Government interventions in banking crises: effects of alternative schemes on bank lending and risk taking

We analyse the effects of policy measures to stop the fall in loan supply following a banking crisis. We apply a dynamic framework in which a debt overhang induces banks to curtail lending or choose a fragile capital structure. Government assistance conditional on new banking activities, like on new lending or on debt and equity issues, allow banks to influence the scale of assistance and externalise risks, implying overinvestment or excessive risk taking or both. Assistance without reference to new activities, like granting lump sum transfers or establishing bad banks, does not generate adverse incentives, but may have higher fiscal costs.     

Tax enforcement and corporate profit shifting

We present empirical evidence suggesting that weak tax enforcement proxied by the extent of tax evasion in a country acts like a lower corporate tax rate in attracting profits of multinational corporations.     

Are wages equal across sectors of production?

The assumption that national labour markets are homogeneous across tradable and non‐tradable goods is common in multisector (open‐economy) macro models and crucial for the prominent Balassa–Samuelson hypothesis. To test it, this study introduces a novel, theory‐based method of distinguishing the tradable and non‐tradable sectors to the Balassa–Samuelson literature and employs modern empirical methods and a large and detailed macro dataset. It finds that both the internal relationship between productivity and wages in the tradable and non‐tradable sectors postulated by the Balassa–Samuelson hypothesis and its external transmission mechanism are rejected.     

Acceptance of Genetically Modified Foods with Health Benefits: A Study in Germany

A study was carried out in Germany in order to assess consumers' acceptance of genetically modified (GM) foods with health benefits (bread, yohurt and eggs). Acceptability of GM foods increases when its source does not involve animal products such as eggs. Three factors have been identified as direct antecedents of the acceptance of GM foods: respondents' attitude towards biotechnology, health consciousness, and time pressure, being the first one the most salient one. Price consciousness has an indirect positive impact (mediated by health consciousness) upon acceptance of GM products. Males were more likely to accept GM foods with health benefits.     

Segmentation of German Consumers Based on Perceived Dimensions of Luxury Food

Recent trends in the German food sector have shifted and segmented consumer consumption motives toward indulgence, quality, and sustainability. Simultaneously, in Western countries there has been a change in luxury consumption motives, shifting emphasis to hedonism, self-actualization, and quality instead of prestige. These parallel developments give rise to the question of how food is related to luxury. This study investigates the perceived dimensions of luxury food and outlines a number of segmented consumer groups based on these dimensions. By means of principal component and cluster analyes, seven dimensions were revealed, which generated four consumer segments. Six of the perceived dimensions of luxury food correspond to those that are found within general luxury goods and services. Sustainability and authenticity form a further dimension, mirroring new luxury values. In the cluster analysis, two segments can be identified as target groups for classic premium foods, whereby one group is predominated by new luxury values and the other is expected to buy lower-quality food.     

Core Organic Taste: Preferences for Naturalness-Related Sensory Attributes of Organic Food Among European Consumers

Consumers’ preferences for organic food have evolved in recent years, moving from altruistic values to more egoistic buying motivations, such as health promoting or nutritional aspects and sensory properties. Hypothesizing that organic consumers have peculiar preferences for naturalness-related sensory attributes, we developed the concept of the “core organic taste” based on the principles of a wholesome nutrition. This article investigates to what extent the “core organic taste” is relevant across different European countries and its potential relevance for food marketing. A sample of 1,798 organic food consumers was interviewed during 2010–2011 in six European countries. Explorative factor analysis, correlation analysis, ANOVA, and post hoc tests were applied to analyze the data. Results show that the “core organic taste” is not applicable for all countries. Indeed, for most countries only single elements seem to be relevant. However, for Germany and Switzerland the “core organic taste”—representing the first “taste style”—has proven its potential value and points at the need for more research in this field. Depending on the country, product developers and marketers could potentially use different elements of the “core organic taste” to better meet organic consumers’ wishes and expectations. Finally, recommendations and suggestions for practitioners and academia are provided.     

Markttransparenz und Geheimwettbewerb? Das Beispiel Rohmilchmarkt

Das Bundeskartellamt hat sich im Juni 2011 mit Marktinformationssystemen auf dem Rohmilchmarkt besch?ftigt und die Auffassung vertreten, dass auf diesem Markt eine zu hohe Markttransparenz herrsche. Dies reduziere den für einen funktionierenden Markt erforderlichen Geheimwettbewerb. Dem widersprechen die Autoren, da die Besonderheiten des Rohmilchmarktes gegen eine Einschr?nkung der Transparenz sprechen. Zunehmende Transparenz durch bessere Preisvergleichsm?glichkeiten im Internet stellt den Grundsatz des Geheimwettbewerbs auch auf anderen M?rkten in Frage.     

Surety Bonds with Fair and Unfair Pricing

Surety bonds are instruments used in public and private procurement to avoid the problem of contractor bankruptcy. A surety company issuing such a bond guarantees to either finish the project itself or pay the bond to the procurement agency in case of contractor's bankruptcy. This situation is analysed under the assumption that the bond is either priced fairly, or a risk loading that is proportional to the money at risk is imposed. If the surety is priced fairly, full insurance (or even overinsurance) is optimal. If the surety is priced unfairly, more solvent contractors are more likely to win, thus the problem of abnormally low tenders is alleviated.     

Farmers' Acceptance of the Organic Certification System in Germany: A Partial Least Squares Model

The institutional framework of the certification scheme is a crucial factor in the future success of the organic market. Increasing complexity and a couple of scandals indicate that current control structures might be insufficient. A better understanding of farmers' attitudes is necessary to increase acceptance and to guarantee the longer term success of the organic certification system. By means of a conceptual framework based on the technology acceptance model, an investigation was conducted into acceptance of the organic certification system in Germany. The empirical basis of the study was a survey conducted among organic farmers in Germany. Partial least squares was used as a multivariate analysis technique to estimate the parameters of the proposed causal model. The findings indicate that the majority of farmers accept the present organic certification system but are not convinced of its cost-benefit relationship.