Fear of Floating and Pegging: A Simultaneous Choice Model of De Jure and De Facto Exchange Rate Regimes in Developing Countries

We present an analysis of the determinants of de jure and de facto exchange rate regimes based on a panel probit model with simultaneous equations. The model is estimated using simulation-based maximum likelihood methods. The empirical results suggest a triangular structure of the model such that the choice of de facto regimes depends on the choice of de jure regimes but not vice versa. This gives rise to a novel interpretation of regime discrepancies.

Municipalities and regions in locational competition — New economic considerations

Locational competition has intensified in recent years in the wake of globalisation as well as the general development towards a knowledge- and service-based economy. In this context, newer economic analyses point to a shifting of the locational factors considered relevant for success in local and regional competition. With respect to these fundamental changes, it is becoming increasingly relevant to ask how local and regional development processes must be constructed in order for municipalities and regions in modern industrial countries to maintain the positions they have already achieved.     

Stock Externality vs. Symbiosis in a Forest-Air System

Stock externalities and ecological interaction have similar equilibrium effects. The influence on the dynamics of an ecosystem, however, is quite different. The different effects are laid out theoretically in the context of a forest-air model. We compare a centralized, welfare-maximizing policy and decentralized policies. Finally, we numerically simulate the dynamic differences between stock externalities and ecological interaction.     

Sovereign risk premiums in the European government bond market

This paper provides a study of bond yield differentials among EU government bonds on the basis of a unique data set of issue spreads in the US and DM (Euro) bond market between 1993 and 2009. Interest differentials between bonds issued by EU countries and Germany or the USA contain risk premiums which increase with fiscal imbalances and depend negatively on the issuer’s relative bond market size. The start of the European Monetary Union has shifted market attention to deficit and debt service payments as key measures of fiscal soundness and eliminated liquidity premiums in the euro area. With the financial crisis, the cost of loose fiscal policy has increased considerably.     

Exploring Consumers' Expectations of Sustainability in Mature and Emerging Markets

ABSTRACT

“Sustainability” has turned into a buzzword for businesses around the globe as consumers in mature and, increasingly, in emerging markets shift their demand toward sustainably enhanced products. Surprisingly, a global picture of consumers' expectations regarding sustainable products is still missing. This study uses exploratory factor analysis to determine the perceived importance and interrelation of selected sustainability aspects in three developed (Germany, Switzerland, United States) and three emerging (Brazil, China, India) markets. Results are linked to national cultural value theory to explore which sustainability aspects and positioning strategies may be promising to expand the outreach of sustainable products in developed and emerging markets alike. Results suggest that across the sampled economies, sustainability is increasingly considered as being comprised of a health aspect. While health and quality of life aspects emerged as key issues across countries, cultural backgrounds and local market conditions resulted in nuanced expectations of sustainability, which should be kept in mind in communicating and positioning sustainable products.     

Alternative operating regimes for money stock control in West Germany: An empirical evaluation

Zusammenfassung Alternative Verfahren zur Kontrolle der Geldmenge in Westdeutschland.-Die geltenden Verfahren zur kurzfristigen Kontrolle des Geldvolumens bestehen üblicherweise aus einer Kombination von Multiplikatorvorhersage und dem Auftrag an die Zentralbank, die monet?re Basis oder die Reserven auf einem Niveau zu halten, das aus dieser Vorhersage und dem Geldmengenziel abgeleitet ist. Hier wird gezeigt, da? dieses Verfahren so erweitert werden kann, da? die laufenden Informationen über den nicht beobachtbaren Multiplikator genutzt werden. Ein monetaristischer Vorschlag zur laufenden Kontrolle wird empirisch mit dem aktuellen Kontrollverfahren der Bundesbank verglichen. Die Einbeziehung laufender Informationen verbessert beide Verfahren erheblich gegenüber der üblichen Vorgehensweise.

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Résumé Régimes d’opération alternatifs pour le contr?le de la masse monétaire dans la RFA. -Des procédures d’opération pour le contr?le monétaire à court terme sont conventionnellement désignées comme combinaison d’une prédiction du multiplicateur et de la tache de la banque centrale de tenir la base monétaire ou des réserves à un niveau qui est dérivé de cette prédiction et du but monétaire. L’auteur démontre que cette approche peut être élargie pour utiliser l’information courante sur le multiplicateur inobservable. Une proposition monétariste de la procédure d’opération est empiriquement comparée avec le régime actuel de contr?le de la Bundesbank. L’incorporation de l’information courante améliore beaucoup les deux procédures en comparaison avec les approches conventionnelles.

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Resumen Regímenes operativos alternativos para el control de la oferta monetaria en Alemania Occidental. -Procedimientos operativos para el control monetario en el corto plazo son dise?ados convencionalmente como combinación de una predicción de multiplicador con el encargo al banco central de mantener la base o las réservas en el nivel derivado de esta predicción y del objetivo monetario. Se muestra que este enfoque puede ser extendido para incorporar informatión corriente sobre el multiplicador, el cual no es observable. Se compara empfricamente un dise?o monetarista de un procedimiento operativo con el régimen de control actual del Bundesbank. La incorporación de información corriente mejora notablemente ambos procedimientos en relación al enfoque convencional.

     

International strategy and performance—Clustering strategic types of SMEs

This paper identifies different strategic types of internationalised SMEs, in so doing providing managers and entrepreneurs with a much better understanding of the main strategic options and their relationship with the international performance of firms. We provide a theoretical analysis of strategic orientations and strategic behaviour in international SMEs, followed by an empirical investigation based on a sample of Italian SMEs. The SMEs are grouped into strategic types using cluster analysis, and the link between strategic type and international performance is subsequently analysed using logistic regression. The empirical data suggest that there are four broad strategic types, namely an entrepreneurial/growth-oriented group of firms, a customer-oriented group, a product/inward-oriented cluster, and a further group of firms that lacks strategic orientation. The characteristics of the strategic clusters are discussed, and the regression results show that a clear and proactive strategic orientation and its consistency with business strategy leads to improved international performance. This confirms the positive and highly significant role of strategic types.