Co‐movements in commodity prices: a note based on network analysis

This article analyses co‐movements in a wide group of commodity prices during the time period 1992–2010. Our methodological approach is based on the correlation matrix and the networks inside. Through this approach we are able to summarize global interaction and interdependence, capturing the existing heterogeneity in the degrees of synchronization between commodity prices. Our results produce two main findings: (a) we do not observe a persistent increase in the degree of co‐movement of the commodity prices in our time sample, however from mid‐2008 to the end of 2009 co‐movements almost doubled when compared with the average correlation; (b) we observe three groups of commodities which have exhibited similar price dynamics (metals, oil and grains, and oilseeds) and which have increased their degree of co‐movement during the sampled period.     

Nondiscretionary residential water use: the impact of habits and water‐efficient technologies

Several studies published in the last few decades have demonstrated a low price‐elasticity for residential water use. In particular, it has been shown that there is a quantity of water demanded that remains constant regardless of prices and other economic factors. In this research, we characterise residential water demand based on a Stone‐Geary utility function. This specification is not only theory‐compatible but can also explicitly model a minimum level of consumption not dependent on prices or income. This is described as minimum threshold or nondiscretionary water use. Additionally, the Stone‐Geary framework is used to model the subsistence level of water consumption that is dependent on the temporal evolution of consumer habits and stock of physical capital. The main aim of this study is to analyse the impact of water‐saving habits and water‐efficient technologies on residential water demand, while additionally focusing attention on nondiscretionary uses. This is informed by an empirical application using data from a survey conducted among residents of Brisbane City Council, Australia. The results will be especially useful in the design of water tariffs and other water‐saving policies.     

Work ethic,Protestantism, and human capital

Weber's contribution on Protestant work ethic has stimulated numerous social scientists. However, the question whether a Protestant specific work ethic exists at all is still rarely analysed. Our results indicate that work ethic is influenced by denomination-based religiosity and education.     

Social exclusion, location and transport disadvantage amongst non-driving seniors in a Melbourne municipality, Australia

Over the past decade, researchers have refocused their attention upon the interconnection between locationally disadvantaged communities and poor transport services in order to better understand social exclusion. Limited access to private and public transport has often been identified as a major contributing factor to social isolation and economic poverty that certain groups in the community experience. To date, an insufficient amount of research attention has focused on the elderly or seniors, who are often identified as being subject to social exclusion because of difficulties associated with travelling outside their homes to access services and facilities especially for non-car drivers. Moreover, a disproportionate amount of research undertaken on transport related forms of social exclusion in Australia has understandably looked towards the outskirts of its major urban centres, where services and facilities are sparsely located and generally only accessible by car. This paper provides a different insight by analysing a middle distant municipality where large spatial concentrations of seniors are to be found, some of whom do not have ready access to a car or have difficulty accessing the public bus service. Using a variety of data sources for a municipality in Melbourne, this case study reveals that social exclusion of non-car driving seniors is reinforced by a regional public transport system that cannot adequately service the entire municipality. For now, the incidence of locational and transport related disadvantage is restricted to small pockets of the municipality, but as seniors age and surrender their car driving licences this problem could become more serious. The study concludes by calling for more analyses to be undertaken into transport engendered social exclusion if this problem is to be contained as the post-war baby-boomers generation ages across most of the middle suburbs of Australian cities.     

Proposal for a Contingency Debt Sustainability Framework

We argue that the New Debt Sustainability Framework (NDSF) of the World Bank and IMF is centered on the Country Policy and Institutional Assessment (CPIA) to suit the aid allocation mechanism of the International Development Association (IDA), but fails to deal effectively with the economic vulnerability of low-income countries. Instead, we propose a Contingency Debt Sustainability Framework (CDSF), which identifies the sources of vulnerability and compensates for exogenous shock and trend factors. Without giving rise to significant moral hazard implications, the CDSF is thus suitable to effectively shield low-income countries from the main external causes undermining their achievement of debt sustainability.     

