Tariff Aggregation and Market Access: An Empirical Assessment for Canada and the EU

We use two alternative approaches to analyze the trade restrictiveness of the Canadian and EU import tariff structures for agricultural goods. The first involves direct, detailed calculations at the tariff line level of summary protection indexes. We compare the newer method of welfare and import equivalent indexes to the standard trade weighted method of aggregation. The second approach involves indirect index calculations, where we map tariff data into a computable general equilibrium (CGE) model, and then use the model to generate the summary. Each approach has its advantages. The direct tariff line approach reflects sector detail more comprehensively, but misses the sector and regional linkages captured by the CGE model. As an empirical illustration we simulate the impact of market access liberalization proposed in the WTO draft modality paper of February 2008. Pursuant to a tiered formula, we reduce bound and applied tariffs at the 6‐digit tariff line level. We find that the direct tariff line approach and the hybrid tariff line CGE approach yield similar results. These indicate that access to Canada's agricultural sector is particularly restricted for milk imports from high‐income countries. In contrast, developing countries have particular difficulty accessing the EU's Single Market, where high trade restrictions on beef, sugar, and rice are most relevant. Nous avons utilisé deux méthodes différentes pour analyser le caractère restrictif des structures du tarif douanier à l'importation du Canada et de l'UE pour les produits agricoles. La première consiste en des calculs directs détaillés des indices de protection au niveau de la ligne tarifaire. Nous avons comparé la nouvelle méthode des indices welfare−equivalent et import−equivalentà la méthode d'agrégation standard pondérée en fonction des échanges. La deuxième méthode consiste en des calculs d'indices indirects, où nous insérons les données tarifaires dans un modèle informatique d'équilibre général (IEG) qui sert à générer le sommaire. Chaque méthode a ses avantages. La méthode de la ligne tarifaire directe fait ressortir les détails du secteur, mais ne détecte pas les liens sectoriels et régionaux capturés par le modèle IEG. En tant que modèle empirique, nous avons simulé l'impact de la libéralisation de l'accès aux marchés proposée dans le projet révisé de « modalités » de l'OMC présenté en février 2008. Conformément à la formule étagée, nous avons diminué les limites et avons appliqué des tarifs au niveau de ligne tarifaire à 6 chiffres. Nous avons trouvé que la méthode directe de la ligne tarifaire et la méthode hybride de la ligne tarifaire (IEG) donnaient des résultats similaires. Ces résultats ont indiqué que l'accès au secteur agricole canadien est particulièrement restreint dans le cas des importations de lait provenant des pays à revenu élevé. Par contre, les pays en développement éprouvent de la difficultéà accéder au marché unique de l'UE, où les restrictions commerciales sur le bæuf, le sucre et le riz sont les plus importantes.     

Business models in the search for efficiency: the case of public financial intermediaries

This paper presents an optimal business model configuration for public financial intermediaries (PFIs). Using nonparametric techniques on Italian public financial corporations, the most efficient business models combined asset diversification and income specialization. These business models were unaffected by external financial turmoil, due to weak connections between PFIs and the traditional financial circuit; and public–private ownership is more efficient than purely public ownership, regardless of the business model adopted.     

The City as Experiential Space: The Production of Shared Meaning

Cities obviously differ from each other. Sociologically, this difference becomes significant when your aim is to ascertain the influence of local factors in a globalizing world or to understand processes of societal differentiation. To do so, scholars in the areas of urban and regional sociology, community research and local policy can turn to a number of theoretical and empirical studies on cities, municipalities, or, less specifically, the local setting as societally formative units that resist global influences. In this article I continue to ask how cities socialize in a way that allows shared experience to emerge in communities. Grounded in the sociology of knowledge shaped by German thinkers such as Max Weber, Alfred Schütz, Karl Mannheim, Peter L. Berger and Thomas Luckmann, my aim is to illustrate that specific stocks of knowledge based on habitualized experience arise in every city. Intrinsic logic captures the hidden structures of cities as locally well‐established, operative processes of sense‐making along with their physical, material manifestations.     

Werbeanzeigen von Versicherungsunternehmen zur Aufklärung über Gesundheitsrisiken

Insurers offering health-related services as accident insurance, health insurance coverage or nursing insurance for instance have a legitimate interest in reducing costs of ill insured. Information about health-conscious behavior and health risks provided by advertisement may contribute this impact. In an experimental study, we analyze the effect of credibility of advertisement and independent third-party trustmark on health risk perception and health behavior intentions. Results demonstrate significant influence of credibility of advertisement on health risk perception and higher credibility for advertisement with independent trustmark. Furthermore, higher health risk perception conducts to healthier behavior intentions.     

Early Tracking and the Misfortune of Being Young

Recent research suggests that the relative age of a student within a grade has a causal effect on educational achievement, and that this effect fades with the duration of schooling. In this study, we estimate the causal relative‐age effect on track choice in Austria, a country where students are first tracked in grade 5 (at the age of 10 years), and again in grade 9. We find a strong positive relative‐age effect on track choice in grades 5–8. The age effect persists beyond grade 8 for students from less‐favorable socioeconomic backgrounds and students in urban areas.     

Testing the trade credit and trade link: evidence from data on export credit insurance

Trade finance has received special attention during the financial crisis as one of the potential culprits for the great trade collapse. Several researchers have used micro level data to establish the link between trade finance and trade, especially so during the financial crisis, and have found diverting results. This paper analyses the effect of trade credit on trade on a macro level through a whole cycle. We employ Berne Union data on export credit insurance, the most extensive dataset on trade credits available at the moment, for the period of 2005–2011. Using an instrumentation strategy we can identify a significantly positive effect of insured trade credit, as a proxy for trade credits, on trade. The effect of insured trade credit on trade is very strong and remains stable over the cycle, not varying between crisis and non-crisis periods.     

Behavioral premium principles

Decisions in Economics and Finance - We define a premium principle under the continuous cumulative prospect theory which extends the equivalent utility principle. In prospect theory, risk attitude...     

The effect of shipping fee structure on consumers’ online evaluations and choice

This research examines how consumers respond to different shipping fee structures. Focusing on two of the most common shipping fee structures, flat rate shipping and threshold-based free shipping, we first demonstrate that offer evaluations are less (more) favorable with threshold-based free shipping when order value is below (above) the free shipping threshold compared to flat rate shipping. However, when an alternative more important referent is present, the effect of shipping fee structure is attenuated. Second, we show that although perceptions of shipping fees as a profit generator are higher (lower) under threshold-based free shipping relative to flat rate shipping for order values below (above) the free shipping threshold, providing a justification for the shipping fee by explicitly linking it to delivery costs encourages consumers to view the shipping fee as a cost of doing business rather than as a profit generator, thus raising offer evaluations.     

How do European firms adjust their labour costs when nominal wages are rigid?

Although workers' nominal wages are seldom cut, firms have multiple options available if they require adjustments in their wage bills. We broaden the analysis of relative (in)flexibility in labour costs by investigating the use of other margins of labour cost adjustment at the firm level beyond base wages. Using data from a unique survey, we find that European firms make extensive use of other components of compensation to adjust the cost of labour. Interestingly, firms facing base wage rigidity are more likely to use alternative margins of labour cost adjustment; therefore there appears to be some degree of substitutability between wage flexibility and the flexibility of other cost components. Changes in bonuses and non-pay benefits are some of the potential margins firms use to reduce costs. We also show how the margins of adjustment chosen are affected by unionisation and firm and worker characteristics.