Productivity,earnings, and profit sharing — An econometric analysis of alternative models

The theoretical status of the relationship between productivity, wages, and profit sharing (PS) is poor. Only some alternative hypotheses can be formulated. From these explanations six different econometric models are derived. Using data of the German Socio-Economic Panel the models are estimated and tests and indicators are employed to choose the best model. Our investigation speaks in favour of hybrid simultaneous Tobit models where the level of profit sharing is positively correlated with productivity which induces positive wage effects on the one hand. But on the other hand the level of wages is also relevant to the question whether a firm introduces or decides to continuePS and which amount ofPS should be paid.What is obvious is not always true and introspection is a notoriously unreliable guide to empirical magnitudes. Blinder (1990, p.2)     

Uncertainty and sustainability in the management of rangelands

We analyze a dynamic and stochastic ecological-economic model of grazing management in semi-arid rangelands. The ecosystem is driven by stochastic precipitation. A risk averse farmer chooses a grazing management strategy under uncertainty such as to maximize expected utility from farming income. Grazing management strategies are rules about which share of the rangeland is given rest depending on the actual rainfall in that year. In a first step we determine a myopic farmer's optimal grazing management strategy and show that a risk averse farmer chooses a strategy such as to obtain insurance from the ecosystem: the optimal strategy reduces income variability, but yields less mean income than possible. In a second step we analyze the long-run ecological and economic impact of different strategies. We conclude that a myopic farmer, if he is sufficiently risk averse, will choose a sustainable grazing management strategy, even if he does not take into account long-term ecological and economic benefits of conservative strategies.     

Total factor productivity and R&D capital in the spanish economy, 1965–1980

A formal model of productivity growth and technical progress is presented. The model takes into account embodied and disembodied technical progress as explanatory variables. The slowdown in productivity growth for the Spanish economy after 1972 is explained for 92% by the decline in the rate of growth of technical progress originated from domestic R&D and technology imports.     

Zwischen Vertragstreue und Vorteilsstreben

In the context of this article the author states that the present law situation is quite sufficient, in order to fight frauds within the insurance range effectively. In his personal view it is missing however at general consciousness that such frauds represent criminal injustice. In all other respects the author demands the attitude of the insurance industry to bring already detected criminal offences also to criminal pursuit.     

Zur Nachhaltigkeit der Generationenverträge: Eine Diagnose der Kranken- und Pflegeversicherung

Employing the generational accounting approach, this paper analyses the stance of fiscal policy in Germany. We find that fiscal policy is presently not sustainable, which is mainly due to pay-as-you-go financed social insurance systems. In order to illustrate the relative impact, we isolate the Public Health Insurance and the Public Long Term Care Insurance. Our findings suggest that without radical reforms the implicit debt burden for future generations might reach a magnitude of more than two times the annual GDP and contribution rates to both schemes will explode during the next three decades.     

An Empirical Study of Firm Size and Competitiveness in German Life Insurance

Based on a purely rank-oriented approach, this empirical study analyzes to what extent superior firm size in German life industry generally translates into corporate advantages for the companies concerned. It turns out that while modest advantages with some criteria are measurable, any such benefits are usually outweighed by unquantifiable factors unrelated to firm size. Confining the study to a highly homogeneous subgroup of life insurers, however, reveals substantial corporate advantages in a number of areas, thereby confirming well-established theoretical reasoning.