Health Systems and Health Reform in Europe

The organisation of health care differs widely across Europe. Access to services, financing schemes, incentives for better care, and administrative efficiency are challenges that are being dealt with in a variety of ways. Are insurance-based systems the best solution for balancing resources and services or are national health funds preferable? Does the introduction of competition fulfil high hopes for better service at lower costs? What are the relative advantages and drawbacks of central and local management of health care?     

Enabling and inhibiting factors in adoption of Electronic-Reverse auctions: A longitudinal case study in grocery retailing

Abstract

The paper aims to explore the factors that enable or inhibit the use of Electronic-Reverse Auctions (E-RAs) in the buying process of a large food retail organization, through a category management perspective. Using a case-study analysis based on in-depth interviews, examination of internal documents, simulation and direct observation of some E-RAs, we studied the experience of an Italian-based retailer conducting E-RAs during a two-year period. This approach enabled us to propose an E-RAs development model in retail buying groups, discussing enabling and inhibiting factors such as product, market, organizational and strategic factors. Propositions are developed to stimulate thought and provide guidance for future research.     

Common serial correlation and common business cycles: A cautious note

This paper examines the frequency-domain implications of the serial correlation common feature in order to evaluate its merits as an indicator of common business cycles among economic variables. It is shown that the presence of the serial correlation common feature in the first differences of a set of I(1) time series is not informative for the degree and the lead-lag structure of their comovements at the business cycle frequencies. First version received: October 1997/Final version received: December 1998     

Manipulation of profits in Italian publicly-funded healthcare trusts

ABSTRACT

This paper examines earnings management in state-funded Italian healthcare trusts. Italy is unique in requiring trusts to have balanced budgets by law. Small negative and positive deviations from a balanced budget had quite different consequences. The authors found no evidence of accounting manipulation when trusts posted small losses. However, trusts were found to manipulate discretionary accruals, provisions and non-operating expenses to reduce small positive deviations from zero-profit.     

Fiscal consolidations and public debt in Europe

The objective of this paper is to gain insights into the relationship between deficit-reducing policies and the evolution of the debt/GDP ratio. We consider past events of fiscal consolidation in a selected group of EU countries and check what is the associated change of the debt/GDP ratio both from a short- and medium-term perspective. In the analysis, we also differentiate between tax-based and savings-based fiscal consolidations and the pre-Euro and Euro periods. Our results point towards a positive short-term effect, while the medium-term effect turns out to be negative. Savings-based fiscal consolidations result to be less negative on the DGR evolution than tax-based ones. The Euro’s introduction seems not to have altered significantly the relationship studied.     

Pricing Inefficiencies in Private Real Estate Markets Using Total Return Swaps

Efficient markets should guarantee the existence of zero spreads for total return swaps. However, real estate markets have recorded values that are significantly different from zero in both directions. Possible explanations might suggest non-rational behaviour by inexperienced market players or unusual features of the underlying asset market. We find that institutional characteristics in the underlying market lead to market inefficiencies and, hence, to the creation of a rational trading window with upper and lower bounds within which transactions do not offer arbitrage opportunities. Given the existence of this rational trading window, we also argue that the observed spreads can substantially be explained by trading imbalances due to the limited liquidity of a newly formed market and/or to the effect of market sentiment, complementing explanations based on the lag between underlying market returns and index returns.     

The Financial Resource Curse*

In this paper, we present a model of the financial resource curse (i.e., episodes of abundant access to foreign capital coupled with weak productivity growth). We study a two‐sector (i.e., tradable and non‐tradable) small open economy. The tradable sector is the engine of growth, and productivity growth is increasing with the amount of labor employed by firms in the tradable sector. A period of large capital inflows, triggered by a fall in the interest rate, is associated with a consumption boom. While the increase in tradable consumption is financed through foreign borrowing, the increase in non‐tradable consumption requires a shift of productive resources toward the non‐tradable sector at the expenses of the tradable sector. The result is stagnant productivity growth. We show that capital controls can be welfare‐enhancing and can be used as a second‐best policy tool to mitigate the misallocation of resources during an episode of financial resource curse.     

Studying governance within the British public sector and without

Abstract

In the critical arena of public management and policy debates several schools currently try to make sense of governance structures and processes, although one has so far had the strongest impact in terms of academic and policy influence in particular in the United Kingdom: network governance.

Network governance has been associated with Stakeholder Capitalism – as represented for instance by the European (usually German) social-democratic settlement – and as the direct opposite of the New Public Management (as the epitome instead of Shareholder Capitalism). In this essay it will be argued that the alleged novelty of the reforms being currently implemented under the aegis of the ‘modernization’ or (network) governance rhetoric (by the Blair government, for instance) must be questioned, since they are the direct inheritors of the NPM tradition. Through the development of a multiparadigmatic model of ethical and organization theories it will be shown that alternatives to network governance are not only thinkable but also (institutionally) practicable.     

The distribution of technological progress

The size distribution of the domains of US-patented technological knowledge obeys an exponential law, revealing a disproportionable concentration of progress among larger domains. Our analyses suggest that this phenomenon is explained by a combination of two factors. First, domains’ trajectories of growth have inherently different potentials. Second, differences in domains’ potentials are magnified by a mechanism—domains’ self-hybridization—endogenous to the process of knowledge growth. Our results show that in addition to being stable, the observed distribution of technological progress is likely to arise under very general conditions.