says anything the seller of a brand wishes. A mechanism is required to make the selling job of advertising generate information to the consumer. [Авторский текст]

Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition

A class of differentiated products is completely described by a vector of objectively measured characteristics. Observed product prices and the specific amounts of characteristics associated with each good define a set of implicit or "hedonic" prices. A theory of hedonic prices is formulated as a problem in the economics of spatial equilibrium in which the entire set of implicit prices guides both consumer and producer locational decisions in characteristics space. Buyer and seller choices, as well as the meaning and nature of market equilibrium, are analyzed. Empirical implications for hedonic price regressions and index number construction are pointed out.

Education, Income, and Ability

Current estimates of the contribution of education to economic growth have been questioned because they ignore the interaction of education with ability. Whether the neglect of ability differences in the analyses of the income-education relationship results in estimates that are too high was considered in an earlier paper by one of the authors (Griliches 1970), and a negative answer was conjectured. In this paper, we pursue this question a bit further, using a new and larger body of data. Unfortunately, a definitive answer to this question is hampered both by the vagueness and elasticity of "education" and "ability" as analytical concepts and by the lack of data on early (preschooling) intelligence. The data examined in this paper are based on a 1964 sample of U.S. military veterans. The variables measured include scores on a mental ability test, indicators of parental status, region of residence while growing up, school years completed before service, and school years completed during or after service. These have allowed us to inquire into the separate effects of parental background, intelligence, and schooling. The basic problem and analytical framework can be set out very simply. Let income be a linear function of education and ability, or, Y a + P1E + P(2G + u, where Y is income, E is education, G is ability,

Crime and Punishment: An Economic Approach

Since the turn of the twentieth century, legislation in Western countries has expanded rapidly to reverse the brief dominance of laissez faire during the nineteenth century. The state no longer merely protects against violations of person and property through murder, rape, or burglary but also restricts ‘discrimination’ against certain minorities, collusive business arrangements, ‘jaywalking’, travel, the materials used in construction, and thousands of other activities. The activities restricted not only are numerous but also range widely, affecting persons in very different pursuits and of diverse social backgrounds, education levels, ages, races, etc. Moreover, the likelihood that an offender will be discovered and convicted and the nature and extent of punishments differ greatly from person to person and activity to activity. Yet, in spite of such diversity, some common properties are shared by practically all legislation, and these properties form the subject matter of this essay.

Determinants of Risk Premiums on Corporate Bonds

ECONOMISTS have long agreed that the rate of interest on a loan depends on the risks the lender incurs. But how lenders estimate these risks has been left largely to conjecture. This paper presents and tests a hypothesis about the determinants of risk premiums on corporate bonds. By risk premium is meant the difference between the market yield on a bond and the corresponding pure rate of interest. My hypothesis is as follows: (1) The average risk premium on a firm's bonds depends first on the risk that the firm will default on its bonds and second on their marketability. (2) The "risk of default" can be estimated by a function of three variables: the coefficient of variation of the firm's net income over the last

Uncertainty, Evolution, and Economic Theory

A modification of economic analysis to incorporate incomplete information and uncertain foresight as axioms is suggested here. This approach dispenses with “profit maximization”; and it does not rely on the predictable, individual behavior that is usually assumed, as a first approximation, in standard textbook treatments. Despite these changes, the analytical concepts usually associated with such behavior are retained because they are not dependent upon such motivation or foresight. The suggested approach embodies the principles of biological evolution and natural selection by interpreting the economic system as an adoptive mechanism which chooses among exploratory actions generated by the adaptive pursuit of “success” or “profit.” The resulting analysis is applicable to actions usually regarded as aberrations from standard economic behavior as well as to behavior covered by the customary analysis. This wider applicability and the removal of the unrealistic postulates of accurate anticipations and fixed states of knowledge have provided motivation for the study.