Does a Tougher Competition Policy Reduce or Promote Investment?

The question of how interventions from the Competition Authority (CA) affect investment is not a straightforward one: a tougher competition policy might, by reducing the ability to exert market power, either stimulate firms to invest more to counter the restrictions on their actions, or make firms invest less because of the reduced ability to have a return on investment. This tension is illustrated using two models. In one model investment is own-cost-reducing whereas in the other investment is anti-competitive. Anti-competitive investments are defined as investments that increase competitors’ costs. In both models the optimal level of investment is reduced with a tougher competition policy. Furthermore, while in the case of an anti-competitive investment a tougher authority necessarily leads to lower prices, in the case of a cost-reducing investment the opposite may happen when the impact of the investment on cost is sufficiently high. Results for total welfare are ambiguous in the cost-reducing investment model, whereas in the anti-competitive investment model welfare unambiguously increases due to a tougher competition policy.     

How Does the Market Value Corporate Sustainability Performance?

This study provides empirical evidence on how corporate sustainability performance (CSP), as proxied by membership of the Dow Jones sustainability index, is reflected in the market value of equity. Using a theoretical framework combining institutional perspectives, stakeholder theory, and resource-based perspectives, we develop a set of hypotheses that relate the market value of equity to CSP. For a sample of North American firms, our preliminary results show that CSP has significant explanatory power for stock prices over the traditional summary accounting measures such as earnings and book value of equity. However, further analyses suggest that we should not focus on corporate sustainability itself. Our findings suggest that what investors really do is to penalize large profitable firms with low level of CSP. Firms with incentives to develop a high level of CSP not engaging on such strategy are, thus, penalized by the market.     

Implications for food production, land use and rural development of the European Union’s Single Farm Payment: Indications from a survey of farmers’ intentions in Germany, Portugal and the UK

The 2003 reform of the European Union’s (EU) Common Agricultural Policy introduced a decoupled income support for farmers called the Single Farm Payment (SFP). Concerns were raised about possible future land use and production changes and their impact on rural communities. Here, such concerns are considered against the workings of the SFP in three EU Member States. Various quantitative studies that have determined the likely impact of the SFP within the EU and the study countries are reviewed. We present the results of a farm survey conducted in the study countries in which farmers’ responses to a decoupling scenario similar to the SFP were sought. We found that little short-term change was proposed in the three, rather different, study countries with only 30% of the farmers stating that they would alter their mix of farm activities. Furthermore, less than 30% of all respondents in each country would idle any land under decoupling. Of those who would adopt a new activity, the most popular choices were forestry, woodland and non-food crops.     

The pressure towards protectionism: Is it systematic? A legacy of the recession? The result of policy to promote recovery?

In light of the concern being expressed in many national and international fora about the pressures towards protectionism, this paper explores the reasons for and the possible consequences of this new protectionist trend. The analysis is restricted to macroeconomic issues and policy situations. In answer to the question, ‘Can the current recovery be turned into durable economic growth, more evenly distributed among countries, across productive sectors, and throughout the population?’, the author replies in the affirmative on two conditions: (i) if macroeconomic and structural adjustments are pursued with unmitigated determination where needed; and (ii) if trade, the vital link among our economies, is allowed to revive worldwide. The core of the paper discusses four major unresolved policy issues that have important implications for world trade: (1) internal and external imbalances in the US recovery; (2) trade and underperformance in Europe; (3) the question of Japan and the Pacific NICs; and (4) external debt and adjustment in LDCs.     

Hospital competition,spillovers and provision of uncompensated care

Using data for California from 2005 until 2010, we investigate to what extent market competition and the presence of non-profits in the area may play a role in equilibrium uncompensated care (UC) levels, allowing those effects to differ according to the hospital’s ownership type. Previous studies have not explored the potential spillover effects from non-profit hospitals into the hospital decision of UC provision. We find evidence that regions with more non-profits experienced larger increases in UC levels, and even more in less concentrated markets. Our results also indicate that UC provision by for-profit hospitals decreases the larger the presence of non-profits in the region, and this effect is magnified when competition is more intense. We, therefore, find no positive spillover effects of non-profits into the hospital decision of UC provision, which may help us to understand the recent trends in UC levels.     

Planning to reach your full potential

Abington Memorial Hospital puts great store in imagination and creativity in designing its fund-raising programs. The results speak for themselves.     

Implementing integrated rural tourism: An event-based approach

In the past two decades, community involvement in local policy-making has gained increasing attention as an alternative approach to rural development in the European Union (EU), particularly in the context of the complementary sectors of agriculture such as tourism. Although there is a wide range of integrated approaches to tourism development in rural areas identified in the literature, the event-based approach has not been at the centre of attention so far. This paper aims to fill this gap and reports on the collaborative capacity building of the LEADER¹ Local Action Groups (LAGs) for rural tourism promotion in the context of an innovative, national-level event, the ‘Hungarian Rural Tourism Days’. A mixed-method approach was applied to explore and compare the supply-side views on the successes and failures of the event planning and organisation process and to derive key success factors of the event-based approach to Integrated Rural Tourism (IRT). The results provided evidence on the consequences of the failure to integrate local concerns into the event organisation process and highlighted the critical role of the intermediary management in establishing trust relationships with the rural service providers. Furthermore, it is argued that the major challenge of the event-based approach to IRT rests in the capacity of the stakeholders to collectively plan and implement a marketing strategy at the local level.     

Taking operations strategy into practice: Developing a process for defining priorities and performance measures

Enterprises’ operations systems and environments, characterized by their complexity and dynamics, are challenging operations strategic management models. The study presented in this paper develops a process to integrate operations strategy content to operations performance measurement system design. Essentially, the developed methodology is based on Process Approach (Cambridge Approach) technique that systematizes procedures for generating a performance measures set coherent to operations strategy objectives and also produces a consistent strategy implementation process. To illustrate the development and the application of the proposed design methodology, findings of two case studies related to telecom engineering services companies are used. Results are discussed focusing on testing the proposed methodology in terms of its feasibility, usability, and utility. A refined process, organized in phases, steps, and procedures, is the final result of the presented study.     

The Challenges for Labour Market Policy during the COVID-19 Pandemic*

The COVID-19 pandemic is having a dramatic economic impact in most countries. In the UK, it has led to sharp falls in labour demand in many sectors of the economy and to initial acute labour shortages in other sectors. Much more than in a typical downturn, the current crisis is not simply a general slowdown in economic activity but also a radical short-term shift in the mix of economic activities – of which an unknown, but possibly significant, amount will be persistent. The initial policy response has focused on cushioning the blow to families’ finances and allowing the majority of workers and firms to resume their original activities once the crisis subsides. These are crucial priorities. But there should also be a focus on reallocating some workers, either temporarily if working in shut-down sectors or permanently by facilitating transitions to sectors and jobs offering better prospects and facing labour shortages. The phasing-out of the furlough subsidies, which is projected to happen in Autumn 2020, brings this into even sharper focus since the alternative for many workers will be unemployment. Active labour market policy will need to be front and centre.