Shareholders as Norm Entrepreneurs for Corporate Social Responsibility

This article advances the idea that shareholders who seek to influence corporate behaviour can be understood analytically as norm entrepreneurs. These are actors who seek to persuade others to adopt a new standard of appropriateness. The article thus goes beyond studies which focus on the influence of shareholder activism on single instances of corporate conduct, as it recognises shareholders’ potential as change agents for more widely shared norms about corporate responsibilities. The article includes the empirical example of US internet technology companies who, in their Chinese operations, face conflicts of norm systems in regard to freedom of expression on the internet. Shareholders have been active in seeking to persuade these companies to adopt a norm of adhering to global standards for human rights over restrictions implied by authoritarian regimes to which they deliver services.     

Quelques questions concernant les principes de la théorie des probabilités

Abstract

Il y a environ deux ans qu'avec un ami j'ai fait une vi site chez un mathématicien allemand, un adepte des mathématiques pures. En nous promenant dans la vieille ville d'université, notre hôte a exprimé quelques pensées qui ont resté dans ma mémoire. Il lui semblait, disait-il, que les mathématiques de nos temps devraient de plus en plus s'approcher des applications. Après l'activité intense des derniers lustres dans le domaine des théories bien abstraites des mathématiques pures — nommons p. ex. les théorèmes d'existence, la théorie des ensembles, l'intégrabilité des fonctions etc. — ce domaine avait besoin d'être laissé en repos pour quelque temps. Il était à attendre, que les intérêts des mathématiciens se tournent vers les questions qui, — sans être moins dignes du nom de mathématiques pures, — sont plus approchées des mathématiques appliquées, et en premier lieu vers la théorie des probabilités. J'ai souvent dit, qu'il y avait deux criterès pour l'admissibilité économique ou sociale des recherches scientifiques: ou la recherche doit-eUe s'attacher à la solution de qnelque question pratique, dont l'importance est évidente, ou qu'elle do it être utile pour 1a formation de nos idées générales sur la vie et sur l'univers. Sans nous arrêter sur la question si ce sont les difficultés économiques du temps qui causent ladite tendance de la science, nous autres actuaires, nous pouvons constater avec satisfaction que la branche des mathématiques pures qui nous intéresse spécialement, la théorie des probabilités et ses ramifications, satisfait d'une manière toute particulière à l'un et à l'autre de ces critères. En effet, les principes de notre science touchent aux extrêmes régions de la pensée humaine, et nous appliquons la théorie encore à nos soucis quotidiens.     

How Sensitive Are Bank Managers to Shareholder Value?

We test for the existence of market discipline by shareholders of banks with a wide range of ownership structures. Discipline by shareholders manifests itself through monitoring banks’ level of risk as well as through influencing banks’ management actions. We find that shareholders utilize the relation between stock returns and different types of risk measures to monitor risky banks. Shareholders partially influence bank management by responding to decreasing stock returns with a demand to improve loan quality. Moreover, the influence on management in small banks is more pronounced compared to large banks.     

What can price volatility tell us about market efficiency? Conditional heteroscedasticity in historical commodity price series

The development in the working of markets has been an important topic in economic history for decades. The volatility of market prices is often used as an indicator of market efficiency in the broadest sense. Yet, the way in which volatility is estimated often makes it difficult to compare price volatility across regions or over time for two reasons. First, if prices are non-stationary, the variance is inflated. Second, the variance of commodity prices contains information on a number of region- and time-specific factors that are not related to market efficiency. Hence, the popular coefficient of variation and related indicators are not adequate measures of the efficiency of markets and are incomparable across regions. As a solution, we suggest using a conditional heteroscedasticity model to estimate the residual (conditional) variance of commodity prices. This measure reflects how markets react to unexpected events and can therefore be seen as a measure of market efficiency. Using this approach on grain prices from the Early Modern Pisa, Paris, Vienna, and Japan, we find that the residual price volatility had declined (and market efficiency increased) in the European markets in the late sixteenth century while it remained stable in Japan.     

