Bradley M. Braun

The relative economic impact of convention and tourist visitors on a regional economy: a case study

Abstract This study shows for a regional economy, the relative impact of convention travel parties is larger than that of general tourists which, in part, justifies the existence of convention bureaus. Convention and meetings are highly beneficial in that they can complement the seasonal fluctuations in general tourism activity. Because this is a case study of Orlando, Florida, care must be taken in generalizing the results. In Orlando the average meeting length, the average travel party size, and the number of days that travel parties remain beyond the convention are all higher than the average for the U.S.A. Further, in smaller cities, the specialized convention services are likely to be imported from outside of the local economy, thereby reducing the convention multipliers.

The Random Coefficient Approach for Estimating Tax Revenue Stability and Growth

The issue of tax revenue stability and growth has been of concern to policy makers and economists for many years. One important focus of the literature is the optimal tax portfolio, which assumes that revenue variance is entirely unpredictable. However, as evidenced by Fox and Campbell, some revenue variance arising from changes in economic conditions is predictable. The purpose of this study is to revisit Fox and Campbells work. They studied revenue growth and stability with a fixed coefficient model (FCM). This study uses a random coefficient model (RCM). The RC Mapproach appears to provide improved estimates and confirms the conclusions of their earlier work. The response of short-run elasticities to the business cycle appears both strong and variable across commodities, and no single commodity dominates revenue growth or stability. Although this study supports the design of an optimal tax portfolio, it emphasizes the need to explicitly model for economic conditions and to continually adjust the tax portfolio. However, given the political and budgetary process, these adjustments may not be feasible.

The effects of economic conditions and tax structures on state tax revenue flow

Tax portfolio literature has focused on deriving the optimal composition of the tax structure for a particular state. However, tax revenue flow is influenced by both tax structure and economic conditions which are unique for each state. Therefore, the literature has been unable to generalize the characteristics of optimal tax structures. This paper examines the contribution of a states economic condition, as well as the tax structure, to the growth and variability of tax revenue flow. In addition, the optimal tax portfolio is studied for changes in revenue growth targets and economic conditions.

Disney's return to theme park dominance in Florida.

This paper investigates the increasing evidence that Disney has restored its market share dominance and price leadership power in the Central Florida theme park market, while reasserting this region as the base for its global empire. Disney appears to have weathered deep-pocketed challenges from Universal Studios and Las Vegas Hotels successfully, as well as addressing concerns about its ageing brands, adverse demographic trends and post-9/11 international travel restrictions. After analysing attendance data series and updating ticket price patterns, the authors design a classical attendance demand model to investigate alternative explanations for Disneys surprising re-emergence. The model generates estimates of critical elasticities with rival theme park admission prices, gasoline prices, airfares, income and currency exchange rate fluctuations. These findings are pitted against conventional wisdom in explaining Disneys resurgence.

Price Cap Regulation in the Cable Television Industry: Why was the Demand Stagnant?

During the period of 1992 to 1996, the cable television industry in the United States was regulated by the FCC, which took several price cap measures. As a result, the increase in the price cable service substantially slowed. However, the cable demand did not rise as anticipated. Using a model of imperfectly discriminating monopoly, the paper empirically investigates this curious phenomenon of stagnant demand despite lower prices. The paper finds that the FCCs price capping constrained both demand and prices. The demand was constrained since the price cap was designed to cover almost all TV channels carried by cable systems, and subsequently discouraged cable systems from meeting different customer preferences with multi-tier services.

Taxation by Regulation and Regulation by Taxation: The Case of Local Cable TV Regulation

Until late 1986, municipalities played a major role in cable television regulation.Municipalities not only regulated pricing and quality decisions but also taxed cablesystems in the forms of in-kind and in-cash concessions. These activities appear tofit well with the concept of taxation-by-regulation, which concludes that consumerwelfare is reduced because of the rent seeking behavior of local politicians. At thesame time however, the notion of regulation-by-taxation is equally plausible. Thatis, politicians may use taxation as a means to regulate the activity of a monopoly bylimiting monopoly rents and improving consumer welfare. This article empiricallyseparates these two effects and investigates the implications for consumer welfare.

The Impact of Day Trips to Daytona Beach

Coastal areas and other tourist destinations are popular with ‘day trippers’, who have a substantial effect on local tourism economies and may help to stabilize seasonal demand fluctuations. However, day trippers can also accelerate resource degradation, burden municipalities with higher policing and maintenance costs, and create image problems. Daytona Beach is a destination for which day tripper visitation generates both positive and negative effects which local policy makers need to assess. Analyses of what influences beach area selection, frequency of visitation and party size, and annual per capita spending are used to shed light on public policy issues such as restricting beach driving and an over-dependence on events-based tourism.