The World Is Not Enough! Small Open Economies and Regional Dependence

In this paper, we explicitly introduce regional factors into a global dynamic factor model. We combine new open economy factor models (emphasizing global shocks) with the recent findings of regional importance in the business cycle synchronization literature. The analysis is applied to a large panel of domestic data for four small open economies. We find that global and regional shocks explain roughly 30 and 20 percent, respectively, of the business cycle variation in all countries. While global shocks have most impact on trade variables, regional shocks explain a relatively large share of the variation in cost variables.     

Job Loss and Entrepreneurship

We examine the impact of job loss on entrepreneurship behaviour. Our identification strategy relies on the use of mass layoffs caused by bankruptcies as indicators of exogenous displacement. Building on Norwegian register data, we find that working in a company which is going to close down due to bankruptcy in the near future raises the subsequent entrepreneur propensity by 155% for men and 180% for women, compared to working in a stable firm. These estimates are much larger than previously reported in the literature. Taking into account that many workers lose their jobs in the comparison group of stable firms also, we suggest that the full effects of displacement are even larger.     

V Chemnitz East Forum 21–23 March 2001 "Human Resource Management in Transition"

Call for Papers

V Chemnitz East Forum 21–23 March 2001 "Human Resource Management in Transition"     

Cooperation and Competition in the Context of Organic and Mechanic Worldviews – A Theoretical and Case based Discussion

In this study we argue that there is an interconnection between; the mechanistic worldview and competition, and the organic worldview and cooperation. To illustrate our main thesis we introduce two cases; first, Max Havelaar, a paradigmatic case of how business might function in an economy based upon solidarity and sustainability. Second, TINE, a Norwegian grocery corporation engaged in collusion in order to force a small competitor out of the market. On the one hand, in order to encourage market behaviour that integrates economic, societal and environmental values we find that transparent cooperation within a context of an organic worldview takes care of important intrinsic as well as instrumental values. On the other hand, we find evidence for asserting that cooperation based upon a mechanistic worldview, typically leads to group egotistical consequences undermining the long term common good.     

State support to small stores: A Nordic form of consumer policy

From the early 1970s, the Governments of Finland, Norway, and Sweden have shown considerable concern for the plight of rural consumers consequent on the closure of small stores in sparsely populated areas. In each country, special commissions were established to consider the consequences of retail concentration and legislation has been introduced to provide aid to small retail business in rural areas. The paper examines the background to this legislation and compares and contrasts the measures adopted in each of the three countries. While the policies attempt to improve the viability of rural small stores, it is argued that the measures are essentially a special type of consumer policy and that not only is there a need for more research into the effectiveness of the policies, but that perhaps the measures ought to be extended somewhat, particularly to protect the interests of consumers in urban areas.

---

Staatliche Unterstützung des kleinen Einzelhandels: eine skandinavische Form von Verbraucherpolitik

Zusammenfassung Die Regierungen Finnlands, Norwegen und Schwedens befassen sich seit etwa zhen Jahren mit der Situation von Verbrauchern in dünn besiedelten ländlichen Gebieten, die sich durch das Verschwinden kleiner Ladengeschäfte verschlechtert. Es wurden Kommissionen zur Untersuchung der Auswirkungen der Konzentration im Einzelhandel gebildet und Gesetze zur Förderung des kleinen Einzelhandels in ländlichen Gebieten erlassen. Dieser Beitrag behandelt den Hintergrund dieser Entwicklung und vergleicht die in den drei Ländern angewendeten staatlichen Maßnahmen, die in ihrem Kern als eine spezielle Form von Verbraucherpolitik betrachtet werden.Der Hintergrund für solche Stützungsmaßnahmen ist gekennzeichnet durch strukturelle Veränderungen im Einzelhandel seit dem 2. Weltkrieg. Seit den 50er Jahren und verstärkt in den Jahren zwischen 1960 und 1973 ging die Zahl der traditionellen Gemischtwarenläden um bis zu 50% zurück. Die Konzentration hat dazu geführt, daß der Kolonialwarenhandel von drei bis vier Ladenketten bestimmt wird und viele ländliche Gemeinden gar keinen oder nur noch einen einzigen örtlichen Laden besitzen.Um dieser Entwicklung entgegenzuwirken, bieten alle drei Staaten Investitionszulagen für die Modernisierung und Vergrößerung von Ladengeschäften. Norwegen und Schweden gewährt darüber hinaus auch Zuschüsse zu den laufenden Kosten. Abbildung 1 (S. 200) gibt einen Überblick über die Unterschiede, die zwischen den drei Ländern bestehen, jeweils im Bereich der staatlichen Maßnahmen, der Voraussetzungen, an die die staatliche Unterstützung geknüpft sind, und der verwaltungstechnischen Abwicklung.Die Betrachtung der Auswirkungen der Unterstützungsprogramme ergibt, daß in Norwegen nahezu 50% der infragekommenden Geschäfte eine Unterstützung erhielten und das Ladensterben im Laufe der Jahre von jährlich etwa 650 auf jetzt etwa jährlich 300 verringert werden konnte. In Finnland wurden bis Ende 1977 109 Geschäfte unterstützt; außerdem richtete die Regierung 10 neue Läden ein und kaufte zusätzlich 113 mobile Verkaufsstellen. In Schweden bekamen in den ersten vier Jahren 97 Läden eine Unterstützung, durch die für 20 000 Verbraucher in ländlichen Gegenden und weitere 5000 Feriengäste die Möglichkeit notwendiger Einkäufe gesichert werden konnte.Der Beitrag plädiert für eine Erweiterung der bisherigen Maßnahmen, um auch die tieferen Probleme des kleinen Einzelhandels angehen zu können. Er stellt dabei die wichtige soziale und wirtschaftliche Rolle heraus, die der kleine Laden im ländlichen und im städtischen Bereich übernimmt. Insofern wird der skandinavischen Gesetzgebung Modellcharakter auch für andere moderne Volkswirtschaften zugesprochen.Der Beitrag schließt ab mit einigen Vorschlägen für künftige Forschung und stellt dabei vor allem heraus (a) die Kosten-Nutzen-Analyse der staatlichen Maßnahmen, (b) die Untersuchung der Reaktionen der Händler auf die Förderungsprogramme und der Auswirkungen auf die geförderten Geschäfte und (c) die Analyse der Einstellungen und des Verhaltens der Verbraucher gegenüber kleineren Geschäften, um zu ermitteln, ob diese Geschäfte den Ansprüchen und den Bedürfnissen der örtlichen Kundschaft tatsächlich besser entsprechen. Darüber hinaus richtet sich ein eher theoretisches Interesse auf die Eigenschaften, die eine Volkswirtschaft aufweisen sollte, wenn die Unterstützung des kleinen Einzelhandels zugleich ein erfolgreiches verbraucherpolitisches Instrument sein soll.

