PUBLIC GOODS AND THE DISSOLUTION OF STATES

We present a simple model of the dissolution of states. We combine elements of the literature on the break‐up and integration of states based on models in the fiscal federalism tradition, with elements of the literature that explains the determination of a state's political institutions as a means to credibly promise redistributions in the face of costly, perhaps violent, redistributive conflict. We are able to characterize when the equilibrium involves the dissolution of a country, and when it involves continued unity. We are also able to explore some aspects of the linkages between political institutions and the determination of national boundaries.     

Sharing Risks of Labour Market Transitions: Towards a System of Employment Insurance

The increasing polarization of the labour market is closely related to the spread of non‐standard employment relationships that largely results from poor risk management of critical transitions over the life course. The question, therefore, arises whether labour market regulation, in particular unemployment insurance, is still properly designed for the new world of work. This article argues for an extension of unemployment insurance towards a system of employment insurance by summarizing the concept of transitional labour markets, indicating the risks that challenge current and future labour markets, laying the theoretical groundwork, and discussing the main features of an employment insurance system.     

Modelling the Eurozone as an Extraordinary Exchange Rate Union

The Trans-European Automated Real-Time Gross settlement Express Transfer system (TARGET) imbalances within the Eurozone can be interpreted as a sign of a missing balance of payments adjustment mechanism for the member countries. As the Eurozone lacks a fiscal union, in theory it is more of an exchange rate union or a system of fixed exchange rates than a monetary union. This paper will show why the TARGET is a crucial indicator for the Eurozone not being a monetary union but instead an exchange rate union, and why countries holding TARGET liabilities against the European System of Central Banks can be compared to a reserve currency country, like the US under the Bretton-Woods System.     

Das Mindestlohngesetz — Hoffnungen und Befürchtungen

The German government plans to introduce a minimum wage from 2015. This must be understood as a response to the decline in collective bargaining coverage and the marked increase in employment in the low-wage sector. The authors discuss how many workers are affected by this new regulation and whether the minimum wage is too high in relation to the average wage of workers (Kaitz index). They assume that the introduction of a minimum wage in Germany can have a number of effects. It is not possible to forecast all the reactions and behaviour of market participants to handle higher wages and goods prices. Some authors warn that these measures are significant labour market interventions that could have adverse employment effects. They recommend allowing more exemptions from the minimum wage law than intended by the government, especially for young employees and student apprentices. Other authors hope that minimum wages would help to strengthen collective bargaining and stabilise wages. Some authors emphasise that there should be a careful evaluation of the economic effects by scientists.     

Cultural patterns influencing project team behavior in Sub‐Saharan Africa: A case study in Ethiopia

Despite the increasing attention paid to the human element of project success found in the project management literature, empirical studies exploring cultural patterns influencing this particular human element continue to be far from satisfactory. To help further understand the influence of cultural patterns within Sub‐Saharan Africa project environments, we draw on a case study conducted in Ethiopia's service sector. Apart from the well‐perceived cultural values commonly referred to in the existing literature, we specifically investigated the deep‐rooted underlying causes, which include Ethiopian cultural habits, as a principal factor in influencing project team behavior. The article concludes with implications and recommendations for future research.     

50 years of research on international standardization and adaptation—From a systematic literature analysis to a theoretical framework

When going and operating abroad, firms face the challenge of finding the optimal balance between standardizing and adapting their marketing strategies across national borders in order to be successful. In this contribution, we present the major results of a systematic literature analysis in the field of international marketing standardization/adaptation. Based on our findings, we introduce a theoretical framework combined with the concept of situation-strategy fit. This framework serves as a basis for providing theoretically grounded and empirically testable recommendations regarding performance-enhancing strategies of international product standardization/adaptation in given situations. We argue that a high degree of international product standardization is likely to enhance foreign product profit, as compared to all alternative strategies, if there is (1) a high cross-national homogeneity of demand, (2) a high potential for cross-national economies of scale, (3) a high cost of product modification, (4) a high foreign price elasticity of demand, (5) a small perceptual error of the managers, and (6) a high quality of strategy execution. By presenting the state-of-the-art knowledge in the field and by introducing a novel theoretical framework, our paper has important implications for both scholars and managers in the fields of international marketing and international business.     

Property and Industrial Organization in Communist and Capitalist Nations

Endogenous growth theorists argue that certain equity-enhancing social institutions enhance growth. Despite the centrality of inequality in these approaches, there is no sense in which economic actors exercise power or collective action to create and maintain social norms and rules that are personally advantageous but socially costly. This despite the work of neoclassical economists on rent-seeking, which posits that efforts to claim unearned revenues can pose significant costs for growth. The question of the impact of gender equity on economic growth is an instructive context for understanding these contradictions. Even though gender practices are inherently about the exercise of power, that they have become a feature of the neoclassical growth literature alights on obvious tensions in the neoclassical institutionalist paradigm. By incorporating insights from both the rent-seeking and feminist economics literatures, we will present analternative explanation of why gender hierarchies persist despite their obvious economic costs.     

Gesetzliche Rente: Bedeutet Teilhabeäquivalenz Verteilungsneutralität? — Ein weiterer Irrtum

A basic principle of statutory retirement insurance in Germany is the proportionality between earnings and retirement benefits called “Teilhabeäquivalenz”. Advocates of the system defend this principle, arguing that it ensures distributive neutrality. However, this assertion is wrong because the principle combines two concepts with different time dimensions: lifetime contributions and monthly retirement benefits. If clearly defined population groups differ in their life expectancy, then this very principle achieves income redistribution, in the German case from low earners to high earners. We propose a simple change in the rules which would avoid this undesirable redistribution.