1,720,996 research outputs found
The tourism area life cycle hypothesis: A micro-foundation
Full text linkWe provide a simple micro-foundation of the tourism area life cycle hypothesis, based on tourists’ utility maximization. As a result of social interactions among tourists which determine destinations popularity, the market share of visitors which decides to visit a specific destination follows a logistic dynamics, consistent with what predicted by the tourism area life cycle hypothesis. We show that different preference drivers explain the duration of the different tourism area life cycle stages: the net benefit from visiting the destination characterizes the exploration, involvement, and development phases, while social effects associated with destination popularity characterize the phases of consolidation and stagnation Different from previous studies our results hold true independently of whether we focus on the repeating or non-repeating segment of the tourism market. We also
provide a calibration of our model to the case of the city of Venice (Italy) showing that it performs well in capturing the evolution of tourism in the historical center of the city over the last 60 years, suggesting that TALC-like dynamics may occur even in the context of cultural and heritage destinations
Complexity in low-carbon transitions: Uncertainty and policy implications
Full text linkWe explore the uncertain dimension induced by the complexity of energy systems, analyzing whether and under which conditions low-carbon transitions can effectively take place. By accounting for social and environmental considerations, heterogeneous single utility-maximizing agents optimally decide whether to adopt a green technology which reduces carbon emissions, allowing eventually for a green energy transition. We characterize the determinants of the success of such a transition, emphasizing that even if the favorable conditions are met the low-carbon transition may not result in long run environmental improvements due to the path-dependency and metastability phenomena which characterize the complexity arising from agents’ interactions. Public policy may solve these issues by increasing the incentive for single individuals to adopt, ensuring thus the achievement of a permanent low-carbon state. By extending the analysis to a spatial network characterized by multiplexity due to the social and environmental interconnections, we show that spatial interactions negatively affect agents’ adoption incentive and reduce the effectiveness of public policy by interacting in a complex way with path-dependency and metastability. In particular, spatial interactions may require a larger subsidy to support a permanent low-carbon transition, thus neglecting their effects on agents’ behavior and environmental outcomes may compromise our chances to achieve a greener future
ON THE (NONMONOTONIC) RELATION BETWEEN ECONOMIC GROWTH AND FINANCE
Full text linkWe analyze the simplest possible model of endogenous growth to account for the role of financial development. In our setting, financial development affects productivity and determines the amount of resources subtracted to capital investment. We show that under very general assumptions, the relation between economic growth and financial depth is nonmonotonic, and eventually bell-shaped. We empirically assess our results in a framework that allows to distinguish between long-run and short-run effects. We establish a cointegrating relation and derive the long-run elasticities of per capita gross domestic product (GDP) with respect to employment, the physical capital stock, and financial depth–relying on linear as well as nonlinear models for the finance-growth nexus. We employ the results of the first step estimation to specify an error–correction model and find that there is strong evidence for a nonlinear relationship between financial depth and per capita GDP, consistently with what was predicted by our theoretical model
Motivation crowding-out and green-paradox-like outcomes
Full text linkWe analyze the effectiveness of environmental policy in a framework in which households’ utility is determined by both private and social components, representing their extrinsic and intrinsic motivations to undertake green actions, respectively. Environmental policy, in the form of a subsidy aiming to incentivize the adoption of a green technology, on the one hand, directly increases households’ extrinsic motivation, while, on the other hand, indirectly decreases their intrinsic motivation. We show that, provided that the indirect effect dominates, the policy leads to crowding‐out of intrinsic motivation which ultimately undermines the effectiveness of the policy itself. Specifically, despite its positive effect on environmental outcomes in the short run, the policy will lead to a deterioration in long‐run environmental outcomes, giving rise to a reverse green‐paradox‐like outcome. Moreover, even in the case in which the direct effect dominates, provided that the indirect effect is large enough, the policy will generate a deterioration in short‐run environmental outcomes. These results clearly suggest that the optimal design of environmental policy is particularly complicated since it requires to take into account also its effects on intrinsic motivation.We analyze the effectiveness of environmental policy in a framework in which households’ utility is determined by both private and social components, representing their extrinsic and intrinsic motivations to undertake green