Optimal dynamic scale and structure of a multi-pollution economy

We analyze the optimal dynamic scale and structure of a two-sector-economy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at different rates to stocks which damage the natural environment. This acts as a dynamic driving force for the economy. Our analysis shows that along the optimal time path (i) the time scale of economic dynamics is mainly determined by the lifetime of pollutants, their instantaneous harmfulness and the discount rate; (ii) economic scale and structure, as well as resulting welfare, may be non-monotonic, and (iii) environmental damage may exhibit an inverted U-shape form. These results raise important questions about the optimal design of environmental policies in a multi-pollution economy. We suggest a system of dynamic Pigouvian emission taxes, each of which should be levied specifically on one particular pollutant. We show that the optimal time path of each tax level is determined by the characteristics not only of that particular pollutant but also of all other pollutants.     

Öffentliches und Geheimes

In the second half of 2009, the entire media agenda in Germany was dominated by the swine flu, next to the German Federal Parliament elections. Criticism was voiced in the media against the pharmaceutical industry for lobbying the nationwide swine flu vaccination, which was widely considered nothing but a product of the industry’s lobbying power. In order to avoid the usual interviews with lobbyists, we attempted to apply a new methodological framework approach in analysing lobbying processes and key stakeholders in the public sphere—and outside. Crucial to the diversified approach, which involves quantitative content analysis of media coverage and press releases, are interviews with journalists, lobbyists’ network analysis and internet research on biographies. Although a conspiracy could not be conclusively proven, the results do indicate associations that validate the criticism of the industry’s lobbying activities.     

Auf verschiedenen Meeren Jahrestagung der Deutschen Gesellschaft für Publizistik- und Kommunikationswissenschaft, 4.–6. Mai 2005 in Hamburg

Ohne Zusammenfassung     

Understanding Benign Liquidity Traps: The Case of Japan

Japan has been in a benign liquidity trap since the 1990s. In a benign liquidity trap, interest rates approach zero and monetary policy is ineffective but output and employment perform decently. Such a pattern contradicts traditional macro theories. This paper introduces a monetary general equilibrium model that is compatible with Japan's performance and resolves puzzles associated with liquidity traps. Possible conclusions for Anglo‐Saxon countries and eurozone members are also discussed.     

Industry evolution and R&D externalities

R&D externalities can imply ranges of aggregate increasing returns to scale in R&D. As a consequence several equilibria can exist involving different numbers of firms and different R&D investment levels. In a theoretical model the equilibrium dynamics are analyzed, showing that cyclical fluctuations of the number of firms and R&D investment may be expected, and that the long-run equilibrium is highly sensitive to investors' initial beliefs. The model is tested empirically using a unique database comprising competing firms in various R&D races.     

Empirical tests of real estate market efficiency

Recent empirical research using real estate data has supported the weak and semi-strong forms of the efficient markets hypothesis. Previous studies have not included an estimate of expected appreciation into the tests of market efficiency, thus raising a question about the reliability of the results. We first use a market model to test for market efficiency with results similar to those reported by others. We next use a dynamic multiple indicator, multiple cause (DYMIMIC) model, which extracts a vector of expected appreciation from the price data, to test market efficiency. This approach produces superior results and a stronger conclusion about the efficiency of housing markets. The results indicate limited adjustment delays which can be explained by the existence of high transactions and search costs.     

Asset accumulation,interdependence and technological change: evidence from pharmaceutical drug discovery

Although the resource‐based view of the firm has been written about extensively, the process by which firm assets are accumulated has not been explored in detail. That is, we know little about the micro‐level mechanisms by which assets are built, nor do we have sufficient empirical evidence why some assets are more difficult to imitate, trade, or substitute. In this exploratory paper, we attempt to provide a better understanding of asset accumulation via an empirical research program in pharmaceutical drug discovery. Using a combination of field research, discovery data from nine pharmaceutical firms, and data on 218 alliances involving new technologies for experimentation and testing, three causes affecting asset accumulation are identified and described. First, the difficulty of imitating a particular asset is affected by interdependencies with other assets. Second, trading of assets can be impeded by structural inertia in the core of a firm that is adopting the technology asset. And third, fully specifying all factors affecting imitation and trading ex ante is very difficult, if not nearly impossible, under conditions of rapid technological change. We propose that the complex interactions of these causes can give rise to imperfections in factor markets. Finally, implications for further research are discussed as well. Copyright © 2002 John Wiley & Sons, Ltd.     

Breaking with the Notion of Social Contract: Constitutions as Based on Spontaneously Arisen Institutions

The newly emerging subdiscipline of constitutional economics is dominated by adherents to social contract theory although this approach has been severely criticized many a time. In recent years, an alternative approach in which constitutions are conceptualized as conventions has emerged. It is argued here that this alternative approach is a step in the right direction but still does not go far enough. The central hypothesis of the paper is that conceptualizing constitutions as based on spontaneously arisen institutions can help to solve some of the problems left unanswered by the constitutions-as-conventions view.