The Journal of American Business Review, Cambridge

Vol. 5* Number 2 * Summer 2017

The Library of Congress, Washington, DC   *   ISSN 2167-0803

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  Global Disruption and E-Government

Dr. Tony Carter, University of New Haven, CT




Global issues surrounding the emergence of information and knowledge are key factors in developing and maintaining a competitive advantage for firms.  This is organized around two ideas, 1) knowledge as a manageable asset, and 2) why people in organizations sometimes do not use what they know.  A basic assumption here is that organizations are complex adaptive systems operating in highly competitive, information and knowledge rich environments. Progress in online service delivery continues in most countries around the world.  Many countries have put in place e-government initiatives and information and communication technologies applications for the people to further enhance public sector efficiencies and streamline governance systems to support sustainable development.  Among the e-government leaders, innovative technology solutions have gained special recognition as the means to revitalize lagging economic and social sectors. The overall conclusion that emerges from today’s recessionary world climate is that while it is important to continue with service delivery, governments must increasingly begin to rethink in terms of e-government and e-governance placing greater emphasis on institutional linkages between and among the tiered government structures in a bid to create synergy for inclusive sustainable development.  An important aspect of this approach is to widen the scope of e-government for a transformative role of the government towards cohesive, coordinated, and integrated processes and institutions through which such sustainable development takes place (Carter, 2013)  In the current recessionary world climate, in which the lives of people have become ever more interconnected, governments have been harnessing the power of information and communications technologies (ICT) for delivering much needed sustainability in social and economic services to their citizens.  As part of this shift towards e-government, there has been an increasing recognition that efforts towards a holistic approach to governance for sustainable development require strategic national planning to ensure efficacy, transparency, responsiveness, participation and inclusion in the delivery of public services.  These aims could not be achieved without the underlying notion of sustainable development for the people (Carter, 2013). The overall challenge then is to deliver improvements in the standards of living in such a manner that development today does not compromise development tomorrow.  Embedded in the concept of sustainability is the viability of (i) national and sub-national governance systems that are citizen-centric, socially inclusive and participatory; and (ii) the associated government operations and services that affect development outcomes.  In paying attention to citizen needs, there is a critical need for governments to encompass modalities in working together with citizens in fulfilling service delivery.  Areas deserving special emphasis include expanding usage of e-government services, including through multiple channels, and a whole-of-government approach in promoting equity and bridging the digital-divide by extending service delivery to all, particularly vulnerable groups (Boist, 2007). The United Nation’s Millenium Development Goals (MDG’s), which were adopted in 2000 have become the yardstick against which progress is any other area is measured (Kwanka, 2012). In 2000, the United Nation’s general assembly convened to examine the realities of human insecurity around the globe. The (MDG’s), are a strong progressive development of protections for socio-economic human rights. This is also a vision of technological intervention that focuses on enhancing material and community well being rather than the application of military force. (Moore, 2012). E-government has an important role to play, now and in the future.  As the world moves towards 2015, the date set for reaching the Millennium Development Goals, the unmet targets of poverty reduction and other social and economic development goals are being revisited within the ambit of climate change and natural resource conservation.  Inherent in this paradigm is a focus on pivotal linkages among public institutions, such that development challenges can be met with a concerted and coordinated effort that incorporates the environmental dimension into development planning at every stage. Within this context, national governments need to understand the economic, social and environmental pathways must be adapted to develop or reform their strategic frameworks towards outcomes that promote sustainable development.  The basic strategic approach needs to germinate first and foremost in the acceptance of the importance of the inter-linkages among the economic, social and environmental aspects of development. The role of the government is once again being redefined to reform the governance systems through which services are delivered in a way that maximizes development and minimizes natural resource degradation.  A holistic approach to governance includes taking into account the efficiency and distributional aspects of sectoral policies and their outcomes, national development agendas, and international cooperation agreements, so that resulting solutions are sustainable in the future. The message that all stakeholders need to recognize the key role that e-government and e-governance can play in support of the establishment of effective institutional linkages necessary for sustainable development. E-government is at the core of building a strategic sustainable development framework.  One of its key functions has been to provide an integrated framework of policies, laws and regulations and develop institutions and processes that allow the private sector to provide and the people to partake of the benefits of newer technologies. The underlying principle of e-government, supported by an effective e-governance institutional framework, is to improve the internal workings of the public sector by reducing financial costs and transaction times so as to better integrate work flows and processes and enable effective resource utilization across the various public sector agencies aiming for sustainable solutions.  It seeks to establish better processes and systems aimed at more efficiency, effectiveness, inclusion and sustainability. 


