Macroeconomic adjustment: the Baltic states versus euro area crisis countries

Estonia, Latvia and Lithuania have succeeded in rapidly reducing their current account deficits despite fixed exchange rates. Which factors have played a major role in this? What similarities, and what differences, do the Baltic states show compared to Greece and Portugal? What insights can be gained for the political debate on the euro area debt crisis?     

EU accession: Negotiating “environmental dumping”?

“Environmental dumping” is a concern frequently raised in discussions on the potential risks involved in the eastern enlargement of the European Union¹ (EU).² There is a general concern that the Central and Eastern European accession countries may be neither willing nor able to fully apply the EU’s environmental acquis communautaire, the body of Community environmental legislation, once they have joined the EU. As a result, these countries would benefit from a competitive advantage when selling their goods on the Internal Market. This article asks whether, and in which specific cases, such concerns may be justified.     

Stylized facts about stabilization in central and eastern Europe

This paper analyzes the stabilization policies of the ten central and eastern European countries that have negotiated a Europe Agreement with the European Union and had officially applied for European Union membership by the end of 1997. This paper is a cross-country study of time series. Using a diagrammatic approach, the empirical findings are depicted in two-dimensional inflation-and-growth diagrams. The study shows that some common features of the macroeconomic data can be observed for most of the countries of the sample. From discussing potential determinants of the empirical findings, the analysis suggests that early liberalization attempts have had a strong positive impact on the inflation-growth pattern. While the influence of central bank legislation seems to be negligible, the choice of the exchange rate regime seems to play a crucial role. Regarding fiscal policy, the influence seems to be less obvious. This study concludes that the precondition for successful transformation and stabilization of the economy is a comprehensive approach that consists of early liberalization and tight macroeconomic policy.     

Late and multiple bidding in second price Internet auctions: Theory and evidence concerning different rules for ending an auction

In second price Internet auctions with a fixed end time, such as those on eBay, many bidders submit their bids in the closing minutes or seconds of an auction. We propose an internet auction model, in which very late bids have a positive probability of not being successfully submitted, and show that late bidding in a fixed deadline auction can occur at equilibrium in auctions both with private values and with uncertain, dependent values. Late bidding may also arise out of equilibrium, as a best reply to incremental bidding. However, the strategic advantages of late bidding are severely attenuated in auctions that apply an automatic extension rule such as auctions conducted on Amazon. Field data show that there is more late bidding on eBay than on Amazon, and this difference grows with experience. We also study the incidence of multiple bidding, and its relation to late bidding.     

A Quasi-experimental Method for Testing the Effectiveness of Ecolabel Promotion

Despite the existence of tourism ecolabels for more than 10 years, tourists’ decision making is still only marginally influenced by such labels and it appears that sustainability does not feature much in tourists’ general consumption behaviour. However, two recent studies found that tourists’ attitudes towards the Green Globe 21 (GG21) ecolabel in New Zealand were positive and the surveyed tourists appeared to have a high awareness of sustainability issues. Based on these findings, a quasiexperiment was conducted in the Christchurch Visitor Information Centre (CVIC) (main tourist hub of South Island) to investigate whether tourists’ positive attitudes towards ecolabels would result in increased observable interest of GG21 ecolabelled products. The purpose of this paper is to describe the complex quasi-experimental methodology that has been developed in an attempt to get further insight into tourist behaviour related to ecolabelled tourist products. During May and June 2003 the impact of a promotional campaign on tourists’ information search behaviour in the CVIC was tested. Observations of tourists and measurement of brochure up-take showed no increased interest in the ecolabel promotion campaign or the GG21 labelled products in the CVIC. The experimental methodology demonstrated that positive attitudes towards ecolabels are an unreliable predictor of responsible environmental tourist behaviour.     

Disagreement without end?

The Third UN Conference on the Law of the Sea meets in New York from August 21 to September 15, 1978, for the second half of its Seventh Session. At its earlier meetings the Conference had not succeeded in mapping out a new international maritime law. The present article analyses the state of the negotiations and the problems still awaiting solution.