Ownership unbundling of natural gas transmission networks: empirical evidence

The European Commission has intensively examined the mandatory separation of natural gas transmission from production and services. However, economic theory is ambiguous on the price effects of vertical separation. In this paper, we empirically analyze the effect of ownership unbundling of gas transmission networks, considered to be the strongest form of vertical separation, on the level of end-user prices. Therefore, we apply different dynamic estimators such as system GMM and the bias-corrected least-squares dummy variable estimator to an unbalanced panel consisting of 18 EU countries over 19 years, allowing us to avoid the endogeneity problem and to estimate the long-run effects of regulation. We introduce a set of regulatory indicators as market entry regulation, ownership structure, vertical separation and market structure, as well as account for structural and economic country specifics. Among the different estimators, we consistently find that ownership unbundling has no impact on natural gas end-user prices, while the more modest legal unbundling reduces them significantly. Furthermore, third-party access, market structure and privatization show significant influence, with the latter leading to higher prices.     

Training reflective processes in military aircrews through holistic debriefing: the importance of facilitator skills and development of trust

This paper explores how Holistic Debrief, a new concept in the field of debriefing and reflective processes, can contribute to restitution, reflection and learning in professional teams following stressful events and routine tasks. Interviews were conducted with Norwegian military aircrew mission commanders following deployment to Afghanistan in 2010. Phenomenological analysis in the frame of social learning theory revealed that reflective processes were easier to facilitate after stressful events than after routine tasks. Challenges identified included lack of trust during the early stages of team establishment and poor conceptual repertoires among aircrew commanders undertaking facilitation. Relational trust and reflective processes tended to improve after stressful events. Repeated interactions in Holistic Debrief tend to increase familiarity, trust and learning potential over time. This study reports data from the war context, an environment not often available for qualitative research. The findings are relevant for military and other operational units who wish to develop their debriefing practice and create an experience‐based learning environment.     

Partial least squares structural equation modeling in HRM research

Abstract

Partial least squares structural equation modeling (PLS-SEM) has become a key multivariate analysis technique that human resource management (HRM) researchers frequently use. While most disciplines undertake regular critical reflections on the use of important methods to ensure rigorous research and publication practices, the use of PLS-SEM in HRM has not been analyzed so far. To address this gap in HRM literature, this paper presents a critical review of PLS-SEM use in 77 HRM studies published over a 30-year period in leading journals. By contrasting the review results with state-of-the-art guidelines for use of the method, we identify several areas that offer room of improvement when applying PLS-SEM in HRM studies. Our findings offer important guidance for future use of the PLS-SEM method in HRM and related fields.     

Unique equilibrium in rent-seeking contests with a continuum of types

It is shown that rent-seeking contests with continuous and independent type distributions possess a unique pure-strategy Nash equilibrium.     

Supply Disruptions and Regional Price Effects in a Spatial Oligopoly—An Application to the Global Gas Market

Supply shocks in the global gas market may affect countries differently, as the market is regionally interlinked but not perfectly integrated. Additionally, high supply‐side concentration may expose countries to market power in different ways. To evaluate the strategic position of importing countries with regard to gas supplies, we disentangle the import price into different components and characterize each component as price increasing or price decreasing. Because of the complexity of the interrelations in the global gas market, we use an equilibrium model programmed as a mixed complementarity problem (MCP) and simulate the blockage of liquefied natural gas (LNG) flows through the Strait of Hormuz. This enables us to account for the oligopolistic nature and the asymmetry of the gas supply. We find that Japan faces the most severe price increases, as the Japanese gas demand completely relies on LNG supply. In contrast, European countries such as the UK benefit from good interconnection to the continental pipeline system and domestic price taking production, both of which help to mitigate an increase in physical costs of supply as well as in the exercise of market power.     

The effect of capital requirement regulation on the transmission of monetary policy: evidence from Austria

This paper analyzes the role of banks’ regulatory capitalization in the transmission of monetary policy. We use a confidential dataset for Austrian banks spanning from the first quarter of 1997 to the fourth quarter of 2003. We find evidence that Austrian banks react in an asymmetric way to monetary policy depending on their regulatory excess capitalization, i.e. low capitalized banks react more restrictively to a monetary tightening than their highly capitalized peers.

Risk and risk management of spillover effects: Evidence from the literature

In this article, we provide a comprehensive review of the existing theoretical and empirical literature regarding spillover effects (effects of a crisis event in an announcing firm on other firms). In particular, we focus on the mechanism behind spillover effects and investigate factors that drive spillover effects. The results of our literature analysis show that spillover effects are most often significantly negative, that is, lead to losses in nonannouncing firms and depend on certain events and firm characteristics. On this basis, we derive implications for the risk management of spillover effects. Taking previous work on certain individual risk‐management measures into account, we are the first to provide a holistic spillover risk‐management process.     

Interest rates,distribution and capital accumulation – A post-Kaleckian perspective on the US and Germany

We analyse the effects of interest rate variations on the rates of capacity utilisation, capital accumulation and profit in a simple post-Kaleckian distribution and growth model. This model gives rise to different potential accumulation regimes depending on the values of the parameters in the investment, saving and distribution function. Estimating these core behavioural equations for the US and Germany in the period 1960–2007, we find significant and robust effects of interest payments with the expected sign in each of the equations. Our estimation results imply, both for the US and for Germany, that the effects of changes in the real long-term rate of interest on the equilibrium rates of capacity utilisation, capital accumulation and profits, are characterised by the ‘normal regime’: rising long-term real rates of interest cause falling rates of capacity utilisation, capital accumulation and profits, as well as redistribution at the expense of labour income and hence an increasing profit share in both countries.