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An Analysis of Best Practices of Cooperative Education in the U.S. With The Purpose of Addressing Various Armenian Engineering Education Problems

Dr. Geoffrey A. Wright, College of Engineering and Technology, Brigham Young University, UT




The purpose of this paper is to define best practices of cooperative education, and make suggestions of how the best practices can be implemented in countries where cooperative education either is not practiced, or is not effectively being used, specially in the context of engineering and technology disciplines. The country of Armenia was used as the anecdote of where cooperative education is needed in these disciplines, but where it is not being used effectively. It is believed the definitions and suggestions outlined in this paper will help the field of cooperative education by providing definitions of best practice, and an example of how a country can more effectively implement cooperative education.  Information Technology and engineering play very important roles in the Armenian economy (FEI, 2008, 2001). In fact, the Government of Armenia in 2000 declared development of Information and Communication Technologies (ICT) and engineering to be one of the country’s priorities for economic development (FEI, 2008, 2014). The ICT sector, including the engineering services segment, is one of only a few competitive sectors of the country (FEI, 2008). Consequently, it is important for Armenia to do all it can to support the growth of this sector, including investing in the development of an education system capable of producing a strong technical workforce with skills adapted to the demands of the global marketplace. During the last 15 years, Armenia has made progress in developing a technical workforce by providing new training programs in areas such as software development, programming, and chip design. Less progress has been made in developing a strong engineering workforce, mainly because of continuing weaknesses in the engineering education system (AIT, 2011). These weaknesses result from reduced funding levels for R&D, a lack of support for staff and curriculum development (AEWS, 2008), and few and weak linkages between universities and industry (ITWSA, 2006). As a result of these factors, academic engineering education programs currently are not aligned very closely with the needs of the local or international marketplace and are therefore failing to prepare a workforce ready to contribute to the development of a globally competitive Armenian engineering sector (NCRA, 2010).  In spite of these challenges, the engineering sector in Armenia has been growing, sadly companies still are encountering problems recruiting qualified university graduates, and a substantial number of engineering positions are going unfilled. A principal reason why Armenia graduates are having a difficult time finding jobs is because the current system of engineering education focuses on theory and fails to help students acquire the applied skills and on-the-job experience that would enable them to perform effectively in a work environment. According to recent surveys, about eighty percent of companies are dissatisfied with the practical knowledge of graduates and more than half of surveyed executives find graduates’ theoretical knowledge, even in basic sciences, insufficient (NCRA, 2010). This suggests there is a need for urgent reform of the system of engineering education in Armenia. This research project focuses on one specific reform that may help produce engineering graduates that are better prepared for the demands of the workplace, namely restructuring engineering education programs to provide more opportunities for students to gain practical work experience as part of their engineering education. This type of practical experienced based pedagogy is called cooperative education.  The research methodology employed in this study draws upon data derived from several sources, including a focused literature review, an analysis of research data from research studies that the author was involved in designing and managing in Armenia, and case study analyses of cooperative education programs that are based primarily on online program descriptions and evaluations.  A national committee of experienced practitioners made up of representatives of the National Commission for Cooperative Education, Cooperative Education Association and the Cooperative Education Division of the American Society for Engineering Education defined cooperative education as:  A structured educational strategy integrating classroom studies with learning through productive work experiences in a field related to a student's academic or career goals. It provides progressive experiences in integrating theory and practice. Co-op is a partnership among students, educational institutions and employers, with specified responsibilities for each party. For cooperative education programs to be considered highly successful, they should comply with the core set of performance standards outlined by the Accreditation Council for Cooperative Education (CAFCE, 2006). ACCE is an independent organization founded by representatives of some of the leading U.S. cooperative education programs. They have developed a set of five standards that should be used to guide the design and implementation of cooperative education programs (ACCE, 2011). These five standards define the necessary requirements that cooperative education programs must meet to be accredited by ACCE. The ACCE accreditation standards focus on program design and performance in the following five areas: mission and goals, institutional relationships, employers and external partners, learning environment, and learning outcomes and program effectiveness.


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Evaluating the Cost-Effectiveness of Instruction Expenditures on Kauai’s Public High School Completion

