How far is how far enough? Safety perception and acceptance of extra-high-voltage power lines in Germany

The results of a 2?×?2 factorial online experiment are reported. The first factor refers to the information on precautionary measures and the second factor on the information regarding the share of EMF exposure from extra-high-voltage power lines compared to overall EMF exposure measured in-house. The study is based on a community sample of 440 subjects. Information on the share of EMF exposure from extra-high-voltage power lines at the in-house overall EMF exposure has no statistically significant effect of safety distances and acceptance distances. Further findings indicate that communications of precautionary measures produce a countervailing effect: on average, subjects require a higher distance from their homes compared to those who were not informed about precautionary measures. However, there is also a positive effect of precautionary information on the acceptance belief. Subjects who received this information are, in average, less negative about the claim that compliance with the value limit is sufficient in order to agree with the construction of a power line. Possible explanations of the findings such as cognitive dissonance, negativity bias, and style of information processing are discussed.     

Dynamic asset allocation with stochastic income and interest rates

We solve for optimal portfolios when interest rates and labor income are stochastic with the expected income growth being affine in the short-term interest rate in order to encompass business cycle variations in wages. Our calibration based on the Panel Study of Income Dynamics (PSID) data supports this relation with substantial variation across individuals in the slope of this affine function. The slope is crucial for the valuation and riskiness of human capital and for the optimal stock/bond/cash allocation both in an unconstrained complete market and in an incomplete market with liquidity and short-sales constraints.     

Duration dependent unemployment benefits in trade union theory

The basic trade union model is generalized to allow for an unemployment benefit system consisting of two benefit levels, one for short-term and one for long-term unemployed, and a rule determining whether an unemployed is short- or long-term. Under relatively mild conditions we show that benefit systems with no or positive duration dependence are dominated by a system with negative duration dependence in the sense that all union members achieve higher utility, unemployment is lower, and benefit expenditures are smaller.     

Social capital and cultural adjustment of international assignees in NGOs: do support networks really matter?

International assignees face cultural adjustment challenges in their host countries in work and nonwork situations. At the same time, social capital theory suggests that individuals can access and mobilize resources from their social networks. We explore the use of social networks by international assignees from a non-governmental organization in their cross-cultural adjustment to the host country. Specifically, we are interested in the individuals who directly provided support to the expatriate, a network that we term the ‘current assignment support network’. We focus on the size, type and frequency of contact of the international assignee's support network, and investigate to what extent these variables can predict overall cultural adjustment to the host country, or separate dimensions of cultural adjustment such as interaction adjustment, general adjustment and work adjustment. Our findings indicate that certain characteristics of the international assignee's current assignment support network do impact their cultural adjustment to the host country, but that the effects are moderated by whether the assignee has prior international experience.     

Inside the black box: How important is the credit channel relative to the interest and exchange rate channels?

This paper develops a dynamic general equilibrium model to assess the importance of the credit channel relative to the interest and exchange rate channels. It is motivated by increasing theoretical and empirical evidence that credit market conditions affect the propagation of cyclical fluctuations in the economy. The relative contribution of each channel is determined by comparing the impulse responses when the relevant channel is suppressed with the impulse responses when all three channels are operating. The analysis shows that all three channels affect business cycle dynamics. But the interest rate channel has the largest effects in the transmission of shocks to the economy. The results suggest that it is substantially more important than the credit channel.     

Equilibrium in securities markets with heterogeneous investors and unspanned income risk

In a finite time horizon, incomplete market, continuous-time setting with dividends and investor incomes governed by arithmetic Brownian motions, we derive closed-form solutions for the equilibrium risk-free rate and stock price for an economy with finitely many heterogeneous CARA investors and unspanned income risk. In equilibrium, the Sharpe ratio is the same as in an otherwise identical complete market economy, whereas the risk-free rate is lower and, consequently, the stock price is higher. The reduction in the risk-free rate is highest when the more risk-averse investors face the largest unspanned income risk.     

Uncovering the supplier selection knowledge structure: A systematic citation network analysis from 1991 to 2017

Because of the critical role supplier selection plays in organizational success, both practitioners and academics have expressed a strong interest in the subject area generating an extensive body of research. The volume and breadth of publications in this area makes it difficult to understand the knowledge structure of the field and the academic work that has influenced the evolution of the domain.This mixed-method study systematically reviews 246 papers that investigated supplier selection issues and were published between 1991 and 2017. We initially examined the statistics of papers by unveiling influential journals, affiliations and articles. Second, we utilized co-citation network analysis, an objective procedure to extract clusters of what has been researched in supplier selection literature. The study analytically retrieves six major knowledge clusters: 1) conceptual foundation of the field; 2) modeling of the procurement environment; 3) handling group-decision making and unprecise input data; 4) computational research; 5) green/sustainable research and 6) risk-based supplier selection. Finally, we conducted main path analysis to get an overview of the evolution of knowledge in the supplier selection field by uncovering its major paths and key articles.     

Union density and determinants of union membership in 18 EU countries: evidence from micro data, 2002/031

Using representative individual-level data from the first round of the European Social Survey fielded in 2002/03, this article provides an empirical analysis of unionisation in 18 countries of the EU. We show that union density varies considerably in Europe, ranging from 84 per cent in Denmark to 11 per cent in Portugal. Estimating identical models for each country, we find that individuals’ probability of union membership is significantly affected by their personal characteristics, their attitudes and the characteristics of their workplace, whereas social factors seem to play a minor role. The presence of a union at the workplace and employees’ attitudes concerning strong unions are the two variables most strongly associated with unionisation.     

German income tax reform. A simulation model

An independent commission on tax reforms and the Federal Ministry of Finance had been working for some time on basic changes of the German tax system. Their suggestions recently have been published (Bericht, 1971) just as many other proposals for tax reform from various experts, organizations, and political parties. Yet, compared with the Report (1966) of the Royal Commission on Taxation of Canada (Carter Commission) the German reform plans are less comprehensive and fundamental than the thorough economic analysis in the six volumes of the Carter Report.