Regulating Multiple Polluters: Deterrence and Liability Allocation

We consider regulation of multiple polluters when individual emissions are unobservable. The tension between pollution deterrence and funding of remediation is examined under two constraints: that penalty revenues fully fund remediation costs and that the regulator cannot make positive transfers to firms. To isolate the effect of increasing the number of polluters, we compare an industry consisting of a single large firm with one in which many small firms in aggregate mimic the large firm. Contrary to previous findings, both the number of firms and the ability to monitor individual firms affect the welfare of a large class of regulators.     

Triage? Assessing the EU’s Modernisation Proposals for the WTO

According to the European Commission (EC), the WTO is struggling to credibly remain the go-to place for trade negotiations.1 Indeed, after the Commission stated its concerns, EU-Ambassador to the WTO Marc Vanheukelen commented that if the organisation does not take measures to move forward, the result would be “the demise of the rules-based trading system”.     

Financial intermediaries,ownership structure and the provision of venture capital to SMEs: evidence from Japan

This paper examines how the provision of venture capital to small- and medium-sized businesses (SMEs) is influenced by the ownership structure of the venture capital provider. We introduce a new and unique dataset from the Japanese venture capital market, comprising data on investment and venture capital activities of 127 Japanese venture capital funds. The data allow us to provide a direct comparison of the behaviour of individual owner-manager venture capitalists versus financial intermediation (e.g., bank’s venture capital divisions). The data indicate owner-manager venture capitalists (financial disintermediation) give rise to much smaller portfolios of SMEs and more advice to entrepreneurs. Across the scope of different financial intermediation structures, including banks, life insurance companies, securities firms, corporations and government bodies, there are further differences in the provision of governance and value-added advice provided to SMEs. Also, the data indicate US-affiliated funds in Japan are more likely to have smaller portfolios and tend to provide more advice to SMEs.

Comparison of statistical analysis methods for object case best–worst scaling

Abstract

Aims: Different methods have been used to analyze “object case” best–worst scaling (BWS). This study aims to compare the most common statistical analysis methods for object case BWS (i.e. the count analysis, multinomial logit, mixed logit, latent class analysis, and hierarchical Bayes estimation) and to analyze their potential advantages and limitations based on an applied example.

Methods: Data were analyzed using the five analysis methods. Ranking results were compared among the methods, and methods that take respondent heterogeneity into account were presented specifically. A BWS object case survey with 22 factors was used as a case study, tested among 136 policy-makers and HTA experts from the Netherlands, Germany, France, and the UK to assess the most important barriers to HTA usage.

Results: Overall, the five statistical methods yielded similar rankings, particularly in the extreme ends. Latent class analysis identified five clusters and the mixed logit model revealed significant preference heterogeneity for all, with the exception of three factors.

Limitations: The variety of software used to analyze BWS data may affect the results. Moreover, this study focuses solely on the comparison of different analysis methods for the BWS object case.

Conclusions: The most common statistical methods provide similar rankings of the factors. Therefore, for main preference elicitation, count analysis may be considered as a valid and simple first-choice approach. However, the latent class and mixed logit models reveal additional information: identifying latent segments and/or recognizing respondent heterogeneity.     

Do Regional Trade Agreements Increase Members' Agricultural Trade?

The gravity model is used extensively to investigate the trade flow effects of Regional Trade Agreements (RTAs). A notable feature common to previous research is the use of aggregate trade data. These studies typically report conflicting, and even negative results of the effect of RTAs on members' trade. Using recent developments in the gravity equation suggested by Baier and Bergstrand (2007) and Anderson and van Wincoop (2003) , this article demonstrates that RTA effects on members' trade depend fundamentally on whether the analysis focuses on agricultural or nonagricultural sectors, on the particular agreement analyzed, and on the length of the phase-in period that characterizes almost all RTAs.