Dr. Larson Ng, University of Hawai‘i at Mānoa, Honolulu, Hawai‘i




The following study attempted to analyze the cost-effectiveness of instruction expenditures on public high school completers on Hawai‘i’s island of Kauai. Using the high schools that comprise the Kauai District, a correlation and bivariate regression procedure were employed to determine the nature and econometric relationship between instruction expenditures and high school completion from 2000 to 2007. Although instruction expenditures had predominately increased for all high schools, increases in completion were not observed for all schools. Moreover, with the minor exception of Niihau High and Elementary School, there was no conclusive econometric evidence to substantiate the idea that more expenditure in instruction leads to higher levels of high school completion during 2000 to 2007. Instruction is a critically important factor that contributes to high school completion. Although there are many techniques to measure the productivity of instruction, assessing its effectiveness through a financial perspective remains one practical way to accomplish this task (Beard, 2009). Consequently, this study will attempt to test whether increases in instruction expenditures result in higher numbers of high school completion by analyzing the Hawai‘i's Department of Education’s (DOE) high school instruction expenditures (i.e., teacher salaries and benefits, substitutes, instructional paraprofessionals, pupil-use technology, software and instructional materials, trips, and supplies) and its econometric relationship with high school completers on Kauai (Hawai‘i Department of Education, n.d.). With this research, it is hoped that the results will provide a current snapshot of whether increased instruction funding will improve public high school completion on Kauai. The following section will go over the high school instruction expenditures, size of its graduation classes, and high school completers for the DOE’s district of Kauai as well as all of the individual high schools that comprise that district from 2000 to 2007. Based on Table A1, instruction expenditures have been consistently increasing on an average of 7.7% with a standard deviation of $2,768,393.17 per year, respectively. Graduating classes has seen an inconsistent pattern of decline during this period and had a low negative average growth rate of -0.88% with a standard deviation of 25 students per year, respectively. Completers, also experienced a similar decline in growth during this time frame with an equally low negative average growth rate of -1.34% and a standard deviation of 30 students per year, respectively. Based on Table A5, instruction expenditures have been consistently increasing on an average of 8.47% with a standard deviation of $1,087,321.93 per year, respectively. Graduating classes has seen oscillating rates of growth and decline during this period and had an overall average growth rate of -0.75% with a standard deviation of 14 students per year, respectively. Completers also experienced a similar trend during this time frame with an average growth rate of -1.15% and a standard deviation of 14 students per year, respectively. Based on Table A6, instruction expenditures have been mostly increasing on an average of 5.88% with a standard deviation of $919,023.25 per year, respectively. Graduating classes has seen much fluctuating rates of growth and decline during this period and had an average growth rate of -0.19% with a standard deviation of 22 students per year, respectively. Completers also experienced similar trends during this time frame with an average growth rate of -0.02% and a standard deviation of 23 students per year, respectively. Based on Table A7, instruction expenditures have been consistently increasing on an average of 6.31% with a standard deviation of $38,704.65 per year, respectively. Graduating classes has seen marginal growth during this period and had an average growth rate of 1.67% with a standard deviation of 2 students per year, respectively. Completers conversely experienced similar marginal growth during this time frame with an average growth rate of 1.67% and a standard deviation of 2 students per year, respectively. Based on Table A8, instruction expenditures have been consistently increasing on an average of 10.43% with a standard deviation of $802,292.14 per year, respectively. Graduating classes has seen an inconsistent pattern of growth and decline during this period and had a low negative average growth rate of -0.91% with a standard deviation of 12 students per year, respectively. Completers, also experienced a similar decline in growth during this time frame with an average growth rate of -2.23% and a standard deviation of 13 students per year, respectively. In order to investigate the econometric relationship of high school instruction expenditures towards high school completion among the high schools in the DOE’s Kauai District, this research employed the following methodology. The study initially acquired the DOE’s high school instruction expenditures and completer data from 2000 to 2007. Upon separating the data by high school, adjusting instruction expenditures for inflation (i.e., Base Year = 2000), and transforming the values for each variable into natural logarithms; econometric techniques consisting of both correlation and linear regression were utilized and key statistics recorded. The study then analyzed the statistical relationship between high school instruction expenditures and completers. Data used for these analyses were acquired from Hawaii’s DOE websites and the study’s econometric results were generated with the use of IBM SPSS Statistics, Version 24.


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Regression and Empirical Analysis on Real Estate Pricing and Services Using Price-Quality Heuristics

