Cointegration Testing in Single Error-Correction Equations in the Presence of Linear Time Trends

Banerjee, Dolado and Mestre (J. Time Ser. Anal. 19 (1998) 267−283)introduce an error-correction test for the null hypothesis of no cointegration. The present paper supplements their work. They provide critical values forregressions with and without detrending. Here it is shown that the latter arenot appropriate if the series display linear trends. This does not mean thatdetrending is required. Correct percentiles are suggested for the case thatseries follow linear time trends but tests are based on regressions withoutdetrending. They are readily available from the literature.     

Der Mass Customization-Ansatz als neue Wettbewerbsstrategie in der privaten Krankenzusatzversicherung

The competitive position of the additional private health insurance fund is mainly dependent upon the development of the compulsory health insurance fund. The wide scale legislative interventions result in new market leeway for additional private health insurance on the one hand. On the other hand these measures bear the risk of intensifying the competition. This paper shows the competitive approach of the Mass Customization as a new scope for design considering the supplier as an additional source of private health insurance. The author shows on an empirical review of the situation to check if the main goal of the Mass Customization approach has fulfilled the customized needs by also considering the context of the special competitive situation. The aim is to see if this goal has been achieved on the market of additional private health insurance products. The author makes a point in showing composition approaches and points out problems and limits of implementing additional private health insurance products for usage.     

New evidence on the dynamic wage curve for Western Germany: 1980–2004

Blanchflower and Oswald [Blanchflower, David G. and Oswald, Andrew J., 1994a, The Wage Curve, (Cambridge, MA, MIT Press), Blanchflower, David G. and Oswald, Andrew J., 1994b, Estimating a Wage Curve for Britain 1973–90, The Economic Journal 104, 1025–1043. Eine praktische Einführung, Nürnberg] reported that they have found an ‘empirical law of economics’ — the Wage Curve. Our paper reconsiders the western German Wage Curve using disaggregated regional data and is based on almost one million employees drawn from the Federal Employment Services of Germany over the period 1980–2004. We find that the wage equation is highly autoregressive but far from unit root. The unemployment elasticity is significant but relatively small: only between ? 0.02 and ? 0.04. We also check the sensitivity of this elasticity for different population groups (young versus old, men versus women, less educated versus highly educated, German native versus foreigner), confirming that it is stronger the weaker the bargaining power of the particular group.     

Strategies for survival

In the debate about relocation to the developing countries of “structurally weak” industries the clothing industry has attracted the special interest of academic and political economists in the Federal Republic of Germany. The following article constitutes a summary of the most important findings of a study of the conditions under which this industry will be able to ensure its continuing existence in the Federal Republic in the future.