Gefährliche Inflationsunterschiede in der Eurozone

Die letzte Leitzinserh?hung der Europ?ischen Zentralbank (EZB) birgt ein Risiko: Noch nie war das Inflationsdifferential in der Eurozone zum Zeitpunkt einer Zinserh?hung so hoch wie heute. In einem solchen Umfeld kann die Zinspolitik kontraproduktiv wirken. Der Beitrag erl?utert Konsequenzen und L?sungsvorschl?ge, wie das makro?konomische Umfeld für die EZB-Zinspolitik verbessert werden kann.     

Choosing the Joneses: Endogenous Goals and Reference Standards

A growing economic literature stresses the importance of relative comparisons, e.g., for savings and consumption or happiness. In this literature it is usually assumed that reference standards against which people compare themselves are exogenously given. In contrast, findings from social psychology suggest that people play an active role in determining their reference standards. We introduce a social comparison model where people choose their reference standards to serve motives of self‐improvement and self‐enhancement. The model predicts that reference standards increase in individuals’ abilities and that people thus tend to compare themselves to similar others. The results of a questionnaire study confirm the prediction of the model.     

Venture capital investment practices in Europe and the United States

This article focuses on the investment practices and contract behavior of venture capitalists in relation to their portfolio companies. Using a unique self-collected data set, we provide new evidence on the venture capital industry in Europe and the United States. Important differences are identified between the two, particularly with respect to the use of convertible securities, replacement of former management, stage financing, deal syndication, and duration of exit stage. The most striking difference involves the use of convertible securities, which are used far less often in Europe than in the United States. These differences suggest that European venture capitalists engage in less monitoring and thus adopt a more hands-off approach to their portfolio companies as compared to US venture capitalists.

Equity crowdfunding: First resort or last resort?

Prior research has focused on the factors that affect funding success on equity crowdfunding platforms, but a detailed understanding of the factors that drive firms to search for equity crowdfunding in the first place is lacking. Drawing on the pecking order theory, we argue that firms list on equity crowdfunding platforms as a “last resort”—that is, when they lack internal funds and additional debt capacity. In line with the pecking order theory, the empirical evidence shows that firms listed on equity crowdfunding platforms are less profitable, more often have excessive debt levels, and have more intangible assets than matched firms not listed on these platforms. We discuss the implications for theory and practice.     

China's new economic policy

China's new economic policy made headlines in December 1984 when a leading article in the People's Daily expressed the previously unthinkable opinion that the teachings of Marx and Engels could not be expected to solve all of China's present problems. What have been the main characteristics of the reform, which began five or six years ago, and how should its results so far be assessed? What are the prospects for the future?     

Estonia’s monetary integration into EMU

Estonia is not only striving for rapid acceptance into the European Union, but it is also directing efforts towards being integrated into EMU without delay. The following article first comments on the extent to which the convergence criteria, as the central precondition for admittance to EMU, have been fulfilled. It then proceeds to discuss the compatibility of Estonia’s present currency board system with the requirement of its participation in the ERM II. Finally, it looks into the consequences of a premature subjection to the ECB’s monetary strategy.     

Endogenous Technological Spillovers: Causes and Consequences

We develop a new approach to endogenizing technological spillovers. We analyze a game in which firms can first invest in cost-reducing R&D, then compete on the human-capital market for their knowledge-bearing employees, and finally enter the product market. If R&D employees change firms, spillovers arise. We show that technological spillovers are most likely when they increase total industry profits. We use this result to show that innovation incentives are usually stronger for endogenous than for exogenous spillovers and that endogenous spillovers may reverse the result that innovation incentives are stronger under quantity competition than under price competition. Finally, we explore the robustness of our results with respect to contractual incompleteness and the number of R&D workers.