Financial Restraints in a Mature Welfare State--The Case of Denmark

The Scandinavian welfare states are mature in the sense of havinga high level of standards for public provisions of welfare servicesas well as a high replacement level for income transfers, especiallyfor low-income groups. In this welfare model, individuals havebasic rights to welfare services and social transfers independentlyof their ability to pay, their labour-market history, etc. Thefinancial viability of the model relies on a high tax burdenand a high level of labour-force participation for males andfemales. Evaluated on the basis of international comparisonsof income levels and inequality, the model has performed well.In a forward-looking perspective, however, the welfare modelfaces problems that may put the financial viability of the modelat risk. Two important challenges are demographic changes andthe so-called growth dilemma (increased demand for servicesand leisure). We discuss these issues using Denmark as an exampleand argue that while these two challenges may be of the sameorder of magnitude, it is easier to propose solutions to thedemographic challenges than to the growth dilemma which areconsistent with the basic principles of the welfare state. Footnotes ¹ E-mail addresses: tandersen{at}econ.au.dk; lhp{at}dreammodel.dk     

Labour market implications of EU product market integration

European labour markets are in a state of flux due to the changing market situation induced by international integration. This process affects wage formation through more fierce product market competition and increased mobility of jobs. This development is by some observers taken to enforce labour market flexibility, while for others it signals an erosion of social standards and in turn possibly the welfare society. Since labour is not very mobile in Europe, the effects of international integration on labour markets are mostly indirect via product market integration. We review the channels through which product market integration affects labour markets and perform an empirical analysis of the convergence and interdependencies in wage formation among EU countries. We find that integration is changing labour market structures and inducing wage convergences as well as stronger wage interdependencies, but it is a gradual process. Moreover, the present study does not support the view that international integration will lead to a 'race to the bottom' and rapidly erode domestic labour markets standards, nor that it will relieve politicians of the need to consider labour market reforms to improve labour market performance.     

A Flexicurity Labour Market in the Great Recession: The Case of Denmark

Flexicurity labour markets are characterised by flexible hiring/firing rules, a generous social safety net, and active labour market policies. How can such labour markets cope with the consequences of the Great Recession? This paper takes a closer look at this question considering the case of Denmark. It is found that employment adjustment is not particularly large in international comparison, but a larger burden of adjustment is along the extensive (number of employees) rather than the intensive (hours) margin. The level of job creation is high, and remains so despite the crisis, although job creation is pro-cyclical and job-separation counter-cyclical. As a consequence most unemployment spells remain short. Comparative evidence does not suggest that flexicurity markets are more prone to persistence. Crucial for this is the design of the social safety net and in particular the active labour market policy. However, it is a challenge to maintain the efficiency of the activation system in a period with high unemployment.     

Knowledge diffusion and knowledge transfer revisited: two sides of the medal

Understanding the way in which knowledge is interpersonally transferred and how it diffuses over time is of exceptional importance for the economic performance of a society. Although this insight is not new, the link between knowledge transfer and knowledge diffusion so far has not been picked out as a central theme in the relevant research field but instead it seems that it has been treated as a theme on the fringes yet. This paper mainly argues, first, that the speed of knowledge diffusion as well as the shape of the cumulative knowledge diffusion function is governed in most instances by knowledge transfer mechanisms. Second, these knowledge transfer mechanisms differ within and between heterophilic groups who participate in the knowledge transfer process. By perfectly disentangling between and within knowledge transfer mechanisms, the paper in general tries to uncover the link between knowledge diffusion and knowledge transfer within a dynamic model which is embedded in a stochastic environment. The model is able to replicate both, symmetric as well as asymmetric cumulative knowledge diffusion patterns. This is certainly an appealing attribute of the model, because from an empirical point of view there is no clear evidence for the existence of purely symmetric cumulative knowledge diffusion curves. Further, the model can be used directly for empirical investigations.     

Unraveling the Relationship Between Presidential Approval and the Economy: A Multidimensional Semiparametric Approach

Empirical studies analyzing the determinants of US presidential popularity have delivered quite inconclusive results concerning the role of economic variables by assuming linear relationships. We employ penalized spline smoothing in the context of semiparametric additive mixed models and allow for flexible functional forms and thus possible nonlinear effects for the economic determinants. By controlling for the well‐known politically motivated covariables, we find strong evidence for nonlinear and negative effects of unemployment, inflation and government consumption on presidential approval. Additionally, we present new results in favor of nonparametric trivariate interaction effects between the macroeconomic covariables. Copyright © 2014 John Wiley & Sons, Ltd.     

Smart packaging: definitions,models and packaging as an intermediator between digital and physical product management

ABSTRACT

The purpose of this paper is to examine the traditional ‘contain–protect–communicate–facilitate convenience’ model of the main packaging functions, to revise each component of it in relation to packaging strategies and smart packaging applications, and to establish a new model of the main packaging functionalities concerning the analysed data. The scientific approach of this paper is twofold: it is based on an extensive literature review focused on articles related to packaging science and on a set of empirical observations from industrial cases of enhanced packaging with a higher emphasis on interactive packaging. The key findings of this paper are the two principal purposes of smart interactive packaging: (1) to enhance the product’s functionality or experience in order to serve its primary initial purpose more effectively and (2) to improve consumers’ experiences through engagement and entertainment in both the retail and the usage environment. This paper proves its originality by considering shifts in technological opportunities in packaging to assure a broader range of design options in packaging and engagement, thereby leaving packaging as static item. Also, bridging the general consumer experience between digital marketing and physical shopping using packaging is a novelty in retailing and brand management. This research is in its early stages and limitations are given from the modest proliferation of smart and interactive packaging into empirical contexts. New technologies of packaging and the design decisions are expected to have significant practical implications for brand and retail managers as well as consumers.