Die Notwendigkeit der Einwohnerwertung

German equalisation systems among states (Länder) and among communities assign higher expenditure needs to larger cities. For the system among the states (Länderfinanzausgleich), in which the three city-states are assigned a value of 135 compared to a value of 100 for the other states, this element is challenged in a pending case before the constitutional court. The paper argues that the city-states should be treated like any large city in Germany, which would result in their being assigned a value well above 135. The main justification for the higher value for larger cities is seen in the crucial role of modern agglomerations for national economic growth. To maintain this role, they have to be able to keep or receive enough public finances, given that they contribute to upper-level finances way above the average but receive relatively little through those levels’ spending. The progressive scale smoothes at least some of this effect.     

A NOTE ON SELECTION EFFECTS OF THE HAND RULE

The famous Hand rule weighs the burden of precaution against the reduction in expected harm. The burden may be type‐specific, implying different standards of care for different injurer types. We show that this fact may be exploited by principals in their search for minimized individual costs. Principals may hire agents with high cost of care‐taking although other agents are available. This is shown in a unilateral‐care setting either with perfect or with asymmetric information. We therefore highlight a neglected downside of the negligence rule.     

A simple model of cumulative prospect theory

The present paper combines loss attitudes and linear utility by providing an axiomatic analysis of cumulative prospect theory (CPT) in the framework for decision under uncertainty. We derive a two-sided variant of Choquet expected utility (CEU) with possibly different capacities for gains and for losses, and linear utility. Naturally, utility may have a kink at the status quo, which allows for the exhibition of loss aversion. The central condition of our model is termed independence of common increments.     

What Drives Security Issuance Decisions: Market Timing,Pecking Order,or Both?

We study market timing and pecking order in a sample of debt and equity issues and share repurchases of Canadian firms from 1998 to 2007. We find that only when firms are not financially constrained is there evidence that firms issue (repurchase) equity when their shares are overvalued (undervalued) and evidence that overvalued issuers earn lower postannouncement long‐run returns. Similarly, we find that only when firms are not overvalued do they prefer debt to equity financing. These findings highlight an interaction between market timing and pecking order effects.     

The role of transport and traffic in national economy

This article deals with transport as a service and as an investment sector. It shows the special role of transport in national economy and draws attention to some problems, which are characteristic and of particular importance to LDCs.     

Getting Cinderella to the ball: putting education at the heart of financial education

The recent banking collapse has called into question all activity related to financial services, from regulation to consumer protection, to financial education. Since the Organisation for Economic Co‐operation and Development's 2005 ‘Recommendations on Principles and Good Practices for Financial Education and Awareness’, there has been an increase in financial education activity, yet the world is a different place. The role of financial education, its scope and its potential, must now be critically analysed to help ensure its efficacy in supporting financial rectitude in challenging times. The authors draw on several years’ experience in the design and delivery of financial education programmes and debt prevention interventions, informed by their perspective as educationalists. In this theoretical commentary, they seek to influence the discourse on financial education, and position education as a foundational discipline in financial education. The authors identify potential risk to the future of financial education, engaging with the literature that questions the validity of financial education as an endeavour in consumer protection, which points to the dearth of empirical evidence to support its effectiveness, and which queries the efficacy of resourcing such initiative development. They argue that financial education focused on consumption cannot serve the citizen; rather, financial education must be rooted in the needs of the individual. Through these analyses, the authors highlight areas of further research, which when undertaken, can lead to more effective outcomes for all. This article introduces the concept of financial edification as an approach to financial education, predicated on the needs of the individual. In repositioning financial education as a pedagogical endeavour, the article asserts that financial education, when not driven by education, cannot achieve its true potential; it is time for Cinderella to go to the ball.     

Hausarzt nicht erreichbar?

Medizinische Akutversorgung in Heimen - In vielen Heimen muss sofort der Rettungsdienst ran, wenn es um akute medizinische Probleme geht. Das ist teuer, führt zu sinnlosen Krankenhausaufenthalten und missachtet allzu oft den Willen des Patienten. Das Problem ist bestens bekannt, doch auch in Zukunft wird sich kaum etwas ?ndern: Die Krankenkassen scheuen zus?tzliche Honorare für die ?rztliche Betreuung im Heim.