Localization in Sardinia and Its Obstacles: A Reply to Hospers’ “Localization in Europe’s Periphery: Tourism Development in Sardinia”

In this reply to Hospers' “Localization in Europe's Periphery: Tourism Development in Sardinia” by Gert-Jan Hospers (2003), we argue that the author's advocacy of localized economic policies as a viable means to the economic development of Sardinia does not take into account current institutional assets that prevent Sardinia from pursuing localized interests effectively. We first discuss the historical background of these institutional assets, highlighting that a top-down approach to decision-making has characterized relations between Sardinia and the central state for most of the modern era. We then discuss the institutional and economic impediments to Sardinian attempts to pursue localized policies in light of recent institutional conflicts between region and central state. Our conclusion is that the localization of economic strategies necessitates entwined localization of decision-making powers in order to be effective.

Solving exchange rate puzzles with neither sticky prices nor trade costs

We present a simple framework in which both the exchange rate disconnect and forward bias puzzles are simultaneously resolved. The flexible-price two-country monetary model is extended to include a consumption externality with habit persistence. Habitpersistence is modeled using Campbell Cochrane preferences with ‘deep’ habits along the lines of the work of Ravn, Schmitt-Grohe and Uribe. By deep habits, we mean habits defined over goods rather than countries. The model is simulated using the artificial economy methodology. It offers a neo-classical explanation of the Meese–Rogoff puzzle and mimics the failure of fundamentals to explain nominal exchange rates in a linear setting. Finally, the model naturally generates the negative slope in the standard forward market regression.

Prices and Wages in Ireland, 1700-1850

The article presents primary research on rural wages and the prices of agricultural goods and draws conclusions concerning the trend in the living conditions of rural workers in the century before the Great Irish Famine of 1845-1850.

Sustainable Rural Tourism: Lessons for Rural Development

Rural areas are recognised for their complex, multi-functional capacities with a range of different interest groups claiming their rights to, and use of, different rural spaces. The current rural development paradigm that is evident across the globe is epitomised by the European LEADER approach. Using evidence from the proposed National Park in Northern Ireland, we ask the question: what is the potential of sustainable rural tourism to contribute to rural development? Within our analysis we consider the scope for adaptive tourism to overcome some of the ongoing challenges that have been identified within the LEADER approach. Four themes are revealed from this analysis: institutional (in)capacity; legitimacy of local groups; navigating between stakeholder interests; and sustainable tourism in practice. These issues, discussed in turn, have clear implications for the new rural development programme.