A NOTE ON THE USE OF AMENITIES TO ATTRACT CREATIVE CLASS MEMBERS TO A CITY

Amitrajeet A. BATABYAL

Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA

aabgsh@rit.edu

Seung Jick YOO

Associate Professor, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

Corresponding Author

Abstract

We study the decision problem faced by a city authority (CA) who seeks to attract members of the creative class to his city by providing amenities. Creative class members care about their own incomes and about the amenities that the city provides. We construct a stylized model of this interaction and shed light on three questions. First, we determine how much additional income must be paid to a representative creative class member to maintain her utility if amenities are withdrawn. Second, we compute the cost of generating amenity benefits that equal a specific fraction of the representative creative class member’s income. Finally, we discuss whether the provision of amenity benefits is a cost-effective way of raising the representative creative class member’s utility.

Keywords: Amenity Benefits, City Authority, Cost-Effectiveness, Creative Class, Income

JEL classification: R11, R50

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DYNAMIC CAUSALITIES BETWEEN WORLD OIL PRICE AND INDONESIA’S COCOA MARKET: EVIDENCE FROM THE 2008 GLOBAL FINANCIAL CRISIS AND THE 2011 EUROPEAN DEBT CRISIS

Mukhlis MUKHLIS

PhD Scholar in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Lecturer, Universitas Almuslim, Indonesia

mukhlis.umuslim@gmail.com

Raja MASBAR

Professor in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

raja.masbar53@gmail.com

Sofyan SYAHNUR

Senior Lecturer in Economics, Faculty of Economics Business, Universitas Syiah Kuala, Indonesia

kabari_sofyan@unsyiah.ac.id

M. Shabri Abd. MAJID

Senior Lecturer in Economics, Faculty of Economics Business, Universitas Syiah Kuala, Indonesia, Corresponding author

mshabri@unsyiah.ac.id

Abstract

This study examines and analyzes the short- and long-run dynamic causal relationship between the prices of Indonesian and world cocoa beans during the 2008 global financial crisis and the 2011 European debt crisis. Time series analysis consisting of cointegration, Vector Error Correction Model (VECM) and Granger causality are used to test long-run equilibrium, short- and long-run relationships, and dynamic causalities between the Indonesian cocoa and world cooa prices. The study found a long-run equilibrium between Indonesian cocoa price, world cocoa price, exchange rate, and world oil price. The Indonesian and world cocoa markets have a mutually influential relationship. However, an inefficient transmission of corrective adjustments in the Indonesian cocoa prices was documented over the study period. The exchange rate consistently affected Indonesian cocoa prices, while fluctuations in world oil prices were independent to domestic and world cocoa markets over the study period. Overall, the study documented a long-run equilibrium between Indonesian and global cocoa markets at the different level of speed of adjustment of the world cocoa price towards long-run equilibrium between the two economic crises. The Indonesian government needs to enhance international trade cooperation and pricing policy harmonization among cocoa producing- and importing-countries.

Keywords: Cocoa price, Exchange rate, Oil price, World cocoa market, Economic crisis

JEL classification: C01, C23, O13.

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FINANCIAL INCLUSION AND POVERTY REDUCTION IN ACEH PROVINCE: COMPARISON BETWEEN CORE REGION AND PERIPHERY REGION

ALIASUDDIN

Associate Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

aliasuddin@unsyiah.ac.id

Taufiq C. DAWOOD

Assistant Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

taufiq.dawood@unsyiah.ac.id

Nanda RAHMI

Assistant Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

nanda_rahmi84@unsyiah.ac.id

Abstract

This study analyzes the role of financial inclusion on poverty reduction in Aceh Province, the comparison between the core region (Banda Aceh) and periphery region (Aceh Besar).  This study uses cross-sectional data from Banda Aceh and Aceh Besar with sample total of 598 and 686 households, respectively.  The logistic model is used in this study.  The results show that financial inclusion is negatively not significant in Banda Aceh but negatively significant in Aceh Besar.  Meanwhile, sex and educational level are negatively significant in Banda Aceh and Aceh Besar, and family size is positively significant in both regions.  The biggest marginal effect on poverty is sex in Banda Aceh and Aceh Besar regions.  Female is more vulnerable to be poor compared to male in term of poverty

Keywords: financial inclusion, Aceh, poverty reduction, logistic

JEL classification: N95, B23, B26, I32

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