Winners and losers from an announced durable tax hike: Tesla in Denmark

We study the consumer response and tax revenue implications of the early announcement of a durable good tax. In 2015, the Danish government announced a tax hike on electric vehicles several months before its implementation. There was a dramatic surge in sales of Tesla Model S vehicles just before the tax came into effect, and a dramatic ebb in the months following. We find that the government lost 169 million DKK (23 million Euro) in tax revenue on luxury vehicles by announcing the tax change before its implementation. We further find that speculation played at most a limited role in the Tesla sales surge. In total, final consumers of Teslas gained from the roll-out of the law change by avoiding the new tax.     

Virtuelle Eingliederungsarbeitsmärkte—Ein Weg aus der Arbeitslosigkeitsfalle

Die gro?e Koalition in Berlin sieht sich gewaltigen Herausforderungen auf dem Gebiet des Arbeitsmarktes und der Sozialpolitik gegenüber. Entgegen allen Hoffnungen und Anstrengungen verharrt die Unterbesch?ftigung weiter auf hohem Niveau. Inwiefern geraten Arbeitslose in die Arbeitslosigkeitsfalle? Wie k?nnte der Arbeitsmarkt für Geringqualifizierte besser organisiert werden?     

Endogenous technological change: a note on stability

Summary. This paper demonstrates that the steady-state solution of the optimal-growth problem in Romer's (1990) model of endogenous technological change is globally saddle-point stable. Surprisingly, the proof of this result is trivial. Interest in the optimal growth path is justified by the fact that there is a (unique) combination of production and R&D subsidies by means of which the optimal growth path is attained as a market equilibrium. Received: October 6, 1998; revised version: April 19, 1999     

An exploration of factors influencing the choice of commodity price risk mitigation strategies

Most firms are exposed to price volatility associated with commodities, which can significantly affect the price paid for raw materials, energy, packaging, shipping, and component purchases. Commodity price risk represents the financial, operational and informational effects of commodity price volatility (CPV). The purpose of this paper is to contribute to the supply chain risk management literature by providing a taxonomy of commodity price risk mitigation strategies and factors that may influence the adoption of these strategies. A qualitative study was conducted using a grounded theory approach, based on case studies of companies with home operations in Italy, Germany, and the US. The paper provides some initial evidence for theory and practice as to: 1) how firms can mitigate the risk from CPV by implementing various sourcing, contracting, and financing strategies; and 2) the influence of commodity/product factors, buying organization factors, supply chain factors, and external environment factors on strategy capability and choice.     

Conducting multilevel studies in purchasing and supply management research

Purchasing and supply management (PSM) research commonly covers multiple levels of theory and analysis. The theorizing and simultaneous testing of hypotheses across multiple levels is referred to as multilevel analysis (MLA) and is commonly performed using hierarchical linear modeling (HLM). Researchers in the PSM domain have paid little attention thus far to the topic of multilevel studies. Although MLA holds the potential to yield novel insights into PSM issues, it also generates new challenges for authors and reviewers alike. We contribute to this methodological dialogue by examining reasons for conducting multilevel PSM research and offering practical guidance for increasing its methodological rigor.     

Works council ‘disaffection’ and establishment survivability

This article investigates the association between a measure of works council heterogeneity and plant closings in Germany, 2006–2015. Two datasets are used to identify failed establishments, while institutional heterogeneity is captured by management perceptions of the role of the works council in managerial decision making and also by allowing for works council learning. The potential moderating role of sectoral collective bargaining is also examined. We report that works councils per se are not associated with plant closure. Rather, it is establishments with disaffected councils that display higher rates of closure. The latter result does not obtain where such establishments are covered by sectoral agreements; an outcome that is consistent with the literature on the mitigation of rent-seeking behaviour, and one that also receives support from our finding that plants with dissonant councils are more likely than their consensual counterparts to transition into sectoral bargaining coverage. On the other hand, there is only limited evidence of works council learning.     

Capital requirements and claims recovery: A new perspective on solvency regulation

Protection of creditors is a key objective of financial regulation. Where the protection needs are high, that is, in banking and insurance, regulatory solvency requirements are an instrument to prevent that creditors incur losses on their claims. The current regulatory requirements based on value at risk (V@R) and average value at risk (AV@R) limit the probability of default of financial institutions, but they fail to control the size of recovery on creditors' claims in the case of default. We resolve this failure by developing a novel risk measure, recovery V@R. Our conceptual approach is flexible and allows the construction of general recovery risk measures for various risk management purposes. We provide detailed case studies and applications. We show that recovery risk measures can be used for performance-based management of business divisions of firms and discuss how to calibrate recovery risk measures to historical regulatory standards. Finally, we analyze how recovery risk measures react to the joint distributions of assets and liabilities on firms' balance sheets and compare the corresponding capital requirements with the current regulatory benchmarks based on V@R and AV@R.