A new axiomatization of rank-dependent expected utility with tradeoff consistency for equally likely outcomes

This paper provides a new axiomatization of rank-dependent expected utility by relaxing tradeoff consistency to hold only when the involved outcomes are equally likely. The resulting weakened variant of tradeoff consistency is considerably simpler and intuitively more appealing than the original condition. Consequently, an improved tool for empirical studies and the elicitation of utilities is provided. It turns out that in the presence of weak ordering, simple-continuity, and stochastic dominance, the new tradeoff consistency for equally likely outcomes is sufficient to derive rank-dependent expected utility for general lotteries.     

Finanz- und Wirtschaftskrise — Was kosten die Maßnahmen wirklich?

Zusammenfassung  Zur Bek?mpfung der Finanz- und der Wirtschaftskrise kommen unterschiedliche Ma?nahmen zum Einsatz, über deren Volumen in der ?ffentlichkeit erschreckende Zahlen kursieren. Wie unterscheiden sich die Ma?nahmen in Hinblick auf ihre Budgetwirkung? Sind sie konjunkturpolitisch effektiv, oder erzeugen sie nur ein Strohfeuer? Prof. Dr. Dr. h.c. Horst Zimmermann, 75, ist emeritierter Professor für Finanzwissenschaft an der Universit?t Marburg und Mitglied des Wissenschaftlichen Beirats beim Bundesministerium der Finanzen.     

Creativity techniques in product planning and development: A view from West Germany

The author advocates the use of formalised heuristic principles and teamwork as the cornerstone of creativity techniques on which he has written papers in German, and in view of the interest aroused has taken the opportunity to write a summary for an English-language journal. The purpose of the paper is to review the large number available, to indicate their most profitable field of use and their limitations. He classifies the techniques into four main groups, intuitive association, intuitive confrontation, systematic variation and systematic confrontation. Brainstorming is an example of the first, excursive synectics of the second, morphological analysis of the third and the morphological matrix of the last. He briefly summarises the method employed by about 20 of the 50 he says exist.
The paper concludes with some advice to potential users of the methods and a review of the use made of them in German industry.     

Europe – Quo Vadis? Reflections on the Future Institutional Framework of the European Union

With twelve new members the decision making in the European Union via intergovernmental cooperation will become ineffective. The EU is at the Cross Roads. In order to avoid a Stagno‐Europe the EU has a choice: Either it looks for the very essentials in the common institutional framework and adjusts it accordingly or the member states agree in ceding national sovereignty to the European level. This, however, requires that the democratic deficit at the EU level is reduced. The Treaty of Nice has failed to solve these issues. The paper elaborates in detail the non‐essentials and the essentials of European integration and discusses the basics of an approach to a constitution‐like arrangement for Europe.     

Corporate Tax Consolidation and Enhanced Cooperation in the European Union*

We assess the economic impact of introducing consolidation with formula apportionment in the European Union and consider alternative enhanced cooperation agreements. We find that the consolidation is likely to yield a small aggregate welfare gain in Europe. However, not all countries benefit. A coalition of winning countries reduces the welfare gain and may induce a process of adverse selection which destroys the possibility of cooperation. We find that a coalition of similar countries (in terms of the size of their multinational sector) is more feasible in achieving agreement and is actually preferred by those countries over a Europe‐wide reform.     

The Foreign Exchange Rate Exposure of Nations

Following the well-known approach by Adler and Dumas (Financ Manage 13(2):41–50, 1984), we evaluate the foreign exchange rate exposure of nations. Results based on data from 27 countries show that national foreign exchange rate exposures are significantly related to the current account and financial account balance variables of corresponding economies.     

Economic Factors of Victimization: Evidence from Germany

Victimization is a poorly studied topic in economic research. This paper considers economic factors of victimization using individual data. It tests the rational‐choice‐based hypothesis that the more attractive and poorly guarded targets are facing a higher risk of victimization. The used dataset also covers own criminal activities such that individual offending behavior can be studied as endogenous driver of victimization. Econometric results confirm that a criminal background is one of the major reasons of own victimization. In line with rational choice behavior of offenders, victimization is also associated with being a job holder and more schooling. Moreover, large peer groups increase the risk of victimization, whereas married and healthy people have a significantly lower risk of becoming a crime victim.