Estimation and testing of crossing‐points in fixed design regression

Many phenomena in the life sciences can be analyzed by using a fixed design regression model with a regression function m that exhibits a crossing‐point in the following sense: the regression function runs below or above its mean level, respectively, according as the input variable lies to the left or to the right of that crossing‐point, or vice versa. We propose a non‐parametric estimator and show weak and strong consistency as long as the crossing‐point is unique. It is defined as maximizing point arg max of a certain marked empirical process. For testing the hypothesis H₀ that the regression function m actually is constant (no crossing‐point), a decision rule is designed for the specific alternative H₁ that m possesses a crossing‐point. The pertaining test‐statistic is the ratio max/argmax of the maximum value and the maximizing point of the marked empirical process. Under the hypothesis the ratio converges in distribution to the corresponding ratio of a reflected Brownian bridge, for which we derive the distribution function. The test is consistent on the whole alternative and superior to the corresponding Kolmogorov–Smirnov test, which is based only on the maximal value max. Some practical examples of possible applications are given where a certain study about dental phobia is discussed in more detail.     

Energiewende für die Modernisierung des Industriestandorts Deutschland nutzen

The German industrial sector is a central component of its economic success. However, its investment activities are weak in comparison internationally. There are concerns that the high costs of the energy transition — one major part of climate change policy — could decrease industrial competitiveness and Germany’s allure as an industrial production location. To prevent this, German policymakers offer substantial exemptions for energy intensive industries in order to keep costs low. This study shows that only a few industrial branches have both high energy costs and a high export intensity, however. They generally feature a comparatively old capital stock. Overall, industry benefits from the demand for climate protection technologies. This calls for a shift in current policy, which should focus on incentives for innovative low carbon technologies. Exemptions should be granted to a limited number of energy intensive industries only for a limited time.     

Hedging and Portfolio Optimization in Financial Markets with a Large Trader

We introduce a general continuous-time model for an illiquid financial market where the trades of a single large investor can move market prices. The model is specified in terms of parameter-dependent semimartingales, and its mathematical analysis relies on the nonlinear integration theory of such semimartingale families. The Itô–Wentzell formula is used to prove absence of arbitrage for the large investor, and, using approximation results for stochastic integrals, we characterize the set of approximately attainable claims. We furthermore show how to compute superreplication prices and discuss the large investor's utility maximization problem.     

A Second-Best Theory of Local Government Policy

This paper provides a model where a large number of small jurisdictions compete for mobile firms and households by supplying local public goods and factors. Jurisdictions only have an incomplete set of tax instruments at their disposal to achieve an efficient allocation. We derive second-best behavioral rules for local governments and extend optimal taxation results to the local level. Local governments distort locational decisions of mobile firms and households by taxing them above marginal congestion costs so as to balance relative locational distortions between taxes. The analysis also reveals that there is a systematic difference between the provision of local public goods and factors. While local public goods are provided according to the Samuelson rule in most situations considered, local public factors are undersupplied relative to this rule.     

Firm Formation And Regional Spillovers - Evidence From Germany

This paper studies the effect of regional spillovers on the rate of firm formation in two major West German industries for the time period from 1989 to 1993. 1 exploit regional variations in firm formation at the county level to identify the effects of historically given industry structure and employment structure on thc emergence of new firms. The results point to the existence of strong localization and urbanization effects. The emergence of high technology firms seems to be contingent on a heterogeneous historical industry structure, the existence of service providers, and in particular on a high employment share of scientists in universities and extra-university research laboratories.     

Succession financing in family firms

Business succession is one of the primary management challenges for family firms. However, many family firms fail at this task because of financial issues. Although a vast number of studies have investigated the succession process, research thus far has failed to determine how and why family firms select particular forms of financing for succession-related expenditures. Accordingly, this study conceptually and empirically investigates succession financing. We introduce a conceptual framework that investigates the reasons behind an owner-manager’s intent to use debt for succession financing. Specifically, our model accounts for general and succession-related personal factors. However, we also include a set of firm-specific financing behavioral controls in our research. The empirical results are derived from a sample of 187 German family firms, and the results highlight financial knowledge, attitudes, succession experience, and succession planning as significant determinants of the owner-managers’ debt usage intentions. The implications and avenues for future research are discussed.     

Menschen statt Werkzeuge — Einzigartige Kundenbeziehungen statt Tools for Fools

Der wichtigste Stellhebel für die zielgerichtete, professionelle Gestaltung einer Vertriebsorganisation sind die Menschen und die Strukturen, in denen sie arbeiten — und nicht die Tools. Die Heidelberger Druckmaschinen Vertrieb Deutschland GmbH (HDD) hat 2002 damit begonnen, ihre Verkaufsorganisation komplett neu aufzustellen. Der Erfolg: Seit vier Jahren ein gleich bleibender hoher Marktanteil als Marktführer in Deutschland und zwei Mal Sieger im unternehmensinternen World Sales Award.     

Some simple economics of GM food

Public opposition to the genetic engineering of food crops (GM food) has not been based solely on concern about biological risks. Economic risks have been widely cited too: the fear that the world's food supply will be concentrated in the hands of a few large firms, the fear that such firms will engage or are already engaging in anti–competitive practices, and the fear of the transfer of ownership rights over genetic resources to the private sector. Are these fears justified? We argue that the GM food industry may be on course for further consolidation, and this could be anti–competitive. In fact, policymakers face a dilemma: a stringent regulatory approval process enhances food safety, but at the cost of increasing market concentration. We argue also that the integration of seed and agri–chemical manufacturers may bias the introduction of GM traits in undesirable directions. Some business practices (such as tie–in contracts between seeds and complementary products such as herbicides) may have an exclusionary motive that warrants scrutiny on anti–competitive grounds, while some other practices (such as the use of terminator genes) appear more benign. Finally, we argue against granting patents on genes or even on gene 'functions'. Doing so may delay the development of socially beneficial applications.