Journal of Economic Theory and Econometrics: Journal of the Korean Econometric Society

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Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society

Volume 24, Issue 4 (December 2013)

Cover pages
Abstract | PDF (386 kilobytes)

No abstract is available for this article.

Regression Discontinuity Design with Endogenous Covariates, Pages 320–337

Kyoo il Kim

Abstract | PDF (156 kilobytes)

Empirical researchers often include observed covariates in the Wald type implementation of Regression Discontinuity Design (RDD) estimators. When those included covariates are endogenous, we find that the resulting RDD estimator suffers from a larger asymptotic bias than the estimator with exogenous covariates but it is still consistent. We further show that the order of bias increase due to the endogeneity is the same order of bias reduction due to the inclusion of relevant endogenous covariates.

The Determinants of Convention Site Selection: An Experimental Analysis, Pages 338–365

Wonho Song, Sukyoung Han

Abstract | PDF (151 kilobytes)

This paper examines the determinants of convention site selection with experimental data. The meetings and conventions industry is becoming more competitive and gaining importance in a national economy. However, there are only a few studies available on this issue. Moreover, analytical tools used are limited to statistical variance analysis or simple linear regressions and they lacked theoretical backgrounds. This paper tries to fill this gap and examines the determinants of site selection and their relative importance in Korean meetings and conventions industry. We employ the random utility theory to investigate individual choice decisions and estimate the mixed logit model for the choices with different selection attributes. After careful examination of previous literature, fifteen candidate factors are finally chosen and the logit and the mixed logit models are estimated. Both methods show that meeting facilities, exhibition, access to site, reputation, local support and shopping are the most important factors.

Analyzing Macroeconomic Effects of Government Debt Using Dynamic General Equilibrium Model, Pages 366–392

Sunghyun Kim, Soyoung Kim

Abstract | PDF (1284 kilobytes)

This paper uses a dynamic general equilibrium model with government sector and analyzes short-run and long-run macroeconomic effects of government debt caused by either increases in government spending or decreases in various tax rates. The simulation results suggest several channels that government debt can negatively affect the economy: First, liquidity premium caused by an increase in government debt increases interest rate and decreases investment, and therefore lowers output and welfare in the long run. This is the most significant negative channel in this model. Second, when government spending builds up public capital, an increase in government debt temporarily crowds out private sector capital, which reduces output and welfare in the short run. Third, when government spending affects neither public sector capital nor household utility, an increase in government debt reduces consumption and increases labor input, thereby reducing social welfare. In addition, if the increase in government debt is caused by a decrease in tax rates, positive effects can dominate.

The Economic Effects of Clustering of CATV Channels, Pages 393–412

Sangkyu Rhee

Abstract | PDF (1383 kilobytes)

System operator (SO) purchases broadcasting channels from program providers (PPs), allocates channel number to each broadcasting channel, and broadcasts those channels to subscribers (viewers). Channel allocation is the SO’s sole competence. There is no common rule for SO to allocate channel numbers to broadcasting channels. Usually channel numbers are randomly allocated irrelevant to the characteristics of broadcasting channels. Therefore the same broadcasting channel has different channel number across SOs. As a result viewers search lots of channels to find their most preferred channels. It generates huge search and learning cost to viewers. This article analyzes economic effects of ‘Clustering Channel Allocation’ that allocates adjacent channel numbers to broadcasting channels which have the same or similar characteristics using twosided market model. According to this article channel clustering increases viewers’ cable TV subscription, subscription rate, and SO’s profits. Viewers’ benefit increases or decreases depending on the size of reservation values of viewer.


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