Dr. Freddy Su Jin Lee, California State University at Los Angeles, CA




When gauging quality, consumers often use price, brand or other signals of quality to gauge the quality.  In this paper, we test three propositions which show how the consumer uses the price-perceived quality in real estate purchases. This may be affected by the property neighborhood, brand of the brokerage and the brand of the Escrow company.   Our goal in this paper is to test these propositions that can motivate empirical research pertaining to the factors that influence how consumers use the price-perceived quality heuristic to determine whether the real estate service is worth the money that they are paying for.  We will also conduct a regression analysis on the likelihood of consumers selling their homes based on these parameters. The findings will point to several ways that brokerages and escrow companies can develop pricing strategies to raise consumer satisfaction and increase revenue. Primary among them are the development and articulation of whether to set a asking price based of neighborhood perceptions, brokerage brand and escrow brand. The MLS (Multiple Listing Service) is a platform used in North America where consumers who are selling their properties engage a Brokerage to help them list the property in that platform.   This platform is available to the general public with limited information and available to other service professionals with full information.  As information is asymmetric here to all professionals and parties, this would provide the basis for our data to conduct the empirical analysis.   Information in the MLS (Multiple Listing Service) includes the asking price and the sold price (Hendel et al 1998).  It is generally believed that the higher the asking price, the higher the quality or in this case it is proxy to the desirability of the location.  Another price component that surfaces in the MLS is the commission given out to the listing broker.  The seller generally allocates a certain percentage of the transacted price as commission to the listing brokerage which will split it with the cooperating brokerage.  The commission is set arbitrarily at market rates in franchise branded and independent brokerages.  This commission is meant to motivate the agents to sell the home at a better price and at a faster pace.  The third price component that arises in a real estate transaction would be the escrow fees.  Escrow is a service that ties in both the buyer and seller while completing the demands from the current mortgage lender and coordinating HOA (Home Owners Association) and the funding conditions from the buyer lender.  Consumers are often unaware of such fees and do not factor it in their transactions until it is too late in the process.  However, if they are aware of the costs and associated fees, the pricing and sale of their homes would be considered in a different light. We identify three potential areas that become salient in a real estate transaction and in which Real Estate Brokers can better understand the impact of the pricing on perceptive quality and hence the resulting consumer reliance on the Price-Perceived Quality Heuristic.   The three areas are Neighborhood Popularity, Brokerage Brand and Escrow Brand. Based on previous research on the role of price in purchase decisions, it is useful to distinguish two opposite effects.  First, price is associated with the expenditure items in the budget constraint.  The theory of resource allocation explicitly states that consumers will treat it as a sacrifice of monetary resource as spending in one product necessarily decreases the possible purchase of another.  Second, a higher price is usually taken as an indication of higher quality, even though the significance of such perceived correlation may vary across product categories (Lichtenstein and Burton 1989).  This positive role exists as price helps to form a belief or perception about quality, which then influences the purchase intention (Erickson and Johansson, 1985; Monroe and Krishnan, 1985).  The conceptual framework of Erickson and Johansson (1985) compactly joins these two distinctive effects.  Figure 1 illustrates this framework, which helps construct a consumer utility function that incorporates the price-perceived quality heuristic into classic quantitative setups (Mussa and Rosen, 1978; Moorthy 1984, 1988). We state that the overall value of sh is derived from two components – s and p, and that sh is an increasing function of both since perceived quality (sh) is formed based on true quality (s) and the price level (p), Parameter δs (0 < δs £ 1) is used to represent the fraction of true quality information that is known to consumers, and parameter δp represents the weight that consumers place on price p when assessing perceived quality sh.  That is to say, for the average consumer, a higher price and a higher product quality will result in higher perceived quality.  Besides the support from the behavioral literature discussed earlier, studies that indicate product quality information cannot be fully conveyed or evaluated by consumers prior to purchase (Chang and Wildt 1996; Nelson 1970; Shapiro 1982) provide further support for such parameters.   To ensure that the effect of price on quality is not greater than its effect as a budgetary constraint, we confine our analysis to 0 £ δp £ 1.  Another issue in the formulation is the degree of dependence between the use of price-perceived quality heuristic and the amount of true quality information available.  No conclusion can be drawn from existing research.   On one hand, one may argue that the more information is available to consumers, the less they will rely on price to judge quality.  For example, Zeithaml (1988) shows that the availability of intrinsic cues to quality affects the price-perceived quality relationship.  On the other hand, other studies suggest that the use of price-perceived quality heuristic is an intrinsic behavioral characteristic of consumers, and they still adopt it even if their knowledge of the products is increased by communication or personal usage (e.g., Lichtenstein and Burton 1989).  In light of these differing views, we allow the degree of dependence to vary and in this paper, δp and O (see equation 1) will be the parameters that captures the three potential areas that may affect the consumer price perceived-quality heuristic usage:  Popular Neighborhoods, Franchise Branded Brokerage and Franchise Escrow Brand. Lee, Liu and Weinberg, (2005) capture the weighted combination of true quality (s) and price (p) and the varying degree of dependence between the use of the price-perceived quality heuristic and the availability of true quality information is as follows,: Parameter  captures the strength of this dependence.   = 0 implies no dependence, and  = 1 implies complete dependence.  If δp = 0, price plays no role in quality perception.  Note that, first, we focus on the across-category variations in the use of the price-perceived quality heuristic.  We acknowledge there can be both category level and individual level variation in the use of the price quality heuristic (Lichtenstein and Burton 1989).  Equation (1) captures the mean response that a consumer would hold for any given set of parameter values. 


