The market for corporate control: do countries and technological regimes matter?

Using DATASTREAM and LexisNexis databases, we examine the experience from 1995 to 2005 for eight European countries and 21 sectors, and compute the frequency of merger transactions at sectoral level, controlling for the roles of country variables and focusing on distinct technological patterns of innovation. We found that, even in market‐based countries, where transfer of control is a frequent phenomenon, mergers are less frequent in those sectors where innovation follows cumulative processes and where takeovers represent a ‘breach of knowledge.’ This study provides empirical support to the fruitful line of research of varieties of capitalism (Hall and Soskice 2001 Hall, P. A. and Soskice, D., eds. 2001. Varieties of Capitalism, Oxford: Oxford University Press. [Crossref] [Google Scholar]) and shows that sectoral differences in M&A (mergers and acquisitions) may be seen in their complementarities with differences by country and their institutional frameworks. Results confirm that acquisitions may occur even in those economies where block‐holders are present, but where the good quality of institutions leaves no space for defence against takeovers. It also highlights the significant role played by takeover regulation, and suggests that the recent reforms in European harmonization should be implemented, so that the obstacles impeding takeovers can be removed. However, policy‐makers should also try to identify for which economies and sectoral fields of specialization, merger activities produce more beneficial effects and which turn out to be detrimental.     

On the relationship among efficiency,capitalization and risk: does management matter in local banking market?

By employing a Granger causality methodology in a panel data framework, this article explores the relationship among efficiency, capitalization and credit risk within the local Italian banking system. Focusing the attention on cooperative banks, we specifically test whether managers take more risks in highly concentrated markets (i.e. monopoly) than in partially competitive markets (i.e. duopoly). The evidence shows that in more concentrated markets, management efficiency generates a decrease in risk-taking (rejecting the bad management hypothesis) with respect to the partially competitive markets. Results are consistent with the idea that banks with less local competition are able to increase their profits by indulging more freely in rent-seeking behaviour, minimizing their risk-taking and, consequently, improving the quality of their assets through additional screening processes. The financial crisis does not seem to affect the conduct of management in terms of bank investment decisions and risk-taking. A series of robustness tests generally confirms our findings.     

Environmental management practices: good or bad news for innovations delivering environmental benefits? The moderating effect of market characteristics

We examine empirically whether environmental management practices (EMPs) (environmental audits, ISO 14001 standard, etc.) promote (or not) additional innovations delivering environmental benefits. Using a large sample of French firms (N=4114) and simultaneous equations model (SEM), we found that EMPs positively influence the decision of firms to introduce innovations delivering environmental benefits, but this positive relationship is moderated by market characteristics. The findings indicate that EMPs promote such environmental-related innovations when the market of the main activity of the firm is growing. However, when the market is uncertain or competitive, this relationship turns out to be negative.     

Resource depletion under uncertainty: implications for mine depreciation,Hartwick’s Rule and national accounting

Lozada’s equation [Resource and Energy Economics 17 (1995) 137] for the change in value of a non-autonomous dynamic program is generalized to stochastic control and applied to the depreciation of a competitive mine facing price, reserve and discount rate uncertainty. Mine depreciation includes the costs of these risks, as well as an adjustment to the ‘net price’ used to value depletion and revisions. The change in value equation also provides the basis for a stochastic version of Hartwick’s Rule [American Economic Review 67 (1977) 972] for sustainable consumption, that the risk adjusted value of net investment equal zero. The analysis has implications for the Weitzman [Quarterly Journal of Economics 90 (1976) 156] welfare measure and the stochasic Hamiltonian.     

Beyond Myths,Lies and Stereotypes: The Political Economy of a ‘New Scramble for Africa’

Commentators across the political spectrum have increasingly drawn attention to a ‘new scramble for Africa’. This ‘new scramble’ marks the latest chapter of imperialist engagement, with not only Western states and corporations but also those of ‘emerging economies’ seeking to consolidate their access to African resources and markets. The ‘new scramble for Africa’ involves therefore significant transformations related to shifts in global politico-economic power. However, as this article elaborates, much of the burgeoning literature on the ‘new scramble for Africa’ is premised upon problematic substantive, theoretical and ontological claims and debates. In particular, the article seeks to challenge two commonplace and related narratives. Firstly, the highly questionable representations of the scale and perceived threat of emerging powers' (particularly China's) involvement in Africa, in contrast to the silences, hypocrisy and paternalistic representation of the historical role of the West. Second, and relatedly, debate and analysis are framed predominantly within an ahistoric statist framework of analysis, particularly that of inter-state rivalry between China and other ‘emerging’ states vs. Western powers. Absent or neglected in such accounts are profound changes in the global political economy within which the ‘new scramble for Africa’ is to be more adequately located.     

