Rising Income Inequality: Do Not Draw the Obvious Conclusions

Inequality is dominating the political debate in various countries still characterised by sluggish economic recovery and high unemployment. The drivers of higher income inequality since 1995 have been globalisation, technological change and migration. At the same time, these factors have had an undeniably positive impact on aggregate income. While populist parties advocate more nationalistic-oriented approaches, we argue that the appropriate policy response to this dilemma is to alleviate the social costs of globalisation rather than rejecting the aggregate economic benefit.     

The Changing Face of Entrepreneurship in Germany

This paper explains individual start-up activities on the basis of both person-related characteristics and the regional context. The analysis is based upon micro data from the GEM adult population survey. Both individual and regional variables have an influence on the decision to become self-employed. There are considerable differences between nascent opportunity entrepreneurship and nascent necessity entrepreneurship. Whereas the results for opportunity entrepreneurship are in line with theoretical predictions the factors influencing necessity entrepreneurship are far more difficult to determine. The most significant change between 2001 and 2003/2004 is the reversal of the influence of a change in the regional rate of unemployment on nascent entrepreneurship activities.      

The “Third World” in the 1990s

Given that the developing countries today present a highly differentiated picture, is it appropriate to continue to speak of a “Third World”? If so, how does this group of countries appear to the present-day observer? What is their position within the world economy? What problems and challenges are they facing?     

Adjustment to changing international conditions

The structural changes in the world economy have made themselves increasingly felt in the Federal Republic of Germany over the past few years. For the first time since 1965 there is again a current account deficit, since merchandise trade is no longer able, due to the worsened terms of trade, to finance the traditional deficits on services and transfers. What policy should the Federal Government follow in order to help German industry adjust to these changes?     

Patent pools,litigation, and innovation

This article analyzes patent pools and their effects on litigation incentives, overall royalty rates, and social welfare when patent rights are probabilistic and can be invalidated in court. With probabilistic patents, the license fees reflect the strength of the patents. We show that patent pools of complementary patents can be used to discourage infringement by depriving potential licensees of the ability to selectively challenge patents and making them committed to a proposition of all‐or‐nothing in patent litigation. If patents are sufficiently weak, patent pools with complementary patents reduce social welfare as they charge higher licensing fees and chill subsequent innovation incentives.     

Financial development,financial liberalization and social capital

The relationship between financial liberalization policies and financial development is controversial. The impact of these policies differs greatly across countries. In the literature, the quality of formal institutions has been identified as an important source of this heterogeneity, as countries with a weak institutional environment generally fail to benefit from financial liberalization. Using panel data covering 82 countries for the period 1973–2008, we find evidence that social capital may substitute for formal institutions as a prerequisite for effective financial liberalization policies. In particular, we find that during the post Washington-consensus period countries with a high prevailing level of social capital can ensure that financial liberalization positively influences financial development, despite the poor quality of their formal institutions.     

The marginal cost of public funds is one at the optimal tax system

This paper develops a Mirrlees framework with skill and preference heterogeneity to analyze optimal linear and nonlinear redistributive taxes, optimal provision of public goods, and the marginal cost of public funds (MCF). It is shown that the MCF equals one at the optimal tax system, for both lump-sum and distortionary taxes, for linear and nonlinear taxes, and for both income and consumption taxes. By allowing for redistributional concerns, the marginal excess burden of distortionary taxes is shown to be equal to the marginal distributional gain at the optimal tax system. Consequently, the modified Samuelson rule should not be corrected for the marginal cost of public funds. Outside the optimum, the marginal cost of public funds for distortionary taxes can be either smaller or larger than one. The findings of this paper have potentially important implications for applied tax policy and social cost–benefit analysis.     

中国制造企业服务市场细分的实证研究

随着中国经济的快速发展,中国制造产生了对机器设备需求的巨大市场,而服务业务的潜在发展空间促使设备供应商或专业服务提供商更加关注对服务业务的市场研究.本文针对中国机器及设备用户的服务需求情况进行了系统的中国制造企业服务市场细分的实证调查及研究.本文的调查采用用户访谈、座谈及大面积问卷发放的方式进行,数据分析上采用探索性因子分析和聚类分析,分析结果对中国制造企业的服务需求按其特征分为五类,比较突出的服务需求特点是表现出较强的价格敏感度.