A macroprudential approach to address liquidity risk with the loan-to-deposit ratio

This paper maps the empirical features of the loan-to-deposit (LTD) ratio with an eye on using it in macroprudential policy to mitigate liquidity risk. We examine the LTD trends and cycles of 11 euro area countries by filtering methods and analyse the interaction between loans and deposits. We propose macroprudential policy to prevent an unsustainable level of the LTD ratio and policy measures to counter destabilizing cyclical developments.     

Research and Development Towards Sustainable Agriculture by Resource-Poor Farmers in Sub-Saharan Africa: Some Strategic and Organisational Considerations in Linking Farmer Practical Needs with Policies and Scientific Theories

Sustainable agricultural development is presented as a diverse and dynamic process through which it copes with agro-ecological and socio-economic diversity at field level and with ever-changing needs and opportunities of (smallholder) farmers. In support, agricultural research—aimed at locally appropriate and environmentally friendly technologies—should contribute to bridging the currently increasing gaps between scientific theories and government agricultural policies as opposed to the practical field realities that farmers are facing.

These gaps are best illustrated by—what in the West is often presumed to be—a stagnant African agricultural (in reality it is not!) in spite of many ambitious policies and projects by national governments and international donors for several decades. Disappointing adoption rates by resource-poor smallholders of the proposed ‘modern’ agricultural technologies have often been blamed. However, the actual local systems are primarily based on ‘ecological’ and ‘organic’ concepts. Localised intensification through recycling of organic by-products is an integral part of such systems. Consequently, these systems are uniquely adapted to the diverse framer needs resulting from widespread variations in soil, climate and socio-economic conditions. By contrast most international R&D support for the African agricultural sector is aimed implicitly at creating a modern conventional system of farming based on external inputs and along a Western industrial model.

To cope with diverse and complex, location specific problems inherent in development, sustainability and poverty alleviation, requires strong national research and development (R&D) institutions that adopt comprehensive, people-centred approaches as opposed to the technocratic nature of most formal international development assistance. The development debate therefore should be turned around. The ‘existing’ smallholder farming systems and their needs should be a point of departure, while the various development initiatives and policies should be handled by including the related institutional aspects.     

European knowledge societies (plural)

The pursuit of a thriving European “knowledge economy” is hampered by a onedimensional conception of what it is. The authors of the following article conceptualise three types of knowledge society and outline the consequences of this analysis for the leaders of the EU and the Lisbon Agenda. The authors would like to express their gratitude to Gert-Jan Hospers (University of Twente, The Netherlands) for his comments on earlier drafts of this article.     

Trade policies and imperfect competition: A note

Vrije Universiteit, Amsterdam. Comments by Simon Kuipers on an erarier version are gratefully acknowledged.     

Dynamics of Cooperation: At the Brink of Irrelevance*

abstract Alliances have become commonplace. This has led to a considerable number of academic and professional publications on alliances and, more recently, on the dynamics of cooperation. However, the body of knowledge on the dynamics of cooperation developed so far is characterized by fragmentation, lack of coherence and non‐comparable research output. There is no consensus on paradigmatic beliefs, which hampers theoretical progress. As a result, there is what we call an academic gap. Moreover, the literature on the dynamics of cooperation often studies research questions that are irrelevant to managers' needs. As a consequence, there is also a managerial relevance gap. The emergence of these two gaps is primarily due to the choice of assumptions, the emphasis on originality, and the use of a variety of methodological approaches. Nevertheless, we believe it is still possible to reverse the trend and make the literature on the dynamics of cooperation more relevant.     

Normal control charts with nonparametric safeguard

Parameter estimation causes a considerable stochastic error in standard Shewhart charts. This problem can be solved using suitable correction factors. However, if the normality assumption itself fails, in addition a non-vanishing model error occurs. By then, a nonparametric alternative, such as the recently proposed MIN chart, might be a better idea throughout. However, for those reluctant to give up on the Shewhart chart, a third possibility is offered here. One sticks with this traditional chart as long as the data suggest that the resulting model error is acceptable. Only if this is not the case, the MIN chart kicks in and as such serves as a nonparametric safeguard.