actions, respectively. Environmental policy, in the form of a subsidy aiming to incentivize the adoption of a green technology, on the one hand, directly increases households’ extrinsic motivation, while, on the other hand, indirectly decreases their intrinsic motivation. We show that, provided that the indirect effect dominates, the policy leads to crowding-out of intrinsic motivation which ultimately undermines the effectiveness of the policy itself. Specifically, despite its positive effect on environmental outcomes in the short run, the policy will lead to a deterioration in long-run environmental outcomes, giving rise to a reverse green-paradox-like outcome. Moreover, even in the case in which the direct effect dominates, provided that the indirect effect is large enough, the policy will generate a deterioration in short-run environmental outcomes. These results clearly suggest that the optimal design of environmental policy is particularly complicated since it requires to take into account also its effects on intrinsic motivation
Social interactions, residential segregation and the dynamics of tipping
Full text linkWe develop an analytically tractable population dynamics model of heterogeneous agents to characterize how social interactions within a neighborhood determine the dynamic evolution of its ethnic composition. We characterize the conditions under which integration or segregation will occur, which depends on the majority’s social externality parameter and net benefit from leaving, and the minority’s leaving probability. Minority segregation may result from the process of tipping, which may arise from three possible channels: two are related to exogenous shocks (migration flows and changes in tipping points) and one is related to the endogenous probabilistic features of our framework (endogenous polarization). This characterization of integration and segregation conditions yields interesting policy implications for social and urban planning policies to mitigate segregation
Endogenous Growth and Technological Progress with Innovation Driven by Social Interactions
Full text linkWe analyze the implications of innovation and social interactions on economic growth in a stylized endogenous growth model with heterogenous research firms. A large number of research firms decide whether to innovate or not, by taking into account what competitors (i.e., other firms) do. This is due to the fact that their profits partly depend on an externality related to the share of firms which actively engage in research activities. Such a share of innovative firms also determines the evolution of technology in the macroeconomy, which ultimately drives economic growth. We show that when the externality effect is strong enough multiple BGP equilibria may exist. In such a framework, the economy may face a low growth trap suggesting that it may end up in a situation of slow long run growth; however, such an outcome may be fully solved by government intervention. We also show that whenever multiple BGP exist, the economy may cyclically fluctuate between the low and high BGP as a result of shocks affecting the individual behavior of research firms
Social Interactions, Racial Segregation and The Dynamics of Tipping
Full text linkWe develop an analytically tractable agent-based model of heterogeneous agents to characterize how social interactions within a neighborhood determine the dynamic evolution of its ethnic composition. We characterize the conditions under which integration or segregation will occur, which depends on how the social externality parameter compares with the net benefit from leaving. Minority segregation may result from the process of tipping, and in such a case we identify three possible tipping channels: two are related to exogenous shocks (migration ows and changes in tipping points) and one is related to the endogenous probabilistic features of our framework (endogenous coordination across agents). This characterization of integration and segregation conditions yields interesting policy implications for both social and urban planning policies that favor desegregation
Transboundary Pollution Control under Evolving Social Norms: a Mean-Field Approach
No full textWe analyze a dynamic game of transboundary pollution control under endogenously evolving social norms over a finite time horizon. Each player chooses their emission level in order to minimize the social cost of mitigation, which partly depends on the lack of conformity to the social norm establishing the pollution standards at the local level. We show that social norms per se are unable to favor pollution reductions, but if combined with some public reclamation effort, they become very effective in improving environmental outcomes. Indeed, provided that some minimal public reclamation takes place, social norms promote a reduction in the average of the expected value of the local pollution stocks across locations, both in the case in which players rely on an open loop and a closed loop strategy. Moreover, by explicitly characterizing the equilibrium outcome, we formally confirm the reliability of the mean-field approximation of the finite-population dynamics, despite such an approximation introduces some distortion regarding the difference between open and closed loop strategies. We also show that our results are robust to the introduction of individual abatement efforts and heterogeneity across players
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
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