Mobile number portability in Europe

This paper examines the causes and effects of mobile number portability (MNP) and provides a survey of its implementation in Europe. It first examines the competitive effects and costs of introducing MNP. Next, it discusses how to charge for MNP. It argues that a price cap regime starting from the average cost of porting is likely to provide appropriate incentives. Finally, it reviews recent experience with implementing MNP in Europe. Differences in the speed of porting and porting charges appear to explain part of the differences in the use of MNP across countries.     

Sustainability reporting: The role of “Search”, “Experience” and “Credence” information

Corporate sustainability reporting quality has been frequently criticised as being unbalanced, presenting an overly positive view or failing to address material issues. The purpose of this article is to provide a fresh explanation for poor quality sustainability reporting and to propose how quality issues may be addressed. The theoretical framework combines the legitimacy and accountability perspectives using Akerlof's (1970) Market for Lemons theory. Akerlof's approach is extended by differentiating between three types of information in sustainability reports namely search, experience and credence. The article concludes that the type of information must be considered when determining measures to improve report quality.     

Residual autocorrelation testing for vector error correction models

In applied time series analysis, checking for autocorrelation in a fitted model is a routine diagnostic tool. Therefore it is useful to know the asymptotic and small sample properties of the standard tests for the case when some of the variables are cointegrated. The properties of residual autocorrelations of vector error correction models (VECMs) and tests for residual autocorrelation are derived. In particular, the asymptotic distributions of Lagrange multiplier (LM) and portmanteau tests are given. Monte Carlo simulations show that the LM tests have satisfactory size properties only if autocorrelation of small order is tested in systems of small dimension. In contrast, portmanteau tests have roughly correct size in small samples only if higher order residual autocorrelation is tested. Their critical values have to be adjusted for the cointegration rank of the system, however.     

Stimulating the Demand for Insurance

This article acts as a review and also a guide to policymakers who are interested in understanding the determinants of insurance demand and how it affects general economic development. By providing a synopsis and evaluation of existing empirical research on the development of insurance markets, this article provides a discussion of the factors that promote insurance market development. This article then highlights certain issues that both insurance companies and policymakers can utilize further in their own markets to design future policies that can be geared to promote insurance market development.     

Export variety and economic growth in East European transition economies*

Utilizing panel data for 14 East European transition economies, we discuss the link between product variety and growth. The empirical work relies upon some direct measures of product variety calculated from 5‐digit OECD trade data. On balance, the results suggest that the growth patterns of the East European transition countries may be best represented by Ventura's (1997 ) model of outward orientation and integration with the world economy.     

Internet and consumer privacy: Considering the FTC’s “do not track” proposal

The digital economy relies on the collection of personal data on an ever-increasing scale. Regulations have to be found which can provide an optimal balance between consumers’ interest in privacy and the benefits from innovations that rely on the largely invisible collection, retention and sharing of consumer data. The following article discusses current US reform proposals and their relevance for the ongoing debate in Europe.