Venture Capital Exit Rights

We investigate when and how venture capital contracts use exit rights such as drag‐along and tag‐along rights. Utilizing a data set of venture capital contracts from Germany, we find that almost all contracts allocate exit rights to the venture capitalist (VC) rather than to the entrepreneur. In our data set, the vast majority of exit rights deal with the sale of the entire company to a strategic investors rather than with initial public offerings (IPOs). We show that venture capital contracts include exit rights to mitigate potential hold‐up problems of the VC in the case of exit.     

WTO's Anti-dumping Rule and the Protection of Incumbents

Article VI of the GATT allows counter measures if goods are sold in a foreign market at a price below average production plus transportation costs. The present article analyses Article VI based on a simple game theoretic model with two countries and economies of scale in the production of one homogeneous good. It is shown that multiple equilibria exist under the WTO rule for some parameter values that do not exist without the rule. In some equilibria, the incumbent serves the entire market even if the entrant can produce at lower costs. The model supports the criticism of the anti-dumping rule as an instrument of protection by industrialized countries against competition from developing countries.     

Eine soziologische Systemanalyse und sozio-ökonomisches Review der Soziotechnik Energiewende

The transition of the energy supply system in Germany from fossil-nuclear energy resources to renewable energies is a policy issue and defines a society technics. Society technics takes responsibility for an essential societal need and should be based on an agreement between all actors in all involved systems. According to a society-technics there are benefits for encouraging research, good governance for political support, public understanding of science (PUSH), and academic consultation for politics.Positive implementation will results in optimal coordination as all systems will function and all actors will work for synergy-effects. But a sociological system analyses works out many “dyssynergies”, handling the transition only as technological challenges and failing in underlying this transformation as a socio-technical system. Using renewable energies will not only change the technological system architecture but also modifying social systems and individual attitudes.     

Occupational job creation: patterns and implications

This paper empirically investigates the matching process ofjob seekers and job vacancies, on different occupational labormarkets, and reveals the relative importance of supply and demandfactors, and frictions in the job creation process. Using datafrom German administrative records, we estimate matching functionsboth on the aggregate level, and for different occupationaland educational groups. The data allow to avoid some of theusual problems in empirical matching studies; extensive robustnessand stationarity tests are carried out. The results indicatesubstantial heterogeneity in the matching processes at disaggregatelevels. This information can be useful for policymakers, sincepolicy interventions that are effective in creating employmenton some occupational labor markets might lead to unsatisfactoryresults for other occupations.     

Why do rich countries prefer free trade over free migration? The role of the modern welfare state

"According to traditional trade theory (Heckscher-Ohlin), free trade and free migration are equivalent measures of economic integration leading both to an equalization of factor prices. This prediction is in sharp opposition to the observed preference of rich countries for free trade over free migration. We provide an explanation for this inconsistency: the redistribution policies in the countries. Social welfare in countries with a relatively small number of low-skilled native workers is higher with free trade than with free migration due to redistribution of income towards immigrating workers."     

Questions of shipping policy

The states of the Third World will reassert their many known demands for improved integration in the international economic exchanges at UNCTAD V to be held in Manila in May and add new ones to their list of requests. It is clear from the first discussion papers prepared for the conference by the UNCTAD Secretariat that the sea-borne traffic will receive more attention in this catalogue of demands in future.     

Total factor productivity, the east Asian miracle, and the world production frontier

Total Factor Productivity, the East Asian Miracle, and the World Production Frontier. — The post WWII growth of the East Asian Tiger states has stimulated the discussion about its determinants. Young and Krugman hold that high capital accumulation rather than gains in efficiency or technological progress has spurred growth. Nelson and Pack, however, have recently criticized the methods of measuring technological progress. Applying the nonparametric approach to frontier production function determination and the Malmquist index of total factor productivity change, the authors take up this criticism. They calculate productivity indicators for a sample of 18 American, Asian, and European countries. For the Tiger states, their results confirm that capital accumulation was the main source of growth in 1960-1973, whereas they find evidence for an increasing importance of efficiency improvements for the growth in 1973-1990.     

A generalization of Panjer’s recursion and numerically stable risk aggregation

Portfolio credit risk models as well as models for operational risk can often be treated analogously to the collective risk model coming from insurance. Applying the classical Panjer recursion in the collective risk model can lead to numerical instabilities, for instance if the claim number distribution is extended negative binomial or extended logarithmic. We present a generalization of Panjer’s recursion that leads to numerically stable algorithms. The algorithm can be applied to the collective risk model, where the claim number follows, for example, a Poisson distribution mixed over a generalized tempered stable distribution with exponent in (0,1). De Pril’s recursion can be generalized in the same vein. We also present an analogue of our method for the collective model with a severity distribution having mixed support.     

Die Anforderungen an die interne Unternehmenskommunikation in neuen Organisationskonzepten

This article mainly concentrates on two questions: 1. What functions does an internal corporate communication perform in a learning organization, and in relation to knowledge management? 2. Under which conditions or circumstances can internal corporate communication fulfill these functions? In the concepts of organizational learning and knowledge management, internal communication gains an important productive function in generating, processing and saving knowledge. Instruments and tools such as face-to-face communication, internal magazines, information boards and the use of an intranet are discussed. As far as the generation, production and saving of knowledge are concerned, the instrument of face-to-face communication and the intranet are gaining special importance. In order to cope with these functional challenges, the internal corporate communication has to institutionalize selective incentives and motivating factors. For generating and saving knowledge, the actors’ reception of these media of communication seems of great importance also: Only a unified «community of practice» is able to transform information into knowledge.