The use of macroeconomic models in economic policy making: The Norwegian experience

Planning in Norway has a long tradition. The use of models is an integral part of short- and medium-term economic policy administration. A large-scale input-output model, MODIS IV, is used as the short- and medium-term forecasting and planning model. The use of the model secures consistency when analysing the economy. The model is very open in the sense that important interrelations in the economy are left out. The model contains only ‘good’ relations in the Leif Johansen sense of the word. Smaller aggregate and more closed versions of the model are used for analysing policy alternatives. These models contain both ‘good’ and ‘bad’ relations. The use of macroeconomic models is an important aid for proposals regarding economic policy in the Ministry of Finance. Because the whole ministry (with expert help from other ministries) takes an active part in the model work, MODIS IV serves as the centralizing mechanism. It helps to make economists from many ministries go around the same centre, speak the same ‘language’ and organize all relevant information and judgements in a consistent way. Experience shows that ‘numbers discipline’ and force the different arguments on to a higher level of precision.     

Are standardized EMSs useful in local authorities? A study of how a tool from the private sector is used in the public sector

Following the trend in the private sector, standardized environmental management systems (EMSs) have been introduced in several local authorities around the world. When the tool is transferred from the private sector to the public, one can ask how useful the tool is in the new environment, since the private and the public sectors are two different types of social sphere, with different institutional logics. Taking a closer look at the situation in Sweden, this paper aims to investigate the applicability of standardized EMSs in local authorities and the public sector in general. Based on qualitative interviews with public officers in two municipalities in Sweden, it is argued that EMSs are useful in municipalities. However, the study also reveals that an EMS seems to be more suitable for technical service administrations and municipally owned companies than social service administrations. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Strategy and management control systems: A study of the design and use of management control systems following takeover

This paper describes and analyses the approach taken by four well-known Swedish companies to management control following takeover. The findings suggest two factors which can explain how the management control systems were designed and used after an acquisition: the corporate strategy of the acquirer and the business strategy of the acquired company. The case studies show how these forces could impose mutually inconsistent requirements on the management control system of the acquired firm, and also how these inconsistencies were resolved.     

A fundamental asymmetry of asymmetric shocks

A simple N-country specific-factor-type model with imperfectly mobile labour is developed. It is shown that the effects of country-specific productivity shocks hitting a small country have fundamentally asymmetric effects: A positive shock will be accommodated by a moderate wage increase and sizeable in-migration, whereas a negative shock will be accommodated by a significant decrease in wages and moderate out-migration. It is argued that the results of the model are consistent with the recent Irish experience. The welfare effects of small economic fluctuations are also discussed.     

Problems of establishing service supply relationships: Evidence from a high-tech manufacturing company

This paper identifies areas, which may cause problems when establishing service supply relationships. Case research has been conducted within the service division of a global manufacturing company, analysing 11 instances where the company established or attempted to establish a relationship with a supplier to provide services as part of their offering to the end-customer. Four problem areas are identified through inductive case analysis. First, writing legal agreements for service exchanges. Second, clearly specifying service processes to be transferred to suppliers. Third, handing over service delivery to suppliers. Fourth, losing control over the relationship with the customer. These problems expand on already known problems of establishing supply relationships. Suggestions for how the problems may be moderated are also provided.     

Wage Formation,Regional Migration and Local Labour Market Tightness*

Empirical studies of regional wage formation and interregional migration routinely include the regional unemployment rate as indicator of local labour market tightness. However, these studies are usually motivated by economic theories that emphasize transition probabilities between unemployment and employment, and the unemployment rate is an imperfect proxy for these probabilities. We use a large micro data set to compute estimates of the rate of outflow from unemployment for 90 Norwegian travel‐to‐work areas. The outflow rates perform better than traditional measures of regional labour market tightness in panel data analyses of regional wages and interregional migration.     