Population problems and North-South cooperation

Approaches in the United Nations to solve the problems resulting from world population trends — the so-called “population explosion” in the countries of the Third World — as part of the North-South cooperation are not new; nor are they without their critics. The author discusses the differing arguments.     

Recent Developments at DG Competition: 2013–2014

The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and state aids. In 2013–2014 important antitrust decisions (Samsung and Motorola) were in the area of standard essential patents. In merger control the European Commission carried out an ex-post evaluation of past mergers in the INEOS/Solvay case in order to obtain valuable insights for the merger under review. In state aid, as a part of the State Aid Modernisation programme, guidelines were prepared to help EU member states to design and carry out ex post assessments of state aid schemes.     

Moral suasion: An alternative tax policy strategy? Evidence from a controlled field experiment in Switzerland

With data gained from a controlled field experiment in Switzerland this paper analyses the effects of moral suasion on the timely paying and the timely filling out of the tax form 2001. Comparisons of different tax filing years and multiple regression estimations have been done using these two factors as dependent variables to check if there is a significant difference between the control group and the treatment group. In February 2002 the treatment group received a letter signed by the communes fiscal commissioner containing normative appeals. Results indicate that moral suasion has hardly any effect on taxpayers compliance behaviour. The strongest effect can be observed for the variable tax payments.Received: February 2003, Accepted: June 2004 JEL Classification: H260, H710BennoTorgler: Special thanks are due to the tax administration of Trimbach, especially to Adolf Müller and Gary Bitterli, who offered me the opportunity to collect the data and assisted the project. Furthermore I acknowledge the financial support of the WWZ-Forum and Swiss National Science Foundation and comments and suggestions from Doris Aebi, René L. Frey, the editor Kai A. Konrad and two anonymous referees.     

You should know better! Do health students have different risk attitudes to unplanned pregnancy and sexually transmitted diseases?

Because healthcare professionals are in the best position to assess, assist and educate those participating in risky sexual behaviour, understanding if (and how) their risk attitudes differ from the wider population is of vital importance. In this study, we explore university health students’ risk attitudes towards unplanned pregnancy and sexually transmitted diseases (STDs). We examine whether university students pursuing health-related degrees, who hypothetically should have more exposure to and understanding of the risks associated with unplanned pregnancy and STD, have more risk averse attitudes to sexual behaviour. We find that health students’ sexual attitudes are significantly more risk averse than those of their nonhealth peers in relation to STDs but not unplanned pregnancy. In line with previous research, age and no previous sexual history (virginity) appear to increase risk-averse attitudes to both unplanned pregnancy and STDs. Moreover, males and singles are more risk seeking in their sexual attitudes. These findings suggest that, because unplanned pregnancy and STDs are ongoing global issues, further research is warranted into the risk attitudes of those healthcare professionals most able to provide education and support for individuals participating in risky sexual behaviour.     

Perceived trade-off between education and sports career: evidence from professional football

To explore the attitudes towards risky career choices of young people in highly competitive environments, we surveyed almost 1000 football players in the youth academies of German professional clubs (Bundesliga), who must generally decide early in their careers whether or not to risk quitting school to focus solely on a professional football career. Based on the survey responses, we empirically analysed which factors influence these youths’ tendencies to choose a high-risk career option over a lower risk one. Our results seem to indicate that such risk taking in competitive environments can be explained by potential benefits expected from this decision, as well as judgments about the likelihood of achieving the desired career. Risk attitudes towards career choices vary by differences in individuals’ estimates of the potential benefits and in particular, in their own assessments of the likelihood of success, which is an important driver of risk acceptance. We also found that opportunity cost considerations influence risk acceptance: the better the low-risk option, the less willing the individual to give it up for a high-risk alternative. In addition, both national origin and level of cultural integration play a role in attitudes towards risky career choices, with reductions in the latter increasing the risk premium of quitting school.