Transmission of information within transnational social networks: a field experiment

Several studies have shown a relationship between the stocks of migrants and country-level investment in the home country; however the mechanism through which this relationship operates is still unexplored. We use a field experiment in which participants who are recent immigrants send information about risky decisions to others in their social network in their home country. The results demonstrate how this information influences decisions in the home country. We find that the advice given by family members and decisions made by friends significantly affects an individual’s risky decision-making.     

Social dialogues—the state of the art a decade after Maastricht

The article asks whether social dialogues, according the procedures of the Social Protocol and the Amsterdam Treaty, have proved to be valuable instruments able to make major contributions to the development of social integration. More recent developments at the inter‐professional as well as at the sectoral level are evaluated. Furthermore, major trajectories for likely future trends at both levels are highlighted. The final part discusses the problem of whether social dialogues will profit from the introduction of new modes of governance, especially the more recently preferred open method of co‐ordination.     

The demand for small cars in the United States: Implications for energy conservation strategies

The purpose of this paper was to investigate the impact of household characteristics and preferences for Japanese cars on the demand for small cars in the United States. Two stage probit analysis was used to examine the impact of various explanatory variables on the purchase decision. The results indicated that preferences for Japanese cars, income, price and several household characteristics had a significant impact on the probability of purchasing a small car. The results of this study provide support for freer trade in automobiles and higher gasoline taxes as energy conservation strategies.

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Zusammenfassung Die Nachfrage nach Kleinwagen in USA: Implikationen für Strategien zur Energieeinsparung. Diese Untersuchung wollte herausfinden, wie sich Haushaltseigenschaften und Präferenzen für japanische Autos auf die Nachfrage nach Kleinwagen in den Vereinigten Staaten auswirken. Die Stichprobe umfa\te 367 Haushalte, die im Jahr 1986 ein neues Auto kauften. Davon kauften 141 Haushalte amerikanische Kleinwagen, 84 japanische Kleinwagen und 142 Haushalte kauften gro\e amerikanische Wagen. Eine zweistufige Probit-Analyse prüfte den Einflu\ der verschiedenen Erklärungsvariablen auf die Kaufentscheidung. Die Ergebnisse besagen im wesentlichen, da\ es die Präferenzen für japanische Autos, das Einkommen, der Preis und einige Haushaltseigenschaften sind, die einen signifikanten Einflu\ auf die Wahrscheinlichkeit eines Kleinwagenkaufs haben. Die Autoren sehen in den Ergebnissen eine Unterstützung für die Forderung nach Freihandel im Automobilsektor und nach höherer Besteuerung von Kraftstoffen als Strategien zur Energieeinsparung.

     

Evaluating FOMC forecasts

Monetary policy outcomes have improved since the early 1980s. One factor contributing to the improvement is that Federal Reserve policymakers began reporting economic forecasts to Congress in 1979. These forecasts indicate what the Federal Open Market Committee (FOMC) members think will be the likely consequence of their policies. We evaluate the accuracy of the FOMC forecasts relative to private sector forecasts, the forecasts of the Research Staff at the Board of Governors, and a naïve alternative. We find that the FOMC output forecasts were better than the naïve model and at least as good as those of the private sector and the Fed staff. The FOMC inflation forecasts were more accurate than the private sector forecasts and the naïve model; for the period ending in 1996, however, they were not as accurate as Fed staff inflation forecasts.     

The effect of accounting firm mergers on the market for audit services: New Zealand evidence

This article examines the outcomes of accounting firm mergers using data about the frequency of audit switches, the numbers of partners in the respective firms, and perceptions revealed in interviews with partners. Evidence from client switches does not show any evidence that the mergers were followed by cost reductions, or of collusion to force prices up. The effects of the mergers appear to have been elsewhere—the merging firms reduced partner numbers substantially, increasing partner leverage so that individual remaining partners were better off. Data from interviews confirm these findings, and show that the culture of individual firms had a significant effect on determining which group of partners controlled the merged firm.     

WHOM YOU CONNECT WITH MATTERS: DIRECTOR NETWORKS AND FIRM LOCATION

We examine whether board members serve as a channel for remotely located firms to access the benefits from business‐dense areas due to economies of agglomeration. We find that geographically remote firms benefit from connections to firms in top metropolitan statistical areas (MSAs) for business density. After controlling for director compensation, we find connections to top MSA firms mitigate the negative effect of increased distance from business‐dense areas. We address concerns of endogeneity by exploring a sample of firms whose directors gain board seats at top MSA firms and find a similar positive impact of connections to top MSA firms.     

Competition under revenue-cap regulation with efficiency benchmarking: tariff related incentives for gas transmission system operators in merged markets

Journal of Regulatory Economics - In Europe, gas market mergers aim at reducing restrictions on gas wholesale markets. Market mergers also allow network users to book transport capacity at...     

Employment relations without collective bargaining and strikes: the unusual case of civil servants in Germany

The article deals with the widely neglected employment relations in the public sector of Germany with a special focus on civil servants. It is subdivided into two main parts. A shorter part elaborates on public employees and collective bargaining, a longer one on civil servants and their diverging forms of employment relations without the right to collective bargaining and strike. In order to better understand major changes that have taken place since the mid2000s, we chose a long-term perspective and examine traditional as well as present forms of interest representation. Limited degrees of decentralisation and their lasting diverging consequences are analysed in great detail.