Towards a Handbook on European Contract Law and Beyond: The Commission’s 2004 Communication “European Contract Law and the Revision of the <Emphasis Type="Italic">Acquis</Emphasis>: The Way Forward”

The European contract law project has crossed the threshold between an intellectual exercise and concrete policy. The 2004 Communication on the way forward describes the procedure to implement the policy suggested by the 2003 Action Plan, and so it would now be timely to give some thought to the likely impact of the Common Frame of Reference (CFR) on future Community law. It is submitted that the CFR is indispensable for the planned crafting of full harmonisation consumer contract law. This article therefore focuses on the possible uses of the CFR for consumer legislation and attempts to make the case for a recasting of Community law on consumer protection as a first priority in the implementation of the project. Based on policy papers and policy considerations, this article suggests making a test case of the travel and tourism sectors. It also reflects further on the potential virtues of an optional instrument for consumer legislation.     

Accountability in an agency model: Project selection,effort incentives,and contract design*

We analyze an agency model of project choice and implementation where the agent is held accountable for his performance. We show that implementation of the ex ante efficient project may be impossible, irrespective of how the principal sets fixed wage and bonus rate. If it is possible, the principal may be forced to increase the bonus rate above the optimal project‐specific rate. The higher profit share compensates the agent for pressure he faces when he has to justify/explain his performance.     

Two‐Way Migration between Similar Countries

We develop a model to explain two‐way migration of high‐skilled individuals between countries that are similar in their economic characteristics. High‐skilled migration results from the combination of workers whose abilities are private knowledge, and a production technology that gives incentives to firms for hiring workers of similar ability. In the presence of migration cost, high‐skilled workers self‐select into the group of migrants. The laissez‐faire equilibrium features too much migration, explained by a negative migration externality. We also show that for sufficiently low levels of migration cost the optimal level of migration, while smaller than in the laissez‐faire equilibrium, is strictly positive. Finally, we extend our model into different directions to capture stylised facts in the data and show that our baseline results also hold in these more complex modelling environments.     

Berlin sieht es locker — Brüssel (noch) nicht

Wirtschaftsdienst - Various ways exist to make use of public debt financing despite the existence of the debt brake. These are outlined in the recent coalition agreement, which indicates that the...     

Comparing survey data with an official administrative population: assessing sample-selectivity in the IAB Establishment Panel

The IAB Establishment Panel is a large annual establishment survey and serves as a data source for many empirical analyzes, e.g., on labor demand, wages and industrial relations but also for influential policy evaluations. We analyze the selectivity of the IAB Establishment Panel compared with the administrative population of all establishments in Germany to test whether the IAB Establishment Panel is biased towards “good employers”. By design the survey over-samples large, thus high paying and stable establishments. After flexibly controlling for elements of the sampling design, we do not detect any meaningful difference between establishments participating in the survey and the full population regarding key economic performance indicators. If anything, we observe a slight overrepresentation of stable and slow growing establishments. For applied research, the results highlight that “typical” econometric specifications may not be sufficient to control for selectivity.

     

Gender and conservation agriculture in East and Southern Africa: towards a research agenda

It is remarkable that despite wide-ranging, in-depth studies over many years, almost no conservation agriculture (CA) studies consider gender and gender relations as a potential explanatory factor for (low) adoption rates. This is important because CA demands new ways of working with the farm system. Implementation will inevitably involve a reallocation of men's and women's resources as well as having an impact upon their ability to realize their gender interests. With respect to intra-household decision-making and the distribution of benefits, CA interventions have implications for labour requirements and labour allocation, investment decisions with respect to mechanization and herbicide use, crop choice, and residue management. CA practice may impact upon the ability of households to source a wide variety of crops, wild plants, and insects and small animals for household nutrition. Gender biases in extension service design can sideline women. This paper examines the limited research to date on the interactions between CA interventions and gender in East and Southern Africa, and, based on the gaps observed, sets out a research agenda. It argues that attention to gender in CA is particularly timely given the increasing interest in CA as a means of adapting to climate change.     

Consumer Attitudes and Decision-Making With Regard to Genetically Engineered Food Products – A Review of the Literature and a Presentation of Models for Future Research

Few studies have to date explained consumer attitudes and purchase decisions with regard to genetically engineered food products. However, the increased marketing of genetically engineered food products and the considerable concern that consumers seem to express with regard to the technology call for the development of a theoretical basis for research into these issues. The aim of this article is to present three models which the authors have developed to explain consumer attitudes, buying behaviour, and attitude change with regard to genetically engineered food products.All three models build on established consumer behaviour theory and on existing and comparable research in the field. Consumer attitudes toward genetic engineering in food products are explained in an attitude model that builds on Fishbein's multiattribute attitude model but deviates from Fishbein's model in a number of ways. Consumer buying behaviour with regard to specific genetically engineered food products is explained in a behavioural intention model which uses Ajzen's Theory of planned Behavior as its point of departure. How consumers' attitudes towards genetically engineered food products are affected by various information strategies, finally, is explained in an attitude change model which integrates aspects of the Elaboration Likelihood Model and Social Judgment Theory. The model specifically takes into account the impact of source credibility and various informational factors, such as persuasive content of the information provided, on attitudes.     

The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark

We analyse the effect of active labour-market programmes on the hazard rate into regular employment for newly arrived immigrants using the timing-of-events duration model. We take account of language course participation and progression in destination country language skills. We use rich administrative data from Denmark. We find substantial lock-in effects of participation in active labour-market programmes. Post programme effects on the hazard rate to regular employment are significantly positive for wage subsidy programmes, but not for other types of programmes. For language course participants, improvement in language proficiency has significant and substantial positive effects on the hazard rate to employment.     

Corporate financial determinants of foreign direct investment

Financial market incompleteness and (partial) segmentation of financial markets internationally may endow some firms with a financial advantage which can be exploited through foreign direct investment. We argue that this advantage appears as a distinct cost-of-capital effect on FDI, and identify possible channels for such an effect. Using a sample of European firms’ cross-border acquisitions, and controlling for traditional firm-level determinants of FDI, we find strong support for a cost-of-equity effect, whereas the effect of debt costs is indeterminate. Moreover, financial FDI determinants are more important for firms with high knowledge intensity and for firms resident in relatively less financially developed countries.     

National champions and globalization

Abstract .  In this paper, we offer an explanation why globalization (falling trade costs) may increase the government incentive to block foreign takeover of domestic firms and increase its incentive to allow mergers among national firms. This creation of 'national champions' occurs not only because the government may have a bias against foreign takeover, but also because consumer welfare gains associated with foreign acquisitions decrease with globalization. Endogenizing the government bias through lobbying efforts of the domestic firms, the paper shows that the bias does not need to be very strong before the government promotes domestic champions provided that barriers to trade are low.