Re-assessing the merits of measuring tax evasion through business surveys: an application of the crosswise model

Self-assessments by respondents in surveys are often the only available measure of tax evasion in developing countries at the microeconomic level. However, they suffer from the reluctance of respondents to reveal their own illicit behavior. This paper evaluates whether this weakness of self-assessments can at least partially be overcome through a novel questioning method, the crosswise model, which allows estimating the prevalence of tax evasion, but not identifying whether the individual respondent engages in tax evasion or not. Using evidence from Serbia, we show that crosswise model-based estimates of the share of firms which significantly underreport sales exceed those obtained from conventional methods by around 10 % points or more. With respect to wage underreporting to evade payroll tax and social security contributions, we do not find differences. These results appear to be robust to a number of modifications, and we explore various potential causes that lead to these results.     

Vocational education and training – an engine for economic growth and a vehicle for social inclusion?

Vocational education and training (VET) has in recent years enjoyed a revival for two major reasons. Firstly, it is regarded as a suitable means of promoting economic growth. Secondly, it is seen as a potentially powerful tool for fostering social inclusion. In this review, these assumed effects are critically examined on the basis of the vastly expanding literature in the field. Evidence of the productivity‐enhancing effects of VET at company level is quite solid, but evidence of the effect on overall economic growth is far from conclusive. The effects on social inclusion are uncertain because reform of VET systems has not been sufficient and because it has proved difficult to bring about the necessary institutional change. The review identifies policy implications and makes some suggestions for future research.     

Human capital and economic growth: Sweden 1870–2000

This paper presents newly constructed series on human capital in Sweden 1870–2000. The estimates are based on enrolment in different forms of education, stretching as far back as 1812, and the size and age distribution of the population within age range 15–65 years. The secular accumulation of human capital has closely matched the long-term trend in aggregate productivity and both grew at a rate of 2.4% annually. Our estimates differ significantly from the data attributed to Sweden in the international short-cut estimates of human capital for the period since 1960. The basic question addressed is about causality: whether human capital causes economic growth or if causality goes in the other direction. We address this problem with modified Granger-causality tests. According to our results, changes in the stock of human capital have in a systematic way preceded changes in aggregate productivity up to the structural crisis in the 1970s. This allows us to conclude that human capital has been a causal factor in Swedish economic growth since the industrialisation. However, after 1975, the growth of human capital has not been able to match the demands of the third industrial revolution. The time series of human capital stocks as well as average years of schooling for Sweden, 1870–2000, are available at: .     

Different open book accounting practices for different purchasing strategies

Extant studies of open book accounting focus primarily on data disclosure in long-term, committed purchasing arrangements. We extend research beyond that context by exploring the association between open book practices (in terms of nature and uses of disclosed data as well as conditions of data disclosure) and two different purchasing strategies. Three case studies are performed. Results indicate that within market procurement characterized by a transactional purchasing strategy, cost data primarily serve to reduce purchase price. Therefore, data disclosure is limited in scope and scale, occurs primarily during supplier evaluation and selection, and is characterized by an adversarial atmosphere. Incentives for suppliers to open their books focus on short-term tangible gains. Within a hybrid exchange arrangement characterized by a relational purchasing strategy, data disclosure supports cost reduction, e.g., through joint product development, and is more comprehensive. The atmosphere is less adversarial and suppliers reap long-term benefits.     

Why do insiders trade? Evidence based on unique data on Swedish insiders

In this paper, we examine if corporate insiders have other motives for trading besides exploitation of private information. Our results show that insiders’ portfolio re-balancing objectives, tax considerations and behavioral biases play the most important role in their trading decisions. We also find that insiders who have allocated a great (small) proportion of their wealth to insider stock sell more (less) before bad news earnings disclosures. Finally, insider selling is informative for future returns among those insiders who have the greatest proportion of wealth allocated to insider stocks.     

‘Cittáslow’ eco-gastronomic heritage as a tool for destination development

Slow Food has gained considerable attention as a social movement trying to counteract increasing globalisation in eating habits and food production. Cittáslow, a network of towns, are working with qualitative local urban development, based on similar principles as Slow Food. The ‘slow’ movements could be expected to have influences on tourism development. This possible connection has been neglected in the scientific tourism literature. Based on a study in three Cittáslow towns in Northern Italy, this article concentrates on how destination development is conducted in a Cittáslow context, unveiling some contradictions between the commercial sides of tourism and the non-commercial ethos of the Cittáslow movement. The studied towns were involved in various efforts in the field of sustainable planning, thereby also improving destination specific resources and local identity. One example is their focus on ‘slow’ events, mainly based on local gastronomy. Tourism marketing was, however, only of secondary importance; which mirrors some scepticism towards mass tourism and commercialisation, and even against marketing as such. Despite this, the Cittáslow concept may have an indirect potential for tourism development by improving product development and increased visibility. The risks involved concern gentrification and overexploitation.     

