Eurobond underwriter spreads

We examine the determinants of underwriter spreads on straight/fixed rate Eurobonds issued by US firms between 1990 and 1998. We find that underwriter spreads are influenced by: (i) the governing law as it influences the timely and orderly renegotiation of contract terms, with bonds governed by English law having significantly lower spreads; (ii) the distribution mechanism, with spreads higher on public issues than private placements; (iii) underwriter reputation, with more reputable underwriters charging higher spreads; and (iv) the choice of currency, with spreads higher in the less frequently used currencies and/or in currencies where underwriting activities are more concentrated.     

Wage Bargaining,Privatisation, Ability to Pay and Outside Options: Evidence from Hungary

This article examines the determinants of short-term wage dynamics, using a sample of large Hungarian companies for 1996–99. We test the basic implications of an efficient contract model of bargaining between incumbent employees and managers, which the data do not reject. In particular, there are structural differences between the ownership sectors consistent with our prior knowledge on relative bargaining strength and unionisation measures. Stronger bargaining position of workers leads to higher ability to pay elasticity of wages, and lower outside option elasticity. Our results indicate that while bargaining position of workers in domestic privatised firms may be weaker than in the state sector, the more robust difference relates to state sector workers versus privatised firms with majority foreign ownership.     

Gomulka on the soft budget constraint: A reply

Conclusion The preceding two sections of this note cover the main points at issue. There are some other, lesser matters, but these need not detain us here. To repeat: I have found Dr Gomulka's comments constructive and stimulating. They will, I am sure, be helpful both in my future research and in future expositions of my ideas.     

Vehicle Industry Competitiveness in Central and Eastern Europe

By writing of this study we had an objective to set up a model which is able to explain the location decisions in the Central and Eastern European region. As an initial presumption we have connected the local capital flow to the regional competitiveness and have analysed the location factors behind the decision-makings. After uncovering the theoretical background we set up a six factors model which consists of the industrial traditions, business environment, labour market, taxation, infrastructure, and local supplier network. As a final conclusion we have tried to set up ranking with the 10 analysed countries. As a research question we wanted to prove that the competitiveness gaps are existing and are even wider in the last 10 years in the Central and Eastern Europe （CEE） region. The research based on a global vehicle industry research implemented by the Szechenyi Istvan University Hungary and participated by economists and engineers as well between 2011 and 2013. The research group with economist has been dealing with different competitiveness, location and innovation issues which are occurring in the automotive industry. Besides, the engineering group tried to solve different logistics and supply chain management problems. This article shares the results about competitiveness and location factor questions.     

A model-based analysis of the impact of Cohesion Policy expenditure 2000–06: Simulations with the QUEST III endogenous R&D model

More than a third of the EU budget is devoted to Cohesion Policy with the objective to foster economic and social cohesion in the European Union. Large-scale fiscal transfers are used to support investment in infrastructure, R&D and human capital. This paper provides a model-based assessment of the potential macroeconomic impact of these fiscal transfers using a DSGE model with semi-endogenous growth (Jones, 1995) and endogenous human capital accumulation. The simulations show the potential benefits of Structural Funds with significant output gains in the long run due to sizeable productivity improvements.     

Centralized and decentralized provision of public goods

We model the trade-off between centralized and decentralized decision making on the provision of local public goods. Decisions are influenced by spillover effects and differences in jurisdictional size. Centralized decisions are made in a legislature of locally elected representatives, and this creates a conflict of interest between citizens in different jurisdictions. The legislature can be self-interested or benevolent and this can result in either efficient, excessive, or misallocative provision of public goods. The form of centralized decision making has a significant influence on the incentives for centralizing decision making.     

The changing demand for skillsEvidence from the transition1

Transition has involved major job destruction and creation. This paper examines the skill content of these changes using a detailed three country firm survey. It shows that transition has exerted a strong bias against unskilled labour that has lost employment disproportionately. The skill content of blue collar work has shifted upwards. Shifts away from low‐skilled labour were accelerated by technological change. By 2000, the actual and desired levels of employment were close to each other but we find some evidence that technological changes had given rise to shortages of skilled blue collar workers. Although there is variation across the sampled countries, this appears to be explained by differences in the timing of reforms. The observed changes will have major longer run implications for the level and structure of employment and for inequality through the distribution of earnings.     

Regulatory barriers to trade in services: A new database and composite indices

This paper presents new data on services trade regulation for 46 countries in 22 services sectors over 6 years (2014–2019). The data consist of qualitative information which is scored and weighted to produce composite indices. They cover market access and national treatment restrictions with respect to all GATS modes of supply, but also behind the border domestic regulation such as licensing, non-transparent regulatory procedures and competition policy. The database is updated annually. The trade restrictiveness indices (STRIs) are significantly correlated with services trade flows, but also with the performance of the sectors subject to the restrictions including logistics performance indicators, interest spreads, density of ATMs and secure servers, broadband penetration and outcomes such as legal rights and the time to resolve insolvency.