Regional debt in monetary unions: Is it inflationary?

This paper studies the inflationary implications of interest bearing regional debt in a monetary union. Is this debt simply backed by future taxation with no inflationary consequences? Or will the circulation of region debt induce monetization by a central bank?We argue here that both outcomes can arise in equilibrium. In the model economy, there are multiple equilibria which reflect the perceptions of agents regarding the manner in which the debt obligations will be met. In one equilibrium, termed Ricardian, the future obligations are met with taxation by a regional government while in the other, termed Monetization, the central bank is induced to print money to finance the region's obligations. The multiplicity of equilibria reflects a commitment problem of the central bank. A key indicator of the selected equilibrium is the distribution of regional debt holdings. We show that regional governments, anticipating central bank financing of their debt obligations, have an incentive to create excessively large deficits. We use the model to assess the impact of some policy measures within a monetary union as well as dollarization.     

How to build multifunctional agricultural landscapes in the U.S. Corn Belt: Add perennials and partnerships

Conservation of ecosystem services in agricultural regions worldwide is foundational to, but often perceived to be in competition with, other societal outcomes, including food and energy production and thriving rural communities. To address this tension, we engaged regional leaders in agriculture, conservation, and policy from the state of Iowa (USA) in a participatory workshop and follow-up interviews. Our goal was to determine constraints to, and leverage points for, broad-scale implementation of practices that use perennial vegetation to bolster ecosystem services in agricultural landscapes. Qualitative analysis of workshop and interview data highlighted the complexity involved in achieving multi-objective societal outcomes across privately owned, working landscapes—especially as the Corn Belt region enters a period of rapid reorganization driven by the demand for bioenergy crops. These leaders indicated that initiatives focusing on perennials have the potential to span differences between conservation and agricultural interests by blurring the distinction between working lands and protected areas. Landscape change that transcends private property boundaries to accomplish this goal is dependent upon: (1) facilitation of vertical and horizontal forms of social capital between social actors from different scales and perspectives, and (2) scale appropriate mechanisms that increase the value of perennial practices for farm owners and operators. Our data highlight the adaptive capacity of regional actors to act as intermediaries to shape macro-scale markets, technologies, and policies in ways that are compatible with the needs, the capabilities, and the conservation of local human and natural resources.     

Zur Kritik der Kapitalmarktunion

This article examines the European Commission’s proposal to establish a Capital Markets Union through facilitated marketbased financing, prominently cross border securitisation. However, facilitated securitisation might raise systemic risks through a deteriorated term transformation, imperfect risk transfer and excessive leverage. It might create a new liquidity glut completely separated from the needs of the real economy. In addition, this concept is contradictory to previous efforts to properly supervise, regulate and control the European financial markets. The essay favours a regulation and control approach combined with extensive EU reforms of the financial sector.     

Incomes and Inequality in the Long Run: The Case of German Elderly

Abstract. We use German Sample Survey income data to examine the income distribution for elderly individuals during the period from 1978 to 2003. The elderly population, defined as people of age 55 and older, is decomposed by people resident in the Old and New Federal States. Further, we distinguish between persons receiving old‐age pensions and persons who do not. Inequality estimates are decomposed by income components, and the bootstrap method is used to test for statistical significance of results.     

Labour commodification,differentiation, and marginalization of the peasantry in Sella Limba (Sierra Leone) from 1950 to the present

In Sierra Leone, migration to diamond fields and the development of cash crops have contributed to the increasing integration of the peasantry in the national and global economy. Based on the study of a small northern chiefdom, Sella Limba, we describe how the labour commodification have led to the perversion of “traditional” social relations based on anteriority, and to the break‐up of large domestic groups into smaller, more precarious ones. At the same time, manual agriculture has been marginalized by massive cheap rice imports and remained very low in capital intensity. In this context, we show how low labour productivity curtails opportunities for long‐term social and economic differentiation. Farmers combine “modern” and “traditional” social relations, developing hybrid accumulation strategies that are sometimes close to mere survival.     

Mean–field moral hazard for optimal energy demand response management

We study the problem of demand response contracts in electricity markets by quantifying the impact of considering a continuum of consumers with mean–field interaction, whose consumption is impacted by a common noise. We formulate the problem as a Principal–Agent problem with moral hazard in which the Principal—she—is an electricity producer who observes continuously the consumption of a continuum of risk‐averse consumers, and designs contracts in order to reduce her production costs. More precisely, the producer incentivizes each consumer to reduce the average and the volatility of his consumption in different usages, without observing the efforts he makes. We prove that the producer can benefit from considering the continuum of consumers by indexing contracts on the consumption of one Agent and aggregate consumption statistics from the distribution of the entire population of consumers. In the case of linear energy valuation, we provide closed‐form expression for this new type of optimal contracts that maximizes the utility of the producer. In most cases, we show that this new type of contracts allows the Principal to choose the risks she wants to bear, and to reduce the problem at hand to an uncorrelated one.     

Fiscal Federalism in a Monetary Union: The No-Cooperation Pitfall

Open Economies Review - The relative merits in a monetary union of a fiscal federalism scheme and intergovernmental fiscal cooperation without a federal authority are assessed using a standard...     

Identifying and analysing the drivers of heterogeneity among ecosystem builder accelerators

In response to convergent and dynamic market developments, established firms use corporate accelerators to open their innovation processes to start‐ups. Among different accelerator themes, the ecosystem builder theme introduced by recent research plays a crucial role in furthering our understanding of the heterogeneity of accelerators due to its broad objectives. By interviewing 20 leading experts from 16 German corporate accelerators, we first identify heterogeneity among different ecosystem builder accelerators based on the differences in the process of selection, business support, and graduation. Second, we further structure the observed heterogeneity by depicting five different ecosystem builder accelerator types instead of a single ecosystem builder theme. These ecosystem builder accelerator types show important differences and similarities in terms of strategies, design elements, and processes within each of the process steps. Our findings hold meaningful research and managerial implications by providing (1) a consistent and systematic conceptual understanding about ecosystem builder accelerators, their strategies, design elements, and processes and (2) guidance to design and position ecosystem builder accelerators with regard to a long‐term corporate strategy.