How to Green the red Dragon: A Start‐ups' Little Helper for Sustainable Development in China

This article qualitatively identifies and explains the barriers that foreign cleantech start‐ups can encounter when attempting to enter the Chinese market, as well as the possible strategies that can help overcome these barriers. We base our analysis on interviews with Chinese and foreign entrepreneurs and facilitators. To structure the analysis of such barriers, we use the components of the entrepreneurial ecosystem. We then explain the barriers using institutional theory. We demonstrate that they are caused either by the regulations in China or by the difference between Chinese and Western logics. We further recommend that cleantech entrepreneurs come prepared to China, remain flexible, associate themselves with reputable partners and take advice from those familiar with business in China. Cultural–cognitive barriers might be overcome by integrating the communities of foreign and Chinese start‐ups. Regulative barriers can be removed by the Chinese Government, but this conflicts with the logic of state control. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

CONSTANT WEALTH NATIONAL INCOME: ACCOUNTING FOR WAR DAMAGE WITH AN APPLICATION TO THE NETHERLANDS, 1940–45

The issue of the proper way to address and document crisis and disaster in the national accounts is brought into focus by analyzing a practical case: the damage caused by the Second World War as discussed at a 1945 Paris reparations conference. It is concluded that "what if" damage e.g. output not produced due to the war should not be included in the national accounts, but factual damage should. The method by which factual damage should be included must then be decided. The option of just showing the damage in the reconciliation accounts is rejected. Instead the introduction of an additional income concept into the accounts, constant wealth national income is proposed. This Hicksian concept deducts from standard national income the damage to all produced goods lasting longer than a year. The concept is illustrated with guesstimates for the Netherlands, 1940–45. Finally, by way of an illustration, the paper employs 1945 estimates of damage in the Netherlands in order to arrive at a constant wealth national income for 1940–45. It is shown that, in 1938 prices, constant wealth national income is very much lower than standard national income and thus far better reflects the decline in prosperity during these years.     

Does seeing more deeply into a game increase one’s chances of winning?

The substantively rational value of the games studied in this paper does not help predict subject performance in the experiment at all. An accurate model must account for the cognitive ability of the people playing the game. This paper investigates whether the variation in measured rationality bounds is correlated with the probability of winning when playing against another person in games that exceed both players’ estimated rationality bound. Does seeing deeper into a game matter when neither player can see to the end of the game? Subjects with higher measured bounds win 63 percent of the time and the larger the difference the more frequently they win.     

Protection for sale with imperfect rent capturing

Abstract .  Grossman and Helpman (1994) explain tariffs as the outcome of a lobbying process. In most empirical implementations of this framework protection is instead measured using non-tariff barriers. Since tariffs allow the government to fully capture the rents from protection, while non-tariff barriers do not, the existing parameter estimates of the protection for sale model are likely to be biased. To address this problem, we augment the framework by considering instruments that allow partial capturing. Our specification is supported by the data, where we find that only 72–75% of the rent from protection is appropriated by the government.     

‘Whatever it takes’ and the role of Eurozone news

This letter shows that the ‘Whatever it takes’ speech by ECB President Draghi on 26 July 2012 and the ensuing installation of the Outright Monetary Transactions’ framework are associated with a reduction in the domestic and cross-border effect of Eurozone news on absolute yield changes in Eurozone sovereign debt. These results are consistent with the popular view that these actions helped to avoid a collapse of the Eurozone.     

Offshoring and Reshoring: The Roles of Incomplete Contracts and Relative Bargaining Power

This paper demonstrates that an increase in bargaining power of Northern firms relative to that of their Southern contractors can trigger reshoring if the North-South wage differential is moderate, such that only industries with a high share of unskilled labor find outsourcing profitable. However, such an increase in Northern bargaining power can increase offshoring if the wage differential is so high that even industries with a low share of unskilled labor also offshore.