Soziale Lage — Was sind die drängendsten Probleme?

Democracy seems to be at risk. People elect populists and autocrats, who offer simple solutions to social problems. Often, these problems are not even real ones but are only perceived as such. Economists have measures to determine which problems are fact-based, but they cannot draw a clear distinction between academic analysis and normative demand. If politics pursues a correction of a market outcome, any normative criteria other than efficiency have to be outlined explicitly. Nevertheless, some authors consider inequality one of the central contemporary social and economic challenges. Marcel Fratzscher emphasises that the solution is not found in more redistribution via taxes and transfers, but rather through greater equality of opportunity and social and educational mobility. Bert Rürup thinks that to stabilise the acceptance of the compulsory pension scheme, the dominance of the equivalence principle should be reduced. Further, the existence of different federal subsidy schemes should be replaced by a fixed federal contribution rate in alignment with the pension expenditures. In an international comparison, the fiscal burden for households with small and mid-level earned incomes is exceptionally high in Germany. In order to reduce this burden, Rürup suggests a contribution-free allowance for the social insurance contributions.     

Stochastic non-smooth envelopment of data for multi-dimensional output

The proposed method of Stochastic Non-smooth Envelopment of Data (StoNED) for measuring efficiency has to date mainly found application in the analysis of production systems which have exactly one output. Therefore, the objective of this paper is to examine the applicability of StoNED when a ray production function models a production technology with multi-dimensional input and output. In addition to a general analysis of properties required by a ray production function for StoNED to be applicable, we conduct a Monte Carlo simulation in order to evaluate the quality of the frontier and efficiencies estimated by StoNED. The results are compared with those derived via Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA). We show that StoNED provides competitive estimates in regard to other methods and especially in regard to the real functional form and efficiency.     

Determinants of the Choice of Migration Destination*

This paper examines migrants’ choice of destination conditional on migration. The study uses data from two rounds of Nepal Living Standard Surveys and a Population Census and examine how the choice of a migration destination is influenced by various covariates, including income differentials across possible destinations. We find that migrants move primarily to nearby, high population density areas where many people share their language and ethnic background. Better access to amenities is significant as well. Differentials in average income across destination districts are significant in univariate comparisons but not once we control for other covariates. Differentials in consumption expenditures are statistically significant but smaller in magnitude than other determinants. It is differentials in absolute, not relative, consumption between destination districts that are correlated with the destination of work migrants. Except for the latter, results are robust to different specifications and datasets.     

Futures basis,inventory and commodity price volatility: An empirical analysis

We employ a large dataset of physical inventory data on 21 different commodities for the period 1993–2011 to empirically analyze the behavior of commodity prices and their volatility as predicted by the theory of storage. We examine two main issues. First, we analyze the relationship between inventory and the shape of the forward curve. Low (high) inventory is associated with forward curves in backwardation (contango), as the theory of storage predicts. Second, we show that price volatility is a decreasing function of inventory for the majority of commodities in our sample. This effect is more pronounced in backwardated markets. Our findings are robust with respect to alternative inventory measures and over the recent commodity price boom.     

New development: The crisis and European local government reforms

This article highlights the main reform trajectories put in place in French, Italian, German and Portuguese local governments during the recent crisis and identifies a number of important trends: for example increasing centralization of decision-making powers away from local governments. The authors explain why local governments have an opportunity to use reforms during the crisis to strategically reposition their value proposition.     

Attachment orientations in business‐to‐business relationships

Attachment theory has produced an impressive body of evidence for explaining individual differences in personal relationship behavior. The current study examines whether attachment theory can be fruitfully extended to business‐to‐business relationships. Hypotheses about the impact of personal attachment orientations on key relationship constructs are developed and empirically tested in two business‐to‐business relationships. Customers who are securely attached in their personal relationships with their romantic partners experience higher levels of satisfaction, trust, and repurchase intent in their business‐to‐business relationships. In addition, an attachment scale that is specifically tailored for a business‐to‐business context is developed. Two dimensions of business attachment are empirically derived: secure business attachment measures the ability and willingness to rely on the business partner, and close business attachment measures the desire to develop personal bonds with a business partner or its employees. The two business attachment dimensions can be used to segment customers with respect to their intrinsic retainability and their preference for personal bonding with their business partners. © 2009 Wiley Periodicals, Inc.     

Social roles, human capital, and the intrahousehold division of labor: evidence from Pakistan

Using detailed data from rural Pakistan, this paper investigateswhether human capital, learning-by-doing, gender, and familystatus affect the division of labor within households. Resultssuggest the presence of returns to individual specializationin all farm, non-farm, and home based activities. The intrahouseholddivision of labor is influenced by comparative advantage basedon human capital and by long-lasting returns to learning-by-doing,but we also find evidence of a separate effect of gender andfamily status. Households seem to operate as hierarchies withsexually segregated spheres of activity. The head of householdand his or her spouse provide most of the labor within theirrespective spheres of influence; other members work less. Whenpresent in the household, daughters-in-law work systematicallyharder than daughters of comparable age, height, and education.Other findings of interest are that there are increasing returnsto scale in most household chores, that larger households workmore off farm, and that better educated individuals enjoy moreleisure.     

Book reviews

Ohne Zusammenfassung     

Asset Prices and History: The Case of Austria

Historical events are reflected in asset prices. Looking at Austrian government bond prices traded on the Swiss stock exchange during WWII provides therefore a useful way of interpreting the importance the thousands of people directly and indirectly engaged in stock markets attributed to various war events. An econometric analysis of the relationship between government bond values and events in Austrian history reveals that some generally considered crucial events connected with WWII are clearly reflected in Austrian government bond prices. This holds, in particular for the beginning and the end of the war. The annexation of Austria by Germany in 1938 which seemingly looked as being overwhelmingly and passionately welcomed by the Austrian population negatively affected the evaluation of Austrian government bonds, i.e. it was considered to be to the disadvantage of Austria by the people who put their own personal fortune at risk.