Parametric & nonparametric approaches to event studies: an application to a hotel’s market value

The main objective of this paper is twofold: on the one hand, to analyse the impact that the announcement of the opening of a new hotel has on the performance of its chain by carrying out an event study, and on the other hand, to compare the results of two different approaches to this method: a parametric specification based on the autoregressive conditional heteroskedasticity models to estimate the market model, and a nonparametric approach, which implies employing Theil’s nonparametric regression technique, which in turn, leads to the so-called complete nonparametric approach to event studies. The results that the empirical application arrives at are noteworthy as, on average, the reaction to such news releases is highly positive, both approaches reaching the same level of significance. However, a word of caution must be said when one is not only interested in detecting whether the market reacts, but also in obtaining an exhaustive calculation of the abnormal returns to further examine its determining factors.

An evolutive approach for the delineation of local labour markets

This paper presents a new approach to the delineation of local labour markets based on evolutionary computation. The main objective is the regionalisation of a given territory into functional regions based on commuting flows. According to the relevant literature, such regions are defined so that (a) their boundaries are rarely crossed in daily journeys to work, and (b) a high degree of intra-area movement exists. This proposal merges municipalities into functional regions by maximizing a fitness function that measures aggregate intra-region interaction under constraints of inter-region separation and minimum size. Real results are presented based on the latest database from the Census of Population in the Region of Valencia. Comparison between the results obtained through the official method which currently is most widely used (that of British Travel-to-Work Areas) and those from our approach is also presented, showing important improvements in terms of both the number of different market areas identified that meet the statistical criteria and the degree of aggregate intra-market interaction.

Economic crises and tourism competitiveness: A Markov swtiching regression approach

Authors discuss the effects that economic crises generate on the global market shares of tourism destinations, through a series of potential transmission mechanisms based on the main economic competitiveness determinants identified in the previous literature using a non-linear approach. Specifically a Markov Switching Regression approach is used to estimate the effect of two basic transmission mechanisms: reductions of internal and external tourism demands and falling investment.