Self-employment and Liquidity Constraints: Evidence from Finland

Using a large Finnish micro data set, I study how wealth influences the decision to become self-employed. The main result is that personal wealth increases the probability of a person becoming self-employed. This suggests the presence of liquidity constraints.
JEL classification: J 23; M 13     

Conflicts of Interest and Market Illiquidity in Bankruptcy Auctions: Theory and Tests

I develop and estimate a model of cash auction bankruptcy using data on 205 Swedish firms. The results challenge arguments that cash auctions, as compared to reorganizations, are immune to conflicts of interest between claimholders but lead to inefficient liquidations. I show that a sale of the assets back to incumbent management is a common bankruptcy outcome. Sale-backs are more likely when they favor the bank at the expense of other creditors. On the other hand, inefficient liquidations are frequently avoided through sale-backs when markets are illiquid, that is, when industry indebtedness is high and the firm has few nonspecific assets.     

BEYOND NEW PUBLIC MANAGEMENT: AGENCIFICATION AND REGULATORY REFORM IN NORWAY

In this paper we describe some trends in the development of regulatory reform in general and the agency form in particular. The focus is on the case of Norway by describing the reform process and some lessons learned. We discuss the development through the prism of different theoretical lenses such as instrumental, cultural and institutional environmental features. Finally, we draw some conclusions and discuss possible future developments beyond New Public Management by using a linear, a cyclical and a dialectical scenario.     

A Dual Approach to Nonconvex Frontier Models

This paper extends the links between the non-parametric data envelopment analysis (DEA) models for efficiency analysis, duality theory and multi-criteria decision making models for the linear and non-linear case. By drawing on the properties of a partial Lagrangean relaxation, a correspondence is shown between the CCR, BCC and free disposable hull (FDH) models in DEA and the MCDM model. One of the implications is a characterization that verifies the sufficiency of the weighted scalarizing function, even for the non-convex case FDH. A linearization of FDH is presented along with dual interpretations. Thus, an input/output-oriented model is shown to be equivalent to a maximization of the weighted input/output, subject to production space feasibility. The discussion extends to the recent developments: the free replicability hull (FRH), the new elementary replicability hull (ERH) and the non-convex models by Petersen (1990). FRH is shown to be a true mixed integer program, whereas the latter can be characterized as the CCR and BCC models.     

Strategies and goals of community-based injury prevention programmes--a mixed-methods study of 25 Scandinavian WHO Safe Communities

Documentation and analysis of prevention goals and interventions employed by community-based injury prevention programmes is vital to advance the knowledge and understanding of synergistic multi-strategy injury prevention programmes. This study examined the goals and interventions of 25 Scandinavian community-based injury prevention programmes in WHO-designated Safe Communities. Collection and analysis of quantitative data from survey questionnaires to the programme coordinators was followed by collection and analysis of qualitative data from structured interviews with programme coordinators from eight of the programmes. The results demonstrated that the programmes under study predominantly relied on "intuitive" and subjective methods for selecting interventions. The programmes largely failed to transform injury surveillance data into information and knowledge that could prioritize community safety strategies and measures, due to insufficient time and personnel resources. The results demonstrated the importance of combining passive approaches with active interventions. Educational efforts were considered essential to the programmes. The programmes preferred to rely on broadly stated goals rather than specific objectives.     

The theory of the experimentally organized economy and competence blocs: an introduction

This article presents the theory of the experimentally organized economy and competence blocs. The theory assumes that information is immense and that economic actors are boundedly rational. This makes practically all economic activities to some extent uncertain and unpredictable; they become experimental in nature. Economic growth is, hence, viewed as an evolutionary process of the discovery, use and selection of knowledge. So-called competence blocs—the minimum set of agents with different, but complementary competencies required to generate and commercialize new combinations—are identified as necessary for efficient resource allocation. The incentives given by the institutions to the actors in the competence bloc are crucial for economic performance.     

Export processing zones as catalysts

A potentially important indirect effect of export processing zones (EPZs) is the catalyst effect. The foreign affiliates attracted to the EPZs could stimulate local firms to begin to export by showing them how to produce, market, sell and distribute manufactured goods on the world market. Our results indicate a significant catalyst effect in Malaysia.     

The effect of trade on earnings--evidence from Swedish micro data

Using a large longitudinal data set, we study the effects ofincreased trade on earnings in the Swedish labor market. Earningsrespond significantly to changes in industry sales, whethergenerated by domestic market forces or international trade:Swedish exports (imports) raise (lower) annual earnings, butchanges in trade affect earnings just as any other shift inmarket conditions. We also examine whether the effects of tradevary by skill. We do not find systematic differences in theeffects of trade across the skill distribution.     

Cost-benefit rules in general disequilibrium

The consequences of imbalances in markets for goods and factors are the prime issues in many project evaluations. This is so in evaluations of measures like migration, manpower training programmes and plant locations. In the present paper a general disequilibrium model of a small open economy is used to generate evaluation rules to be used when markets do not clear through price adjustments.     

Technology development and adoption rates: Systems approach for agricultural research and extension

Adoption of new technology in peasant agriculture remains lower than expected. Failure to achieve expected returns is associated more with insufficiencies in the conduct of research than with external and economic factors such as price structure or lack of agricultural support services. This article sets out the case for national agricultural research and extension structures that emphasize on-farm research with a systems approach.