Working Papers
The Impact of Same-Sex Marriage on Hawai‘i’s Economy and Government
This report provides quantitative and qualitative measures of the impact of same-sex marriage on Hawai`i’s economy and government. We find that marriage equality is likely to lead to substantial increases in visitor arrivals, visitor spending, and state and county general excise tax revenues. We estimate that fewer than 100 spouses will be added as beneficiaries […]
Read MoreA dynamic approach to PES pricing and finance for interlinked ecosystem services: Watershed conservation and groundwater management
A theory of payment for ecosystem services (PES) pricing consistent with dynamic efficiency and sustainable income requires optimized shadow prices. Since ecosystem services are generally interdependent, this requires joint optimization across multiple resource stocks. We develop such a theory in the context of watershed conservation and groundwater extraction. The optimal program can be implemented with a decentralized system of ecosystem […]
Read MoreHow China’s Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad
China’s “Approved Destination Status (ADS) policy allows citizens of mainland China to take pleasure trips abroad on group package tours to countries that have negotiated and implemented agreements with China. In this paper, we examine the reasons for this unique preferential and incremental travel liberalization system and how it affects mainland Chinese outbound pleasure travel.
Read MoreWhat Should Be the Appropriate Tax Base for Online Travel Companies’ Hotel Room Sales?
This essay examines the current dispute between state and local governments in the U.S. and online travel companies (OTCs) over the appropriate hotel occupancy tax base for online hotel bookings. It addresses the question of what should be the appropriate tax base in designing hotel occupancy tax statutes. It argues that the appropriate tax base should be the full […]
Read MoreThe Economics of Groundwater
We provide synthesis of the economics of groundwater with a focus on optimal management and the Pearce equation for renewable resources. General management principles developed through the solution of a single aquifer optimization problem are extended to the management of multiple resources including additional groundwater aquifers, surface water, recycled wastewater, and upland watersheds. Given an abundant (albeit expensive) substitute, […]
Read MoreHow Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad
China’s Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we […]
Read MoreAn economic approach to assessing import policies designed to prevent the arrival of invasive species: the case of Puccinia psidii in Hawai‘i
Since its first documented introduction to Hawai‘i in 2005, the rust fungus Puccinia psidii has already severely damaged Syzygium jambos (Indian rose apple) trees and the federally endangered Eugenia koolauensis (nioi). Fortunately, the particular strain has yet to cause serious damage to Metrosideros polymorpha (‘ōhi‘a). However, the introduction of more virulent strains and the genetic […]
Read MoreChinese Saving Dynamics: The Impact of GDP Growth and the Dependent Share
China’s national saving rate rose rapidly in the 2000s after declining through the late 1990s. These dynamics are not explained by precautionary motives, the institutional distribution of income, or reform related processes in general. Rather, we find a compelling explanation lies with GDP growth fluctuations and movement in the dependent share in population. We estimate […]
Read MoreThe Effect of Minimum Drinking Age Laws on Pregnancy, Fertility, and Alcohol Consumption
Analysis of micro-level data reveals that changes in the minimum legal drinking age (MLDA)could induce changes in the intensity and location of alcohol consumption, sexual behavior, and teen fertility. Effects on teen fertility vary across different populations. Among 15-20 year-old non-poor whites, less restrictive legal access to alcohol decreases the probability of first pregnancy and […]
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