Has Germany Been Europeanised or Has Europe Become (too) Germanic?

It has often been argued that European monetary unification must basically be seen as a device to Europeanise re-unified Germany. For the Germans it seemed to be the best possible way to prevent a German “Sonderweg” and end any German ambition for hegemony. For the rest of Europe, and particularly France, it seemed to be the best way to curb German monetary dominance and to secure a French imprint on EU policy-making. In this article, however, it is argued that the German impact on the economic governance regime of EMU and its fencing off the French proposal of a “gouvernement economique” is so substantial that the term “Germanic Europe” seems in fact to be appropriate. More importantly, the economic governance system of “Germanic Europe” has locked the European Union into a politics of disinflation which makes it difficult for the EU to prosper and reap the potential fruits of European integration.

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* This paper was written while the author was a guest researcher at the European Trade Union Institute (ETUI), Brussels, from March to April 2005. He is most grateful to Andrew Watt for his help and the ETUI for its support.     

The effects of China's Sloping Land Conversion Program on agricultural households

In the late 1990s, China aimed to mitigate environmental degradation from agricultural production activities by introducing the world's largest “Payments for Environmental Services? program: the Sloping Land Conversion Program (SLCP). We develop a microeconomic Agricultural Household Model, which can model the production, consumption, and nonfarm labor supply decisions of agricultural households in rural China in a theoretically consistent fashion. Based on this theoretical model, we derive an empirical specification, which we econometrically estimate using the Hausman–Taylor method and a large longitudinal farm household data set. The empirical results significantly differ between regions, but are generally consistent with the results of our theoretical comparative static analysis, for example, that the SLCP significantly decreases agricultural production. While the SLCP only increases nonfarm labor supply and total consumption in some regions, these effects could not be observed in others. The recent reduction of the SLCP compensation payment rates generally had negligible effects on agricultural production and off‐farm work and only very small effects on household consumption.     

Investment in Africa's Manufacturing Sector: A Four Country Panel Data Analysis

Firm level data for the manufacturing sector in Africa, presented in this paper, shows very low levels of investment. The importance of profit effects on investment is investigated using a flexible accelerator, a specification based on the Euler equation and a simple generalisation of these specificiations. There are controls for firm fixed effects. It is shown that the profit effect is very similar for both the accelerator and Euler equation specifications. A comparison with other studies shows that, for small firms, the effect is much smaller in Africa than for other countries. Reasons for the relative insensitivity of investment to profits in African firms are suggested. For the most general specification tested there are no significant differences in the size of the profit effect across the four countries in the study.     

Slack-adjusted efficiency measures and ranking of efficient units

In non-parametric methods many units are calculated as efficient. The article suggests a method for ranking efficient units, not by their efficiency, but by importance as benchmarks for the inefficient units, in contrast to earlier suggestions in the literature which rank units high if they are specialized. However, the total potentials for improvement frequently remain unrevealed by calculating radial efficiency measures of the Farrell type only. The article therefore first develops efficiency measures that explicitly extend the radial measures to include slacks. The new measures are applied to a typical multidimensional small-sample data set for Norwegian employment offices.     

Within-group heterogeneity and group dynamics: analyzing exit of microcredit groups in Angola

The effect of within-group heterogeneity on the survival of social groups is theoretically ambiguous. A greater diversity of ideas, experience, and networks can have a positive effect on members’ benefits from group membership, but diversity also creates a potential for conflict. This paper analyzes the relation between heterogeneity and exit of microcredit groups, using data from Angola. The results suggest that the form of group heterogeneity matters. Fragmentation in terms of social identities, or more specifically religious-linguistic fractionalization, is associated with a greater probability of group exit. Within-group economic inequality, however, is associated with a decrease in the probability of exit, but at a diminishing rate.     

Toxische Wissenschaft? — Zur Verantwortung der Ökonomen für die gegenwärtige Krise

Die Welt durchlebt die tiefste Depression seit den 1930er Jahren. Wieso war die Wirtschaftswissenschaft so schlecht auf dieses Ereignis vorbereitet? Welche Verantwortung muss die akademische Profession übernehmen und welche Konsequenzen muss eine wissenschaftliche Disziplin tragen, die scheinbar so weit neben der Realit?t liegt wie der ?konomische Mainstream gegenw?rtig?     

Greening of Danish Industry - Changes in Concepts and Policies

Cleaner technology and pollution prevention have been cornerstones in the Danish environmental policy since the late 1980s. They have become an integral part of a multifaceted process of the 'greening of industry' involving changes in production, products and in the environmental strategies of companies, as well as in governmental regulation and policies. Companies, industrial associations, consultants and different governmental bodies have established new relations and networks to support the greening process and gradually a broad range of actors and patterns of interactions have emerged, linking technological and institutional innovations as well as economic and environmental issues in new ways. Based on several evaluations of Danish governmental support schemes for the introduction of cleaner technology and environmental management, this article will outline the major changes in the discourse on pollution prevention and in the policy instruments applied.     

Credit Constraints in Manufacturing Enterprises in Africa

We investigate the question of whether firms in Africa's manufacturingsector are credit constrained. The fact that few firms obtaincredit is not sufficient to prove constraints, since certainfirms may not have a demand for credit while others may be refusedcredit as part of profit maximising behaviour by banks. To investigatethis question, we use direct evidence on whether firms had ademand of credit and whether their demand was satisfied in theformal credit market, based on panel data on firms in the manufacturingsector from six African countries. Of those firms with a demandfor credit, only a quarter obtained a formal sector loan. Ouranalysis suggests that while banks allocate credit on the basisof expected profits, micro or small firms are much less likelyto get a loan than large firms. We also find that outstandingdebt is positively related with obtaining further lending. Therole of outstanding debt is likely to be a reflection of inefficiencyin credit markets, while the fact that size matters is consistentwith a bias as well, although we cannot totally exclude thatthey reflect transactions costs on the part of banks. We presentan analysis showing how much more profitable small firms mustbe to obtain a loan than large firms.     

Consistency and identifiability

The paper explores by elementary methods the relation between the concepts of consistency and identifiability. It is shown quite simply that consistency implies identifiability but that the converse is not necessarily true.