Extended Framework for Modeling Choice Behavior

We review the case against the standard model of rational behavior and discuss the consequences of various anomalies of preference elicitation. A general theoretical framework that attempts to disentangle the various psychological elements in the decision-making process is presented. We then present a rigorous and general methodology to model the theoretical framework, explicitly incorporating psychological factors and their influences on choices. This theme has long been deemed necessary by behavioral researchers, but is often ignored in demand models. The methodology requires the estimation of an integrated multi-equation model consisting of a discrete choice model and the latent variable model system. We conclude with a research agenda to bring the theoretical framework into fruition.     

Processing and marketing raw materials

The concept of South-South cooperation in development policy seeks not only to enlarge traditional trading relations but also to strengthen the negotiating position of the Third World vis-à-vis the First World. An important partial aspect of this is cooperation in the raw materials sphere. The following article provides an overview of structures, opportunities and obstacles for raw material processing in the context of South-South cooperation.     

Rogue aid? An empirical analysis of China's aid allocation

Foreign aid from China is often characterized as “rogue aid” that is guided by selfish interests alone. We collect data on Chinese project aid, food aid, medical staff and total aid money to developing countries, covering the 1956–2006 period, to empirically test to what extent self‐interests shape China's aid allocation. While political considerations shape China's allocation of aid, China does not pay substantially more attention to politics compared to Western donors. What is more, China's aid allocation seems to be widely independent of recipients' endowment with natural resources and institutional characteristics. Overall, denoting Chinese aid as “rogue aid” seems unjustified.     

Lehren aus den Rentenreformen seit 1972

Thanks to the reform process between 1992 and 2007, Germany was in a very good position to master demographic change. These reforms were farsighted, they stabilised the public pension system and they significantly increased employment, the foundation of every old age provision. The “Pension Package 2014”, however, is putting this position in jeopardy by focusing on the older generation at the expense of the young, whoich needs more education and better health care, areas in which Germany exhibits only mediocre performance. A farsightedIf a demographicy strategy wants to be farsighted, its core cannot centre onbe reductions in the retirement age and similar expensive steps backwards, but will instead require investments into Germany’s youth.     

Testing Asymmetry in Dependence with Copula-Coskewness

A new measure of asymmetry in dependence is proposed that is based on taking the difference between the margin-free coskewness parameters of the underlying copula. The new measure and a related test are applied to both a hydrological and a financial market data sample, and we show that both samples exhibit systematic asymmetric dependence.     

The Term ‘Non-financial Information’ – A Semantic Analysis of a Key Feature of Current and Future Corporate Reporting

Accounting and corporate reporting can be seen as a language for specific purposes. Such a language requires the use of terms and concepts with a precise and commonly shared meaning to allow effective and efficient communication. We analyze the term ‘non-financial information’, which has become a part of mandatory corporate reporting within the European Union (EU) through recent regulatory actions. Our analysis is based on a survey of the theoretical and empirical literature, on the rational of semantic theory, as well as on a questionnaire survey. The clear finding is that, up to now, neither a common meaning nor a generally accepted definition of ‘non-financial information’ exists. We derive from the applied theoretical concepts that this situation negatively impacts the efficiency and effectiveness of corporate communication. Against this background we discuss several venues that might help to overcome this deficiency like issuing a mandatory guideline or changing the terminology.     

Oil price and reserve location—Effects on oil and gas sector returns

We provide market evidence of the effects of reserve location on oil and gas (O&G) company returns. Prior studies have shown that commodity sector stock returns are affected by commodity prices. In a new contribution to natural resource valuation literature, returns for 51 O&G companies are shown to be directly and negatively affected by exposures to (location specific) progressive fiscal terms. We add a reserve location proxy—‘R’—to the Fama–French framework; differentiating between companies' performances based on the proportion of oilfield assets subject to progressive tax terms. Companies with oilfield assets owned under progressive production sharing fiscal terms are unable to capture the benefits of oil price increases—and as result significantly under-perform companies with concession asset holdings.     

International maritime transport and climate policy

The contribution of international maritime transport to anthropogenic climate change has so far attracted little attention. This may be expected to change in the near future due to both ongoing research and the political processs. The present article looks at the relevant trends in international maritime transport and discusses both the greenhouse gas emissions from shipping and the possible repercussions of climate change on shipping. It concludes with an overview of policies and measures that should be implemented to reduce the greenhouse gas emissions from shipping in a cost-efficient way.     

Estimating the household consumption function in Saudi Arabia: an error correction approach

ABSTRACT

We estimate a micro-founded life-cycle consumption model for Saudi Arabia over the period 1970–2017 using error correction model procedures. Dynamic adjustments are significant, and both income and wealth are found to have significant effects, with a long-run marginal propensity to consume out of the income of 0.95 and out of the wealth of 0.06. The sensitivity of consumption to income and wealth, as well as the estimated short-term effects of price and real interest rate, are consistent with the rapidly growing Saudi economy. By capturing the key determinants of the life-cycle model, our approach is useful for the design of macroeconomic policy. We estimate the impact of the recent VAT reform.