Ten lessons from a quarter of a century of post-communist economic transformation

The dominant idea in the early post-communist economic transition was that an early and comprehensive radical economic reform programme was needed. This program was accompanied by a clear programme of political economy reform, which included; a clear understanding that the old system was finished, a political breakthrough, new political leaders, new economic policymakers, the swift elaboration of a reform programme, a functioning parliament, sufficient international financial support, fast implementation, public understanding, and the overruling of any need for consensus. In hindsight, all of these factors worked when they were present. Critics warned of too sharp an output fall, which did not come to pass, lagging institutional development, and neglect of social reforms. The biggest problem has become the absence of real property rights because of captured judicial systems in the post-communist countries not belonging to the European Union.     

“Want to” Versus “Have to”: Intrinsic and Extrinsic Motivators as Predictors of Compliance Behavior Intention

“Worthless,” “money burning,” or “black holes” is how media and professionals describe compliance practices today. Practitioners are unenthusiastic about control systems, codes of conducts, and systems for compliance management that are increasing in volume but not in effectiveness. In order to help practitioners clarify what actually makes employees comply with their compliance program, this study examines intrinsic and extrinsic motivators of 119 employees from procurement and sales. We contribute to the existing motivation literature, testing the self‐determination theory in low and high hierarchical levels. Our findings show that intrinsic motivators are more strongly and positively related to compliance intention on higher hierarchical levels than the lower ones. However, employees from higher hierarchies show overall less compliance intention than employees from lower hierarchies. © 2015 The Authors. Human Resource Management published by Wiley Periodicals, Inc.     

Economic diversification of a single-asset tourism city: evidence from Antalya†

It is often argued that the growth of single-asset tourism places is fragile because it is vulnerable to economic fluctuations and is based on specialization and localization economies that lead to an ever stronger lock-in process of path-dependent urban economic development and, in the end, slow growth. In this paper, it is doubted whether a high urban tourism growth implies an ever stronger specialization and an ever stronger lock-in. This paper shows that the growth of tourism stimulates the growth of related and unrelated industries and generates a diversification of the economy, even though some other sectors are crowded out. Antalya (Turkey) is selected as a case-study area not only because its economy is dominated by tourism (it is a good example of a single-asset tourism city), but also because its economy shows a tendency to economic diversification at the sectoral level. This diversification tendency is shown by means of a shift-share analysis and Herfindahl indexes.     

Price Rigidity in Turkey: Evidence from Micro Data

In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6,000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy.     

Early exercise of American put options: Investor rationality on the Swedish equity options market

Using Swedish equity option data, this study investigates how well the actual exercise behavior of American put options corresponds to the early exercise rules. The optimal exercise strategy is established in two ways. First, the critical exercise price, above which a put option should be exercised early, is computed and compared to the actual exercise price. Second, the exercise value of the option is compared to its market bid price. The results show that most early exercise decisions conform to rational exercise behavior, even though a large number of failures to exercise are found. Most of the faulty exercises can also be discarded after a sensitivity analysis, although several failures to exercise are considered irrational, even after taking transaction costs into account. © 2000 John Wiley & Sons, Inc. Jrl Fut Mark 20:167–188, 2000     

The New Game in Town: Competitive Effects of IPOs

We analyze the effect of initial public offerings (IPOs) on industry competitors and provide evidence that companies experience negative stock price reactions to completed IPOs in their industry and positive stock price reactions to their withdrawal. Following a successful IPO in their industry, they show significant deterioration in their operating performance. These results are consistent with the existence of IPO‐related competitive advantages through the loosening of financial constraints, financial intermediary certification, and the presence of knowledge capital. These aspects of competitiveness are significant in explaining the cross‐section of underperformance as well as survival probabilities for competing firms.     

Formulating standards for sustainable forest management in Canada

Over the past decade, but particularly in the years since Rio, many initiatives have surfaced in the name of sustainable forest management (SFM). There is now a growing literature recognizing new techniques in timber labelling and the certification of sustainable management systems. However, they have not yet been located adequately in wider political contexts, such as the new (non-governmental) approaches to regulatory compliance or the new corporate response to the western environmental movement. This article examines a leading SFM framework in Canada, known as the Z808 initiative. Co-ordinated by the Canadian Standards Association (CSA), it advances a system of standards pertaining to sustainable forest management. As a politically-driven process to translate the concepts and practices of sustainable resource management into a concrete form, the CSA experience is very revealing. The article reviews the origins and the parameters of the Z808 system. This is followed by a commentary and critique of the system, centred on four dimensions: the pivotal role of the management system approach, the treatment of sustainability as a conceptual goal, the enclosure of the public interest, and the underlying convergence of business and state interests within this third-party certification approach. In the case of Z808, the most crucial political choices have been made already, and the operational logic of the system can be clearly discerned. © 1997 John Wiley & Sons, Ltd and ERP Environment.     

Optimal taxation and redistribution in an OLG model with unemployment

This paper concerns redistribution via nonlinear income taxation in an overlapping generations model with two ability-types. We assume that the wage rates are determined by bargaining between unions and firms, meaning that the equilibrium is characterized by involuntary unemployment. We show that the policy instruments that are used to calculate the marginal labor income tax rate for each ability-type give rise to intertemporal tax base effects. In addition, since the relationship between the employment and the capital stock implies intertemporal production inefficiency at the second best optimum, imperfect competition in the labor market may itself justify capital income taxation.      

Likelihood-based inference for cointegration with nonlinear error-correction

We consider a class of nonlinear vector error correction models where the transfer function (or loadings) of the stationary relationships is nonlinear. This includes in particular the smooth transition models.