Factor analysis and structural equation model for patent analysis: a case study of Apple’s technology

In this study, we analyse patent data for technology analysis (TA) because patents are rich in information on developed technology. The results of TA can be used to perform more efficient research and development (R&D) planning. Most companies are trying to develop new and innovative technologies to improve their competitive positions. Research involving TA has been introduced in a variety of fields. Most of the published research analysed original variables related to a target technology. However, it is necessary to analyse the latent variables as well as the original variables included in the technology to achieve a better TA model. Therefore, we propose a factor analysis and a structural equation model for patent analysis. In addition, we use Apple’s patents to determine the target technology. In our case study, we analyse Apple’s technologies by latent variables. Our case study shows how the proposed model is applied to Apple’s R&D planning.     

On the level of persistence in government size: time–series evidence and implications for the US

For most developed countries, the study of the long–term trend of government size has become a major issue. This study employs advanced time–series techniques to investigate the long–run properties of the government size series for the US. By applying the persistence measures developed by Campbell and Mankiw (Quarterly Journal of Economics, 102, 857–80, 1987) and Cochrane (Journal of Political Economy, 96, 893–920, 1988), this study finds big long–term persistence in government size at all levels of the US government. The finding, indeed, explains the fact that the US has gradually taken steps to control the size of government in the 1990s.     

The explosive growth of the ABCP market between 2004 and 2007: A “search for yield” story

Abstract

The years immediately preceding the financial crisis of 2007 witnessed an explosive growth in the supplies both of the long-term securities issued by the shadow banking entities, the asset-backed securities (ABSs) and collateralized debt obligations (CDOs), and of the short-term securities issued by these entities, notably asset-backed commercial paper (ABCP). Although there is now some acknowledgment that the search for yield was the major driver of ABS and CDO growth in the United States, the same is not true of the U.S. ABCP market where other factors such as regulatory arbitrage on the part of banks or the safety and liquidity concerns of institutional investors are seen as having been the more important growth driving force. This article argues that the search for yield did play a crucial role in U.S. ABCP growth between 2004 and 2007. To back up this argument, the article points to four variables that were closely correlated with this growth: the federal funds rate; U.S. money market mutual funds asset holdings; the change in the geographical breakdown of the institutions supplying ABCP; and, finally, the change in the program breakdown of the ABCP market.     

Beyond “more is better”: Ecological footprint accounting for tourism and consumption in Val di Merse,Italy

Habits of conservation, consumption and recycling are important determinants of economic throughput. Provincial governments interested in tourism's role in a diverse, steady-state economy may wish to orient tourism development around the tourist segments with less intensive consumption habits. We estimate consumption of energy and materials by tourists vacationing in Val di Merse, a rural region of Tuscany, Italy. We compare tourists and their host population by means of a consumption based indicator, the Ecological Footprint. Conclusions for planning and management are explored. While the average tourist is often thought to consume more on vacation than at home, and often more than local residents, our estimate of the tourist footprint as an equivalent resident (5.28 gha) is similar to that estimated for residents (5.47 gha), excluding arrival transport. In total, the tourist population (685 equivalent residents) in Val di Merse contributes an ecological footprint of 13,500 gha annually, compared to 74,500 gha due to local residents (pop. 13,624). Both levels are lower than the average 6.74 EF estimated for the tourist countries of origin. Arrival transport contributes an additional 32.8 gha per tourist equivalent resident, and accounts for 86% of the total tourism impact. Infrastructure, information provided, and traditional knowledge are discussed as possible ways Provincial governments can maintain or grow tourism flows while maintaining low ecological footprint, and while raising economic turnover relative to material and energy throughput.     

The All-Russian National Front – for Russia: a new actor in the political and economic landscape

The All-Russian National Front (ARNF), created by Vladimir Putin in 2011, has rapidly increased its power and influence in policy-making. The Front has been used to monitor regional policies and to check both the effectiveness and loyalty of regional governors in carrying out central government policies. This article examines the main activities of the Front and its membership since its creation, and considers the implications for future economic development in Russia.     

The adoption and termination of profit sharing for employees: does management’s attitude play a role?

Examinations on the determinants of profit sharing usually focus on objective firm characteristics. Using data from manufacturing firms in Germany, this study shows that managers’ subjective attitudes towards profit sharing also play an important role in the adoption and termination of this payment scheme. Positive management attitudes are associated with an increased likelihood of adopting profit sharing. While to some extent this entails failed experimentation, positive managerial attitudes also substantially contribute to a sustained use of profit sharing. The pattern of results holds even when controlling for a variety of objective firm characteristics.     

The employment–population nexus and implications for sustainable economic development: insights from Irish regions using a partial adjustment model

In this paper, we use a partial adjustment model to analyse the relationship between employment and population growth in Irish district electoral divisions. We employ a spatial estimator to augment our partial adjustment model with a spatial lag and spatial error process. Our results indicate a dual relationship between employment and population growth, suggesting that not only do people follow jobs but also jobs follow people. This finding has implications for economic development policies, which typically focus solely on attracting jobs to a location. The results suggest that a dual-pronged approach to policy may be necessary including developing a region’s amenities to ensure that it is attractive to people and to stimulate population growth. We highlight how our analysis can be used to inform policy through the lenses of place-based and smart specialisation strategies.     

