Are We Better Off if Our Politicians Have More Information?

The model of public policy studied in this paper has heterogeneous citizens/voters and two public goods: one (roads) chosen directly by an elected policy‐maker, and the other (pollution) stochastically dependent on the amount of roads. Both a one‐country and a two‐country version of the model are analyzed; the latter displays externalities across the countries which create incentives for free riding and strategic delegation. The welfare effects of providing the policy‐maker with information about the relationship between roads and pollution are investigated, and it is shown that more information hurts some—sometimes even all—citizens. In particular, the opportunity not to create an institution for information gathering can serve as a commitment device for a country, although with the unfortunate effect of making the overall outcome even worse. Implications for the welfare effects of “informational lobbying” are also discussed.     

The Tax‐smoothing Hypothesis: Evidence from Sweden, 1952–1999

This paper tests Barro's (1979) tax‐smoothing hypothesis using Swedish central government data for the period 1952–1999. According to the tax‐smoothing hypothesis, the government sets the budget surplus equal to expected changes in government expenditure. When expenditure is expected to increase, the government runs a budget surplus, and when expenditure is expected to fall, the government runs a budget deficit. The empirical evidence suggests that the model provides a useful benchmark and that tax‐smoothing behavior can explain about 60 percent of the variability in the Swedish central government budget surplus.     

R&D employment effects of financial slack generated by R&D tax exemption: The importance of firm-level contingencies

This paper focuses on R&D employment effects due to financial slack generated by an R&D tax exemption scheme in Belgium. The tax exemption is granted without firm-level requirements, which facilitates testing firm-level contingencies on the influence of the generated financial slack. We find that R&D employment effects increase with the level of the R&D tax exemption related to financial slack resources and that this positive relation is more outspoken for older firms and for firms with an intermediate share of R&D tax exemptions in the overall mix of R&D policy support. No effects are found for firm size and its R&D intensity. These findings suggest targeting the R&D tax exemption support according to firm characteristics to obtain longer term R&D employment effects. The focus on R&D employment adds to the literature on the evaluation of R&D policies which is largely oriented toward R&D expenditure and innovation outputs.     

Should countries block foreign takeovers of R&D champions and promote greenfield entry?

Abstract In R&D intensive industries, governments promote greenfield foreign investments, while being sceptical towards foreign acquisitions of domestic high‐quality firms. We develop a theoretical model that shows that foreign acquisitions are conducive to high‐quality targets because of strategic effects on the sales price. However, foreign firms ‘cherry pick’ high‐quality targets to expand R&D rather than to downsize. Otherwise, rivals expand R&D, making the acquisition unprofitable. Thus, our model predicts that acquired affiliates invest more in R&D than greenfield affiliates. Using affiliate data, we find evidence that acquired affiliates have a higher level of sequential R&D intensity than greenfield affiliates.     

Converging New Public Management Reforms and Diverging Accounting Practices in Flemish Local Governments

This paper aims at presenting a comparative study of the diverging development of accounting reforms in Flemish local governments in terms of accounting from a technical point of view. On the one hand, the objectives and the framework of current governmental accounting reforms aiming at improving New Public Management are currently converging. On the other hand, a conceptual examination reveals that the prescribed accounting practices are widely diverging and apparently this is also the case for the practical implementation of the reformed accounting systems. By way of conclusion, a number of possible reasons for this unsuccessful proliferation are presented.     

Utopian thought and the politics of sustainable development

This article argues that utopian thought is a necessary condition for the politics of sustainable development. Since utopian thought has so far been constrained by some typically Western features from the era of modernity, this requires a shift that transcends the following three fundamental aspects: the notions of fixed truth, fixed territoriality and fixed final goals for politics. The article argues that the concept of global sustainable development can entail three new elements of utopian thought: the disintegration of fixed territoriality, a never-ending story, and prismatic blueprints. Using these elements, utopian thought can provide transformative power, so that politics and policymaking can meet contemporary global challenges to development and the environment.     

Experiential and involvement effects on the Korean wine tourist's decision-making process

This study's core purpose is to understand the behavioural intention (BI) of wine tourists using the Extended Model of Goal-directed Behaviour (EMGB). Specifically, the Model of Goal-directed Behaviour (MGB), an advanced version of the Theory of Planned Behaviour (TPB), is extended to EMGB by incorporating experience and involvement towards wine tourism to better understand wine tourists' intention to participate in a tour. The sample was 211 Korean wine tourists. Results revealed that two constructs related to wine tourism, namely, experience of a wine tour and wine tourism involvement, formed positive and significant relationships with attitude towards participating in such a tour. Attitude, subjective norm, and positive anticipated emotion influenced tourists' desire to participate in a wine tour, which, in turn, influenced their BI. Contrary to expectations, the frequency of past behaviour does not have a significant effect on desire and BI, and perceived behavioural control has no significant effects on BI.     

On the relationship between supplier integration and time-to-market

Recent operations management and innovation management research emphasizes the importance of supplier integration. However, the empirical results as to the relationship between supplier integration and time-to-market are ambivalent. To understand this important relationship, we incorporate two major recent developments. First, the literature has started to redefine supplier integration into two dimensions, supplier product integration and supplier process integration. Second, recent research has begun to examine spillover effects that extend beyond the direct costs and benefits of the supplier contract. Using survey data of 116 firms in the industrials, health care, and information technology industries, the results confirm our hypotheses and show that supplier product integration decelerates time-to-market while supplier process integration accelerates time-to-market. The results also show a positive relationship between supplier integration and the adoption of external technologies, which either decelerates or accelerates time-to-market depending on the level of internal exploration activities. Our research, thus, helps to open the ‘black-box’ of the relationship between supplier integration and time-to-market, and provides a theoretically grounded explanation to the apparent contradictory results in prior research about the influence of supplier integration on time-to-market. In addition, we contribute to research on spillover effects by emphasizing that information technology adoption and assimilation is an important spillover effect of supplier integration.