Employment protection regulation,trade unions and tenure of employment: An analysis in 23 European countries

This article focuses on the relationship between employment protection regulation (EPL), trade unions and tenure of employment. A main hypothesis is that EPL strictness tends to prolong tenure, because rigorous rules imply that remaining with the same employer gives more job security. The role of unions can be expected to be similar. These assumptions are related to issues regarding dualisation in the labour market. Data used are the European Working Conditions Survey 2010—including 23 countries and more than 18,500 employees—combined with national‐level data on EPL, unemployment, union density and collective bargaining coverage. The analyses reveal that EPL strictness and bargaining coverage are associated with longer tenure. The same goes for having an employee representative in the workplace. The institutional variables work through interactions with individual‐level variables. For example, the impact of age, which is strongly linked to tenure, increases with stricter EPL and higher bargaining coverage.     

Comparing continuous and discrete contingent valuation questions

This paper explores two commonly used methods to elicit an individual's willingness to pay (WTP) for a public good in contingent valuation studies. Currently, the most preferred method is the take-it-or-leave valuation question, or discrete valuation question (DVQ), where the respondent accepts or rejects a suggested cost for the good. The traditional method, the continuous valuation question (CVQ), simply asks an individual to state his WTP for the suggested change in the provision of a public good like cleaner air. We introduce a simple way to compare the results from these two methods. We also test the anchoring behavior suggested in the psychological literature on choice under uncertainty. The results do not support the anchoring hypothesis, but suggest the hypothesis that people perceive the two tested valuation questions differently.I would like to thank Prof. Glenn Harrison, University of South Carolina, Prof. P-O Johansson, Stockholm School of Economics, Prof. Jason Shogren, Iowa State University, and two referees for helpful comments. The usual disclaimer applies.     

Assessing the impact of environmental charges a partial general equilibrium model of the forest sector

This paper provides a theoretical and empirical analysis of how environmental charges affect a particular sector of the economy. Our approach allows a simple comparison of how partial and general equilibrium results may differ.A research grant from the Nordic Council is gratefully acknowledged.     

Natural resources damages from Chernobyl

Conclusion In this note, we have reported a simple attempt to examine the stability over time of willingness-to-pay measures. By running a simple regression equation, we are able to explain why the average willingness to pay fell between two consecutively hunting seasons. The most important explanation is that hunting in the second hunting season was affected by the nuclear radiation accident at Chernobyl. Almost 10 percent of the hunters stated that their willingness to pay was affected due to the fact that their moose meat was contaminated. Since there are 24,000 moose hunters in the county of Västerbotten, we arrive at a yearly loss of about SEK 2 million for the county. Assuming that our figures apply also at the national level, Swedish moose hunters suffered a loss of almost SEK 30 million in the 1986 hunting season. If the same impact on hunters was felt for, say, 3 to 4 years, the present value of the loss caused by the Chernobyl accident could amount to over SEK 100 million (assuming a discount rate of 5 percent). This is a considerable amount, given that Swedish moose hunters constitute only a small fraction of all those who were affected by the Chernobyl accident.     

Managerial Stock Options and the Hedging Premium

Previous studies have found mixed evidence on whether hedging increases firm value. Some studies have shown that managerial incentives may influence firm hedging. In this paper we provide evidence that when hedging is based upon incentives from managers' options, firm value decreases.     

Paradigms and entrepreneurial networks–some methodological challenges

The use of network approaches to gain an understanding of business behaviour in general, and entrepreneurial action in particular, has increased. Research into entrepreneurial networking, however, varies considerably depending upon paradigmatic assumptions. In deterministic contexts networks mainly represent restrictions while in voluntaristic settings the network is the very instrument by which new ventures are realized. A subjectivist approach thus seems to be most able to exploit the potentials of the network metaphor in entrepreneurship research since venturing means organizing through personal networking. Yet both quantitative and qualitative tools may be adopted when mapping and interpreting the characteristics of entrepreneurial networks.     

Auditor regulation and economic crime policy in Sweden, 1965–2000

This paper analyzes the political and professional battle over auditors' crime-controlling responsibilities in Sweden. The focus is on the discursive strategies of major actor-constellations during 1965–2000. The conclusion is that the duty enacted in 1999 to report suspicions of crime, like earlier attempts in this direction, was not a reaction to major frauds or scandals but a part of broader social-democratic policies during the period: to develop industrial democracy, to fight economic crime, and to improve economic markets.     

