Using Statistics and Statistical Thinking to Improve Organisational Performance

A systematic approach to measuring organisational performance is fundamental to the pursuit of business excellence. As such, the area of organisational performance measurement, and its use of data and analysis to inform business decisions, affords statisticians a potentially high value-adding opportunity. To be effective in this area, statisticians need to appreciate the differing requirements for statistical information in various management zones of an enterprise.
This paper describes a strategy that seeks to link measurement to all facets of organisational performance, particularly to desired business outcomes, and also to mesh measurement with process improvement in a natural way. The use of statistics and statistical thinking is then discussed in this context, with particular focus on the opportunity for statisticians to have a key role at the top decision-making level of the organisation. We argue that the role requires skills in both advanced technical statistical modelling and analysis, and in statistical thinking. It also requires a preparedness to form an appreciation of the business and management imperatives faced by the leaders of an enterprise, and a willingness to work from this basis.     

Das Umlaufvermögen von Verteilnetzbetreibern

How much current assets are needed to operate a distribution system in Germany? The German “Energiewende” requires tremendous amounts of investment in the distribution network over the next years. The return of invested capital is regulated by § 7 Strom/GasNEV (German network tariff regulations). Current assets are principally included in the regulatory asset base in order to determine the regulatory equity yield rate. The regulatory authorities and distribution system operators have different point of views regarding the proper amount of current assets needed for operating a distribution network. This debate seems quite significant when considering that the average ratio of current assets to total assets is 25%. On the other hand, one could argue that distribution system operators do not need current assets at all. In order to address the issue of the proper amount of current assets for distribution system operators, business specific processes (such as the “EEG process”) should be examined. Furthermore, the provision of current assets causes costs of capital, which reduces the shareholder value and makes the acquisition of capital more challenging. This paper analyses such interrelations between current assets and shareholder value in regulated markets. Moreover, the current regulatory practice of cutting current assets in the regulatory asset base to a standardized amount does not seem appropriate. Rather there is a need for a multi-level and item-by-item based valuation scheme: Is the item required for the business? Is the amount limited to the efficient minimum? Is the amount comparable to other businesses? Concerning this matter, this paper examines proper instruments, such as the cash flow statement. In addition, this paper benchmarks the current (liquidity) ratio of distribution system operators and non-regulated companies. Based on this benchmark, the current assets of distribution system operators appear comparatively efficient. The results point out a need of action regarding current regulatory practice.     

Organization–stakeholder fit: A dynamic theory of cooperation,compromise, and conflict between an organization and its stakeholders

Research Summary : We advance the concept of organization–stakeholder fit (O–S fit) to explain cooperative behavior between an organization and its stakeholders. O–S fit describes the compatibility that exists between an organization and a stakeholder when their characteristics are well matched. We highlight two dimensions of O–S fit: value congruence, or the supplementary fit of organizational and stakeholder values, and strategic complementarity, or the complementary fit of strategic needs and resources. For each dimension, we detail the unique relational factors—including core elements of trust, predictability, attraction/exchange, and communication—that motivate cooperation. We then explicate the ways in which value congruence and strategic complementarity dynamically interrelate over time. Finally, we consider how organization‐stakeholder misfit may result in alternative relational behaviors, such as conflict or compromise. Managerial Summary : We develop a new way of thinking about the relationship between organizations and stakeholders. Recognizing that positive relationships require a degree of fit or compatibility, we argue that cooperative behavior between an organization and its stakeholders is maximized when relational partners share both core values and strategic priorities. We explain that high fit along these two dimensions increases trust, relational predictability, attraction/exchange, and communication. We also describe how positive relationships might be formed with fit along only one dimension, and how negative relationships might result in the presence of misfit. Ultimately, we suggest that managers who want to foster positive relationships with stakeholders should concentrate on aligning their values and priorities, rather than simply concentrating on one or the other.     

Testing and imposing Slutsky symmetry in nonparametric demand systems

Maximization of utility implies that consumer demand systems have a Slutsky matrix which is everywhere symmetric. However, previous non- and semi-parametric approaches to the estimation of consumer demand systems do not give estimators that are restricted to satisfy this condition, nor do they offer powerful tests of this restriction. We use nonparametric modeling to test and impose Slutsky symmetry in a system of expenditure share equations over prices and expenditure. In this context, Slutsky symmetry is a set of nonlinear cross-equation restrictions on levels and derivatives of consumer demand equations. The key insight is that due to the differing convergence rates of levels and derivatives and due to the fact that the symmetry restrictions are linear in derivatives, both the test and the symmetry restricted estimator behave asymptotically as if these restrictions were (locally) linear. We establish large and finite sample properties of our methods, and show that our test has advantages over the only other comparable test. All methods we propose are implemented with Canadian micro-data. We find that our nonparametric analysis yields statistically significantly and qualitatively different results from traditional parametric estimators and tests.     

Tabaksteuer in Griechenland: steuerpolitische Fehlentscheidungen

Both Germany and Greece increased tobacco taxes beginning in 2010. Tobacco taxation in both countries is primarily aimed at generating revenues and at steering the behaviour of individuals affected by the taxation. The tobacco tax structure particularly in Greece has evolved from a mainly ad valorem excise to a specific excise. The comparison of both countries shows that the German tax system is able to generate stable revenues while Greek tobacco taxation policy leads to tax evasion activities among smokers.     

6+5-Protektionismus im Fußball

Ohne Zusammenfassung Norbert Berthold ist Inhaber des Lehrstuhls für Volkswirtschaftslehre, insbesondere Wirtschaftsordnung und Sozialpolitik, an der Universit?t Würzburg und Mitglied des wissenschaftlichen Beirats beim Bundesministerium für Wirtschaft und Technologie     

Time Consistent Collection of Optimal Seigniorage: A Unifying Framework

This paper reviews the existing literature on the time consistency problem of seigniorage collection when monetary policy is determined by optimal taxation considerations. It develops a unifying accounting framework and suggests a general measure for seigniorage, which encompasses the standard measures employed in the literature. In addition, the ex ante optimal solution to the optimal taxation problem is derived and interpreted in relation to the Ramsey principle. We show that the different recommendations of the public finance literature, i.e. the Friedman rule of optimal deflation, [moderately] positive inflation, and seigniorage maximizing inflation, are specific solutions to the optimal taxation problem. The paper continues with a formal illustration of the time consistency problem of the ex ante optimal policy and the characterization of the time consistent solution under discretion. As possible solutions to the time consistency problem, we consider reputational forces, institutional reforms that establish central bank independence, and specific ways of asset and debt management. In particular, it is formally shown that a modified version of the asset and debt management scheme suggested by Persson, Persson, and Svensson is not only necessary but also sufficient for optimality, although this did not hold in their model.