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Marketing Pickles as a Gourmet Condiment

Dr. David L. Ralph, Pepperdine University, CA

Dr. Stacy M. P. Schmidt, California State University, Bakersfield, CA

Dr. Donald Atwater, Pepperdine University, CA




Cucumbers and pickles are not a new product to the market but an opportunity for growth lies in the gourmet condiment segment of the market. A variety of gourmet pickles have entered the market.  Consumers now expect gourmet options on a variety of food categories and this creates an opening for gourmet pickles.  Gourmet pickles differ greatly by taste and texture.  Gourmet pickles producers need to create a brand to establish a following and loyal consumer.  The study looks at the pickle market and examines ten gourmet pickle companies operating in the United States of America.  The study finds that the ten companies use different brine creating different flavors for their pickles.  Gourmet pickles are either refrigerated or not refrigerated.  This affects shelf life and shipping of the pickles.  The companies use a variety of retail locations as well as online shops to sell their products to consumers.  One of the companies has even got a chain restaurant to use their pickles as snacks on every dining table at their restaurants.  The companies are able to expand their markets by creating a variety of flavors for the pickles.  They create pickles with different spice levels to entice different consumers.  They also use the pickling techniques to pickle a variety of other foods including eggs, sauerkraut, carrots, okra, beets, asparagus, and beans.  The pickle market has been dominated by a few pickle companies but gourmet pickles have created a market for small pickle companies.  These independent pickle companies can be successful in the gourmet pickle market by creating a following and having a well liked taste.  This paper looks at ten of the gourmet pickle companies currently operating in the United States of America.  Historically, pickles have been part of the condiment segment.  Pickles now have their very own specialty category expanding their role in the condiments market. Pickles now have a space in the gourmet condiment segment.  A study conducted by Miller and Zandstra (2013) of the Department of Agricultural, Food, and Resource Economics at Michigan State University analyzed pickle production in Michigan and found that a shift in demand to specialty pickle products is on the rise.  U.S. Cucumber and Gherkins trade experienced continuous growth in imports from 1998-2010. (See Figure 1, Miller). A survey of 30,000 American pickle consumers in 2014-2015 polled the consumption of pickles by adults.  The results of the survey indicate that 30% of those polled noted that Vlasic was the brand most stocked in their pantries followed by Claussen at just under 17%, Mt. Olive at 15%, and the local resident store brand at 13% (See Figure 2).   According to Klara (2013), approximately 70% of American households consume pickles. Vlasic found that high sodium is a concern with pickle consumers (Klara, 2013).  Figure 2 demonstrates the consumption of pickles by adults.  These indicate a large number of consumers in pickles.  Gourmet pickle consumers has a target market of these consumers.  It also indicates that a large number of the consumers are in a few dominate companies. Figure 3 shows that pickle sales are expected to continually increase over the next four years.  The worse case scenario indicates that the pickle companies can expect $6,766 million in sales in 2020 and best case scenario $7,807 million in sales.  Figure 4 indicates the unit price of fresh market and pickling cucumbers which could is vital for the processing of gourmet pickles.  The chart shows the minimal rise in price over the time period. Consumers are expecting to be able to purchase gourmet foods in a variety of categories.  Davis (2016) found that country stores have seen an increase in interest in edible gourmet foods as gifts.  In addition, he found that the gourmet food sales are increased by the use of product placement strategies.  Mar (2010) found that there are both advantages and disadvantages to selling online.  The advantages are: “• Relatively inexpensive -- When compared to the ratio of cost against the reach of your target audience, the Internet allows you to reach a wide audience. • Easily measured -- Which message and offering are more appealing to your audience? Click on an advertisement, visit a website, or perform a targeted action (for example: Free Shipping offers, Gift-With-Purchase offers, $$$-Off offers). • Exposure response and the overall efficiency of Internet media is easier to track than traditional offline media.


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A System Dynamics Approach to Evaluate the Impacts of Taoyuan Aerotropolis Project on Employment, Population Growth, Housing Demand, and Transport

