Using a spatial hedonic price model, this study estimated the elasticity and the implicit marginal costs of variables related to air pollutants that may affect apartment prices in Seoul. Spatial econometric and interpolation methods were employed to estimate the benefits of changes in the concentrations of air pollutants. Previous studies showed that dependence, spatial heterogeneity, and air pollution concentrations can be addressed with the use of these methods. The average marginal willingness to pay with a 10% improvement in PM10 concentration is approximately 233,800 won (US$187.0) to 303,800 won (US$243.0) per month. With a healthy concentration (18.15% reduction), the average marginal willingness to pay is approximately 424,300 won (US$339.4) to 551,400 won (US$441.1) per month. Therefore, environmental factors can be important determinants of housing prices in Seoul.
University research parks facilitate colocation of businesses within or in relative proximity to the main campus. They provide a favorable environment for interactions among tenant firms, as well as between firms and academia. Because of their physical size, employment base, support services, export driven activities and overall role in regional economies, university research parks can be regarded as micro-clusters. In this paper we dissect and map the anatomy of a university research park to demonstrate its dynamism and economic impacts on regional economies through a mixture of different yet related activities. First we identify core activities that include technology companies and incubator based technology companies. These core activities are facilitated by park management support organizations, park tenant support organizations, and community service support organizations. Individual firms and organizations assigned to each of these categories are identified and employment is classified as export driven or non-export driven. Only the export component is used to estimate the indirect and induced employment in the metropolitan region that is dependent on park activity. The methodology and results of this project will be particularly useful in conceptualization and operationalization of economic impacts of university research parks on their local and regional economies.
In this note, we study a guided tour providing firm that operates in a stochastic environment. The environment is stochastic because this firm's costs are deterministic but its revenues are stochastic. Since the revenues are stochastic, so the profits of this firm are also stochastic. For such a firm, we show how to compute the expected profit function for two cases. In the first case, the revenues accrued by the firm over time are continuous random variables and in the second case these same revenues are discrete random variables.
This paper aims to develop a Macro-Econometric Model for Japan as a whole, and also to empirically analyze the Japanese economy with respect to structure, predictions and simulations together with policy evaluations. Furthermore, a Regional Model for the Chubu Region (Central Part of Japan), which consists of Toyama, Ishikawa, Fukui, Nagano, Gifu, Shizuoka, Aichi, Mie and Shiga Prefectures, was developed to link the above-stated Macro-Economic Model for Japan as a whole. Judging from our empirically derived results, we can explicitly state some policy-recommendations, such as establishment of a new social system to encourage capital investments, research development of companies, and establishment of a stable tax-finance system for national as well as local governments.
The government of Thailand has established its unique local development approaches. Those approaches were under the central government in the initial stage. However, political confusions brought a new decentralization and innovations especially in the field of local cottage industry and tourism. The regional OTOP committee established by the central government initiative played a key role to activate the local initiative. And the central government has established a “ Geographical Indications” (GI), which are intended to designate product quality, highlight brand identity, and preserve cultural traditions. The use of geographical indications allows producers to obtain market recognition and often a premium price. The Chiang Mai local government has assigned this brand name “ Chiang Mai Brand” as a symbol to represent the high quality of the products. The reason of the usage was the increase of the travelers from Malaysia etc. In order to reach this standard, it has been necessary to focus on creating a new attitude, provincial image under the management of the Chiang Mai Brand Committee. And for food products, they created Halal food brand. On the contrary, in the Northeast district, they have promoted cottage industries to revitalize the district especially by using One Tombon One Product (OTOP) logo for food products. Recently, the East-West Economic Corridor (EWEC) to Vietnam by using “ EWEC brand” is expected to expand the new local trade and tourism. The economic conditions were completely different. However, there is a clear similarity, which is so called local branding strategy and innovative business environment. This case study presents the policy implication from the studies from these two districts.
This study introduces a two-stage competition model to investigate major features of land-use strategies for German municipalities. First, a municipality should solve economic and interest conflicts related to its preference of high-quality sites for high-tech firms against other land needs. Second, competition among municipalities with high-quality sites is necessary for attracting innovative firms. A local land-use policy is combined with the industrial policy in Germany: for Potsdam the study reveals strengths and weaknesses of the real estate market in the context of urban competition for attracting high-tech firms, and examines its future chances and risks for the location of various economic activities with particular consideration of local clusters. Science Park Adlershof (Berlin) appears to provide a successful combination of technology policies and municipal land-zoning strategies to guarantee a superior position in the competition for creating incubators for innovative small and medium-sized enterprises. Municipalities also cooperate, because such cooperation provides larger sites, generates economies of scale and contributes to a smooth suburbanization process.
Recently in Japan, agriculture has a significant potential to exert multi-functionality despite its small share in the GDP of town economies, because the interdependent and cooperative relationships (both direct and indirect) among residents are formed through not only consuming agricultural products and sharing the same space with the agricultural sector, but also by enjoying multi-functionality. Therefore, a new understanding about the role of agriculture has great significance for town-reinvention. However, since agriculture in a town generally consists of not only homogeneous farmers but also a large number of various stakeholders, the shape of agriculture in the reinvention of a town needs to be drawn after clarifying the consciousness of the stakeholders toward agriculture based on the social and economic relationships among them. Therefore, the purpose of this study was to introduce a new approach of “strategic regional agricultural development” into the process of city (town) reinvention, specifically based on the results of a questionnaire about the consciousness of residents of Seiro Town (Seiro-machi) in Niigata Prefecture, Japan. The future course and policy implications for realizing “attractive agriculture” in the town by identifying the structure and causal relationship of attractiveness formation were clarified.
This paper examines the economic impacts of technological innovations in the motor vehicle industry in Japan and China. The motor vehicle industry has developed environmentally friendly vehicles in the face of concerns over global warming and petroleum exhaustion. A new type of motor vehicle will likely become popular, and the industrial sector be affected by its appearance. Since the Japanese economy heavily depends on the motor vehicle industry, the advent of a new age in the automotive industry will have a significant impact not merely on the motor vehicle industry, but on other industries as well. Meanwhile, in China, the motor vehicle industry is rapidly expanding, and environmentally friendly vehicles have recently come into use. In this study, we explored the economic impacts of a shift in the production system of the motor vehicle industry from conventional technology to electric and hybrid vehicle technology. The automotive industries in China and Japan are mutually dependent on the availability of technology and resources in each country. Therefore, it is also important to examine how best to build a relationship of competitive coexistence between the two nations, and this paper estimates the economic impacts of changes in China-Japan trade in the automotive industry.