Incomplete model specification in a multi-pollutants setting: The case of climate change and acidification

This paper analyses the consequences of incomplete environmental model specification on policy design in a multi-pollutants framework. Focusing on the correlations between aerosols and greenhouse gases, the paper compares abatement and stock targets setting for various cases of incomplete model specification. Both cases of lax and stringent regulation, compared to what is socially optimum, may arise. Furthermore, the lax/stringent nature of the policies may evolve over time, so that the time horizon of policy design matters in assessing the impact of incomplete model specification.     

Electoral competition with uncertainty averse parties

John Nash's work laid the foundations for evolutionary game theory as well as the theory of games with rational agents. The Nash bargaining solution emerges as a natural solution concept in both of these settings.     

Nonlinear adjustment of the real exchange rate towards its equilibrium value: A panel smooth transition error correction modelling

We study the nonlinear dynamics of the real exchange rate towards its behavioral equilibrium value (BEER) using a Panel Smooth Transition Regression model framework. We show that the real exchange rate convergence process in the long-run is characterized by nonlinearities for emerging economies, whereas industrialized countries exhibit a linear pattern. Moreover, there exists an asymmetric behavior of the real exchange rate when facing an over- or an undervaluation of the domestic currency. Finally, our results suggest that the real exchange rate may be unable to unwind alone global imbalances.     

A set optimization approach to utility maximization under transaction costs

A set optimization approach to multi-utility maximization is presented, and duality results are obtained for discrete market models with proportional transaction costs. The novel approach allows us to obtain results for non-complete preferences, where the formulas derived closely resemble but generalize the scalar case.     

Time to Include Blue Carbon from Seaweed in Voluntary Carbon Removal Certification

The EU has proposed a voluntary framework for certification of carbon removals which remains vague on blue carbon and in particular, carbon removal through use of seaweeds. Seaweed is considered an emerging blue carbon option. Various studies have confirmed the potential of seaweed to contribute to long-term carbon removal, storing it away from the atmosphere for 100 years and more. Certification of seaweed carbon sequestration is promoted, even in other EU communications. This article reviews early experiences with certification of carbon and nutrient removal by aquaculture using the QU.A.L.ITY criteria proposed by the EU. Examples reviewed include the Seaweed Company, Venice Bay, Yokohama Bayside marine, and Chesapeake Bay in the USA. After reviewing these examples, we call on the European Commission to move forward towards certification of blue carbon. If the EU is to lead global climate mitigation efforts, including carbon removal, it should take seaweed blue carbon seriously and include it in its voluntary framework. To enhance the awareness of the relevance and the acceptance of the carbon credits from seaweed, a methodology has to be developed that, building on experiences gained, deals with inherent uncertainties.     

Does co-creation impact public service delivery? The importance of state and governance traditions

Co-creation in public service delivery requires partnerships between citizens and civil servants. The authors argue that whether or not these partnerships will be successful depends on state and governance traditions (for example a tradition of authority sharing or consultation). These traditions determine the extent to which co-creation can become institutionalized in a country’s governance framework.     

Private Equity Involvement and Earnings Quality

Abstract:  This paper examines the relation between private equity (PE) investors' involvement and their portfolio firms' earnings quality. We operationalize earnings quality through comparative analyses of conditional loss recognition timeliness. For a sample of unlisted Belgian firms, we find that PE involvement increases a firm's willingness to recognize losses more timely as compared to industry, size and life-cycle matched non-PE backed firms. Further, we document more powerful earnings quality effects for firms backed by independent and captive PE-investors as compared to firms backed by government-related PE-investors. Finally, we find no systematic variation in earnings quality across different levels of PE ownership. Our results are robust to the inclusion of various controls and remain unaffected when we consider the endogeneity of PE investments and compare pre- and post PE investment years. The current results provide novel evidence towards the understanding of PE investors' governance implications for portfolio firms' earnings quality.     

Use and knowledge of food labels of shoppers in a city with a high proportion of heart disease

This study aimed to assess consumers’ use and understanding of food labelling and the improvements that they would like. Systematically selected supermarket shoppers were interviewed using a questionnaire. Data showed that the use of food labels was low. Among those who read food labels, at least occasionally, use‐by‐date was the most reported information looked at. Understanding of the content of five nutrients on a standard food label provided was poor. Although a high proportion of participants claimed to have no problem with the current format, those who had problems wanted food labels that were ‘bigger’, ‘highlighted’ or written in ‘plain English’. These results suggest that before improved food labels can have an impact on consumers’ food choice, strategies to encourage shoppers to read them are needed.     

Managing Interactions between Technological and Stylistic Innovation in the Media Industries

The processes of technological innovation have been widely researched, but their interactions with another type of innovation that is particularly important in sectors like the fashion and the media content industries have been neglected: stylistic innovation. This paper puts forward the idea that a better understanding of such interactions between content and technology in the media industries might help explaining differences in the receptiveness of firms towards new technological opportunities. The nature of the interactions, so it is argued in this paper, depends on three groups of key factors at the level of the product, the organization and the industry: among them, first, the locations of the different types of innovation in the media product's components; second, organizational factors like the identity and the reputation of a firm with respect to the above types of innovation; and third, the industry-specific characteristics of the certification environment in which the firms operate. Awards are discussed as specific instantiations of micro certification environments indicating quality with respect to stylistic and/or technological product features. To round off the theoretical part, a definition of stylistic innovation is developed with reference to the key concepts discussed in this paper. Within the media sector the literary publishing industry has been chosen to provide the subject of the empirical part. Two cases related to the introduction of eBook technology are presented: one is a study of the first digital literary publisher in Europe and the other is a case study of the first international eBook award, which mixes technological and stylistic criteria. Theory and cases lead to a number of hypotheses offered as potential departure points for future research into the interactions between innovation in style and technology.