On estimation of the CES production function—Revisited

Estimation of the non-linear Constant Elasticity of Scale (CES) function is generally considered problematic due to convergence problems and unstable and/or meaningless results. These problems often arise from a non-smooth objective function with large flat areas, the discontinuity of the CES function where the elasticity of substitution is one, and possibly significant rounding errors where the elasticity of substitution is close to one. We suggest three (combinable) solutions that alleviate these problems and improve the reliability and stability of the results.     

The diversification cost of large,concentrated equity stakes. How big is it? Is it justified?

While the hypothesis that ownership concentration can affect the value of a company has seen a lot of empirical study, little light has been shed on a complementary problem, that these concentrated owners have a cost of their position due to an undiversified portfolio. Using a unique data set of the actual diversification of all Norwegian equity owners, we show that the largest owners of a corporation in fact have very undiversified equity portfolios, and that such owners have significant costs to their concentrated portfolios. At the level of risk of a benchmark portfolio, if they were to move from their present portfolio composition in risky assets to a well diversified portfolio, their returns would have increased by about 13 percentage points in annual terms. We ask whether this cost can be explained by estimated benefits of ownership concentration (private benefits), and show that extant estimates of private benefits are too low to offset our cost estimates.     

Das adaptierte deutsche Arbeitsbeziehungsmodell im Vergleich

Zusammenfassung  Das deutsche Modell der Beziehungen zwischen Arbeitgebern und Arbeitnehmern innerhalb eines Unternehmens — vor allem die betriebliche Mitbestimmung — stand lange Zeit in der Kritik, w?hrend das anglo-amerikanische Modell als überlegen angesehen wurde. Welches Arbeitsbeziehungsmodell w?hlen deutsche und amerikanische Unternehmen in einem in Hinblick auf die Ausgestaltung der Arbeitsbeziehungen freizügigen Umfeld, wie es in Gro?britannien herrscht? Wie wirkt sich die Wahl des Modells auf Arbeitsproduktivit?t und Profi tabilit?t der Tochterunternehmen aus? Prof. Dr. Arne Heise, 48, lehrt Volkswirtschaftslehre an der Universit?t Hamburg und an der Izmir Economics University, Türkei; Prof. Dr. Heinz Tüselmann, 49, lehrt International Business an der Manchester Metropolitan University; Prof. Dr. Frank McDonald, 58, lehrt International Business an der University of Bradford; und Matthew Allen, 38, ist Lecturer an der Manchester Business School. Prof. Dr. Arne Heise, 48, lehrt Volkswirtschaftslehre an der Universit?t Hamburg und an der Izmir Economics University, Türkei; Prof. Dr. Heinz Tüselmann, 49, lehrt International Business an der Manchester Metropolitan University; Prof. Dr. Frank McDonald, 58, lehrt International Business an der University of Bradford; und Matthew Allen, 38, ist Lecturer an der Manchester Business School. Dieser Aufsatz fasst die Ergebnisse eines von der Hans-B?ckler-Stiftung gef?rderten Projektes „Employee Relations and Firm Performance: A Comparison of German and US Multinational Companies in the United Kingdom“ zusammen.     

中国、挪威两国学生对“丢面子”的比较研究

目的 通过对中国与挪威两国高等学校学生对”面子”认知与理解的调查与分析,获得两国文化背景下对“面子”概念的理解及对“丢面子”程度上的认知有无差异。方法 以131名两国大学生为调查对象,采用问卷调查方法。结果 对脸面的理解及认知与文化有明显相关;与性别有无相关。结论 中国挪威两国不同的文化背景对“丢面子”的理解与感知在程度上有影响。然而,面子是一个具有文化普遍性的概念,从调查结果可知,在某些问题上,挪威学生对丢面子的感知也比较强烈。     

Optimal Public Debts, Sustainable Deficits, and Budgetary Consolidation

It is hardly surprising that government budgets have always been widely debated inboth the political and academic arenas as public finances in general, and the budgetin particular, reflect the political and ideological colour of the government whichruns the state. No less inevitable are academic debates on budgetary issues giventhat economics is a multi-paradigmatic science. This background makes all the moremysterious the current complete consensus on the need for budgetary consolidationand the overwhelming acceptance of the `balanced budget' principle in politics as wellas in academic economics. In the paper, this position is questioned by producing a simple model of optimal public debt, sustainable deficits and optimal budgetary consolidation. Different possible trajectories of fiscal restriction and expansion – based on a Post-Keynesian and Rational Expectations paradigm alternatively – are then being empirically tested by comparing the German and British historical accounts of public finances over the past three decades.     

Balancing Work and Family: The Role of High-Commitment Environments

Recently, researchers have begun to recognize that the nature of jobs, the workplace environment, and more generally, the culture of the workplace can have a significant impact on the ability of workers to balance their work and family lives. This article examines the effect of high-performance work practices, job characteristics, and the work environment on workers' views about whether the company helps them balance work and family. Using data from a survey of workers across three manufacturing industries, we show that a high-commitment environment—characterized by high-performance work practices, intrinsically rewarding jobs, and understanding supervisors—positively influences employees' perceptions that the company is helping them achieve this balance. This article reinforces the view that helping workers balance work and family responsibilities is not just a matter of benefits and formal family-friendly policies. Rather, it also depends on the characteristics of jobs within the business enterprise.     

Dynamic modelling of agroforestry and soil fertility interactions: implications for multi-disciplinary research policy

This paper attempts to contribute to one of the major aspects of international research agenda in agroforestry. A general framework is developed in this paper to capture the dynamic interactions of various components of agroforestry system. Using a multi-seasonal model of agroforestry, the competition among the system components in resource and input use and the trade-offs between different outputs of agroforestry system are analyzed. Policy implications for multi-disciplinary research are derived. It is argued that quantifying the potential benefits of agroforestry system requires reformulation of existing economic methods of analyzing agroforestry technology to contribute to the fuller understanding of the dynamic interactions among its various components.     

Price differences between equity classes. Corporate control,foreign ownership or liquidity?

This paper is the first comprehensive study of price differences for dual class equity at the Oslo Stock Exchange. It analyzes the relative importance of corporate control, foreign ownership restrictions and stock market liquidity for the price differences. The Norwegian market has the peculiar feature that in part of the sample period non-voting shares were trading at a premium to voting shares, i.e., what is usually termed the “voting premium” was negative. This result can be rationalized by restrictions on foreign ownership. In the later part of the period, with no regulatory restrictions on foreign ownership, the voting premium is positive, and related to corporate governance and liquidity.     

Employers' Flexibility and Employment Volatility

A bstract .   Previous analyses of the strong secular growth in personnel supply employment have focused primarily on the relative impacts of demand and supply factors. This industry's dramatic growth has tended to mask its high degree of volatility, which may be more useful in understanding employers' motivations for hiring temporary employees. This article examines alternative explanations for the volatility of employment in the temporary supply industry from 1972 to 2000. Using a seemingly unrelated time-series estimator, we compare the volatility of temporary employment to that of regular full-time employment. We find that quarterly changes in temporary employment are more sensitive to the business cycle than regular full-time employment are and argue that temporary employment is likely to have a number of disadvantages as a reemployment strategy during a recession, since temporary employment typically declines during that time. Additionally, employment growth during this period is better explained by employers' efforts to achieve numerical rather than wage flexibility.