Schumpeter 1911: Farsighted Visions on Economic Development

This paper presents to the English-speaking reader a sample of material contained only in Schumpeter's first German edition (1911) of Theorie der wirtschaftlichen Entwicklung , material subsequently omitted from later German editions and from the English translation. The newly-translated material, presented here for the first time in English, comprises a substantial part of the second chapter, only available in a completely rewritten version, and fully half of the famous seventh chapter, which has not been previously available at all in English. This material merits attention today because it contains remarkable and farsighted visions on economic theory that may inspire current efforts to devise models of economic and social evolution. In order to better appreciate the original text, we briefly introduce the "background" to Theorie and its revisions, briefly describing the social and intellectual environment of the time. We then discuss how the entrepreneur evolved over the three editions of Theorie (from 1911 to 1934) in view of the shift in Schumpeter's personal and intellectual life and outline the most important implications raised by the first German edition of 1911. Finally, we use Schumpeter's own statements to settle the obstinate confusion on the publication year of Theorie in favour of the year 1911.     

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.     

The long and winding roads: Perceived quality of scenic tourism routes

This study aims to understand self-drive tourists’ satisfaction with and loyalty toward scenic roads. Building on previous studies in the context of tourism destinations, satisfaction is hypothesised to be influenced by leisure and holiday motorists’ motivation for driving the routes and the provision of roadside facilities. In turn, satisfaction is assumed to increase motorists’ loyalty toward the route. The study comprises data from two scenic roads in Norway that differ with respect to landscapes formations, settlements, experiences along the routes, and travel distance. Data are analysed using structural equation modelling. Results show that roadside facilities play a crucial role in achieving overall satisfaction and loyalty among motor tourists, and that route managers should improve the quality of these and related infrastructure facilities and services. Moreover, the study indicates that it is important to take into consideration the motorists’ desire to experience attractive sceneries in order to increase overall route satisfaction. Finally, satisfaction is demonstrated to significantly increase route loyalty, although this relationship appears weaker than in conventional destination studies.     

Uncertainty and Growth of the Firm

Using data from a survey of 1,097 small and medium-sized non-listed Dutch firms we investigate the relation between growth of the firm and uncertainty. We focus on the impact of sales uncertainty on various types of investment. We find that sales uncertainty, measured by the conditional variance, has a mixed impact on various investment decisions. We include an analysis of the relevance of financial structure and firm size on the growth-uncertainty relation.     

Zipf's Law for Cities and Beyond: The Case of Denmark

Zipf's law for cities is one of the most conspicuous and robust empirical facts in the social sciences. It says that for most countries, the size distribution of cities must fit the power law: the number of cities with populations greater than S is inversely proportional to S. The present paper answers three questions related to Zipf's law: (1) does the Danish case refute Zipf's law for cities?, (2) what are the implications of Zipf's law for models of local growth?, and (3) do we have a Zipf's law for firms? Based on empirical data on the 61 largest Danish cities for year 2000, the answer to (1) is NO—the Danish case is not the exception which refutes Zipf's law. The consideration of (2) then leads to an empirical test of (3). The question of the existence of Zipf's law for firms is tested on a sample of 14,541 Danish production companies (the total population for 1997 with 10 employees or more). Based on the empirical evidence, the answer to (3) is YES in the sense that the growth pattern of Danish production companies follows a clean rank‐size distribution consistent with Zipf's law.     

Managing micropolitical risk: A cross‐sector examination

This article stresses the need for today's multinational firms to adopt their own political risk‐assessment and risk‐mitigation strategies. A comparative study of the energy, financial, and automobile sectors illustrates the need for all companies in these sectors to undertake comprehensive risk‐assessment strategies. Risk‐assessment models established by leading multinationals like British Petroleum, Bank of America, and General Motors are examined as examples that other companies in these sectors can build upon. The consistent micropolitical risk variables then lead to a proposed practical framework for examining sector‐specific micropolitical risk. © 2006 Wiley Periodicals, Inc.