Resisting economic integration when industry location is uncertain

This paper analyses the political determination of transportation costs in a new economic geography model. In a benchmark case with certainty about where agglomeration takes place, a majority of voters favour economic integration and the resulting equilibrium is an industrialised core and a de-industrialised periphery. Allowing for uncertainty, a high level of trade costs may win the election and maintain the initial distribution of industry. The reason is that a coalition of risk-averse immobile factors of production votes for the status quo due to uncertainty about which region will attract industry if economic integration is pursued. Finally, the standard view that agglomeration is unambiguously beneficial to residents in the industrial centre is challenged by introducing costs of undertaking economic integration.     

Influence of reference points in ex post evaluations of rail infrastructure projects

The paper study the effect of different reference points in time regarding the ‘before’ and ‘after’ situation and how this may influence the ex post evaluation. Four Norwegian railway projects are analysed ex post. We have found that the choice of reference points that are chosen to represent the situation before and after a project, respectively, will often have a major impact on the result of an evaluation. In fact, the studied projects can be presented as either successes or failures, depending on the choice of reference years. The parameters used in this comparison are punctuality, frequency, travel time, and number of travellers. Four projects have been studied. Four parameters for each project generate a total of 16 indicators. By selecting certain years as reference years, 11 of the 16 indicators can be presented as either an increase or decrease. Stakeholders with a biased agenda towards certain projects can actually pick reference years to present the outcome of projects in a way that that fit their agenda. It is recommended that more than one measurement approach is applied in ex post evaluations.     

The currency denomination of exports — A questionnaire study

We report survey results on the currency choice of a random sample of Swedish exporters. We find that for an overwhelming share of exports, the price, invoice and settlement currency is the same. The currency of the customer is the most used, with Swedish kronor and vehicle currencies accounting for approximately equal shares. Currency choice is similar for intra-firm and between-firm trade. We also find that negotiations are important for both the price and for the currency choice. A minority of firms use posted prices for their main exports — the median price adjustment for those firms is once per year.     

Impact of office layout on communication in a science-driven business

Driving innovation and creativity has relied heavily on new information technologies in the last decade. Human capital has certainly had its importance, but how to coordinate human capital in order to push productivity in research and development without compromising individual initiative is still not well understood. In this paper, we provide results showing that geometry of workspace has indeed an impact on communication patterns and may thus be used as a means to drive both innovation and efficient research. In order to be creative, new knowledge has to be created. Communication facilitates knowledge creation. We try to close the bridge between areas of creation of tacit knowledge and transfer of knowledge highlighted by authors like Nonaka, Takeuchi, Konno, von Krogh and von Hippel with the area of communication patterns pioneered by Allen, Hatch, and Stryker, by considering face‐to‐face (FTF) communication as a first step for socialization, socialization as a means for knowledge creation. In this article, we compare two different office environments within the same site, same activity, same hierarchical level and same company: a traditional cell office area and a new multi‐space office, used by people who used to work in cell offices. We observed FTF communication patterns during 120 h in two areas and measured over 2,000 communication events. We found that people communicate three times more often in a multi‐space area than in a cell‐space area. We also found that the mean duration of communication events decreased from 9 to 3 min when transferring collaborators from a cell‐space to a multi‐space. Finally time spent without communication increased from 5% to 29% when going from cell‐offices to multi‐space areas – leaving more time for people to work and think on their own. And we found that most communication events during work time in the multi‐space took place at the work place and seldom or never in soft sitting areas installed for the purpose of communication.     

From products to services and back again: Towards a new service procurement logic

This paper explores patterns in the process of buying complex services. While there is currently hype about a service-dominant logic, there are also indications of a diametrically opposed logic implying the objectification of services; a goods-dominant logic. This paper investigates how buyers of different kinds of services relate to these logics and how the degree of objectification of services varies during different stages of the procurement process. By highlighting the buyers' perspectives and how services are transformed over time, the paper expands on the current knowledge of service-dominant logic. The paper is based on individual and focus group interviews with buyers at eighteen large industrial firms.     

Determinants of discounts in equity rights issues: An international comparison

Equity rights offerings are the predominant SEO flotation method in many European and Asian countries. Several previous studies focus on rights offerings, but these studies often measure solely the announcement effects of these offerings and pay little attention to the discount. This study seeks to close this gap, explain the discounts on such rights offerings, and determine the drivers of offering discounts with a focus on cultural effects regarding the level of uncertainty avoidance. Based on the existing literature, we develop several hypotheses and find supporting evidence for these hypotheses in our data. Our main finding is that the most important factors for explaining the discount on an equity rights offer are the level of uncertainty avoidance, the quality of a firm, and the level of uncertainty about firm value.     

Income inequality,unemployment, and suicide: a panel data analysis of 15 European countries

One of the reasons behind the re-negotiation of the Lomé Convention, resulting in the Cotonou Agreement, was the alleged inability of the trade provisions of Lomé to increase the African, Caribbean and Pacific (ACP) countries' market share of the European Union (EU) market. The Cotonou Agreement may lead to the more advanced ACPs being granted future market access to the EU under a generalized system of preferences (GSP), in conformity with World Trade Organization (WTO) rules. To this end, this paper makes a comparative analysis of the effects of the EU's Lomé Convention and GSP on exports of developing countries using a gravity type of model. The results indicate positive and statistically significant export effects of the both the Lomé Convention and the GSP. The export effects are greater in case of the Lomé Convention throughout the study period running from 1973 to 1992. In addition, the paper illustrates the EU country distribution of the export effects and shows that Belgium and The Netherlands are the EU countries that most have increased their imports from the developing countries under both the Lomé Convention and the GSP.