Recursions for the two-stage least-squares estimators

This paper presents recursion formulae for the two-stage least-squares estimators of the structural coefficients in a simultaneous equation model and for the residual sum of squares used in estimating the asymptotic covariance matrix. Included are formulae for updating estimates when a new set of observations is obtained and for revising estimates when a set of observations is discarded. The recursion formulae should prove to be of both practical and theoretical interest to econometricians.     

How would the introduction of an EU-wide formula apportionment affect the distribution and size of the corporate tax base? An analysis based on German multinationals

This paper analyses the effects of introducing a common EU tax base with formula apportionment on the size of the EU-wide tax base and on the distribution of the tax base between the EU member countries. We use a combined dataset of Deutsche Bundesbank's Foreign Direct Investment data (MiDi) and corporate balance sheet data (Ustan and Hoppenstedt) for the tax base estimations. The data are used to construct (i) a separate accounting and (ii) a formula apportionment tax base for the firms in the sample. Our results suggest that due to border crossing loss offset, the EU-wide corporate tax base represented by our data sample shrinks significantly. Smaller countries which are usually considered to attract book profits under the current system, i.e. Ireland and the Netherlands, tend to lose a larger part of their tax base than larger countries like Germany, Italy, France or Great Britain. However, these results should be evaluated in light of the limitations of the data used in this study since our analysis is based on German FDI data only. Furthermore, the calculations do not take into account behavioral responses of companies caused by such a system change. JEL Code: F23 · H25 This paper represents the authors' personal opinions and does not necessarily reflect the views of the Deutsche Bundesbank or its staff. We thank Heinz Herrmann, Jana Kremer, Alfons Weichenrieder, and the participants of the Deutsche Bundesbank FDI Workshop held on September 13, 2005, in Frankfurt for their valuable comments. We are also indebted to George Zodrow and two anonymous referees. The usual disclaimer applies. An erratum to this article can be found at     

The difficulties of supplying new technologies into highly regulated markets: the case of tissue engineering

This study provides an insight into the difficulties companies encounter in transposing basic science into commercially viable healthcare technologies, focusing on the issue of establishing a dominant supply model within a highly regulated market. The core issue is how to scale-up customised scientific processes into products able to supply wider and possibly mass markets. In tracing the development of approaches to scaling-up, the paper highlights the influence regulatory regimes have on high technology regulated products and services. The paper details the implications of two contrasting supply initiatives towards operationalising tissue engineering, based on differences in regulatory regimes between Europe and the USA.     

Ricardo und die Troika — für die Einführung einer EU-Bodenwertabgabe

From a Ricardian point of view, taxes should be most efficiently financed through land rents. In spatial terms, the land rents are highest in the European core countries and lowest at the margins of the peripheral states, which are currently in turmoil due to the economic crisis. The austerity policy of the troika is strangling these states economically. The authors propose a common European tax based on land values. Its revenues should be redistributed to the EU states according to the size of their population.     

The interactive effects of sales control systems on salesperson performance: a job demands–resources perspective

Sales control systems represent an important managerial tool in directing the sales force for desired organizational objectives. However, the majority of prior sales control research has focused only on the main effects of sales control systems without explicitly considering their interactive effects and associated intervening mechanisms. Drawing on job demands–resources theory, the authors theorize differential interactive effects of outcome control, activity control, and capability control on job engagement (i.e., adaptive selling behavior and selling effort) and job stress (i.e., role ambiguity and role conflict), which subsequently affect salesperson performance. Empirical results using a sample of industrial salespeople find that (1) outcome control and capability control have positive interactive effects on adaptive selling behavior and selling effort while suppressing role conflict, (2) activity control and capability control have a negative interactive effect on role ambiguity, and (3) outcome control and activity control have a positive interactive effect on selling effort but negative interactive effects on adaptive selling behavior and role clarity. These results indicate that sales control researchers can benefit from considering the complex interactive effects of various control styles as well as the intervening processes, which provide a more refined understanding of this important managerial tool.     

Gravity,Borders, and Regionalism: A Canada–US Sub-National Analysis

ABSTRACT

This article examines the extent to which trade costs influence the magnitude and direction of both east-west and north-south trade in Canada and the United States. With the aid of an alternative framework which pays attention to key estimation issues in the gravity literature, we garner further evidence in support of a decline, over time, in the home bias syndrome. Our results uphold the Linder hypothesis but refute the Heckscher-Ohlin factor endowment proposition. In light of the recently modernized trilateral trade agreement in North America, we conclude with policy lessons on buffering the Canadian economy from asymmetric trade shocks from its southern neighbor.