---

---

Knut Ekhaugen is Head of Department for Economic Research, Norwegian Productivity Institute, Akersgt. 64, Oslo 1, Norway. Sigmund Grønmo is Research Director, Norwegian Fund for Market and Distribution Research, Fredensborgveien 24, Oslo 1, Norway; and Associate Professor of Sociology, University of Oslo, Blindern, Oslo 3, Norway. David Kirby is Senior Lecturer in Geography and Director of the Small Shops Research Unit at St. David's University College, University of Wales, Lampeter. Currently he is a Visiting Research Fellow at the Norwegian Fund for Market and Distribution Research, Oslo.     

Global emissions effects of CDM projects with relative baselines

CDM is an offset mechanism designed to reduce the overall cost of implementing a given global target for greenhouse gas (GHG) emissions in Annex B countries of the Kyoto Protocol. A problem with CDM is that it provides incentives to increase, if possible, the baseline emissions for CDM projects, to optimize the value of CDM credits. Under a “relative baselines” crediting rule, the CDM may also unduly increase energy consumption even during the CDM implementation phase. Less than full offset of emissions is then likely, and the CDM will lead to increased global GHG emissions. We show that this is a potentially serious problem, due to asymmetric information between project hosts and the regulator, the CDM Executive Board, and to the basic rules for crediting CDM quotas. In certain cases, the use of “relative baselines” to credit CDM quotas could fully eliminate any emissions reductions achieved by CDM projects. Remedies to overcome the problems are discussed. They may involve setting the baseline independently of initial energy intensity and final output for the project; or involve information revelation mechanisms that minimize policy losses and net rent capture by project sponsors.     

Effects of Transport Regulation on the Oil Market: Does Market Power Matter?

Instruments used to regulate the consumption of oil in the transport sector include fuel taxes, biofuel requirements, and fuel‐efficiency standards. However, the effects that these have on oil consumption and price vary. If market power is present in the oil market, the directions of change in consumption and price might contrast with those in a competitive market. As a result, the market structure affects not only the effectiveness of the policy instruments used to reduce oil consumption, but also the terms of trade and carbon leakage. In particular, reduced oil consumption, as a result of increased fuel‐efficiency standards, will unambiguously increase the price of oil under a monopoly.     

Visitors’ acceptance of negative ecological impacts in national parks: comparing the explanatory power of psychographic scales in a Norwegian mountain setting

Even in protected areas, it is inevitable that any human use will produce some impact on natural resources. This study identifies visitors’ tolerance of potential negative ecological impacts from tourism activities and facilities in a Norwegian national park context, based on park visitors’ expressed degree of acceptance of negative effects on particular species of wildlife (wild reindeer and raptors) and on vegetation. Attitudes were analysed using psychographic scales, reflecting respondents’ nature orientations, their specific facility desires, their preferences in a wilderness setting and their concerns about human interaction with the natural environment. Fourteen research hypotheses were tested. Findings demonstrated that the psychographic scales explained more variation in attitudes than most social background and trip characteristics. Higher levels of education among visitors were strongly associated with increased ecological concern; age and gender were not. There was generally strong ecological awareness and eco-centrism among park visitors in general, with a small proportion of wilderness purists. Better trail conditions, signposting and interpretation were sought. But park visitors were also found to possess a complex mixture of needs and drivers. The study found significant potential for strategic alliances between tourism and conservation interests, and key value issues for park governance systems.     

A taxonomy of standards in the service sector: Theoretical discussion and empirical test

Based on the peculiarities of services the different typologies of service standards are discussed. Against this background, a survey among European service companies addressed the question of in which service-related categories formal and informal standards are implemented. In total 364 European service companies responded to the on-line survey. Relying on the assessment of the importance of the various service-related standardisation aspects, it was possible to identify a taxonomy of service standards containing five clusters of service standards ‘Service Management’, ‘Service Employee’, ‘Service Delivery’, ‘Customer Interaction’, and ‘Data Flows and Security’, which correspond very closely to the ex ante applied typology derived from the literature.