Allocation of infrastructural facilities

Problems of geographical distribution of infrastructural facilities in LDCs cannot be tackled without reference to development strategies. This should mainly be based on the answer to the question whether development ought to radiate from a given centre of growth, or whether a broader distribution over the whole territory is preferred.     

Das »Office for Strategic Influence« als Informationsmanager in der US-Kampagne in Afghanistan

The terror attacks on September 11, 2001, formed the starting point for the United States’ «war against terror,» which began on October 7, 2001, with the first bombardment of Afghanistan. The broad support around the world faded quickly after a few weeks without any significant success in the battle against Al Quaeda. To counter rising annoyance, the US Government created the «Office for Strategic Influence» (OSI) in November 2001. The declared purpose: to produce sympathy and support for the war. Though source material is scarce, it is possible to trace the activities of the OSI. In Afghanistan, the office coordinated «Information Operations» already under way. The OSI also tried to influence domestic and international public opinion by participating in the foundation of the «Coalition Information Center» and by consulting public affairs expert Charlotte Beers and the advertising agency «Rendom Group». After an intensive denunciation by several newspapers, especially the 〉New York Times〈, the OSI was abandoned in February 2002. The discussion about the office defined more concretely the formerly vague border between publicly7 accepted and necessary agitation on the one hand and reprehensible propaganda on the other.     

Managing technology as a virtual enterprise

The complexity of R&D projects and growing international competition are factors leading to more co‐operation especially among small and medium‐sized firms. But even large integrated firms are often not willing or able to perform the necessary amount of R&D and to cope with the uncertainty associated with radical innovations.
In a virtual company, members form a network, thereby enabling projects to be pursued by combining member's resources. Specific assets of a virtual company are its flexibility and ability to handle variety. Costs of co‐ordination and motivation are lowered if the virtual company succeeds in building trust and commitment. On the other hand, lack of these pose severe problems.
In markets with a strong scientific‐technological basis and rapid rate of change the concept of a virtual organization seems appealing. High R&D costs and risks can be shared, developments and time‐to‐market can be accelerated and the partners can concentrate on their respective core competencies.
In the paper we use an example from the biotechnology industry as a case study and discuss some of the theoretical and practical problems that are encountered in the virtual enterprise.     

The impact of wages on job search in a transition economy - evidence with data from Eastern Germany

This study is concerned with the impact of wages on job search decisions in Eastern Germany immediately after reunification and in later periods. Several concepts measuring wage effects are used. The results of bivariate probit estimates with incomplete classification for a global and local job search show that the wage level had stronger effects on the former than on the latter job search decision directly after the collapse of the Berlin Wall. The degree of satisfaction with current income and the earnings capacities were irrelevant for the search decision. Low-paid East German workers had a higher propensity to search for a new job in the old Länder than others. This is contrary to the misleading result of isolated estimates about the job search in Western Germany. In the subsequent periods the situation has changed. The difference of earnings capacities between Eastern and Western Germany, specific East German wage premiums and intraregional wage inequality affect the decision to search for a new job in the west.For helpful comments I thank Michael Burda, Knut Gerlach, Robert A. Hart, Stefan Niermann, Liz Regan and two referees.     

Germany's New Insider Law: The Empirical Evidence after the First Year

Abstract. This paper investigates insider trading activities in German stocks during the first year following implementation of the new Insider Law on 1 July 2002. It can be observed that insiders act as contrarian investors. They buy stocks after prices have fallen and sell stocks after prices have risen. In general, insider trades are very profitable. A typical stock purchased by an insider yields an abnormal return of almost 3 per cent during the 25 days following the transaction. In contrast, a typical stock that has been sold by insiders achieves an abnormal return of nearly −3 per cent over the same time period. Outsiders who copy the transactions of insiders can achieve nearly the same abnormal returns. Abnormal returns remain substantial even after transaction costs. The results suggest that prices of stocks in which insiders trade do not seem to be semi-strong efficient.     

Demand for a labor‐based drought insurance scheme in Ethiopia: a stated choice experiment approach

Index‐based weather insurance is increasingly used to manage weather‐related risks in smallholder agriculture. However, cash‐constrained smallholders often lack the resources to pay an insurance premium, which may undermine its wider adoption. This article investigates alternative insurance payment methods that may help to enhance the adoption of index‐based weather insurance. We use a choice experiment to elicit smallholders’ willingness to pay in cash or labor for index‐based weather insurance in four districts in the south‐central highlands of Ethiopia. The insurance schemes were created using a fractional factorial design with three factors: work, cash, and payout rate. We analyze the choice data using a random parameter mixed logit model. We find that the average participants need a subsidy to pay cash for insurance because their willingness to pay is less than the expected cost of the insurance. On average, they are willing to pay only 0.81 ETB (Ethiopian currency) to get an expected yearly payout of 1 ETB. However, most are willing to participate in work‐for‐insurance programs at lower daily wage rates than is common for other work programs in Ethiopia.     

A comparative analysis of rice–wheat systems in Indian Haryana and Pakistan Punjab

Intensive irrigated rice–wheat production systems have converted the north-west Indo-Gangetic Plains into South Asia's cereal basket. Their strategic importance is undermined by a slowdown in productivity growth linked to the degradation of soil and water resources. Findings from farm surveys are used to examine contrasts and similarities between rice and wheat farms, cultivation practices, productivity, and profitability in the rice–wheat belt of India's Haryana State and Pakistan's Punjab province. In Haryana average wheat and paddy yields are markedly higher, but the yield advantage is offset by higher total production costs, resulting in lower private returns. The diverging institutional environment including varying levels of intervention in produce and input markets contributed to the evolution of the Pakistani production model as relatively ‘medium input–medium output’ and the Indian production model as ‘high input–high output’. The study reiterates the need to reinvigorate productivity growth and to reduce production costs in these intensive cereal production systems while conserving natural resources such as water and limiting negative environmental impacts. The study however also raises questions about the future of current rice–wheat systems.