Bidding for Firms with Unknown Characteristics

When a region successfully attracts a firm by offering subsidies, the firm often commits itself to performance targets in terms of employment. In this paper, we interpret these firm‐specific targets as a consequence of incomplete information. We analyze a model of two regions that compete for a firm, assuming that the firm's productivity is ex ante unknown. We show that performance targets often induce overemployment in high‐productivity firms, and that tax credits are often superior to lump‐sum payments. Moreover, when regions differ in wage rates, the low‐wage region wins the bid and has a higher surplus than under complete information. Finally, we show that, under incomplete information, bidding might not lead to efficient firm location.     

Digitalisation,automation and upgrading in global value chains – factory economy actors versus lead companies

This article investigates the differences in the application and impact of digital technologies between manufacturing subsidiaries and lead companies, the principal orchestrators of global automotive value chains. Utilising a dataset of 10 in-depth interviews with automotive industry actors, we analyse headquarters–subsidiary differences in the patterns of digitalisation-driven upgrading. A theoretical framework is offered that explains why the significant upgrading achievements of manufacturing subsidiaries deploying industry 4.0 technologies will not reduce the gap between lead companies and manufacturing subsidiaries in terms of value generation. We show that the concept of ‘industry 4.0’ is much narrower than that of ‘digitalisation’ and transition to smart factories is only part of the digital transformation story. Industry 4.0 technologies contribute to the upgrading of operations, and enable subsidiaries to take on production-related knowledge-intensive assignments (functional upgrading). Conversely, digitalisation serves lead companies’ strategic differentiation efforts, and facilitates achieving competitive advantage: the latter are crucial for value capture.     

Testing measurement invariance using multigroup CFA: differences between educational groups in human values measurement

This article applies the testing procedures for measurement invariance using multigroup confirmatory factor analysis (MGCFA). It illustrates these procedures by investigating the factorial structure and invariance of the Portraits Value Questionnaire (PVQ, Schwartz et al.: J. Cross Cult. Psychol. 32(5), 519–542 (2001)) across three education groups in a population sample (N  =  1,677). The PVQ measures 10 basic values that Schwartz postulates to comprehensively describe the human values recognized in all societies (achievement, hedonism, self-direction, benevolence, conformity, security, stimulation, power, tradition and universalism). We also estimate and compare the latent means of the three education groups. The analyses show partial invariance for most of the 10 values and parameters. As expected, the latent means show that less educated respondents attribute more importance to security, tradition, and conformity values.     

THE URBAN LEFT IN POWER: Comparing the Profiles of ‘Municipal Socialists’ and the ‘New Urban Left’ in Swiss Cities

Today, many cities in post-industrial societies are strongholds of left and progressive political forces. Almost 100 years ago, left parties had instituted municipal socialism in several European cities. In this article, we compare these two periods of left urban rule by focusing on the long-term changes over the last 120 years in the socio-demographic profile of urban left elites in four major Swiss cities. Our analysis of left elected representatives at six key dates highlights the main differences between the municipal socialists of the interwar period and the new urban left that rules contemporary cities. The former are members of the working class, blue-collar workers without university education, while the latter are members of the upper-middle class, highly educated sociocultural professionals. The results of our analysis contribute to a better understanding of the sociological composition of urban left-progressive political forces, an aspect that is somewhat neglected in recent research on the urban left. We discuss the potential political implications and further research avenues for contemporary debates in urban studies, in terms of urban policy priorities and political mobilization.     

Context-Sensitive Access Control Model for Government Services

During the past two decades, e-government information systems have become less paper-based and more computer-based. Those information systems usually take the form of workflow systems. Due to the large social impact of e-government systems, computer security plays a pivotal role in ensuring its efficiency and effectiveness. Access control is one of the key aspects of computer security. Current access control models do not take into account the context of the system and its environment. In this article, we argue that a formal context-sensitive access control model can improve the development of e-government workflow systems and present a particular context-sensitive access control model. The subject of the article is a specification of the context-sensitive access control model for business processes (COBAC). By using a context-sensitive access control, it is possible to define more sophisticated access control policies that cannot be implemented by existing access control models. The COBAC's context is modeled using Web Ontology Language (OWL) in order to provide formal representation of context, rich representation of diverse contextual information, semantic interoperability between various context-aware systems, and a high degree of inference making. The presented model is applicable in different e-government systems, and supports the definition of access control policies for both simple and complex business processes. The model's prototype is verified by a case study on a real e-government business process—the national petty offense trial proceedings.     

