ENTREPRENEURSHIP AND THE SMALL FIRM: A REVIEW ARTICLE

H erbert G iersch (ed.) New Opportunities for Entrepreneurship . Tübingen: Mohr, 1984, pp. 262 + vi, DM62 (paperback). C yril L evicki     

On the Ethics Behind “Business Ethics”

Ethics in business and economics is often attacked for being too superficial. By elaborating the conclusions of two such critics of business ethics and welfare economics respectively, this article will draw the attention to the “ethics behind” these apparently well-intended, but not always convincing constructions, by help of the “fundamental ethics” of Emmanuel Levinas. To Levinas, responsibility is more basic than language, and thus also more basic than all social constructions. Co-operation relations in organizations, markets and value networks are generated from personal relations and personal responsibilities. It is not sufficient to integrate ethics in an impersonal, rational system, neither in business organizations nor in the world economy. Ethics has its source not in rationality, but in the personal.     

Are stationarity and cointegration restrictions really necessary for the intertemporal budget constraint?

Time series related to fiscal and external deficits are commonly subjected to stationarity and cointegration tests to assess if the deficits are sustainable. Such tests are incapable of rejecting sustainability. The intertemporal budget constraint proves to be satisfied if either the debt series or the revenue and with-interest spending series are integrated of arbitrarily high order, i.e., stationary after differencing arbitrarily often. Revenues and spending do not have to be cointegrated. Rejections of low-order difference-stationarity and of cointegration are thus consistent with the intertemporal budget constraint. Error-correction-type policy reaction functions are suggested as more promising for understanding deficit problems.     

Long term dependence in stock returns

We show, using the modified rescaled range statistic, that none of the return series of indices of five European countries, the United States and Japan exhibits long term dependence. This statistic — introduced by Lo (1991) — correct Hurst's (1951) ‘classical’ rescaled range statistic for short term dependence. We also report the classical rescaled range statistic after adjusting the series for short term dependence. This procedure shows, for cases where the results of the modified rescaled range statistic are mixed, that no long term dependence can be found. Simulations indicate reasonable power of this adjustment procedure. Furthermore, we find that estimates of the Hurst exponent, a related measure of long term dependence, are also biased by short term dependence. Simulations show that this measure — that has recently attracted growing interest — cannot distinguish between models with or without long term dependence.     

Local Government,Spatial Spillovers and the Absorption of EU Structural Funds

The allocation of regional policy funds varies dramatically across regions even when one controls for regional development indicators. We investigate the impact of local government performance as well as spillovers in knowledge, financial means and social relations as determinants of regional fund absorption. Government performance is derived within a Data Envelopment Analysis approach. Spillovers are investigated using a spatial Durbin model. Results show that government performance has a positive impact on fund absorption. Spillovers occur in knowledge as well as in financial means. The empirical analyses focus on Special Accession Program for Agriculture and Rural Development in Slovakia using panel data.     

‘Stop Being a Tourist!’ New Dynamics of Urban Tourism in Berlin‐Kreuzberg

Berlin is witnessing a massive tourism boom, and parts of it can be described as ‘new urban tourism’, which shows a preference for off the beaten track areas and ‘authentic’ experiences of the city. This form of tourism seems especially salient in Kreuzberg. It is here that an openly articulated critique of tourism attracted national attention in 2011 and has not ceased to do so since. This article aims to better understand the conflictive potential of (new urban) tourism in Kreuzberg. We argue that the readily expressed negative attitudes against tourists and the easily accepted link between tourism and gentrification have to be explained against the backdrop of certain housing‐market dynamics. Rising rents and a diminution in the number of flats available for rent are fuelling fears of gentrification in Kreuzberg, while the interest shown in new urban tourism and the comparatively low‐priced real‐estate market in Berlin result in a growing number of holiday flats. Although adding only slightly to the tightening of the housing market, holiday flats render complex processes of neighborhood change visible and further sustain an already prevalent tourism critique.     

Disruptive Innovation in the Nordic Countries＇ Healthcare Systems

The Nordic healtheare model is recognized to be one of the most innovative in the world. Here billions of USD are annually invested in developing new treatments, drugs, robots etc. to diagnose and cure diseases. Nevertheless, this study establishes that there is a fundamental shortcoming in the system that supports healthcare innovation： It is strongly biased towards micro-level innovation projects focusing on new products, alternative processes, and new financial solutions. The problem with this approach to support new projects is that the results are created as inventions within the system thus lacking holistic perspectives. This has consequently contributed with increasing costs that are out of proportion with existing budgets. Therefore this study seeks to analyze the current understanding of the Nordic healthcare system from a business model perspective. Here other aspects of the healthcare system are explored to determine if they could be redesigned to promote new types of innovation projects. The purpose of undertaking this task is to challenge the established patterns of the current healthcare innovation support practices. Here the vertical innovation process （VIP） framework, which is a systematic radical innovation model that seeks macro-level outcomes based on standalone inventions （see more below）, is applied to analyze the current state-of-the-art in Nordic healthcare innovation projects. The results determine that very little attention is given to rethink and redesign the healthcare system at a macro-level, and it is discussed that stand-alone inventions ought to be rethought into the entire healthcare system to create a larger impact. Finally, it is argued that existing performance measures are inappropriate to foster projects that innovate the existing system： New measuring points should be developed to promote macro-level projects and to avoid the current rapid increase of costs in the Nordic healthcare system.     

Embedding effects in choice experiment valuations of environmental preservation projects

This paper addresses the question, whether attribute values derived from a CE study of one nature restoration and preservation project depend on the overall scale of nature preservation activities in which it is embedded. A split-sample CE study was undertaken in which a particular nature preservation project was evaluated in three plausible and strictly different embedding contexts. Respondents' attention was drawn to a varying number of forthcoming substitute preservation projects to be implemented prior to the one in question. Results show that while WTP for the project in focus is sensitive to the presentation of substitute projects as such, there does not seem to be any clear and unidirectional relationship between WTP and the number of substitute projects. Furthermore, effects vary across the project's attributes.