The Swedish industrial support program of the 1970s revisited

The economy-wide dynamic cost-benefit study of the Swedish industrial subsidy program 1976 through 1984 (Carlsson et al. Res Policy 10(43):336–354 1981; Carlsson J Ind Econ 32(1):9–14, 1983a, b) is revisited in light of later economic development. Since the Swedish Micro to Macro model (Eliasson Am Econ Rev 67(1):277–281 1977a, 2017a) was used for quantification, this article is both (1) a study on the calibration of high dimensional micro-based and nonlinear economic systems models, and (2) a post inquiry into the empirical credibility of the cost-benefit calculations performed. We find that the Micro-based Macro model represents the minimum of detailed resolution necessary for the dynamic cost benefit calculations of the micro interventions in the Swedish economy we study. Even though the increased model complexity meant significant parameter calibration difficulties, a thoroughly researched model specification with exactly defined policy interfaces (with the markets of the economy) should take priority over parameter estimation problems, and always be preferred to estimating the parameters of a wrongly specified model perfectly. The oil price shocks of the 1970s caused radical market disorder in the western economies, bankrupting some 35% of Swedish manufacturing and threatening the Swedish government with massive unemployment. We confirm the earlier results that the government choice of a radical employment rescue policy came at enormous social cost in the form of economic stagnation, and still did not prevent the unemployment of the rest of OECD Europe from hitting Sweden a decade later, and persisting well into the next millennium. According to an alternative simulated policy scenario on the model, had the subsidies been replaced with a general lowering of the payroll tax of the same magnitude and the consequent increase in unemployment taken immediately during 1976–1980, production structures would have been radically and rapidly reorganized, normal employment would have been rapidly restored, and neither the stagnation nor the radical increase in unemployment of the early 1990s would have occurred. In retrospect we see no reason to worry about the empirical credibility of this computed dynamic trade off between Keynesian demand and Schumpeterian supply effects (caused by resource reallocations and endogenous structural change due to the price change), as we did then. We conclude with certainty that this trade-off would not even have been discovered as a possibility had we used a traditional model that did not embody these micro-macro linkages.     

Technical basis for collective (Group) pensions insurance in Norway — K 1946

I. Introduction.

In 1933 O. Aabakken in this journal ¹ Olav Aabakken: “A New Basis of Calculation for Collective Pensions Insurance in Norway”. 1933. dealt with the collective (group) pensions insurance in Norway and especially with the technical basis — K 1931 — which was adopted in 1931 by the life offices in common for this branch of insurance. This basis was worked out from the experiences since 1917, when collective pensions insurance was introduced in Norway. When the National old-age insurance was introduced in 1936, the life offices adopted some new collective pensions benefits which could be employed in the cases where an adjustment to the National old age insurance was desirable. O. Böe has described the mode of adjustment. ² Olav Böe: “Relations between Collective Pensions Insurance, Employer's Pension Funds and National Insurance in Norway”. Transactions of the Eleventh International Congress of Actuaries, Paris 1937.      

The value of commuting time in an empirical on-the-job search model – an application based on moments from two samples

This article estimates the Value of Commuting Time (VOCT) among Swedish males in an empirical on-the-job search model. It uses a large sample of employee-establishment linked data obtained from administrative registers. The sample lacks information on mode choice for the journey to work. We therefore estimate a mode choice model on another sample and use this model to link the administrative data to the relevant set of travel times, costs and distances. The VOCT is found to be 1.8 times the net hourly wage rate in the sample. The relatively high estimate results from a high VOCT among cohabiting men.     

Branding in the age of social media firestorms: how to create brand value by fighting back online

ABSTRACT

Leading research on social media firestorms typically advises managers to quickly quell the backlash by appeasing brand critics. Drawing on crisis communications and branding research, we offer a radically different perspective and argue that brands can benefit from fighting back online. Through a netnography of a moral-based firestorm, we contribute to the marketing and crisis communications literatures by identifying the escalation strategy as a way to build brand value; explaining how brands can activate supporters; and providing guidance on how to assess these morally steeped events. We advance branding research by identifying how managers can provoke consumer-generated brand stories; and uncovering the hidden benefits of negative consumer voices. Finally, we outline a new perspective on how brands are dialogically constructed through a process we call ‘flyting’.     

Attitudinal loyalty and trust in entrepreneurship: building new relationships

This paper studies the impact of attitudinal loyalty and trust in entrepreneurship, following a client-focused strategy. In this context, trust and commitment are the cornerstone of relationship marketing, and contributes positively to achieving attitudinal loyalty, which is suitable for the maintenance of relationships over time. This variable also acts as a facilitator or mediator on the influence satisfaction has on loyalty. We show that satisfaction has a positive impact on trust and attitudinal loyalty. Following structural equation modelling methodology we test all the relationships in a sample composed by travel agency customers.     

Stock-Price Effects of Internet Buy-Sell Recommendations: The Motley Fool Case

The Motley Fool has attracted significant notoriety for stock market buy‐sell advice on the Internet. Across five different investment portfolios, Motley Fool buy recommendations appear to generate an average 1.62% rise in stock prices on the announcement day (0), and 2.40% returns over the announcement period (?1, +1). Sell recommendations seem to cause a ?1.49% announcement day return, and a ?3.33% announcement period return. Small cap growth stock buy recommendations for The Motley Fool's flagship Rule Breaker Portfolio are associated with returns of 3.66% on the announcement day, and a 6.15% return over the announcement period. These findings suggest herd‐like behavior among Internet investors, and that such announcements are more newsworthy than second‐hand buy‐sell recommendations published in traditional print and electronic media.     

Principles for sustainability rating of investment funds

During the last decade, the idea of sustainable investments hit the market. Investors both private and institutional started to supplement financial considerations with social and ecological ones. Meanwhile the supply of mutual funds in the ‘green’ investment sector increased enormously. Currently in Europe about 300 mutual funds are available that are managed according to sustainability and social responsibility. Potential investors face the difficulty of keeping track of the various funds and choosing among them based on a reliable comparative assessment. This paper outlines the basic principles and methods on which such a comparative sustainability rating is based. The method was designed to be analogous to rating of the funds financially. The sustainability rating is based on assessment of the research processes in the fund management as well as investigation of the fund portfolio in terms of composition and sustainability performance. It should support investors in their investment choices by offering them a third party view. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

GUEST EDITORIAL: Cutting corners in chemical risk limitation

The first genetically modified crops and foods to be approved for commercial use in the European Union have prompted intense controversy. Food retailers and processors have been forced to take up the concerns voiced by their customers. New networks of groups have formed to oppose the technology. In response to these pressures, regulators who approved the products have had to reconsider questions they had previously dismissed or officially resolved. Governments have devised more precautionary measures of various kinds. For example, they have increased the burden of evidence for demonstrating safety, have broadened the practical definition of the ‘adverse effects’ which must be prevented, and have devised marketstage precautions for such effects. These extra measures manage the risk debate as well as any risks. In such ways, the technocratic model of European harmonization is being challenged and superseded. This may allow differences in national practices to be viewed as valuable expert resources for a different harmonization model, rather than as deviations from a universal rational norm. Regulatory conflicts offer precautionary opportunities, which could lead to more flexible and democratic procedures. Theoretical perspectives – on risk, uncertainty, precaution, European integration, expertise and the internal market – help illuminate these possibilities.