Effects of rent dependency on quality of government

This paper introduces quality of government rather than regime type as dependent variable in studies of political effects of natural resources. It consists of two parts. First, it argues for an effect of fiscal dependency of oil and gas rents on quality of government. Second, it finds significant, negative effects of oil and gas rent dependency on three empirical indicators of quality of government—low corruption, bureaucratic quality and legal impartiality—in a sample of 139 states in the period 1984–2006. The results hold for inclusion of control variables such as regime type, income, region and religion.     

Consumer cooperatives as consumer welfare organizations

In a recent article in JCP (Vol. 7, pp. 323–341), Blomqvist argued that consumer researchers should show more interest in the consumer cooperatives' potentials as consumer welfare organizations. The present article supports this view, though with some modifications. An evaluation of the consumer cooperatives' welfare promoting impact depends heavily upon which paradigm of cooperative theory is used. According to ideal type cooperative theory, consumer cooperatives are the best possible spokesmen for the consumers in the marketplace. The cooperatives of today are, however, more accurately described by real type cooperative theory, and according to this, there are severe restrictions on the consumer cooperatives' possibilities to further consumer interests. Nevertheless, the cooperatives are still more consumer oriented than their competitors. They are still very interesting research objects for consumer welfare studies.

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Verbrauchergenossenschaften als Verbraucherorganisationen

Zusammenfassung Kürzlich betonte Blomqvist in dieser Zeitschrift (Jg. 7, S. 233–341), daß die Verbraucherforschung sich stärker mit den Verbrauchergenossenschaften beschäftigen solle. Der vorliegende Beitrag unterstützt diese Ansicht, wenn auch mit etwas anderen Argumenten.Tatsächlich haben Verbraucherforscher die Verbrauchergenossenschaften weitgehend übersehen. Das mag darin liegen, daß diese Genossenschaften nicht so schwerwiegende und spektakuläre Verbraucherprobleme aufgreifen können, wie es anderen Verbraucherorganisationen möglich ist. Verbrauchergenossenschaften müssen auf Märkten im Wettbewerb bestehen können; diese Tatsache begrenzt die Möglichkeit, für strukturelle gesellschaftliche Veränderungen einzutreten, bei ihnen stärker als bei den Instanzen der Verbraucherpolitik oder der Verbraucherbewegung. Von einem übergeordneten Standpunkt aus können sich deshalb die verschiedenen Formen von Verbraucherorganisationen sehr gut ergänzen.Die Einschätzung der Wirkungsmöglichkeiten von Verbrauchergenossenschaften hängt stark vom theoretischen Vorverständnis ab. Unter der idealtypischen Genossenschaftskonzeption sind sie die besten Vertreter des Verbraucherinteresses auf den Märkten; unter der realtypischen Konzeption erweisen sich die Möglichkeiten der Konsumgenossenschaften, das Verbraucherinteresse zu fördern, jedoch als sehr begrenzt. Dennoch werden die Genossenschaften deshalb bestehen bleiben, weil sie stärker konsumentenorientiert sind als ihre Mit-Wettbewerber.Gegenüber den Idealvorstellungen über Verbrauchergenossenschaften sind die real vorhandenen Genossenschaften degeneriert. Aber diese Entartung wird durch Kräfte von außen erzwungen. Genossenschaften müssen sich an die Gesellschaft anpassen. Ihre Verbraucherorientierung könnte nur wachsen, wenn soziale, genossenschaftliche Wertvorstellungen in der Gesamtgesellschaft einen höheren Stellenwert erhielten. Es scheint jedoch, daß die Entwicklung in den westlichen Industriegesellschaften einen anderen Verlauf nimmt.

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Jerker Nilsson is an Associate Professor at the Marketing Institute, The Copenhagen School of Economics and Business Administration, Rosenørns Allé 31, DK-1970 Copenhagen V, Denmark.     

Consumers with differing reaction speeds,scale advantages and industry structure

The development of an industry is seen as the outcome of a differential game in which market shares flow in response to price differences. It is hypothesized that while all consumers eventually react to price differences, some are slower than others. If scale advantages have some influence on marginal costs around average market share, then, under reasonable conditions, only skewed size distributions can be locally stable steady states. In addition, and contrary to common belief, the largest firm need not eventually monopolize the industry.     

Über verschiedene explicite Lösungen des Problems von der Berechnung des effektiven Zinsfusses bei Anleihen

Abstract

Das Problem der Berechnung des effektiven Zinsfusses bei Anleihen ist bekanntlich mit dem Probleme der Lösung einer Gleichung n-ten Grades identisch.