Experimental Results on Expressed Certainty and Hypothetical Bias in Contingent Valuation

Use of the contingent valuation method is controversial among economists because it is based on hypothetical rather than real choices. Previous experiments have suggested that the commonly used dichotomous choice contingent valuation method leads to hypothetical bias, i.e., overestimates the real willingness to pay. We carried out an experiment to compare the dichotomous choice contingent valuation method with real purchase decisions for a consumer good. We confirm previous findings that hypothetical yes responses overestimate real purchase decisions, but we cannot reject the null hypothesis that definitely sure yes responses correspond to real purchase decisions.     

Intra-industry specialization and development models for the capital goods sector

Zusammenfassung Intraindustrielle Spezialisierung und Entwicklungsmodelle für den Kapitalgütersektor. -Als die am Binnenmarkt orientierte und vom Ausland unabh?ngige Industrialisierungsstrategie für Entwicklungsl?nder formuliert wurde, war das vernünftig, weil die Industriel?nder damals nur wenig in die Weltwirtschaft integriert waren. In den letzten 25 Jahren ist die Abh?ngigkeit der fortgeschrittenen L?nder vom Welthandel jedoch stark gestiegen, und zwar haupts?chlich wegen der verst?rkten intraindustriellen Spezialisierung, die durch statische und dynamische Skalenertr?ge vorangetrieben wurde, insbesondere solche, die sich aus F & E-sowie Design-Aktivit?ten ergeben. Solche Skalenertr?ge werden erzielt, wenn breitgef?cherte Industrien in sehr spezialisierte Segmente aufgespalten werden. Angesichts dieser internationalen Entwicklungen bei der Industrialisierung sollte das Ziel, Kapitalgüter aus eigener Kraft produzieren zu wollen, revidiert werden, es sei denn, die Entwicklungsl?nder sind bereit,(i) diese Industrie oder gro?e Teile davon st?ndig zu subventionieren und(ii) hinsichtlich der meisten Technologien, die in dem Kapitalgütersektor benutzt werden, auf Dauer von den Industriel?ndern abh?ngig zu sein.

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Résumé Spécialisation intra-industrielle et modèles de développement pour le secteur des produits de capitaux. -Quand on a formulé la stratégie d’industrialisation aux PVD caractérisée par l’orientation vers le marché local et par l’indépendance internationale, cette stratégie était rationale parce que les pays industriels étaient caractérisés par un degré bas de l’intégration dans l’économie internationale. Pendant les dernières 25 années la dépendance du commerce des pays industriels a augmenté très significativement, particulièrement à cause d’un accroissement de la spécialisation intra-industrielle qui fut poussée par les économies d’échelle statiques et dynamiques, dérivées avant tout des activités de R & D et de dessin. Ces économies s’ensuivent des grandes industries quand elles sont divisées en parties très spécialisées. A cause de ces développements internationaux en industrialisation, il semble qu’il faut changer le but d’être indépendant dans la production des produits de capitaux pourvu que les PVD soient prêts à ft) payer des subventions permanentes à cette industrie ou aux grandes parties d’elle et(ii) devenir à la longue dépendants des pays industriels en ce qui concerne la masse de la technologie de production utilisée dans ce secteur.

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Resumen Especialización intrasectorial y modelos de desarrollo para el sector de bienes de capital. -Al ser formulada la estrategia de industrialización “hacia adentro” y autosuficiente para países en desarrollo, esta estrategia tenía sentido dado el bajo grado de integratión de los pafses industrializados en la economfa mundial. En los últimos 25 a?os la dependencia de los países industrializados del comercio internacional ha aumentado significativamente, debido ante todo a una mayor especialización intrasectorial como consecuencia de economías de escala estáticas y dinámicas, particularmente de aquellas derivadas de I & D y de actividades de dise?o. Estas economías son logradas al dividirse sectores amplios en segmentas especializados. Parecería que, debido a estas tendencias internacionales en la industrialización, el objetivo de ser autosuficiente en términos de la producción de bienes de capital debería ser modificado, a menos que los países en desarrollo estuvieran preparados(i) a pagar subsidios permanentes a este sector o a segmentas importantes del mismo y(ii) a permanecer dependientes de los países industrializados en cuanto a la mayor parte de la tecnología de producto utilizada en este sector.

     

Business formation — a network approach

This article suggests that the key to entrepreneurial success is to be found in the ability to develop and maintain a personal network. In elaborating this proposition I regard the environment of the business venture as “enacted”. The inexperienced new entrepreneur needs support to create a personal network and to manage the enacted environment. The concept of the “organizing context”, defined as a clustered sociocentric network, is introduced to provide a tool with which the entrepreneur can deal more efficiently with the different subprocesses that create his or her reality. The approach supplies a framework within which various forms of entrepreneurship — indigenous, corporate, etc. — can be compared and analysed beyond their institutional differences. The interaction between various forms of entrepreneurship and organizing contexts is empirically illustrated from case studies.