Notes and Communications, Horses for Courses: Why Europe Should Not Harmonise its Book Policies

European countries have similar cultural goals for books. The most common are the promotion of reading and the production of (literary) books (of a diverse nature). The extent to which the free market can achieve the cultural goals is uncertain and differs across countries. In cases where the free market does not achieve the goals or politicians do not want to accept uncertainty, a policy instrument is needed. Commonly used instruments in Europe include the fixed book price, subsidies, libraries, and lower VAT. We demonstrate that differences among European countries matter and that harmonisation of European book policies is not a good idea.     

Changes in the Finnish Wage Structure: Will Demand and Supply Do?

This study addresses changes in the wage structure in Finland between 1977 and 1995, and provides a simple explanation based on the demand for and supply of skills. The single index model of Card and Lemieux (1996) is augmented by incorporating changes in the supply of skills. The augmented model adequately accounts for the changes in relative wages between groups of different education and experience, but does not capture the changes in the within-group distribution.
JEL classification : J 31     

Societal change and challenges for consumer policy

This article takes up some examples of social change which call for a broader scope in consumer policy and research: (a) consumers' feeling of a loss of control of their lifes in a complex industrial society; (b) the frequent interchange of functions between the public and private spheres of life and the new meaning attached to household activities; (c) the cultural crisis of the family in a situation requiring changing roles and new division of work; and, finally, (d) the necessity of applying collective means to reach welfare when individual satisfaction is becoming more and more dependent on other people's behaviour.

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Soziale und Umweltentwicklungen fordern eine neue Verbraucherpolitik

Zusammenfassung Der Beitrag greift zunächst die Unterscheidung von direkter und indirekter Verbraucherpolitik auf, so wie sie in einigen skandinavischen Ländern verwendet wird. Nach dieser Unterscheidung gehören zur direkten Verbraucherpolitik die traditionellen Gebiete der Verbraucherinformation und -erziehung, des Verbraucherrechts und der Produktsicherheit sowie Wettbewerbsfragen. Demgegenüber bedeutet indirekte Verbraucherpolitik die Berücksichtigung und Förderung des Konsumenteninteresses durch andere Politikbereiche wie z.B. durch Beschäftigungs-, Lohn-, Wohnungs-, Verkehrs-, Familien- oder Umweltpolitik.Der Beitrag vertritt die These, daß die indirekte Verbraucherpolitik relativ an Bedeutung gewinnen muß, da nur sie langfristig das Wohlergehen und die Zufriedenheit von Konsumenten fördern kann. Voraussetzung dafür ist eine Verbraucherforschung, die nicht nur vordergründig an den Kaufhandlungen der Konsumenten, sondern stärker an den Veränderungen ihrer Wertvorstellungen und an den Wandlungen der sozialen und physischen Umwelt orientiert ist.Der Beitrag beschäftigt sich mit solchen Wandlungen und hebt dabei besonders hervor (a) die mangelnden Einflußmöglichkeiten auf die Gestaltung des eigenen Lebens, die von Konsumenten in komplexen Industriegesellschaften empfunden wird, (b) die Änderungen im gegenseitigen Verhältnis von öffentlichen und privaten Lebensbereichen und die gewandelte Einschätzung hauswirtschaftlicher Tätigkeiten, (c) die Krise der Familie in einer kulturellen Situation, die Rollenveränderungen und neue Arbeitsteilungen erfordert und (d) kollektive Wege zur Wohlfahrtssteigerung, die stets dann notwendig werden, wenn die individuelle Zufriedenheit des einzelnen in wachsendem Ausmaß vom Verhalten anderer abhängt.

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Liisa Uusitalo is a Docent at the Helsinki School of Economics, Runeberginkatu 14–16, SF-00100 Helsinki 10, Finland. The paper was first presented at the symposium Consumers' influence on public and private consumer policy, Smygehus, Sweden, September 21–23, 1982, sponsored by the European Cultural Foundation and the Marcus and Marianne Wallenberg Foundation.     

Foresight in services: possibilities and special challenges

Service sectors have been only loosely linked to foresight projects considered essential for wiring up innovation systems. This article examines possibilities and methodological challenges in the foresight of services on the basis of a study conducted in Finland in knowledge-intensive business services (KIBS). It also provides empirical results about the future trends in KIBS. The most central of these are the growing emphasis on a consultative way of working and broad service solutions, the tightening linkages to clients' strategies, the blurring of sectoral boundaries and the diversification of the forms of internationalisation.     

