The transition from ‘socialist’ agriculture to the common agricultural policy: the case of Slovenia

This article describes the changes in Slovenian agricultural policy in the period 1993–2001 in light of Slovenia's anticipated accession to the European Union. Agriculture in Slovenia is characterised by relatively unfavourable natural and structural conditions, which also explains its status as a net food importer and its relatively protectionist agricultural policy. The period of transition was also a period of thorough restructuring of agricultural policy, which was gradually brought into line with the goals and mechanisms of the Common Agricultural Policy (CAP). Even before accession Slovenia started to implement CAP-like measures, including direct payments and rural development policy measures. Slovenia is thus the only candidate country for EU accession with a level of support for agriculture comparable with that in the European Union. In its negotiations for EU membership, Slovenia agreed on the same level of direct payments for Slovenian farmers as received by farmers in the European Union, except that in the first period they will be largely covered from the national budget. As a result of the outcome of negotiations, the economic position of Slovenian farmers after accession is not expected to change markedly on the aggregate level, particularly if all the necessary steps are taken with regard to the building of an efficient system for the transposition of the CAP. Accession to the EU will, however, not solve the problem of relatively poor compeititiveness of the agricultural sector in Slovenia, which still has to undergo comprehensive structural changes and adjustments.     

IPO or SBO?: The Increasing Importance of Operational Performance for Private Equity Exits Following the Global Financial Crisis of 2007–08

The authors report the findings of their recent study of the role of portfolio company operating performance in determining the choice of exit options by private equity firms between initial public offerings (IPOs) and secondary buyouts (SBOs), and how that role may have changed since the Global Financial Crisis of 2007–2008. Virtually all studies of PE exits in all countries have found that portfolio companies that exit through IPOs tend to be larger and have higher operating returns than companies that exit through SBOs or sales to other companies. After examining the exits of PE portfolio companies based in Denmark and Sweden during the period 2003–2013, the authors report that, although general market conditions continue to be a major factor, operating performance and size have become even more important requirements for IPO exits since the crisis. And thus PE firms that fail to make operating improvements in their portfolio companies are likely to find their exit options limited.     

News and monetary shocks at a high frequency: A simple approach

We develop a simple approach to identify economic news and monetary shocks at a high frequency. The approach is used to examine financial market developments in the United States following the Federal Reserve’s May 22, 2013 taper talk suggesting that it would begin winding down its quantitative easing program. Our findings show that the sharp rise in 10-year Treasury bond yields immediately after the taper talk was largely due to monetary shocks, with positive economic news becoming increasingly important in subsequent months.     

Improving the Quality of CAP Strategic Planning through Enhancing the Role of Agricultural Economics

Extending strategic planning to the full range of Common Agricultural Policy (CAP) interventions could improve the impacts of this controversial public policy. Science, particularly agricultural economics, can play a role in improving the quality of planning and implementation of a reformed CAP. The preparation of Member States' Strategic Plans (SP) is rather formalistic, while the plans are not very rigorously designed. A major weakness is related to the CAP's political-economic characteristics and lies in the selection and definition of interventions: financially strong but poorly targeted interventions tend to be pre-fixed, which prevents a stronger focus on the results and quality of planning. The intervention logic functions as a black box, as the links between policy priorities and interventions are merely implied, with no clear, evidence-based links. Therefore, European decision makers should re-examine the concept of CAP SP and especially improve a support system and capacity building for SP designers. Greater involvement of academic research and scientific methods and tools in the preparation, monitoring and evaluation of plans, could significantly improve the quality of planning. This would require increased investment in research and dialogue among representatives of academia, government and the nongovernmental sector.     

‘ALL EYES ON ME’: The (In)Formal Barriers to Market Trade in Europe

Studies of marketplaces in the global North have often conceptualized markets as important public spaces of social encounter and conviviality where visitors, regardless of race, age, class or gender, feel they have an equal right to be. Yet comparatively little has been written about how inclusive European marketplaces are for the traders who (want to) work there. In this article we argue that the common conception of marketplaces as accessible to everyone, and as vehicles of socioeconomic mobility, is oversimplistic and romanticized. We draw on empirical data from marketplaces in four European countries to focus on the more or less informal ways in which markets are regulated by managers and traders themselves, and on the exclusionary and inclusionary effects of this process that may ultimately determine traders’ access to and success in these markets. This article not only challenges dominant conceptions of marketplaces as accessible and inclusive, but also addresses prevalent stereotypes about economic practices in the global North and assumptions about the ways in which these differ from practices in the global South.     

Do tax subsidies for retirement saving affect total private saving? New evidence on middle-income workers*

We exploit exogenous variation from a pension reform in Denmark to estimate the effect of tax subsidies on total private saving. We present new evidence on individuals in the middle of the income distribution and show that a reduction in tax subsidies for retirement saving reduces total private saving. The reform changed the tax incentives for saving in the pension scheme that holds the highest tax advantage for middle-income workers in Denmark. We find that for each unit of reduced saving in this pension scheme, only 64 percent is substituted to other types of saving.