Do they always say no? German consumers and second‐generation GM foods

European consumers and, in particular, German consumers are known to be very critical toward the introduction of genetically modified (GM) foods. It is analyzed here whether German consumers do reject second-generation GM foods, too. Whereas first-generation GM crops induced producer-related benefits, second-generation GM crops are associated with consumer-oriented benefits like an improvement of nutritional quality. The determinants of demand for second-generation GM rapeseed oil are investigated within an online survey of 1,556 German consumers. It is elaborated how two functional properties of the product matter; that is, long-chain omega-3 fatty acids and the cholesterol-lowering effect of phytosterols. It turns out that GM rapeseed oil is neglected by 74% of all respondents. Output traits, however, will increase the probability of purchases of GM rapeseed oil. This is more the case for long-chain omega-3 fatty acids than for phytosterols.     

Formula Apportionment: Factor Allocation and Tax Avoidance

This paper addresses the question of how firms react to tax incentives in a formula apportionment (FA) tax regime. Under FA, the profits of all consolidated entities of a business group are summed and then allocated according to a formula based on FA factors. We hypothesize that firms may change the allocation of real production factors and/or manipulate the FA factor through tax avoidance strategies. Analyzing FA tax effects of the German local business tax with payroll expense as the exclusive FA factor, we find empirical evidence consistent with both hypotheses. Regarding the allocation of production factors, we observe significant tax effects on labor input at the intensive margin but not on labor input at the extensive margin. In addition, we find evidence of an indirect FA spillover effect on capital investment. Our findings on tax avoidance proxies are consistent with tax-induced manipulations of payroll expense as an FA factor to save tax payments.     

Contingent convertibles. Solving or seeding the next banking crisis?

A recent proposal to enhance banking stability recommends the use of contingent convertibles (CoCos). Since these hybrid securities are mandatorily converted into equity when banks are in need of a recapitalization, they are credited for reducing banks’ likelihood of financial distress. In this paper, we show within a continuous-time framework that this allegedly beneficial impact hinges critically on the assumption of complete contracts. If contracts are incomplete in the sense that manager-owners enjoy discretion over the risk of the investment program, our analysis shows that CoCo bonds always distort risk taking incentives. Our main contribution is to demonstrate that there exist conditions under which CoCo bond financing increases investors’ wealth, but also increases the bank’s probability of financial distress, so that the banking system as a whole will be destabilized. Thus, individually rational decisions can have systemically undesirable outcomes. Further results indicate that CoCos should be used only in conjunction with devices to control risk shifting incentives.     

Keynes vs. the Post Keynesians on the Principle of Effective Demand *

Abstract

The American Post Keynesians – those who attach importance to the capital ‘P’ and the absence of a hyphen between ‘post’ and ‘Keynesian’– claim to be Keynes' most literal interpreters or the ‘truest’ Keynesians (Holt et al. 1998 Holt, R. P.F., Rosser, J. B. Jr. and Wray, L. R. 1998. Paul Davidson's Economics Jerome Levy Economics Institute Working Paper no. 251. Blithewood, NY (www.levy.org) [Google Scholar]: 17). This paper compares the Post Keynesian interpretation of the Principle of Effective Demand, i.e. the D/Z-model, with Keynes' own presentation in chapter 3 of the General Theory– and finds substantial differences. A re-interpretation of the D/Z-model is offered that would bring it into line with chapter 3.     

Heart rate variability testing: could it change spending for rheumatoid arthritis patients in the United States? An exploratory economic analysis

Background: Autonomic nervous system (ANS) testing with heart rate variability (HRV) has been shown in early research to predict 52-week outcomes in rheumatoid arthritis (RA). HRV testing could be combined with putative ANS biologic pathways to improve treatment response for RA patients. This study explored potential costs and health outcomes of introducing HRV testing into RA treatment, without and with ANS optimization.

Methods: A decision tree exploratory economic model compared HRV testing to standard care in moderate-to-severe biologic-eligible patients over a 10-year time horizon. HRV data was derived from an observational study of RA patients (n?=?33). Patients were stratified into treatment groups based on HRV test scores indicating “low probability of response” and “moderate to high probability of response”. This study explored adding ANS optimization based on HRV score followed by clinically-appropriate treatment. Costs and quality-adjusted life-years (QALYs) for the US population were estimated.

Results: HRV testing in biologic-eligible patients decreased non-effective biologic use, reducing US healthcare costs by $34.6 billion over 10 years with QALYs unchanged. When combined with ANS optimization in biologic-eligible patients, HRV testing could increase costs by $3.6 billion over 10 years but save over 350,000 QALYs. Among all RA patients, HRV testing with ANS optimization could save over $8 billion and over 100,000 QALYs over 10 years, depending on the positive predictive value (PPV) of the HRV test.

Conclusions: The potential economic impact of introducing HRV testing and ANS optimization into RA treatment appears substantial and cost-effective based on the exploratory analysis. Additional rigorous studies are warranted in larger patient samples to better inform decision-making.     

The Family and Medical Leave Act of 1993: what does it mean for your organization?

The Family and Medical Leave Act (FMLA) requires that employers with 50 or more employees located within a 75-mile radius of a worksite be granted 12 weeks of unpaid leave. This article summarizes the arguments for and against mandated leave, describes the main tenets of FMLA and suggests how employers can implement FMLA leave in a manner favorable to both the employer and the employees.     

Tourenplanung mittelst?ndischer Speditionsunternehmen in Stückgutkooperationen: Modellierung und heuristische L?sungsverfahren

Zusammenfassung Mittelst?ndische Speditionsunternehmen arbeiten infolge zunehmender Globalisierung sowie gestiegener Kundenerwartungen verst?rkt in Stückgutkooperationen zusammen. Für die Kooperationspartner ergeben sich dadurch eine Vielzahl neuer Anforderungen bei der Erstellung eines Tourenplans. Neben der Berücksichtigung heterogener Fahrzeuge und Kundenzeitfenster sowie simultaner Auslieferung und Einsammlung sind z. B. ein mehrfacher Fahrzeugeinsatz vorzusehen und Belegungszeiten der Verladerampen im Depot zu berücksichtigen. Das resultierende Tourenplanungsproblem kann als gemischt-ganzzahliges lineares Programm formuliert und für kleine Probleminstanzen mit dem Solver ILOG CPLEX gel?st werden. Zur L?sung komplexer Instanzen werden in der Praxis h?ufig Entscheidungsunterstützungssysteme eingesetzt. Verfahren, die in einem solchen System zum Einsatz kommen, müssen in der Lage sein, in kurzer Zeit gute L?sungen zu generieren. Wir stellen dazu ein Sampling Verfahren, ein Lokales Suchverfahren und einen Genetischen Algorithmus vor, die in einer Performance-Analyse miteinander verglichen werden.

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Heuristic Algorithms for Vehicle Routing Problems of Less-Than-Truckload Carriers

Summary As a consequence of globalisation and increasing customer expectations, medium-sized less-than-truckload carriers operate together in cooperations. Each cooperative member faces a multitude of requirements when constructing a low-cost, feasible set of routes. Taking up this problem, we take into consideration among other aspects heterogeneous vehicles, time windows, simultaneous pick-up and delivery at customer locations, as well as the multiple use of vehicles and assignment of vehicles to loading bays at the depot. The resulting vehicle routing problem can be formulated as a mixed-integer linear program, and we use ILOG CPLEX to solve small instances. In order to solve practical problem instances, there is a need for decision support systems. Algorithms which are to be implemented in such a system must be able to quickly generate good solutions. For this reason, we present a sampling procedure, a local search and a genetic algorithm, which we compare in a performance-analysis.