Performance Measurement of the Agricultural Marketing Cooperatives: The Gap between Theory and Practice

The performance of agricultural cooperatives depends on their business objectives, which are defined in different ways in the literature. We review the theoretical literature on the performance of agricultural marketing cooperatives. Studies can be divided into two classes, those that assume a single objective and those that assume multiple objectives. This classification integrates three views of the cooperatives: ( a ) vertical integration of firms, ( b ) independent enterprise, and ( c ) coalition of firms. Empirical studies on the financial performance of cooperatives are classified into two categories, studies based on the economic theory of the firm and studies that emphasize accounting techniques. Empirical studies have failed to address the cooperatives' objectives as represented by the theoretical literature on cooperative performance.     

Dynamic Spanning in the Consumption-Based Capital Asset Pricing Model

Under the assumptions of the Consumption-based Capital Asset Pricing Model (CCAPM), Pareto optimal consumption allocations are characterized by each agent's consumption process being adapted to the filtration generated by the aggregate consumption process of the economy. The wealth processes of the agents, however, are adapted to the finer filtration generated by aggregate consumption and the conditional distribution of future aggregate consumption. Therefore, in order to achieve Pareto optimal consumption allocations, a sufficiently varied set of assets must exist such that any wealth process adapted to this finer filtration can be implemented by dynamically trading in that set of assets. We provide sufficient conditions for the existence of such a set of assets based on dynamically trading contingent claims on aggregate consumption. In addition, we give sufficient conditions for the existence of equilibria in a dynamically effectively complete market in which agents are only able to trade in contingent claims on aggregate consumption, the market portfolio of firms, and a (numeraire) zero-coupon bond. We demonstrate the role of short- and long-term contingent claims on aggregate consumption for the implementation of Pareto optimal allocations in the presence of short- andlong-term risks. In addition, in the presence of personal risks, we demonstrate the role of insurance contracts.     

Does pre‐packed bankruptcy create value? An empirical study of postbankruptcy employment retention in The Netherlands

In recent years, there has been growing interest in whether pre‐packed bankruptcy can be a mechanism through which firms facing imminent insolvency can preserve value. Although an extensive body of literature exists on “pre‐packs,” whether such techniques really preserve value remains ambiguous. By analysing bankruptcy proceedings filed with Dutch courts in the period 2012–2018 through the lenses of real options and debt overhang theory, we examined employment retention postbankruptcy as a consequence of the type of bankruptcy proceeding (pre‐packed bankruptcy and conventional bankruptcy) and the severity of prebankruptcy financial distress. The results show that in the Netherlands, a pre‐packed bankruptcy, when compared with a conventional bankruptcy proceeding, positively impacts employment retention rates after bankruptcy. The severity of financial distress before bankruptcy does not affect employment retention rates postbankruptcy. This implies that despite the amount of resource slack, the preservation of employee value is better served under a pre‐packed bankruptcy than a conventional bankruptcy proceeding. This finding is important for insolvency practice, as up to 22 June 2017, employee rights in the Netherlands (including redundancy) were not considered to be automatically transferred to the firm acquiring the bankrupt debtor's assets when a pre‐packed bankruptcy was applied. Implications for insolvency regulation and practice are discussed.     

Gap in relative importance of service activities closed

Conclusion Overall it is evident that the relative importance of services and service activity trends in the USA and west Germany is very similar. In other words the activity structure in Germany is indeed “modern”. Also in highly productive areas of production, value adding largely takes the form of service activities. Thus the employment problem in Germany results not from outdated activity structures; the causes are rather those macroeconomic reasons to which the DIW has repeatedly drawn attention⁷. German economic policy must ensure that the framework of macroeconomic conditions is changed to allow jobs to be created. Whether these jobs are created in certain branches or activities is of secondary importance. Having said this, in Germany, too, it is to be expected that more than two out of every three new jobs created will be service jobs. Even so, a quarter of new jobs will be created in industry.     

Efficiency of Cooperatives and Investor Owned Firms Revisited

The objectives of dairy processing cooperatives differ from those of investor‐owned firms (IOFs). However, the literature usually assumes the same performance measures for cooperatives vis‐a‐vis IOFs. This study compares the performance of dairy cooperatives and IOFs in major European dairy producing countries. A traditional input oriented approach is used and two alternative approaches are used to account for the differential objectives of cooperatives. Cooperatives’ performance differs across the two approaches from being outperformed by IOFs using the input oriented approach to outperforming them when using an approach that is more in line with cooperatives’ objectives.     

Handlungsoptionen für die Rentenpolitik — Wie kann Alterssicherung nachhaltig(er) werden?

This article explores how German pension and retirement policy could be made more sustainable, focusing on selected current options for action rather than attempting to provide a comprehensive overview. Before turning to specific problems and perspectives, the article first discusses key challenges as well as opportunities for sustainable old age security in Germany and the European Union, and then applies these findings to attain a better understanding of acute problems.