Dr. Oliver F. Shyr, National Cheng Kung University, Taiwan

Dr. Chien Hung Tu, National Cheng Kung University, Taiwan

Dr. Chao-Yi Huang, National Cheng Kung University, Taiwan




The aim of the project is to apply the technique of system dynamic to analyze the impacts of mega transport projects, such as Taoyuan Aerotropolis and rapid transit systems, on urban development. In the last decade, air freight transport has been the most attractive and competitive form of logistics. Hence, the gateway airports become the hubs of international enterprises including innovative firms, headquarters of financial services, conference and expo business, and new generation of manufacturing corporations. In the era for Internet of Things (IoT), Aerotropolis becomes a new city form. Appling the analytical tool of system dynamics that has been developed by our previous project “Taiwan's Comprehensive Urban Planning System: A System Dynamic Approach” (TCUPS) sponsored by the Ministry of Science and Technology, we focus our tasks on the calibration of model parameters, the validation of Netlogo/Vensim modules, and the model applications to the setting of policy initiatives for sustainable urban development under the scenarios of climate change and the introduction of Taiwan’s mega transport projects. Our TCUPS consist of three core modules, i.e., firms and employment, population and public facilities, and housing demand. It also includes three supporting modules, i.e., transport system & land use, eco & environmental systems, and interactions between policy initiatives and urban systems. All in all, this study can help us not only to explore the interactions among urban systems and but also to reshape the analytical tools for the impact assessment of mega transport projects.  Air transport has been described as a mode of transportation since the 20th century. The growth of air transportation influenced the development of the city, especially a city located in the surroundings of the airport. Furthermore, the role of the airport in the context of economic or urban development has evolved. The airport is not just becoming a bond of transportation; they have become the airport cities as well. Therefore, Kasarda (2008) has launched the concept of Aerotropolis which discussed that airport and the city is the unity that cannot be separated since “a city needs an airport and the airport involves the city”. Therefore, the development of the city in the neighborhood of airport needs to be arranged along the facilities and the influence of economic and business growth. Nowadays, Taiwan has planned the development of Taoyuan Aerotropolis Project. It is a key booster of future economic development in Taiwan. In 2040, Taoyuan Aerotropolis predicted the population achieves 2.5 million. Taoyuan Aerotropolis is primarily located in Dayuan district and part of Luzhu district. Table 1 represents the positive population growth arises in recent years with the average growth rate of Taoyuan city reach 1.25%, but the growth rate in Dayuan District is low and for Luzhu District decrease from 2010 to 2013. The model used in this study is mainly based on the Lowry model of a metropolitan city with the improved version given by Garin and thus is the name of Garin-Lowry model.  As stated by Chan, Y., & Yi, P. (1987), Garin-Lowry Model is a geometric series to forecast the population and employment vector in the urban spatial modeling. The levels of activities in the Lowry model are determined by the economic base method then all activities in the city are divided into three groups namely a basic sector, a service sector and a household sector (Anon, 2017). This sector includes manufacturing industries (large and medium scale) and wholesale business and trade, higher order administrative activities and services whose locations are assumed to be unconstrained by the local site solution and their employment levels are primarily dependent on events outside the local economy. Their products and services are largely consumed and experienced by non-locals. The service sector associated with all those service activities trade and commerce, administrative function, service functions and others which are directly dependent on the local population. The locations of those activities are constrained by the problems of access to the local residents. Their employment levels are closely related to local population growth and basic sector.  This sector consists of the resident populations the size of which in the city is largely influenced by the distribution and level of employment at any given time. The residential population and its sites development are largely influenced by the locations of the residents' workplaces. This sector consists of the main input flow -- The growth of electronic components industrytotal labors total number of companies) and main output flow -- the total value ,companies and labors increase of A,B,C industry on 2036 in Taoyuan Aerotropolis:  Other output flow -- the process of land use change in Taoyuan Aerotropolis. • Manufacture of metal productsIndustry A:  • Electronic ComponentsIndustry B:  • Computers, electronic products and optical products manufacturingIndustry C:  Estimate the number of company of A,B,C industry for the next 20 years:  Industry A: PtA= 2000 x 0.62(0.95^t):  Industry B: PtB= 1500 x 0.48(0.96^t):  Industry C: PtC= 500 x 0.77(0.99^t) ;  # the constant a,b are both derived from the past data in TaoYuan city. This sector consists of 8 kinds of residential district, high-intensity developments locate near central business district and preserved area.  Sanders, P. & Sanders, F. (2004) studied in detail the future of urban dynamics. Figure 1 shows the urban system area. The researchers revealed that the expanding population may oppress the region's resources. As the population increases, jobs and living opportunities will decrease. Low employment opportunities correspond to low attraction in urban areas due to high rents, severe overcrowding, unemployment and low wage perception. The reduction in attractiveness has led to a reduction in the number of migrants and a greater number of migrants. In this research, an urban area is defined as a system of interacting business structures, housing and people with an explicit formulation for the spatial component. The urban system incorporates two markets namely, labor market and housing market.


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Pepper Place Market: An Urban Market in the Digital Age

