Access Pricing,Quality Degradation,and Foreclosure in the Internet

Access to both a local and a global network is needed in order to get complete connection to the Internet. The purpose of this article is to examine the interplay between those two networks and how it affects the domestic public policy towards a domestic provider of local access. We find that a cost-oriented regulation is detrimental to domestic welfare, because it shifts profit to the foreign provider of global access. The optimal policy is that the regulator commits itself to set an access price above costs, possibly the same price as in an unregulated market economy. A regulation of the global access price has a non-monotonic effect on domestic welfare, and there is a potential conflict between international and domestic regulation policy.     

Asymptotically perfect and relative convergence of productivity

In this paper we examine the extent to which countries are converging in per capita productivity levels. We propose to use cluster analysis in order to allow for the endogenous selection of converging countries. We formally define convergence in a time series analytical context, derive the necessary and sufficient conditions for convergence, and introduce a cluster analytical procedure that distinguishes several convergence clubs by testing for these conditions using a multivariate test for stationarity. We find a large number of relatively small convergence clubs, which suggests that convergence might not be such a widespread phenomenon. Copyright © 2000 John Wiley & Sons, Ltd.     

The impact of coding time on the estimation of school effects

Multilevel growth curve models are becoming invaluable in educational research because they model changes in student outcomes efficiently. The coding of the time variable in these models plays a crucial role as illustrated in this study for the case of a three-level quadratic growth curve model. This paper shows clearly how the choice of a time coding affects school effects estimates and their interpretation. A new definition for school effects for growth curve models with random intercepts and slopes is proposed. This study recommends that the choice of a time coding should not only be based on the ease of interpretation and model convergence but also on its consequences on the student status and growth parameter estimates. The current application illustrates that in general the school effects for student growth in well-being and language achievement in secondary school, are greater for student growth than for student status.     

The relative income hypothesis

Despite its theoretical dominance, the empirical case in favor of the permanent income hypothesis is weak. Contrary to one of its basic implications, a growing body of evidence suggests that rich households save a higher proportion of their permanent income than poor households. We propose an overlapping-generations economy where households care about relative consumption. As a result, an individual's consumption is driven by the comparison of his lifetime income and the lifetime income of his reference group; a permanent income version of Duesenberry's (1949) relative income hypothesis. Across households the savings rate increases with income while aggregate savings are independent of the income distribution.     

A change management perspective on public sector cutback management: towards a framework for analysis

The financial crisis forces public managers to implement cutbacks within their organization. We argue that adopting a change management perspective contributes to our understanding of cutback management by adding a focus on managerial behaviour regarding cutback-related organizational changes. Relying on change management literature, this paper develops a framework for the analysis of cutback management connecting the context, content, process, outcomes and leadership of cutback-related change. From this it follows that managers can be positioned at the intersection of various imperatives, both externally and internally, such as their political leaders and their own subordinates. A research agenda is proposed.     

Six sporting worlds. A cluster analysis of sports participation in the EU-25

The aim of this study was to identify clusters of European nations grouped by sports participation outcomes (organizational context and intensity of sports participation), in order to provide sensible groupings for international comparisons. Sports participation data for the EU-25 were distracted from the 2004 Eurobarometer survey. Both a hierarchical as a K-means clustering method was used to identify groupings of countries that are homogeneous in terms of sports participation profiles. Six clusters of countries could be identified: (i) non to average fitness countries; (ii) active club countries; (iii) average non-organized countries; (iv) average school countries; (v) active multi-context countries; and (vi) very active countries. Considerable differences in sports participation profiles between European countries are made clearer when viewed across clusters of countries grouped by actual outcomes. This empirically derived taxonomy has advantages over ad hoc systems for comparing sports participation and for deciding which countries appear to have the most comparable participation profiles. Moreover, it shows that policy strategies to increase sports participation in European countries need a differentiated approach and have to take account for the fact that the provision and intensity of sport is at a quite different level in all six sporting clusters.     

The Non-Trivial Choice between Innovation Indicators

We discuss the strengths and weaknesses of five alternative innovation indicators: R&D, patent applications, total innovation expenditure and shares in sales taken by imitative and by innovative products as they were measured in the 1992 Community Innovation Survey (CIS) in the Netherlands. We conclude that the two most commonly used indicators (R&D and patent applications) have more (and more severe) weaknesses than is often assumed. Moreover, our factor analysis suggests that there is little correlation between the various indicators. This underlines the empirical relevance of various sources of bias of innovation indicators as discussed in this paper.