The status quo bias and reform of the Common Agricultural Policy: impact of voting rules, the European Commission and external changes

We develop a formal model of EU decision-making on the CommonAgricultural Policy (CAP). The model is used to evaluate underwhat conditions CAP reform occurs and what the influence ofthe European Commission (Commission) is on CAP reform. We findthat the voting and amendment rules in the Council of the EuropeanUnion, the number of policy instruments and external changeshave important impacts on the occurrence and extent of CAP reformand on the influence of the Commission. Stricter voting rulesincrease the status quo bias and reduce Commission influence,whereas stricter amendment rules increase both the status quobias and Commission influence. More significant external changeresults in more reform and more Commission influence.     

Economic burden of chemotherapy-treated recurrent and/or metastatic squamous cell carcinoma of the head and neck in France: real-world data from the permanent sample of national health insurance beneficiaries

Aims: Overall survival (OS) of patients with recurrent or metastatic (R/M) squamous cell carcinoma of the head and neck (SCCHN) is extremely poor. New therapeutic options emerge but need to establish their economic value. The objective was to describe the direct and related costs of R/M SCCHN in France.

Materials and methods: We selected all adult patients treated with chemotherapy for R/M SCCHN between 1 January 2009 and 31 December 2014 from the permanent sample of the French national health insurance database (EGB). Data were analyzed from the index date (first chemotherapy) until patients’ death or 31 December 2015. “Treatment period” and “end-of-life” (EoL) (from last chemotherapy until death) were distinguished. Costs included all hospitalizations for SCCHN and ambulatory care. Costs of hospitalized and non-hospitalized adverse events (AEs) were estimated.

Results: Among 267 patients identified, 85% were men, 44% had metastases at the index date and the mean age was 62.0 years (±9.9). The most common tumor location was oropharynx (29%) but 39% of patients had multiple locations. Median OS was 9.3 (95% CI: 7.9–11.8) months for the overall population. The average total direct cost per patient was €49,954, broken down into €32,908 (95% CI: 29,525–36,290) for hospitalizations and €17,047 (14,941–19,152) for ambulatory care. Main cost drivers were drug acquisition and administration (€14,538) during the treatment period (209?days on average) and palliative care (€3,750) during the EoL period (125?days). Regarding related costs, around 12% of patients received disability pensions (€1,397 per patient [624–2,171]) and sick leave payments (€1,592 [888–2,297]). “Metabolism and nutrition disorders” and “Infections and infestations” were the most expensive hospitalized AEs (€1,513 and €1,180 per patient, respectively). Febrile neutropenia was the most expensive non-hospitalized AE (€766 per patient).

Conclusions: This analysis of real-world data confirms the poor prognosis of patients with R/M SCCHN and provides cost data for future economic evaluations.     

Bank Competition and Collateral: Theory and Evidence

We investigate the impact of bank competition on the use of collateral in loan contracts. We analyze asymmetric information about the borrowers’ type in a Salop model in which banks choose between screening the borrower and asking for collateral. We show that the presence of collateral is more likely when bank competition is low. We then test this prediction empirically on a sample of bank loans from 70 countries. We perform logit regressions of the presence of collateral on bank competition, measured by the Lerner index. Our empirical tests corroborate the theoretical predictions that bank competition reduces the presence of collateral. These findings survive several robustness checks.     

Trade liberalization in the bio‐economy: coping with a new landscape

Multilateral trade liberalization has made little progress over the last period, but preferential agreements have multiplied. Recent economic literature helps understand the current negotiation game. New economic and political conditions, in particular the gaining influence of emerging countries, make a multilateral agreement more difficult. Developed countries have given up many of their bargaining chips in previous rounds of negotiation and their remaining agricultural tariffs are not sufficient for extracting the concessions from emerging countries on services, procurement, and intellectual property that would make an agreement possible. The risk of a more fragmented world calls for a revised negotiation agenda and a change in the status of developing countries. Research issues are outlined in order to help revitalize the Doha negotiation agenda.     