The 100% money proposal and its implications for banking: the Currie–Fisher approach versus the Chicago Plan approach

The literature on the 100% money proposal often reveals some confusion when it comes to its implications for the banking sphere. We argue that this can be partly explained by a failure to have distinguished between two divergent approaches to the proposal: the “Currie–Fisher” (or “transaction”) approach, on the one hand, which would preserve banking; and the “Chicago Plan” (or “liquidity”) approach, on the other hand, which would abolish banking. This division among 100% money proponents stemmed, in particular, from different definitions of money, and different explanations of monetary instability. The present paper attempts to clarify this divergence of views.     

The macroeconomics of the quiet revolution: Understanding the implications of the rise in women’s participation for economic growth and inequality

We study the impact of the rise in female labor supply on the economic performance of the United States over the period 1967–2002 through the lens of a calibrated structural model. The model features all the key forces behind the increase in female participation (the “Quiet Revolution”): (1) the decline in marriage rates, (2) the narrowing gender wage gap, (3) the preference (or cultural) shift towards market work, and (4) the change in women’s bargaining power within the household. We find that preference shifts and the rise in relative wages of women were the most important driving forces behind rising women’s participation, while changes in marriage patterns have also had a sizeable effect. We conclude that half of the growth in US earnings per capita over this period can be traced to growth in female labor supply. We also find that the rise in female labor supply has had offsetting effects on income inequality and, therefore, its overall role has been negligible relative to skill-biased demand shifts and rising residual wage volatility.     

The cost effectiveness of zoledronic acid 5 mg for the management of postmenopausal osteoporosis in women with prior fractures: evidence from Finland,Norway and the Netherlands

Abstract

Objective:

This study was conducted to assess the cost effectiveness of zoledronic acid 5?mg as a first-line treatment for the secondary prevention of fragility fractures in women with postmenopausal osteoporosis in Finland, Norway and the Netherlands.

Methods:

A discrete-event, individual-patient computer-simulation model was used to compare the cost effectiveness of zoledronic acid with that of basic treatment (calcium and vitamin D) and commonly prescribed bisphosphonates in postmenopausal women aged 50–80 years who have experienced one previous fracture and have a bone mineral density T-score of ?2.5.

Results:

The cost per quality-adjusted life-year (QALY) gained with zoledronic acid compared with basic treatment ranged from being cost saving in all age groups in Norway, to costing approximately €19,000 in Finland and €22,300 in the Netherlands. Compared with the other branded bisphosphonates, zoledronic acid was cost saving in many scenarios, including all age groups in Finland. In Norway, zoledronic acid dominated branded risedronate and ibandronate in all age groups and dominated or had incremental cost-effectiveness ratios (ICERs) of up to NOK83,954 per QALY gained compared with branded alendronate. In the Netherlands, zoledronic acid dominated branded intravenous ibandronate in all age groups; compared with branded risedronate and oral ibandronate, zoledronic acid dominated or had ICERs of up to €4832 per QALY gained; compared with branded alendronate, it had ICERs of up to €48,383 per QALY gained. In all three countries, zoledronic acid may be cost effective compared with generic alendronate when patient compliance with drug therapy is taken into account. Sensitivity analyses showed that the model was robust to changes in key values. The main model limitations were the lack of real-life compliance and persistence data, and lack of country-specific data for some parameters.

Conclusions:

Using local or commonly used thresholds, this analysis suggests that zoledronic acid would be a cost-effective first-line option compared with other branded bisphosphonates and, in some scenarios, compared with generic alendronate, for the secondary prevention of fractures in women with postmenopausal osteoporosis in Finland, Norway and the Netherlands.     

Registered nurses: the impact of wages on labour force participation and hours worked – are wages an effective mechanism for addressing RN shortages with evidence from 1960 to 2008?

Registered nurses (RNs) are critical producers and coordinators of patient care in acute and non-acute settings (Needleman et al. 2011). The Affordable Care Act coupled with an ageing population, are increasing demand for health care and, in turn, RNs. Numbering 3 million, RNs comprise the largest professional occupation in health care. Therefore, the labour force participation and hours worked are of keen interest to stakeholders and policymakers. Rising demand may exacerbate nursing shortages and have important effects on costs. We estimate the impact of wages on participation and hours worked as a possible policy tool to increase nursing supply. In 2008, the RN wage had a positive and significant effect on participation and a small positive but only marginally significant effect on hours worked given participation. The latter elasticity for married females (single females) was 0.11 (0.33). Therefore, the elasticity of hours worked with respect to the nurse wage is and unlikely to have an important effect on the participation rates or hours worked of currently trained female RNs. Consequently, wage increases are unlikely to be an effective policy to increase the labour supply among the currently licensed RNs and will not relieve any short-term nursing shortage.