A micro-based non-inflationary rate of capacity utilisation as a measure of inflationary pressure: evidence for Austria

We derive a non-inflationary rate of capacity utilisation (NIRCU)—as recently proposed by Köberl and Lein (Can J Econ 44:673–694, 2011)—based on a large Austrian firm-level panel dataset ranging from 1996 to 2011. By conditioning the current capacity utilisation of firms on their current and planned price adjustments, a micro-level NIRCU is defined as the level of capacity utilisation at which there is no need for the firm to adjust its prices. In contrast to other measures of inflationary pressure, this measure (1) is timely available without revisions and (2) does not imply any need for rather arbitrary methods or concepts such as statistical filtering or potential output. In accordance with the results in Köberl and Lein (Can J Econ 44:673–694, 2011), we find that the NIRCU performs well as a driving variable of Austrian inflation in various Phillips Curve estimations. Compared to other inflation driving variables, such as real unit labor cost, the output gap and the unemployment gap, it delivers reasonable parameter estimates which are in line with existing Phillips Curve estimations in the literature.     

Vocational training and the labour market in liberal and coordinated economies

In recent decades, the differences between the education and training systems in the liberal and coordinated market economies have increased. It is not possible to understand such different developments by focusing exclusively on the internal dynamics of vocational and general education systems. Vocational education and training (VET), and particularly apprenticeship systems rather than school‐based VET, are deeply embedded in the different national production, labour market, industrial relations and status systems. In order to contribute to a better understanding of the dynamics of VET, we examine recent developments in general and vocational training and its links to the labour and product market in five contrasting countries, namely, Denmark, Canada, Germany, Korea and the USA. In particular, differences in industrial relations, welfare states, income distribution and product markets are the main reason for the persistent high level of diversity in vocational training systems. The difference can perhaps be summarized as follows: in the coordinated market economies, the modernisation of vocational training is seen as a contribution to innovation in the economy, while in liberal market economies, it is seen as a siding into which weaker pupils can conveniently be shunted.     

Locational choice and price competition: some empirical results for the austrian retail gasoline market

Using data from the Austrian retail gasoline market we find that a higher station density reduces average prices. Market (i.e. ownership) concentration does not significantly affect average price, however is negatively related to the density of stations. Estimation of the pricing and entry equations as simultaneous equations does not alter our conclusions, and suggests causality running from station density to price. We argue that the spatial dimension of markets allows the identification of market conduct, which is particularly relevant for competition policy.

How loan portfolio diversification affects risk, efficiency and capitalization: A managerial behavior model for Austrian banks

The aim of this paper is to analyze how diversification of banks across size and industry affects risk, cost and profit efficiency, and bank capitalization for large Austrian commercial banks over the years 1997–2003. Employing a unique dataset, provided by the Austrian Central Bank, we test for several different types of managerial hypotheses, formalized according to a modified version of the Berger and DeYoung model [Berger, A.N., DeYoung, R., 1997. Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance 21, 849–870]. We find that, although diversification negatively affects cost efficiency, it increases profit efficiency and reduces banks’ realized risk. Finally, diversification seems to have a positive impact on banks’ capitalization.