Globalisation: Exodus of German industry?

Many commentaries on the present economic situation contend that Germany is increasingly “exporting jobs” rather than producing competitive goods and services. Can Germany continue to compete effectively with other business locations in the battle for mobile investment capital?     

Linking Absolute and Comparative Advantage to Intra-Industry Trade Theory*

Two countries, which differ with respect to domestic demand for two groups of differentiated products, are considered in a setting of monopolistic competition where international trade is subject to transaction costs. It is shown that relative differences in demand determine the trade pattern. Each country is a net exporter of that group for which domestic demand is relatively larger-where the country has a comparative home-market advantage. Absolute differences in demand determine relative wages. Thus, the paper argues that the notions of absolute and comparative advantage as found in traditional trade theory also have meaning in new trade theory.     

Is the performance of the dollar a random process?

It is still frequently argued that a random process would be the best way of predicting the DM/dollar exchange rate. In the following empirical analysis, however, Dr. Rolf Schneider comes to the conclusion that the behaviour of the dollar can be explained largely in terms of basic economic variables.     

Trade restrictiveness and efficiency*

This article proposes a trade restrictiveness quantity index (TRQI) to measure the welfare impact of trade restrictions based on a distance functions approach. The TRQI embodies two Farrell measures of efficiency—respectively for producers and consumers—that can be computed using standard efficiency measurement techniques. The TRQI can also be decomposed into a trade distortion and domestic distortion component. In the context of the debate on the interlinkages between openness and economic performance, the TRQI offers a means to disentangle economic inefficiencies induced by trade restrictions alone, from otherwise not directly trade‐related economic inefficiencies induced by domestic distortions.     

Farrell efficiency under value and quantity data

In 1957, Farrell introduced a nonparametric method to estimate technical efficiency. His original illustration, however, utilized value-based, rather than quantity-based data (p. 279). This common practice raises the question of how value-based DEA models coincide with quantity-based models. It is well known that the two models coincide when firms face identical prices. In practice, however, prices vary across firms and the two models yield materially different results. We decompose the resulting difference into its technology and firm-related components and then use Farrell’s original data set to show that the expected difference is systematic and one-sided.      

„Controlling hilft,Abweichungen zwischen politischen Vorstellungen und der Realität zu verringern“

Praxis / Artikel

„Controlling hilft, Abweichungen zwischen politischen Vorstellungen und der Realit?t zu verringern“ Interview mit Wolfgang K?hler und Clemens Krechel zu Rechnungswesen und Controlling bei der Stadt Nürnberg