When will payoff maximization survive? An indirect evolutionary analysis

Survival of payoff maximization is the usual as if-justification for assuming rational economic agents. An indirect evolutionary analysis allows for stimuli which are not directly related to reproductive success although they affect behavior. One first determines the solution for all possible constellations of stimuli, and then the evolutionarily stable stimuli. Our general analysis confirms the special results of former studies that payoff maximization in case of commonly known stimuli requires either that own success does not depend on other's behavior or that other's behavior is not influenced by own stimuli. When stimuli are private information, one can derive similar necessary conditions.     

Die Öffnung der Versicherungsmärkte bei OECD,EU und WTO — Mühsamer Abschied vom Finanzmarktprotektionismus der Bretton Woods Periode

The liberalization of international insurance trade has been pursued since 1948 by the OEEC, the EEC, the GATT and its successor organizations the OECD, the EU and the WTO. Modern multilateral trade policy was however not as successful for international insurance trade as it was for international merchandise trade. Significant progress was not made until the 1990s with the EU’s Single Market program. Likewise, negotiations currently being conducted by the WTO on the General Agreement on Trade in Services (GATS) have so far not led to any noticeable progress in the international insurance markets. Furthermore, the GATS framework agreement shows weaknesses that are characteristic of the liberalisation efforts of the immediate post-war years.     

Risikomanagement in Schaden-/Unfall-Versicherungsunternehmen

Seit Inkrafttreten des KonTraG im Mai 1998 sind Versicherungsunternehmen gesetzlich zur Einführung eines Risikofrüherkennungssystems verpflichtet. Es existieren bisher keine genauen gesetzlichen Vorgaben für die inhaltliche Ausgestaltung dieses Systems. Ziel dieses Artikels ist es zum einen, einen überblick über die verschiedenen Ausgestaltungsvarianten von Risikofrüherkennungssystemen in der Versicherungspraxis zu geben. Grundlage hierfür bildet eine Umfrage unter 229 deutschen Schaden-/Unfall-Versicherungsunternehmen im Herbst 2000. Zum anderen werden theoretische Ansatzpunkte für eine Integration von Risikomanagementsystemen in die Unternehmensführung anhand der betrieblichen Teilsysteme Planung, Organisation, Personalführung, Informationssystem, Kontrolle und Controlling aufgezeigt.     

Efficiency, subsidies, and environmental adaptation of animal farming under CAP

The purpose of this article is to model the interaction between the targets of the current Comman Agriculture Politic (CAP): environmental adaptation, subsidies, and efficiency of animal farming. To this end we first have to identify the production frontier and relative efficiency level for each animal‐oriented farm in the sample. The production frontier and efficiency index for each type of farm (assuming no specific production functions) are identified using Data Envelope Analysis (DEA) techniques. We then address the relationship between relative efficiency, farm size, and environmentally friendly behavior by carrying out a nonparametric regression of efficiency, on economic size, a proxy for the degree of environmental appropriateness, and regional dummies. Calculations of the efficiency of the farms including direct subsidies are compared with the counterfactual exercise in the case in which direct subsidies are not considered. Finally, we look for relations between subsidies and factors such as farm size, efficiency, and environmentally friendly behavior. One key result shows that, on average direct payments generally tend to increase efficiency. However, in most of the cases the mean efficiency decreases as the percentage of direct payments rises. Direct payments are found to be positively related to environmentally friendly production, at least in Germany. However, in general, the direct payment system is not sufficient to offset the fact that the less environmentally friendly farms as well as the larger farms are more efficient.     

Regime switching models for the Mexican peso

The Mexican peso has shown long periods of tranquility that suddenly give rise to short volatile periods. We characterize this exchange rate process by estimating a series of regime switching regressions and comparing the different specifications as pioneered by Meese and Rogoff [J. Int. Econ. 14 (1983) 3]. We find evidence for two clearly identified regimes: one with an appreciating trend and low volatility, and another with large depreciations and high volatility. We use the estimated model to explain the bias implied in the peso forward market. Finally, we show that duration dependence or fundamentally driven transition probabilities do not improve the model's forecasting power.     

Toward a service-oriented growth strategy

This article suggests that the linkage between industrial modernization and significant service sector employment gains has not been adequately considered and that such consideration might lead to a re-evaluation of the labour absorption argument which calls for more ‘appropriate’ technologies with higher labour intensity. This paper reviews the literature on labour absorption and appropriate technology. It then examines the experience of the service sector in both DCs and LDCs. The key relationships between the service sector and the economy are then developed, leading up to possible implications for LDC growth strategies.