Co-employment of permanently and temporarily employed agents

One-shot interaction and repeated interaction often co-exist in the real world. We study possible behavioral effects of this co-existence in a principal-agent setting, in which a principal simultaneously employs a permanent and a temporary agent. Our experimental results indicate that there is “discrimination” between the two agents and that the available information for agents determines the extent of this discrimination, even though the theoretical solution of the game implies equal treatment of agents. Discrimination is, thus, a consequence of reciprocity. Agents that are discriminated against react negatively by withholding effort.     

The effect of crises on firm exit and the moderating effect of firm size

The liability of smallness assumption suggests that smaller firms face higher exit risks. However, does it apply during crises? We show that during downturns size reduces firms’ exit risk by less; the hazard rate increases more rapidly in size.     

Plädoyer für eine ordnungspolitisch systematische Familienbesteuerung

In der Politik wird als Instrument der Familienf?rderung gegenw?rtig ein Familiensplitting diskutiert. Ist ein Familiensplitting geeignet, familienpolitische Ziele zu erreichen? Besteht bei der gegenw?rtigen Familienbesteuerung Handlungsbedarf? Vera Bünnagel, 30, Dipl.-Volkswirtin, ist Wissenschaftliche Mitarbeiterin am Otto-Wolff-Institut für Wirtschaftsordnung und am Institut für Wirtschaftspolitik an der Universit?t zu K?ln. * Die Autorin dankt Barbara Henman für wertvolle Hinweise und Anregungen.     

The politics of special purpose trust funds

Over the last decades, bilateral donors of foreign aid have increased their use of special purpose trust funds to provide earmarked aid to multilateral organizations. This paper investigates the incentives and consequences underlying this recent shift toward country‐ or theme‐specific funding and away from bilateral and multilateral aid. We propose a game‐theoretic model with multiple principals and a multilateral agent to study how the interaction between donor preferences, voter concerns in the donor country, the voting rules at the multilateral organization, and the presence of special purpose trust funds influences aid allocation. We show that multilateral organizations with majority rules are more likely to receive discretion and thus voluntary core contributions than those with unanimity requirements and that the possibility of earmarking multilateral aid decreases donors’ contributions to the multilateral's discretionary core budget and the amount of bilateral aid. In contrast to much of the literature dealing with issues of delegation and bi‐ and multilateral aid, our model suggests non‐monotonic effects of preference heterogeneity on the choice of aid channel for some parameter combinations when contributions to special purpose trust funds are an option.     

On the dynamics of an inflation IS‐LM model

The aim of the present paper is to analyze the dynamic of a generalized IS‐LM macroeconomic model for the inflation via the use of the averaging theory of dynamical systems. For this 3‐dimensional system we present a rigorous proof on the existence of a limit cycle in the case of considering a nonlinear action of cubic type on the real net product. Moreover we study the stability and the Hopf bifurcations of the system equilibria for different values of the parameters.     

Financial reporting for sustainable development: Critical insights into IFRS implementation in the European Union

By adopting a political economy perspective to accounting, this paper provides an overall post-implementation assessment of International Financial Reporting Standards (IFRS) adoption relative to the European Union’s (EU’s) fundamental goal of sustainable development. The paper questions the consistency of the International Accounting Standards Board’s business view with the EU’s and provides some critical insights into the potential long-run effects of IFRS on the European economy and society. Therefore, it raises several doubts about unquestioned accounting standardization at a global level and makes some suggestions for future policymaking and research.     

Cutting wages and employment in the public sector: Smarter fiscal consolidation strategies needed

This article provides an overview of the impact of public sector pay and employment cutbacks in EU countries and discusses their justification as part of austerity packages. It begins with the outcomes in the countries first hit by the economic crisis before discussing the impact of the crisis and the perceived need for austerity on collective bargaining in the public sector of other EU countries. It then turns to the arguments put forward for focusing on public sector cuts as a means of fiscal consolidation and submits them to critical review. Policy conclusions are drawn regarding collective bargaining, public sector pay issues and pathways to fiscal consolidation in Europe that would be more effective in economic terms and more equitable in social terms.     

Process principle- The way to company＇s competitiveness

Seeking ways to increase company＇s competitiveness under current economic and social conditions brought us to investigate internal and external barriers. These reflect contradictions between participants to creation of company＇s output both in internal and external value creation process. These contradictions were identified and their causes are determined. That requires also considering about the trends that are characteristic of the current development in marketing where versatile development of customer orientation dominates. The general governing principle of overcoming the barriers to the growth of company＇s competitiveness is applied by the process approach in organisation and management. The mater is namely using the potential of supply chain management, as well as product and manufacture management, last but not least systematic creation of customer value with the objective of creating a loyal customer and employee.