Externalities of National Pharmaceutical Policy when Markets are Integrated through Parallel Trade

This paper studies externalities of nationally determined cost‐sharing systems, in particular coinsurance rates, under pharmaceutical parallel trade in a two‐country model with a vertical distributor relationship. Parallel trade generates a price‐decreasing competition effect in the destination country of the parallel import and a price‐increasing double marginalization effect in the source country. An increase of the coinsurance rate in the destination country mitigates the double marginalization effect in the source country. An increase of the coinsurance rate in the source country reinforces the competition effect in the destination country. This may be a case for policy coordination in the European Union.     

Entwicklung von Supply Chain Strategien für eine Virtuelle Supply Chain Organisation (VISCO)

Zusammenfassung Mit dem Aufbau und dem Betrieb einer Virtuellen Supply Chain Organisation (VISCO) ist es m?glich, das Supply Chain Management erfolgreich zu realisieren. Zur Realisierung gemeinschaftlicher Wettbewerbsvorteile mit einer VISCO muss zwingend eine konsistente Supply Chain Strategie entwickelt werden. Mit der Supply Chain Strategie wird die strategische Sto?richtung der VISCO festgelegt. Zur Umsetzung der Supply Chain Strategie ist eine Abstimmung mit den jeweiligen Unternehmensstrategien vorzunehmen.

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Summary Although supply chain management has been discussed in both science and business for a long time a unified definition does not exist. That causes that the realization of supply chain management in business is very differential. A good approach to realize integrated supply chain management is to build a strategic supply chain network with a high degree of integration. With help of a strategic and operative coordination of all activities and an intense collaboration it is possible to create a special organisation within the supply chain—the “Virtual Supply Chain Organization (VISCO)”. Building and using a VISCO for supply chain management leads to more effectiveness and efficiency concerning the cooperation of companies. With a VISCO it is possible to get more power to compete successful in business and gain more profitability. Therefore special supply chain strategies have to be planned and coordinated with the members of the VISCO.

     

Distributional consequences of labor-demand shocks: the 2008–2009 recession in Germany

The distributional consequences of the recent economic crisis are still broadly unknown. While it is possible to speculate which groups are likely to be hardest-hit, detailed distributional studies are still largely backward-looking due to a lack of real-time microdata. This paper studies the distributional and fiscal implications of output changes in Germany 2008–2009, using data available prior to the economic downturn. We first estimate labor demand on 12 years of detailed, administrative matched employer-employee data. The distributional analysis is then conducted by transposing predicted employment effects of actual output shocks to household-level microdata. A scenario in which labor demand adjustments occur at the intensive margin (hour changes), close to the German experience, shows less severe effects on the income distribution compared to a situation where adjustments take place through massive layoffs. Adjustments at the intensive margin are also preferable from a fiscal point of view. In this context, we discuss the cushioning effect of the tax-benefit system and the conditions under which German-style work-sharing policies can be successful in other countries.     

Modelling and Forecasting Gas Flow on Exits of Gas Transmission Networks

The flow of natural gas within a gas transmission network is studied with the aim to optimize such networks. The analysis of real data provides a deeper insight into the behaviour of gas in‐ and outflow. Several models for describing dependence between the maximal daily gas flow and the temperature on network exits are proposed. A modified sigmoidal regression is chosen from the class of parametric models. As an alternative, a semi‐parametric regression model based on penalized splines is considered. The comparison of models and the forecast of gas loads for very low temperatures based on both approaches is included. The application of the obtained results is discussed.     

FALLING UP THE STAIRS: THE EFFECTS OF "BRACKET CREEP" ON HOUSEHOLD INCOMES

This paper analyzes how inflation-induced erosions of nominally defined amounts built into relevant tax rules ("bracket creep") alter distributional and revenue-generating properties of income taxes and social insurance contributions. Using a multi-country tax-benefit model, it provides quantitative estimates for Germany, the Netherlands and the U.K. In the absence of automatic inflation adjustment mechanisms, effects on individual tax burdens can be substantial, even with low inflation. Bracket creep is found to reduce tax progressivity. At the same time, overall tax revenues increase. In terms of tax systems' equalizing capacities, which depend on both these factors, the second effect dominates: if tax systems were left unadjusted then inflation would lead to lower and slightly more equally distributed household incomes. However, existing inflation adjustment regimes in the Netherlands and the U.K. successfully prevent large tax burdens changes.     

Banks refinancing with the central bank: Re-examination of its interest rate elasticities for Belgium 1960–1973

This paper reports evidence that bank refinancing with the central bank is highly interest elastic, particularly with respect to the discount rate. It shows that banks fully adjust actual to desired refinancing within three months and that the apparent negative association of refinancing with a need variable is a spurious one. Discount rate changes are found to be largely effective as a policy instrument.     

Commercial bank refinancing and economic stability : An analysis of european features

This paper investigates the effect of two types of central bank advances, viz, Lombarding and Rediscounting, on the economy. We conclude that the root of the distinction is the differential collateralization of these two forms of advances. The results suggest that while both methods of refinancing reduce interest-rate movement, Rediscounting dampens the impact of base money and real-sector disturbances. Debt-equity shifts have greater price effects with Rediscounting than with Lombarding. The paper also investigates the effects of a pegged-rate pricing policy. It is shown that a pegged-rate policy is an intermediary between fixed and market rate regimes.     

The Choice Architecture of Sustainable and Responsible Investment: Nudging Investors Toward Ethical Decision-Making

This paper applies insights from behavioral economics and nudge theory to foster sustainable and responsible investment (SRI). SRI provides an opportunity to express and promote ethical values via choice of financial instruments. While policy-makers have tried to encourage greater participation in SRI, the majority of retail investors retain a conventional approach to investment. I develop a conceptual framework to improve the effectiveness of SRI policy-making. The first part of the framework comprises a transmission mechanism which emphasizes the role of SRI as a driver for sustainable development. The second part is a model of the individual decision for or against SRI. The framework suggests that low SRI demand is a case of behavioral market failure, and that nudging is a suitable tool for dismantling behavioral barriers to SRI. A specific example of smart choice architecture is used to illustrate the framework’s potential in the design of an SRI nudge. Assuming the nudge stands up to the rigors of empirical testing, it may well provide a feasible alternative for policy-makers.     

Retailers and Consumers: The Pass‐through of Import Price Changes

In this paper, we estimate pass‐through rates of import price changes to retail prices across retailers and consumers for apparel purchases in Germany for the period of 2000–07. We find that high‐price retailers do not pass through changes in the import price. Pass‐through rates for low‐price retailers are 53 per cent within three months. Consequently, pass‐through rates for low‐income households are 58 per cent, significantly larger than those for high‐income households. We then present one possible explanation for these observations in a theoretical model with endogenous vertical product differentiation due to bundling an ex ante homogeneous import goods with services. Following an import price change, retailers who sell a cheaper unbundled product change prices to a greater extent than retailers who sell a higher‐priced bundle of product and service.