The effect of payment type on product-related emotions: evidence from an experimental study

Consumption and payments have been shown to be closely associated in consumers' minds. Based on the idea of ‘coupling’, it is hypothesized that product-related emotions will differ depending on payment type (i.e. repayment and prepayment). Moreover, it has been suggested that forecasted emotions do not always correspond to experienced emotions. This is tested in a longitudinal experiment, which simulated a saving and credit situation, and assessed forecasted and experienced product-related emotions. As hypothesized, prepayment led to more positive product-related emotions than repayment. Moreover, participants showed some inconsistencies between forecasted and experienced emotions. Implications for marketing and consumer education are discussed.     

CO2 abatement policy with learning-by-doing in renewable energy

This paper analyzes the implications of CO₂ abatement when there is endogenous technological change in renewable energy. A multi-sector numerical general equilibrium model for Denmark is proposed to reflect two basic assumptions about technological progress in renewable energy. First, there is learning-by-doing and unit costs of production are a decreasing function of cumulated output. Second, technological progress only benefits new vintages of capital. The learning-by-doing process is calibrated to match current projections for technological progress in wind-based electricity. The implications are a marked reduction in the total and marginal cost of abatement and a decline in the optimal level of near-term abatement.     

Solvency II,asset liability management,and the European bond market – theory and empirical evidence

It is already foreseeable that Solvency II will tie capital requirements to a very comprehensive risk definition including underwriting and market risks. The new regulatory framework will demand more sophisticated tools to detect interest rate risks on both sides of the balance sheet in an integrated approach. Efforts by life insurers to level these risks could lead to an increased demand for long term fixed income securities. At this point the question arises if this industry wide change in asset demand will have or already has had an impact on prices of long-term bonds and the yield curve in the Euro-Zone?     

Soziale Pflegeversicherung und Beihilfeverordnungen: Ein Leistungsvergleich

Zusammenfassung   Im Pflegefall werden Beamte und Angestellte von unterschiedlichen Versorgungseinrichtungen unterstützt. Wie sind die Regelungen für diese beiden Besch?ftigungsgruppen ausgestaltet? Wo liegen die Unterschiede? Schneiden Beamte bei einem Leistungsvergleich besser ab? Dr. Jasmin H?cker, 29, Tobias Hackmann, 27, Dipl.-Volkswirt, und Thorsten Henne, 25, sind Mitarbeiter am Institut für Volkswirtschaftslehre und Finanzwissenschaft I an der Albert-Ludwigs-Universit?t Freiburg.     

Why ‘Good Governance’ Fails: Lessons from Regional Economic Development in Colombia

By critically reviewing different strands of literature on institutional change and development, this essay argues that, in order to fully understand subnational economic development, we need to move away from ‘good governance' explanations in which geography‐specific analyses of power structures and elite interests are largely absent. Using findings for Colombia and insights from economic geography and heterodox political economy theories, this essay gives theoretical and conceptual guidelines and approximations for future studies on regional economic development. The contribution provides a place‐based discussion of how the historically evolved distribution of power balances, context‐specific elite interests, and the interaction between place‐bound actors and place‐less dynamics affect subnational institutional arrangements shaping policies and development outcomes. The conclusions drawn are not limited to Colombia and will prove beneficial to researchers studying regional economic development in subnational contexts elsewhere in the world.     

Top managers in the digital age: Exploring the role and practices of top managers in firms' digital transformation

This study explores the role and facilitating actions of top managers in response to the digital transformation. Building on 27 in-depth interviews with top managers and close associates from large German firms, we find that top managers respond to the digital transformation by engaging in three key actions: understanding digitalization, setting the formal context for digitalization, and leading change. Moreover, findings emphasize that top management team support is essential in firms' digital transformation. Overall, this study contributes novel insights about the consequences of top managers for firms and establishes an initial foundation for investigating top managers in the digital age.     

Financial Development and Inequality in the Global Economy

We build a heterogeneous firms model with firm‐specific wages and credit frictions to study the role of financial development for inequality in the global economy. If there are many small (non‐exporting) firms, better access to external funds reduces wage and profit inequality as well as unemployment. In contrast, if there are many large (exporting) firms, financial development might have opposite effects – especially if trade costs are low. In summary, the implications of financial development for inequality depend on the size distribution of firms and on the costs of exporting. Trade liberalization, however, raises inequality unambiguously.