Swedish technology teachers’ views on assessing student understandings of technological systems

Technology education is a new school subject in comparison with other subjects within the Swedish compulsory school system. Research in technology education shows that technology teachers lack experience of and support for assessment in comparison with the long-term experiences that other teachers use in their subjects. This becomes especially apparent when technology teachers assess students’ knowledge in and about technological systems. This study thematically analysed the assessment views of eleven technology teachers in a Swedish context. Through the use of in-depth semi-structured qualitative interviews, their elaborated thoughts on assessing knowledge about technological systems within the technology subject (for ages 13–16) were analysed. The aim was to describe the teachers’ assessment views in terms of types of knowledge, and essential knowledge in relation to a progression from basic to advanced understanding of technological systems. The results showed three main themes that the interviewed teachers said they consider when performing their assessment of technological systems; understanding (a) a system’s structure, (b) its relations outside the system boundary and (c) its historical context and technological change. Each theme included several underlying items that the teachers said they use in a progressive manner when they assess their students’ basic, intermediate and advanced level of understanding technological systems. In conclusion, the results suggest that the analysed themes can provide a basis for further discussion about defining a progression for assessing students’ understanding about technological systems. However, the findings also need to be examined critically as the interviewed teachers’ views on required assessment levels showed an imbalance; few students were said to reach beyond the basic level, but at the same time most assessment items lay on the intermediate and advanced levels.     

The new goods margin in new markets

We analyze the role of the new goods margin in the Baltic countries’ exports and imports growth during the 1995–2008 period. Using the methodology developed in Kehoe and Ruhl (2013), we define the set of least-traded goods as those that account for the lowest 10% of total exports and imports in 1995, and then trace its growth in several markets including the Baltics’ main trade partners, the European Union and Russia. We find that, on average, by 2008 least-traded goods accounted for nearly 50% of total Baltic exports to their main trade partners. Moreover, we find that increases in the share of least-traded exports coincided with the timing of the trade liberalization reforms implemented by the Baltic countries. Least-traded imports also grew at robust rates, but their growth was lower than that of exports, accounting for slightly less than a quarter of total imports, that is, about half of the exports value. Moreover, we find that the shares of least-traded imports from the EU 15 and from Russia started diverging around the time the Baltic countries joined the EU, with the EU 15 share increasing and the Russian one declining. We also find that the Baltics’ share of least-traded exports outpaced that of other economies in Central and Eastern Europe. Finally, exports of new goods from the Baltic countries suffered noticeably during the Global Financial Crisis. After the crisis ended, the restart in new goods exports growth displayed mixed patterns.     

Energy balance climate models and general equilibrium optimal mitigation policies

In a general equilibrium model of the world economy, we develop a two-dimensional energy balance climate model featuring heat diffusion and anthropogenic forcing driven by global fossil fuel use across the sphere of the Earth. This introduces an endogenous location dependent temperature function, driving spatial characteristics, in terms of location dependent damages resulting from local temperature anomalies into the standard climate-economy framework. We solve the social planner's problem and characterize the competitive equilibrium for two polar cases differentiated by the degree of market integration. We define optimal taxes on fossil fuel use and how they may implement the planning solution. Our results suggest that if the implementation of international transfers across latitudes is not possible then optimal taxes are in general spatially non-homogeneous and may be lower at poorer latitudes. The degree of spatial differentiation of optimal taxes depends on heat transportation. By employing the properties of the spatial model, we show by numerical simulations how the impact of thermal transport across latitudes on welfare can be studied.     

Nonlinear models with panel data

Panel data play an important role in empirical economics. With panel data one can answer questions about microeconomic dynamic behavior that could not be answered with cross sectional data. Panel data techniques are also useful for analyzing cross sectional data with grouping. This paper discusses some issues related to specification and estimation of nonlinear models using panel data.JEL Classification: C230The research behind this paper was supported by the National Science Foundation, the Gregory C. Chow Econometric Research Program at Princeton University, and Danish National Research Foundation (through CAM at the University of Copenhagen). The author thanks Ekaterini Kyriazidou, Hong Li, Marina Sallustro, and the editors for helpful suggestions.     

Das neue Energiewirtschaftsgesetz—Regelungen für einen erweiterten Zielkatalog

Mehr als ein Jahr nach dem EU-rechtlich vorgegebenen Endtermin wurde im Juli 2005 das neue Energiewirtschaftsgesetz verabschiedet. Von welchen Zielen geht dieses Gesetz aus? Wie lauten seine wichtigsten Neuregelungen? Und welche Auswirkungen sind von ihnen zu erwarten?