The competitive advantage of cluster firms: the priority of regional network position over extra-regional networks – a study of a French high-tech cluster

This paper extends research on industry clusters by unbundling network from cluster effects and by analysing how network effects drive the performance of cluster firms. The results show that a firm's connectedness in a regional network is positively associated with firm performance. However, we found that for cluster firms, it is even more important to build strong network positions by developing rather exclusive alliance networks. In addition, a weak position within a cluster cannot be compensated for by strong extra-regional networking activities. From this perspective, cluster-specific advantages are firm-specific and the basis for competitive advantage. Regional competitiveness is therefore a non-substitutable pre-condition for the overall performance of cluster firms.     

Social Value Orientation and Climate Strength as Moderators of the Impact of Work Group Cooperative Climate on Affective Commitment

We investigate the moderating role of an individual's social value orientation (which refers to self‐ versus other‐regarding preferences) and of climate strength (which refers to the extent of agreement among group members on group norms and values) on the relationship between work group cooperative climate and affective commitment among professional employees. We develop two plausible but opposite hypotheses on the moderation effect of social value orientation, one based on the behavioural assimilation assumption and the other on goal transformation theory. We argue that the work group's climate strength is an important contingency factor that affects which of both contradictory predictions holds. In a sample of 209 academic employees of a Belgian university, we find support for our arguments. Specifically, a cooperative climate enhances the affective commitment of employees with a prosocial value orientation (as predicted by the behavioural assimilation argument) but only when there is strong consensus among group members about the group's climate (high climate strength). Conversely, for those whose social value orientation is towards the self rather than others, a cooperative climate enhances affective commitment (consistent with goal transformation theory), especially when the climate is not agreed upon (low climate strength). These findings underscore recent claims that the predictive power of different theories in organizational behaviour depends on an individual's motives and values. We discuss the implications of our findings for the management of work groups consisting of employees with different social value orientations.     

Predicting loss given default (LGD) for residential mortgage loans: A two-stage model and empirical evidence for UK bank data

With the implementation of the Basel II regulatory framework, it became increasingly important for financial institutions to develop accurate loss models. This work investigates the loss given default (LGD) of mortgage loans using a large set of recovery data of residential mortgage defaults from a major UK bank. A Probability of Repossession Model and a Haircut Model are developed and then combined to give an expected loss percentage. We find that the Probability of Repossession Model should consist of more than just the commonly used loan-to-value ratio, and that the estimation of LGD benefits from the Haircut Model, which predicts the discount which the sale price of a repossessed property may undergo. This two-stage LGD model is shown to perform better than a single-stage LGD model (which models LGD directly from loan and collateral characteristics), as it achieves a better R² value and matches the distribution of the observed LGD more accurately.     

A cross-country analysis of the Okun's Law coefficient convergence in Europe

The paper examines whether or not evidence is consistent with convergence of the Okun's Law coefficient (OLC) among several alternative groupings of European economies. A two-step empirical strategy is employed. The first step obtains rolling regression estimates of the OLC for individual European countries. The second step examines how the cross-country variance of the OLC evolves over the decade until 2002 in the selected country groupings. Evidence is found consistent with convergence of the OLC among northern European countries, and among countries with centralized wage bargaining, but an absence of convergence in other country groups.     

Definition and psychometric validation of a measurement index common to website and store images

To mesh together their channels and better handle their multichannel management, retailers must better evaluate and coordinate their various channels. They need more precise and more complete measurement instruments to compare the channels in terms of characteristics perceived by their customers. Using the procedure specific to formative variables, this research results in a particularly comprehensive measurement index that culls 10 channel image dimensions (offering, price, layout, accessibility, promotions, customer service, advice, reputation, institution, connections with other channels) from the 40 strictly identical items for the website and the stores. Various qualitative and quantitative surveys examine across several samples of customers of a major French multichannel retailer, including one sample of 1,478 respondents. This study delineates the scope of website and store images and defines reliable scales for evaluating each image dimension of the channels, including those totally missing from the literature. This measurement tool harnesses website and store characteristics that are very operational and easily actionable. This study demonstrates that a website can be described and analyzed along the same lines as a store, and shows the relevance of incorporating connections with other channels, particularly into the scope of website image.