Consumer preferences for environmental quality and other social goals

Environmental preferences and behaviour can shed some light on the more general problems of rationality. This article will explore the completeness and transitivity of preferences for environmental quality and other social goals. Reasons for possible inconsistencies will be discussed, and the consistency of preference rankings studied with the help of survey data and the Analytic Hierarchy Process method. The results show that it is difficult for respondents to give complete and transitive preference rankings when they compare abstract social goals. However, preferences are very consistent with respect to the most and the least preferred options. Different population subgroups seem to have rather similar preference orderings. This reflects the existence of largely shared values in the population studied. Environmental quality is generally perceived as one of the most important social goals, and the study shows a high demand for this collective good. However, free riding tendencies are present as soon as a social goal interferes with the respondents' own economic utility. Shifts between a collective welfare criterion and an individual utility criterion may be one of the reasons for the inconsistency of preference rankings of social goals.

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Konsumentenpräferenzen für die Qualität der Umwelt und andere soziale Ziele

Zusammenfassung Die Analyse von Umweltpräferenzen und Umweltverhalten kann etwas beitragen zu der Frage der Rationalität von Konsumenten. Der vorliegende Artikel erforscht die Vollständigkeit und Transitivität von Präferenzen für Umweltqualität und andere soziale Ziele. Er diskutiert Gründe für mögliche Inkonsistenzen und analysiert die tatsächliche Konsistenz von Präferenzrangordnungen mit Hilfe von Umfragedaten und der AHP-Methode (Analytic Hierarchy Process Method).Die Ergebnisse zeigen, daß es für Befragte schwierig ist, vollständige und transitive Präferenzrangfolgen zu bilden, wenn es um abstrakte soziale Ziele geht. Allerdings ist die Konsistenz jeweils sehr hoch bei den am meisten und den am wenigsten präferierten Optionen. Unterschiedliche Teilgruppen der Bevölkerung haben offenbar ganz ähnliche Präferenzrangfolgen. Das ist ein Indiz dafür, daß es weithin akzeptierte Wertvorstellungen in der Bevölkerung gibt.Umweltqualität wird allgemein als eines der wichtigsten sozialen Ziele angesehen, und die Studie zeigt einen hohen Bedarf nach diesem kollektiven Gut. Allerdings ist eine Tendenz zur Trittbrettfahrer-Mentalität vorhanden, wenn ein solches soziales Ziel in Konflikt gerät mit dem individuellen ökonomischen Nutzen des Befragten. Verschiebungen zwischen einem kollektiven Wohlfahrtskriterium und einem individuellen Nutzenkriterium sind vermutlich ein Grund für die Inkonsistenz von Präferenzrangfolgen sozialer Ziele.

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Liisa Uusitalo is an Associate Professor of Business Administration at the Helsinki School of Economics, Runeberginkatu 14-16, SF-00100 Helsinki, Finland.     

Making bottom-up and top-down processes meet in public innovation

Innovations in an organisation derive from multiple sources. In the public sector, users and the policy sphere provide important but often unconnected impulses for innovation. These impulses are transmitted to the organisation by grassroots employees who interact with users and managers who implement policy requirements. The paper examines the actors and activities that coordinate bottom-up and top-down initiatives and promote their development into innovations. It creates a theoretical framework that combines the views of employee-driven innovation and strategic reflexivity and supplements them with an analysis of coordination in innovation processes. The functioning of this framework is illustrated in the context of children's day care services. The results highlight the central role of middle managers and provide new knowledge regarding their ‘bridging’ activities in innovation. The adjustment of bottom-up and top-down processes requires the personal involvement of managers, and the creation of communication arenas, networks and mediating tools.     

Return to education in Finland

This study presents estimates of the return to education in Finland using an individual-level data set that also includes ability measures and information on family background. It is found that ability test scores have a strong effect on the choice of education and on subsequent earnings. Estimating the return to education with no information on ability leads to an upward bias in the estimates. However, this bias is more than offset by a downward bias caused by endogeneity or measurement error. Instrumental variables estimates that utilize family background variables as instruments produce estimates of the return to schooling that are approximately 60% higher than the least squares estimates.     

The consequences of perceived risk and objective knowledge for consumers’ investment behavior

Knowledge and risks have a focal role in consumer behavior. However, studies on consumers’ perceive risks in decision situations and the influence of objective knowledge and experience on risk perceptions, consumers’ attitudes and behavioral intentions are scarce. This paper introduces and tests a novel conceptual model that shows how consumers’ objective financial knowledge and investing experience affect their future investment intentions mediated by perceived risks, and attitudes toward investing. The data were analyzed using structural equation modeling. The proposed model fits the data and accounts for attitudes and intentions to investing. This study advances knowledge by directly measuring the behavior-related objective knowledge and experience. We also suggest new insights into the risk concept by showing that consumers perceive five types of risk in investing context and objective financial knowledge and investment experience has varying effects on different risks types, attitudes and intentions. The results also show significant gender differences.