How Large are the Welfare Gains from Technological Innovation Induced by Environmental Policies?

This paper examines whether the welfare gains from technological innovation that reduces future abatement costs are larger or smaller than the Pigouvian welfare gains from optimal pollution control. The relative welfare gains from innovation depend on three key factors—the initially optimal level of abatement, the speed at which innovation reduces future abatement costs, and the discount rate. We calculate the welfare gains from innovation under a variety of different scenarios. Mostly they are less than the Pigouvian welfare gains. To be greater, innovation must reduce abatement costs substantially and quickly and the initially optimal abatement level must be fairly modest.     

The greening of Swedish energy policy: A critique

This article discusses Swedish energy policy over the period 1973–1992 with a focus on its current energy objectives. Bans on energy sources are assessed as one of the challenges faced by Sweden in the 1990s. We raise questions about the future consequences of such draconian approaches to energy policy that inhibit societal learning. Bans on any fuel source only serve to handicap the economy and lead to a less flexible and more inefficient energy supply at a greater than necessary cost. With the Swedish economy on the verge of becoming more integrated with the rest of Europe, it is imperative to view its comparative advantage in electricity as the basis for its energy policy rather than the individual fuels that generate that electricity. Our goal has been to synthesize components among existing energy objectives to suggest logical implications for the future.     

Richtigstellung zum Artikel: „Sektorale und gesamtwirtschaftliche Beurteilung des „Carbon-Leakage“ — Problems für die Bundesrepublik Deutschland“ von Hans Georg Buttermann,Bernhard Hillebrand und Elmar Hillebrand,Zeitschrift für Energiewirtschaft 1 (2009), Seite 62 ff

Anhang

Richtigstellung zum Artikel: „Sektorale und gesamtwirtschaftliche Beurteilung des „Carbon-Leakage“ — Problems für die Bundesrepublik Deutschland“ von Hans Georg Buttermann, Bernhard Hillebrand und Elmar Hillebrand, Zeitschrift für Energiewirtschaft 1 (2009), Seite 62 ff     

Cross-ownership as a structural explanation for over- and underestimation of default probability

Based on the work of Suzuki, we consider a generalization of Merton’s asset valuation approach in which two firms are linked by cross-ownership of equity and liabilities. Suzuki’s results then provide no arbitrage prices of firm values, which are derivatives of exogenous asset values. In contrast to the Merton model, the assumption of lognormally distributed assets does not result in lognormally distributed firm values, which also affects the corresponding probabilities of default. In a simulation study we see that, depending on the type of cross-ownership, the lognormal model can lead to both over- and underestimation of the actual probability of default of a firm under cross-ownership. In the limit, i.e. if the levels of cross-ownership tend to their maximum possible value, these findings can be shown theoretically as well. Furthermore, we consider the default probability of a firm in general, i.e. without a distributional assumption, and show that the lognormal model is often able to yield only a limited range of probabilities of default, while the actual probabilities may take any value between 0 and 1.     

Schulleistungsunterschiede zwischen den deutschen Ländern

Since 2006 school achievement of German students has been measured on a regular basis within the so-called national educational monitoring. The most recent results show considerable differences between the states. At first glance, students in the eastern and southern states perform well while students in the city-states show poor results. This paper argues that these differences cannot be attributed to state-specific school policies. Rather, a large portion of the variance between the states can be explained by social and ethnical differences. As a consequence, not only educational policy but also social and integration policies have to be reviewed in order to get a better understanding of the differences in school achievement among the German states.     

What patents are used as collateral?—An empirical analysis of patent reassignment data

Only anecdotal evidence exists that ventures use patents as collateral to access debt financing. In this paper, we use a novel dataset on patent reassignments with a security interest to explore quantitatively what patents are used as collateral. We analyze characteristics of patents to disentangle whether it is the technology underlying a patent or the patent's exclusion right per se matters for collateralization. We do find empirical support only for technology-related characteristics, suggesting that lenders use patents to collateralize high-quality technology that can, in case of default, be redeployed to ventures in similar technology fields. On the other hand, patent-related characteristics like scope, which are, in general, related to patent value and are particularly important for non-practicing entities, do not matter.     

An Analysis of U.S. Multinationals’ Recruitment Practices in Mexico

The frequency of discriminatory language in job advertisements placed by U.S. multinational corporations operating in Mexico was compared with that of Mexican companies using content analysis. A sample of 300 ads placed by companies from each culture was analyzed and coded by two groups of coders to calculate the frequency of discriminatory language in the job ads with respect to age, gender, physical appearance and marital status. Results of a chi square analysis revealed that U.S. multinationals firms in Mexico utilize discriminatory language in job ads less frequently in the categories of age, gender and marital status. This result suggests that the legal and cultural framework of the country of origin of U.S. enterprises in Mexico may be influencing their actual recruitment practice in Mexico, and in turn, help them in setting a positive example of non-discrimination in recruitment among their Mexican counterparts.     

Upper echelons and portfolio strategies of venture capital firms

In this study we analyze how the composition of the top management team (TMT) influences the portfolio strategy choice in venture capital (VC) organizations. We develop a model of risk perception to investigate how education and experience of TMT members impact whether VC organizations invest with a focus on early stage ventures or not, specialize or diversify across industries, and invest with a broad or narrow geographic scope.Evaluation of data on TMTs and portfolio strategies of 136 European VC firms revealed that VC firms with higher proportions of TMT members with science/engineering education and entrepreneurial experience more likely invest with an early stage focus. Furthermore, TMTs with more management education diversify their portfolios more across industries. Finally, the more international experience TMT members of VC organizations have, the broader the geographic scope of investees. We discuss the implications of our findings for the VC literature.     

On the location of knowledge-intensive entrepreneurship in developing countries: lessons from São Paulo,Brazil

This article empirically appraises the geographical distribution of knowledge-intensive entrepreneurship (KIE) in the settings of an emerging economy. We start from the typical agglomeration approach and then introduce a set of variables related to local market conditions, distance from the economic hub, and knowledge & innovation system to explain KIE location and density on the basis of city-level data in the State of São Paulo, Brazil. Findings indicate KIE concentration in and around a few urban areas, providing support to agglomeration economies concepts. There is strong evidence that the local presence of research-oriented universities, access to capital, and business concentration are correlated to KIE emergence and density. Results also indicate the moderating effect of agglomeration diseconomies mainly related to factors of rapid and anarchic expansion of urban centers and the consequences of extreme inequalities in income distribution. This challenges the usability of concepts of entrepreneurial ecosystems from advanced economies if not adapted to the realities of developing countries.