Flexible collective bargaining agreements: Still a moderating effect on works council behaviour?

We analyse the interaction between different labour market institutions in Germany, namely, industry‐level bargaining and firm‐level codetermination by works councils. In particular, we are interested in the moderating effect of flexibility measures on the link between the existence works councils and collective agreements on wages and productivity. In presence of institutional changes, the question is whether works councils in covered plants still generate rather than redistribute rents, given recent decentralisation processes in the German system of industrial relations. We augment a theoretical model to provide hypotheses, which are then tested using empirical analysis of representative German plant level data. We find that the existence of flexibility provisions in collective bargaining agreements does not alter the effect of works council on firms' wages. We find, however, that with flexibility provisions works council presence is associated with higher productivity levels than without such provisions. These findings, however, depend on the level of collective bargaining: they can only be observed in plants covered by industry‐level contracts, but do not hold in plants covered by firm‐level contracts.     

Sustainability concerns in luxury supply chains: European brand strategies and French consumer expectations

Sustainability in supply chain management has become a concern in both research and practice. Although consumption and purchasing have been significantly explored in the luxury sector, a gap in supply chain studies is still evident. Therefore, the aim of this article is to examine how industry bodies and supply chain partners address sustainability concerns in the European luxury sector and how they respond to consumer expectations. In an explanatory study, we have collected data about sustainable supply chain practices in 11 European luxury good companies, by interviewing and surveying 13 managers. In a first consumer study, we held interviews with French luxury consumers in Bordeaux about their sustainability expectations (N = 170). The results show that while the distribution of attention is dependent on the respective supply chain activities, luxury goods companies address sustainability concerns and aim to take responsibility for their activities. However, the emphasis is on the dimension of economic sustainability. A comparison with sustainability expectations of French luxury goods consumers suggests that business practices are not perfectly well aligned with these expectations. Consumers put more emphasis on social and environmental sustainability dimensions. On the other hand, business activities concerning waste reduction and raw material management rather well match consumer expectations.     

Neuregelung des bundesstaatlichen Finanzausgleichs: Umverteilungs- und Verbleibseffekte

The paper explores effects of the revision of the system of fiscal equalisation in Germany as recently agreed upon by the federal and state governments. More specifically, using a simulation analysis, it explores the distribution of gains and losses associated with changes in horizontal and vertical fiscal flows. In addition, the paper determines the degree of fiscal redistribution. While the degree of fiscal redistribution is found to be reduced for major revenue sources, local tax revenues are subject to much higher redistribution than under the status quo. Increases in local tax revenues might even result in total revenue losses for some states.     

Trust and controllability in venture capital fundraising

This study discusses a model of success in venture capital (VC) fundraising. We develop this model based on agency and trust theory. The model is tested against quantitative data collected from 151 limited partners (LP) with headquarters predominantly in North America and Europe. Beyond the well-known criterion of the VC firm's track record, results suggest that trust and perceived controllability shape the investment decisions of those LPs. Moreover, antecedents of these main factors are evaluated. In sum, this study shows how fundraising VC firms can systematically manage the fundraising process.     

Time series momentum

We document significant “time series momentum” in equity index, currency, commodity, and bond futures for each of the 58 liquid instruments we consider. We find persistence in returns for one to 12 months that partially reverses over longer horizons, consistent with sentiment theories of initial under-reaction and delayed over-reaction. A diversified portfolio of time series momentum strategies across all asset classes delivers substantial abnormal returns with little exposure to standard asset pricing factors and performs best during extreme markets. Examining the trading activities of speculators and hedgers, we find that speculators profit from time series momentum at the expense of hedgers.     

Lobbying and the international fight against tax havens

Despite a variety of measures taken by high‐tax countries, the international fight against tax havens so far remains rather ineffective. This paper introduces offshore lobbying as a possible explanation for this observation. The author analyzes the international fight against tax havens in a two‐country model, in which the onshore country exerts pressure on domestic profit‐shifting firms and the tax haven's government lobbies against this measure. In this framework, he finds that pressure and lobbying are strategic substitutes and that there is an extensive margin incentive for offshore lobbying. Furthermore, when starting at initially high costs for profit shifting, a reduction in these costs leads to fewer profit‐shifting firms. Finally, when allowing for a second low‐tax jurisdiction, the overall level of lobbying increases, but less than proportionally.     

On the Incentive Effects of Sample Size in Monitoring Agents – A Theoretical and Experimental Analysis

When agents compete for a bonus and their productivity in each of several possible occasions depends stochastically on (constant) effort, the number of times this is checked to assign the bonus affects the level of uncertainty in the selection process. Uncertainty, in turn, is expected to increase the effort made by competing agents (Cowen and Glazer, 1996; Dubey and Haimanko, 2003; Dubey and Wu, 2001). Theoretical predictions are derived and experimental evidence is collected for two competing agents, with the bonus awarded to that agent who outperforms the other. Sampling occasions (1 or 3), cost of production (high or low), cost symmetry (asymmetric or symmetric), and piece‐rate reward are manipulated factorially to test the robustness of the effects of uncertainty. For control, a single‐agent case is included. Results indicate that, for tournaments, greater uncertainty does indeed lead to greater than expected effort and lower average variable costs.     

Ökonomische Folgen eines Atomausstiegs in Deutschland

Nach der Atomkatastrophe in Fukushima hat die Bundesregierung beschlossen, bis Mitte Juni die Zukunft der Atomenergie in Deutschland zu überdenken. Dabei k?nnen unterschiedlich weitgehende Szenarien betrachtet werden. Sie reichen von einer Rücknahme der im letzten Herbst beschlossenen Laufzeitverl?ngerung bis hin zum vollkommenen Ausstieg aus der Kernkraft. Die Autoren vertreten grunds?tzlich die Auffassung, dass die wirtschaftlichen Folgen eines Atomausstiegs zu bew?ltigen sind. Mit einer Steigerung der Energiepreise muss allerdings gerechnet werden — wie deutlich diese ausf?llt, und welche Referenzwerte herangezogen werden müssen, h?ngt von vielen Faktoren ab.     

A note on χ-values

In this note, we generalize the χ^Sh-value for all efficient TU-values     

Operating Strategies for Battery Storage Systems in Low-Voltage Grids to Limit the Feed-In Power of Solar Power Systems Using Fuzzy Control

Germany’s energy turnaround is leading to an increasing integration of photovoltaics (PVs) throughout its distribution grid. To ensure safe grid operation in times of high solar radiation, PV plants must either be throttled back to comply with the feed-in limitation or store a portion of their excess electricity in batteries. This paper presents a grid-optimized operating strategy for PV storage systems based on a Fuzzy Logic Controller that reduces peak feed-in and thus also PV curtailment losses. The Fuzzy Logic Controller uses data on PV power surplus and battery charge level as input variables. To obtain good results, the set of numerical parameters of the membership functions is enhanced by evolutionary programming.The energetic assessment shows that even small electrical storage capacities (<<5?kWh) reduce curtailment losses considerably when using the grid-optimized operating strategy. The economic assessment shows that, in 2016, investments in PV storage systems with large PV plants and small batteries have small (positive) Internal Rates of Return. The system efficiency of the battery storage has a small impact on the profitability of PV storage systems, whereas the cycle stability and the electricity purchase price have a large impact. Moreover, there is an economic benefit for plant operators to switch from the simple to the grid-optimized operating strategy. Solar forecast inaccuracies and variations in load and generation profiles have a negligible impact on the performance of the control algorithm.