Cost Inefficiency and the Holding of Non-traditional Assets by Solvent Stock Thrifts

In contrast to greater restrictions on thrifts' non-traditional assets under FIRREA, Congress is considering new legislation forcing thrifts to convert to banks. Hence, the efficiency implications of product diversification for thrifts is an important issue. We examine the relation between thrifts' movement into non-traditional assets and the operating inefficiency of adequately capitalized stock thrifts in 1988 and 1994. We estimate inefficiency scores for individual thrifts for each year using a stochastic cost-frontier methodology. In a second step, we regress these scores against measures for movement into non-traditional assets. We find a significant fall in inefficiency with a rise in holdings of both traditional and non-traditional assets. Our results suggest that greater diversification privileges for thrifts should be beneficial to the health of the industry.     

Deutlicher Anstieg der Nettozuwanderung nach Deutschland

Since 2010 net immigration to Germany has risen significantly. Net immigration to Germany in 2012 is estimated to total nearly 400 000 people. Influxes of such a magnitude have significant macroeconomic implications. While in the long run they increase the domestic labour force and hence potential output, they moderate wages and prices in the short run. This article investigates the determinants of immigration to Germany and its outlook for the coming years. It shows that differences in employment opportunities in Germany and in the rest of Europe largely explain migration flows. Owing to Germany’s attractive labour market and the expected slow recovery in neighbouring Europe, cumulative immigration to Germany is likely to exceed two million by 2017.     

Zielgruppenorientierung und Hybridität als Marketingtreiber im Direktvertrieb

Durch die rasche Verbreitung neuer Vertriebskan?le stellt sich die Frage, wie die Marketinginstrumente zur Steigerung des Vertriebserfolges optimal aufeinander abgestimmt werden k?nnen. Bei der Suche nach einer effektiven Marketinglogik setzt die Oswald Nahrungsmittel GmbH in erster Linie auf eine Kombination von Zielgruppenorientierung und hybriden Vertriebsstrukturen — und hat beispielsweise so die Effektivit?t einer Direct-Mailing-Kampagne gesteigert.     

On the optimality of joint taxation for noncooperative couples

We present a noncooperative model of a family's time allocation between work and a home-produced public good, and examine whether the income tax should apply to couples or individuals. While tax-induced labor supply distortions lead to overprovision of the public good, spouses' failure to internalize the collective effect of their choices points towards underprovision. A large parameter range exists for which a move from individual to joint taxation improves the welfare of both spouses. The source of Pareto-improvement consists in moving the level of the public good closer to its first-best, while an adjustment of intra-family transfers compensates the secondary earner for the increased tax load.     

Auditor Lobbying for Accounting Standards: The Case of Banks and Savings and Loan Associations

This study examines auditor lobbying on seven proposed US accounting standards which affect banks and savings and loan associations. Evidence is provided in support of the Watts and Zimmerman (1982, 1986) theory on auditor lobbying. Watts and Zimmerman (WZ) hypothesise that auditor lobbying is a function of the client-manager position and a set of wealth effect variables. These variables may provide an incentive for auditors to disagree with their clients on proposed accounting issues. The WZ model is modified by including an audit risk variable. Results show that the model is statistically significant and that the identified wealth and audit risk effects are significant explanatory variables of auditor lobbying behaviour.     

Science in a double-bind:: Gregory Bateson and the origins of post-normal science

The work of Gregory Bateson, particularly his principles for a new kind of science which, in 1958 “had as yet no satisfactory name”, is revisited as a foundation for post-normal science and adaptive approaches to management of complex environmental problems. The addition of usefulness and relevance of results to decision-making as quality criteria in post-normal science implies inquiry into context at different levels of complexity (what Bateson refers to as deutero-learning). This in turn implies emphasis on processes that facilitate inclusion of diverse perspectives—which facilitates an understanding of relationships among different aspects of a problem; also, social learning, an adaptive approach to valuation that also inquires into the process by which values are constructed, and a reflexive approach to decision-making. Though marginalized from policy discourse, Bateson's principles provided the basis for the eventual development of a new shared understanding.     

Reconciling Corporate Citizenship and Competitive Strategy: Insights from Economic Theory

Neoclassical and Austrian/evolutionary economic paradigms have different implications for integrating corporate social responsibility (corporate citizenship) and competitive strategy. Porter’s “Five Forces” model implicitly rests on neoclassical theory of the firm and is not easily reconciled with corporate social responsibility. Resource-based models of competitive strategy do not explicitly embrace a particular economic paradigm, but to the extent their conceptualization rests on neoclassical assumptions such as imperfect factor markets and profits as rents, these models also imply a trade-off between competitive advantage and corporate social responsibility. Differences in Austrian/evolutionary economic model’s assumptions about equilibrium, profits, and other economic concepts allow this paradigm to embrace alternative views of strategy such as the activities or dynamic capabilities views. These alternative views of strategy focus on learning and adaptation; they align more easily with corporate social responsibility. In practice this alignment comes about because social engagement facilitates the learning and adaptation that are a source of competitive advantage. Among the many business arguments for CSR such as improved employee morale/productivity or brand differentiation, this view prioritizes innovation.