Green consumerism and the societal marketing concept: Marketing strategies for the 1990's

This paper examines the impact of these trends on the role of the marketing department in the J990's. Essentially, when the buying habits of consumers are being strangely influenced by green and other environmental issues, the paper argues that the marketing concept and subsequent strategies need to be rethought. The paper then imaginatively develops the concept of societal marketing within this framework, arguing for the need for a long term marketing perspective rather than the short term window dressing approach taken by many marketing departments.     

Investment opportunities in the source country and temporary migration

Abstract This paper examines how attractive investment opportunities available to temporary migrants at home affect their saving behaviour and the optimal duration of stay abroad. The model predicts an inverse U‐shaped relationship between migration duration and the expected rate of return on repatriated savings. A higher rate provides an incentive to go back earlier and consume less abroad, while it can also trigger emigration aimed at generating the savings required for investment after return. The paper illustrates how the behaviour of temporary migrants reflects the interaction between their preferences and the opportunities available in labour and capital markets of both countries.     

Bivariate income distributions for assessing inequality and poverty under dependent samples

As indicators of social welfare, the incidence of inequality and poverty is of ongoing concern to policy makers and researchers alike. Of particular interest are the changes in inequality and poverty over time, which are typically assessed through the estimation of income distributions. From this, income inequality and poverty measures, along with their differences and standard errors, can be derived and compared. With panel data becoming more frequently used to make such comparisons, traditional methods which treat income distributions from different years independently and estimate them on a univariate basis, fail to capture the dependence inherent in a sample taken from a panel study. Consequently, parameter estimates are likely to be less efficient, and the standard errors for between-year differences in various inequality and poverty measures will be incorrect. This paper addresses the issue of sample dependence by suggesting a number of bivariate distributions, with Singh–Maddala or Dagum marginals, for a partially dependent sample of household income for two years. Specifically, the distributions considered are the bivariate Singh–Maddala distribution, proposed by Takahasi (1965), and bivariate distributions belonging to the copula class of multivariate distributions, which are an increasingly popular approach to modelling joint distributions. Each bivariate income distribution is estimated via full information maximum likelihood using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey for 2001 and 2005. Parameter estimates for each bivariate income distribution are used to obtain values for mean income and modal income, the Gini inequality coefficient and the headcount ratio poverty measure, along with their differences, enabling the assessment of changes in such measures over time. In addition, the standard errors of each summary measure and their differences, which are of particular interest in this analysis, are calculated using the delta method.     

The Impact of EU Norms and Policies on Consumer Protection Enforcement in Serbia

Pursuant to its 2008 Stabilization and Association Agreement governing the process of EU integration, Serbia is obliged to align its consumer protection standards (including those related to enforcement) with those of the EU. This article considers the overall approach to enforcement of consumer law in Serbia, focussing in particular on the extent to which EU enforcement principles have been successfully exported to Serbia and whether the goals of EU consumer policy have been achieved. It argues that the incorporation of EU norms has brought fundamental changes to Serbian enforcement mechanisms at a formal level, such as in relation to mediation processes as well as the introduction of injunctions for the protection of collective consumer interests. In practice, however, the impact of this incorporation is quite limited. A number of factors that restrict the practical effectiveness of the mediation processes and injunctions required by EU law are explored in the article, including weak sanctions, excessive reliance on poorly resourced consumer organizations, absence of a business culture of compliance or a sophisticated and determined consumer protection enforcement culture sufficiently grounded in expertise, as well as an overarching political, legislative, and institutional instability. These factors also undermine the general aim of EU policy to achieve effective consumer protection enforcement in the Serbian context.