2007, Vol.16, No.2

Journal of Regulation Studies 2023 KCI Impact Factor : 0.78

pISSN : 1738-7132
https://journal.kci.go.kr/ksrs2002

Taking into consideration the concept of market neutrality and social utility, the question of reasonable input sectors and organizations of civil service personnel has been a serious issue and furiously debated. This survey is an theoretical and empirical study of the supply and demand for military manpower in the future, and provides implications for allocating of alternative civil service personnel while considering social demand on the one hand and the German example of the employment of alternative civil service personnel on the other hand.

We develop an event study model, named as VESA (Value-based Event Study Analysis), which is basically based on the seminal works of M&M (1958, 1961, 1963). Using the VESA method, we test whether the changes of the intrinsic firm values come from the events experienced by the firms. We have studied the effects of equity investments on the firm values, which is measured by the “intrinsic Q values”. The empirical results are as follows; first of all, the equity investments show a statistically significant and negative changes in the intrinsic Q values. It means that the equity investments are value-destroying financial events. Second, the disposal of owned equity investments shows statistically significant and positive changes in the intrinsic Q values, but the intrinsic Q values are less than 1.0. It means that the disposal activities are not value-creating events. Third, the same results are shown in the equity investment-regulated samples such as “big business groups” in Korea. It means that the regulations in equity investments are not so effective as the government agency expects.

The purpose of study is to analyze the impact of tax increases on cigarette smoking in South Korea, using monthly times series data of total domestic sales over the May 1997-September 2006. Myopic, rational addiction and difference equation models are employed reflecting the characteristics of time series data. The empirical results show that demand will adjust slowly to changes in price with the applications of the time series models of addiction to the demands for cigarettes. In addition, only the dramatic tax increase of 2005 was effective to reduce cigarette smoking, while the others seem to be irrelevant. This implies the increases in the prices of cigarettes significantly reduce cigarette smoking only when they are high enough to offset cigarette addiction effect. This study suggests several interesting policy relevant findings. First, it suggests that small increase of tax hardly reduces cigarette smoking because cigarette has addictive nature to offset the price impact. Second, it suggests that cumulative tax increases lead to cumulative significant smoking reduction. This implies that the long term reductions in cigarette smoking from a price increase will exceed the short term effects. This tends to support the implication of addictive behavior and the theory of rational addiction. Given the evidence of this study, the authors conclude that the impact of tax increases that result in sustained increases in the real prices of cigarettes will grow over time. Therefore the long run health benefits of higher cigarette taxes will be larger than the shorter benefits.