Jason Davis, Samford University, AL

Kyle Kirby, Samford University, AL

Jared Nelson, Samford University, AL

Dr. Charles M. Carson, Samford University, AL




Founded in 2000, the Pepper Place Market (PPM), one of the leading urban farmers markets in the United States, stood at a crossroads. Cathy Jones, founder of the market, had to decide how to broaden the appeal of the market and reach new customers. Among the options under consideration was the opening of an online general store to complement the market. If successful, the online store would further cement PPM as a leader in innovation. Taking the farmers’ market online presented several challenges, and doing it poorly would strain the organization’s already tight budget. Could a farmers’ market work in the digital space? And if so, did Cathy’s team have the resources to bring theirs into the 21st century?  In the decade since its founding, the Pepper Place Market (PPM) had grown to become one of the nation’s leading farmers markets, encompassing an entire city block of downtown Birmingham, Alabama. Cathy Jones, the market’s founder, was proud of her team’s efforts to grow the market over the years. Despite this success, Cathy was searching for ways to extend the market’s brand and take its success to the next level. Among the initiatives Cathy and her team were considering was the launch of an online store that would serve as a companion to the Saturday market. If successful, the launch would cement PPM has one of the most innovative farmers’ markets in the nation. However, the idea of an online store led to as many questions as it did possibilities. How would the online store compliment the market? What technical resources would they need? How would order fulfillment be handled? Would supporters of the Saturday market also support the online store? Cathy and her team had two key decisions to make: would an online store help the market reach new customers? And more importantly, did they have the financial resources, technical acumen, and marketing skills to take their farmers’ market online?  In the early twentieth century, the City of Birmingham experienced a period of transformational growth. As the city expanded, new industrial developments spread out from the city core. The Lakeview district emerged as a light industrial area during this time. However, as the industrial age of Birmingham entered its decline and as the tumult of the civil rights movement reached a fever pitch, the Lakeview district suffered. Lakeview went largely ignored until 1986, when Cathy Jones, CEO of Sloss Real Estate, began purchasing properties, many of them old factories and other industrial sites, in the district. She envisioned the Lakeview district reborn as a center for design-focused businesses in the city. “It was mostly abandoned at the time, but it had a lot of paint and construction stores, which lent to the design theme,” Cathy said (1). In 1988, an old Dr. Pepper syrup plant became of particular interest to Cathy. “When I first walked into the Dr. Pepper plant…I found the beautiful bell columns, a classical design and large windows that allowed the most beautiful light to fill the space.” Cathy acquired the nearly 31,000 square foot plant for $400,000 dollars (2). Using the former plant’s history as inspiration, Cathy and her company christened the property as Pepper Place and redevelopment efforts began in earnest. Cathy’s company acquired other properties near old syrup plant throughout the 1990s, slowly growing the original development into the landmark that it would become. The Martin Biscuit building served as the capstone acquisition for the Pepper Place complex when purchased in 1999. The Martin Biscuit property spanned 51,000 square feet and was constructed in the same classical style as the old Dr. Pepper plant. With the purchase of the Martin Biscuit building, the Pepper Place development stretched the better part of a city block at a combined total of 225,000 square feet, at a total investment cost of nearly $13 million dollars for Sloss Real Estate. Investments such as these were unheard of at the time. Rehabilitating such a large complex of buildings and creating an environment capable of attracting business tenants would require an extraordinary amount of vision and bold leadership. Fortunately, Cathy Jones possessed unique qualities and experience equal to the task. Cathy’s family had long standing ties to the community. Cathy’s great-great-grandfather, Colonel James Withers Sloss, helped found Birmingham’s iron and steel industry. Over ninety years ago, her grandfather founded the real estate company that she would lead two generations later. Soon after joining her family’s business she began to notice the effect of the rapid growth of Birmingham’s suburbs on the region’s farmland and forests. “I said, ‘We’ve got to do something to rebuild these beautiful neighborhoods. ’I knew that if we didn’t rebuild the city we’d also lose the farms.” (3) This realization eventually led to her company’s revitalization of Pepper Place. In the years following its restoration, Pepper Place had become a premier location for design-focused businesses and restaurants in Birmingham. Hoping to build upon that success, Cathy decided to pursue another goal close to her heart: the promotion of regional farms. Area farms struggled as ‘big box’ grocers such as Wal-Mart and Publix became the first stop for food shoppers. The Pepper Place Market would be Cathy’s answer to the problem. Cathy founded market in 2000, with a handful of tents and regional farmers selling their produce directly in the traditional farmers’ market style. The market quickly became more than just an ordinary farmers’ market. Tent space was also rented to local handmade goods producers. Spaces throughout the market were provided for local musicians to perform and promote their work. Chefs from the community were invited to give cooking demonstrations and network with farmers. The combination of these elements created a festival-like atmosphere that proved to be a hit with local residents and shoppers throughout the metro region. Cathy identified the relationship between the farmers and the chefs as one of the key drivers of the market’s growth. Establishing a connection between chefs and farmers was an explicit goal from the beginning, Cathy explained. “That was really a goal from the beginning. Franklin Biggs and Frank Stitt were the driving force behind that because they were having more and more trouble finding fresh produce and the variety of produce that they needed for their restaurants.”(4) The first year the market was opened the two chefs organized a reception at the Botanical Gardens for local chefs to meet the local farmers. Relationships between the two groups had remained strong since then, as demonstrated by the growth of the market.


