Health Care and Pension Benefits for Construction Workers: TheRole of Prevailing Wage Laws Health Care and Pension Benefits for Construction Workers

This article examines the affect of state prevailing wage laws (PWLs) on the amount and mix of wages and benefits paid to construction workers. PWLs require contractors who win bids on state-financed construction projects to pay compensation rates equivalent to those prevailing in local construction markets. During 1982-1992, 6 states repealed their PWLs, 9 states who never had a PWL did not enact one, and 32 states kept their PWLs. Data from the Form 5500 series, the Census of Construction Industries, the Current Employment Statistics, and the Current Population Survey are combined to evaluate the effects of PWL repeals on compensation. When comparing the experiences of different states, PWLs enhance both wages and benefits, with the largest percentage increase going toward employer pension contributions. PWLs appear to create an incentive for both employers to pay and workers to accept a larger percentage of their total compensation in the form of benefits.     

Makroökonomische Effekte eines bedingungslosen Grundeinkommens

The introduction of an unconditional universal basic income would change the entire system of income distribution and have far-reaching implications for aggregate labour supply, labour demand and wages. Changes in the labour market would subsequently lead to adjustments in the markets for goods and services, as well as in capital markets. This would impact productivity, prices, income distribution, international competitiveness and economic growth. Furthermore, financing such a policy would affect public finances. This article outlines possible macroeconomic consequences of a universal basic income.     

Bundling and Unbundling in Public–Private Partnerships: Implications for Risk Sharing in Urban Transport Projects

Public–private partnership (PPP) projects may be organized in a variety of ways, depending on the level of integration of the so‐called Special Purpose Vehicle. Based on the analyses of four major PPP light rail projects in Spain, this article outlines two fundamentally different models of organizing the Special Purpose Vehicle in PPP projects; moreover, the article examines the central principles of these two different models of organizing the private sector Special Purpose Vehicle and their implications for risk sharing and project management in large‐scale infrastructure PPP projects.     

Why has the investment-cash flow sensitivity declined so sharply? Rising R&D and equity market developments

The study of the investment-cash flow (ICF) sensitivity constitutes one of the largest literatures in corporate finance, yet little is known about changes in the ICF relationship over time, and the literature has largely ignored how rising R&D investment and developments in equity markets have impacted ICF sensitivity estimates. We show that for the time period 1970–2006, the ICF sensitivity: (i) largely disappears for physical investment, (ii) remains comparatively strong for R&D, and (iii) declines, but does not disappear, for total investment. We argue that these findings can largely be explained by the changing composition of investment and the rising importance of public equity as a source of funds, particularly for firms with persistent negative cash flows.     

Sunk Costs,Accommodation, and the Welfare Effects of Entry

Although economists usually support the unrestricted entry of firms into an industry, entry may lower social welfare if there are setup costs or if entrants have a cost disadvantage. We consider the welfare effects of entry within a standard Cournot model where some of an incumbent firm’s costs are sunk. We find that the range of parameter values over which entry can harm welfare declines monotonically in the fraction of cost that are sunk. Furthermore, the presence of even a small fraction of sunk costs often reverses an assessment that entry harms welfare.     

Ship-Owners and the Twenty-First Century Somali Pirate: The Business Ethics of Ransom Payment

The attacks on commercial shipping vessels by Somali pirates have introduced a business dilemma for ship-owners. While maritime piracy has been outlawed by the United Nations Convention on the Law of the Sea, ship-owners must determine whether to pay ransom demands to Somali pirates or not. There is no easy answer to solve this ethical dilemma for ship-owners and other interest groups, however, this article proposes a solution which takes into account all of the parties involved.     

The Use of Data Envelopment Analysis with Probabilistic Assurance Regions for Measuring Hospital Efficiency

This paper uses Data Envelopment Analysis (DEA) for an estimation of the cost efficiency of 70 Danish hospitals. The analysis relates to a cost function based on 483 outputs in combination with a set of probabilistic assurance regions defined by the cost distributions for each output. It is demonstrated that the probabilistic assurance region approach allows for (i) a frontier estimation in the full output space, i.e., no fixed aggregation is required, and (ii) a controlling of the variation in heterogeneity of the output clusters, in casu Diagnosis Related Groups. The likelihood of the estimated efficiency score for a given hospital can be measured based on the sensitivity of the score w.r.t. the probability levels used in the specification of confidence intervals for the probabilistic assurance regions.