Double-Loop Sales Adaptation: A Conceptual Model and an Empirical Investigation

Purpose: The purpose of this article is to conceptualize and discuss the phenomenon of a double-loop sales adaptation in sales and its practical application. The resultant framework is developed from existing academic literature on adaptation in sales and marketing and inspired by the concept of double-loop learning.

Methodology/approach: The study adopted an abductive approach, iterating between the empirical world of two service firms and the theoretical world. The developed framework is refined with interview-based feedback from key informants in business-to-business organizations.

Findings: This article develops a framework for double-loop sales adaptation, which combines adaptations of selling behavior with a sales mindset.

Contribution: Although previous research recognizes adaptation as a central aspect of relationships, the link between adaptation and sales mindset has arguably been inadequate in the literature. Accordingly, this study focuses on sales adaptation occurring at the two levels of behavior and mindset.

Implications for practice: The proposed framework provides sales practitioners with a model for adaptation in their customer relationships. By distinguishing between two sorts of adaptation, managers can optimize resource allocation to both benefit the company and strengthen the relationship among parties.     

Non-parametric estimation of operational risk losses adjusted for under-reporting

Not all claims are reported when a database for financial operational risk is created. The probability of reporting increases with the size of the operational risk loss, and converges towards one for big losses. Losses in operational risk have different causes, and usually follow a wide variety of distributional shapes. Therefore, a method for modelling operational risk based on one or two parametric models is deemed to fail. In this paper, we introduce a semi-parametric method for modelling operational risk that is capable of taking under-reporting into account and being guided by prior knowledge of the distributional shape.     

Disintermediation in Business-to-Business Service Channels: Mechanisms and Challenges

Purpose: The aim of this article is to delineate a number of different disintermediation mechanisms within the context of business-to-business (B2B) service channels and to identify the specific challenges associated with adopting these mechanisms.

Methodology: The research was conducted in accordance with abductive reasoning, moving continuously between the empirical world of 4 industrial (B2B) firms and the model world.

Findings: This article delineates a choice of 6 disintermediation mechanisms and their attendant challenges within the context of industrial service channels.

Contribution: The article provides an original conceptualization of disintermediation, which is detached from the traditional understanding of the concept. As such, it constitutes a useful starting point for the development of a formal theory of disintermediation.

Implications for Practice: This article should be useful for practitioners, because it presents various disintermediation options available to industrial firms faced by undesired intermediaries in their industrial service channels.     

A health economic lifetime treatment pathway model for low back pain in Sweden

Aims: To develop a health economic model to evaluate the long-term costs and outcomes over the healthcare treatment pathway for patients with low back pain (LBP).

Materials and methods: A health economic model, consisting of a decision tree structure with a Markov microsimulation model at the end of each branch, was created. Patients were followed from first observed clinical presentation with LBP until the age of 100 years or death. The underlying data to populate the model were based on Swedish national and regional registry data on healthcare resource use and sickness insurance in patients presenting with LBP in the Swedish region Västra Götaland during 2008–2012. Costs (outpatient healthcare visits, inpatient bed days, pharmaceuticals, productivity loss), EUR 2016, and quality-of-life based on EQ-5D data from the registries and published estimates were summarized over the lifetime of the patients with 3% annual discount. A lost quality-adjusted life year (QALY) was valued at €70,000.

Results: Mean lifetime total cost was estimated at €47,452/patient, of which indirect costs were 57%. Total lifetime economic burden for all patients coming to clinical presentation in Sweden per year was €8.8bn. The average LBP patient was estimated to face a loss of 2.7 QALYs over their lifetime compared with the general population. For all patients in Sweden coming to clinical presentation in 1 year this gives 505,407 QALYs lost, valued at €35.3bn. Adding the economic burden, the total societal burden amounts to €44.1bn.

Conclusion: This pathway model shows that most patients with LBP receive conservative care, and a minority consume high-cost healthcare interventions like surgery. The model could be used to see broad economic effects of different patterns of healthcare provision in sub-groups with LBP and to estimate where it is possible to influence these pathways to increase utility for patients and for society.