Synchronisation von Nachricht und Werbung

Advertiser pressure has always been seen as a potential source of bias in the coverage of ad-financed media. The effects of advertiser pressure, however, have seldom been subject to systematic empirical research. Content analyses on the subject are particularly rare. This study for the first time scrutinizes on how the representation of firms by the leading German political weeklies Der Spiegel und Focus correlates with the amount of advertising by those firms. For this purpose all ads and the full news coverage on selected firms during the year of 2011 were analyzed. Central findings show that firms will receive more coverage, friendlier coverage and a larger share of product coverage, the higher their volume of advertising both in Der Spiegel and in Focus.     

Taxes on labour and unemployment in a shirking model with union bargaining

This paper studies the impact of a cut in labour taxes in a model that combines two explanations for equilibrium unemployment: employee shirking and union bargaining. It is shown that if the ratio of unemployment compensation to the net-of-tax wages is kept fixed, a tax cut leads to higher unemployment. When the unemployment benefits are fixed in real terms, the effect of a tax cut on unemployment is ambiguous. Adverse employment effects are ruled out if unions are powerless or the labour share is constant.     

Anticipation,Tax Avoidance,and the Price Elasticity of Gasoline Demand

Least‐squares estimates of the response of gasoline consumption to a change in the gasoline price are biased toward zero, given the endogeneity of gasoline prices. A seemingly natural solution to this problem is to instrument for gasoline prices using gasoline taxes, but this approach tends to yield implausibly large price elasticities. We demonstrate that anticipatory behavior provides an important explanation for this result. Gasoline buyers increase purchases before tax increases and delay purchases before tax decreases, rendering the tax instrument endogenous. Including suitable leads and lags in the regression restores the validity of the IV estimator, resulting in much lower elasticity estimates. Copyright © 2016 John Wiley & Sons, Ltd.     

Distinguishing characteristics of ahuman economics

In the course of a review of Charles Murray’sWhat It Means to Be a Libertarian, the following paper presents a critique of some of the assumptions underlying the political economy and laissez-faire policy recommendations of modern libertarian thought. After considering the role and importance of asymmetric information, relative immobility of labor, and unemployment in the formation of labor and consumption goods markets, this paper concludes that there is a positive role for the state in the construction of just and efficient markets. The paper argues that a regime of laissez-faire would be most unlikely to result in enhanced economic growth and prosperity, to say nothing of the more extravagant claims that Murray makes, such as a diminution of racism, crime, and welfare dependence, with an enhanced sense of community and family values.     

Linking corporate reputation and shareholder value using the publication of reputation rankings

Good corporate reputation is one of the most valuable assets and causes a multitude of favorable impacts within different stakeholder groups. As a consequence, a lot of studies analyze the relationship between corporate reputation and financial performance. However, most of them raise the question of causation due to their methodology. In order to isolate the causal impact of corporate reputation on financial performance, some authors conduct event studies, but without remarkable success. Therefore, this study provides initially a comprehensive theoretical background for why reputation should affect financial performance. According to the resulting hypotheses, an event study is conducted to analyze the impact of the publication of reputation rankings by the German Manager Magazin on share prices. As hypothesized, positive and negative announcement effects exist regarding upgraded or downgraded companies respectively. Consequently, investors gain new information from the published rankings (increases or decreases in reputation) to adjust share prices.