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The Gears of Investment in Education: An Econometric Analysis on the Impact of Growth, Economic, and Education Indicators on Public Education Expenditure in Developed and Developing Economies

Omar Cortez, Texas Tech University, Lubbock, TX

Dr. Olga I. Murova, Texas Tech University, Lubbock, TX




The present paper uses an econometric model to analyze how growth, economic, and education indicators affect public education expenditure in a set of sixteen countries that span Latin America, Europe, and Asia and are in either developed or developing status. Results indicate that a stronger emphasis needs to be placed on the tertiary education sector alongside health expenditure, inflation, and the real growth rate when considering how public education expenditure is to be implemented. It’s generally known that education plays an important role and offers an insight into the economies of various countries throughout the world.  Since the studies of Gary Becker and Theodore Schultz opened doors to what promotes economic growth did human capital become of a particular interest to many countries, developing and developed alike. These studies were especially aimed at developing countries in order to assure them a way out of weak economic growth.  By consensus, investing in education will yield returns in some form, whether by income or economic growth. Countries will invest in education differently and accordingly. Developing countries that might be investing high percentages of their GDP in education could be seeing minimal or no effect on growth.  It’s a scenario that needs closer attention. Perhaps it is a question of a high percentage of population growth relative to a low per capita income growth, or how the health expenditure for the respective country could affect the public education expenditure in a particular year. These are questions that pertain to the meticulous angles from which this study can be perceived. How much such variables affect investment in education is worthy of consideration. The notion that investment in education is key for economic growth, but its effectiveness depends on a country’s other indicators that might have an impact on how their expenditure in education changes over time. If deterministic variables for education are taken into account, along with other related indicators, different countries could find their tailored target rate for public education expenditure that would allow for it to become an efficient investment, and subsequently having the better potential to positively affect economic growth; this is something various countries appear to be lacking. If it’s known that investing in education will yield long term benefits, such as growth, then there is a need to study what motivates the amount of investment in education for a respective country throughout the years. The aim of this study is to learn which catalysts affect how much a country decides to invest in education for any given year in developing and developed countries. It is logical that the factors a developing country uses deciding how much to invest in education for a given year will not be the same as those that a developed country uses. Will a country invest more in education if its GDP increased or declined from the previous year? What if primary education completion rate was low for the previous year? Does a higher or lower health expenditure affect the amount returns from public expenditure in education? These are among some of the various questions this paper looks to answer.  With public expenditure in education as a percentage of GDP as the dependent variable, there will be attempt to see how the same neoclassical variables that affect real income per capita can also affect this expenditure. This study will also consider education variables that help understand how public education expenditure is affected from year to year when real growth is included as an independent variable. The following are the main objectives of this research: 1) using education, political, and financial indicators in a given year, identify those that have a significant impact on public education expenditure; 2) test to see if income and development status play a role in affecting public education expenditure; 3) identify the significant variables that would constitute an efficient rate of public education expenditure. Though many studies have been conducted in the field of public expenditure in education and growth, the majority of them have only used one sector of education - secondary education, as opposed to all three: primary, secondary, and tertiary. If there is to be an effect within public expenditure in education as a whole, then it is imperative that all three sectors be considered along with other relevant indicators. As early as 1960 did research on the determinants of public education expenditures began forming its path. Variables that were linked to education expenditure were used to test if they were indeed determinants of public education expenditure; such early studies include Hirsch (1960), Shapiro (1962), McMahon (1970), and Nord (1983). These papers look into what determines education expenditures in the United States using either state data or local school district data. The present study does not look at the determinants, but instead into which variables representative of the three sectors of public education, along with economic and growth variables, significantly affect education expenditure for sixteen countries.  Busemeyer (2007) looks at the determinants of public education expenditure in OECD countries. The author uses socio-economic and institutional variables along with partisan factors to create a model to find their relative impact on education spending, as well as try to explain the variation in the spending for the set of countries used (Busemeyer, 2007). He bases his study on papers published by Francis Castles in 1989 and analyzes the data, which includes times periods between 1960s and 1980s, using a pooled time series and fixed effects models. After replicating Castles models, Busemeyer finds that Catholicism and share of cabinet seats held by rightists have a negative impact on public education spending, though Castles’ explanatory variables do not hold in the author’s pooled time-series analysis. Consequently, Busemeyer uses alternative models to look more in depth into the determinants of public education spending. He finds that the level of economic development (GDP per capita) positively impacts public education spending, while GDP growth negatively impacts the spending. This negative relationship implies that public education spending behaves anti-cyclically, which confirms the thesis based of weak correlation between GDP growth and public education spending (Busemeyer, 2007). The demographic demand for education spending also has a positive impact. In regards to institutional variables, degree of decentralization of tax revenue authority is found to be positive and significant. For partisan factors, he finds that government participation of rightist parties overall negatively impact public education spending.


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