On the Ethics Behind “Business Ethics”

Ethics in business and economics is often attacked for being too superficial. By elaborating the conclusions of two such critics of business ethics and welfare economics respectively, this article will draw the attention to the “ethics behind” these apparently well-intended, but not always convincing constructions, by help of the “fundamental ethics” of Emmanuel Levinas. To Levinas, responsibility is more basic than language, and thus also more basic than all social constructions. Co-operation relations in organizations, markets and value networks are generated from personal relations and personal responsibilities. It is not sufficient to integrate ethics in an impersonal, rational system, neither in business organizations nor in the world economy. Ethics has its source not in rationality, but in the personal.     

Sterblichkeits-Statistik der Varma über erhöhteRisiken mit Anomalien hinsichtlich derKreislauforgane

Abstract

Die Lebensversicherungsgesellschaften haben fast während ihrer ganzen Tätigkeit auch solche Personen in die Versicherung angenommen, denen man die Lebensversicherung nicht zu tarifmässiger Prämie hat bewilligen können. Dessen ungeachtet ist die Erweiterung der Lebensversicherungstätigkeit auf solche Personengruppen, deren Sterblichkeit in wesentlichem Masse die Bevölkerungssterblichkeit überschreitend geschätzt wird oder die eigentliche Versicherung erhöhter (anomaler) Leben sehr neu. In Europa kann sie nur einige Jahre über 20 zählen. In Amerika hat sie schon eine etwas längere Erfahrung hinter sich. Aus der Neuheit der Tätigkeit folgt, dass es nur wenige Versichertensterblichkeitsuntersuchungen über diese Risiken gibt, weshalb man bei der Herleitung der Tätigkeitsgründe in vieler Hinsicht gezwungen ist sich auf Erfahrungen aus ziemlichfernen Kreisen zu stützen. Dazu kommt, dass die Verhältnissein den verschiedenen Ländern vielfach unterschiedlich sind, weshalb auch die Bedeutung einer Anomalie hinsichtlichder Sterblichkeit in verschiedenen Ländern eine andere sein kann.     

Global emissions effects of CDM projects with relative baselines

CDM is an offset mechanism designed to reduce the overall cost of implementing a given global target for greenhouse gas (GHG) emissions in Annex B countries of the Kyoto Protocol. A problem with CDM is that it provides incentives to increase, if possible, the baseline emissions for CDM projects, to optimize the value of CDM credits. Under a “relative baselines” crediting rule, the CDM may also unduly increase energy consumption even during the CDM implementation phase. Less than full offset of emissions is then likely, and the CDM will lead to increased global GHG emissions. We show that this is a potentially serious problem, due to asymmetric information between project hosts and the regulator, the CDM Executive Board, and to the basic rules for crediting CDM quotas. In certain cases, the use of “relative baselines” to credit CDM quotas could fully eliminate any emissions reductions achieved by CDM projects. Remedies to overcome the problems are discussed. They may involve setting the baseline independently of initial energy intensity and final output for the project; or involve information revelation mechanisms that minimize policy losses and net rent capture by project sponsors.     

Non-cooperative exploitation of multi-cohort fisheries—The role of gear selectivity in the North-East Arctic cod fishery

North-East Arctic cod is shared by Russia and Norway. Taking its multi-cohort structure into account, how would optimal management look like? How would non-cooperative exploitation limit the obtainable profits? To which extent could the strategic situation explain today’s over-harvesting? Simulation of a detailed bio-economic model reveals that the mesh size should be significantly increased, resulting not only in a doubling of economic gains, but also in a biologically healthier age-structure of the stock. The Nash equilibrium is close to the current regime. Even when effort is fixed to its optimal level, the non-cooperative choice of gear selectivity leads to a large dissipation of rents.     

Convergence,Divergence or Stability – How do Politicians' and Bureaucrats' Attitudes Change During an Election Period?

Abstract

The possibility that administrators mould politicians into bureaucratic thinking has been a recurring theme in politics since the writings of Weber and von Mises. However, empirical studies of attitude change in the interface between politics and officials are scarce. This study, using data from thirty Norwegian municipalities, investigates whether political attitudes towards diverse political issues change during an election period, and whether any such change aligns politicians' attitudes with those of the administrative leaders in the municipalities. Attitudes were measured among both politicians and administrators in 2000 (six months after the election) and 2003 (six months before the election). In general, there are few signs that politicians' attitudes converged with those of the administrators in the period studied. When attitudinal change does occur, it appears to be parallel in both groups. The findings do not support the notion that politicians' attitudes become aligned to the attitudes of leading administrators. Different explanations are discussed.     

Effects of Transport Regulation on the Oil Market: Does Market Power Matter?

Instruments used to regulate the consumption of oil in the transport sector include fuel taxes, biofuel requirements, and fuel‐efficiency standards. However, the effects that these have on oil consumption and price vary. If market power is present in the oil market, the directions of change in consumption and price might contrast with those in a competitive market. As a result, the market structure affects not only the effectiveness of the policy instruments used to reduce oil consumption, but also the terms of trade and carbon leakage. In particular, reduced oil consumption, as a result of increased fuel‐efficiency standards, will unambiguously increase the price of oil under a monopoly.     

House Prices and Stock Prices: Different Roles in the US Monetary Transmission Mechanism*

We analyze the role of house prices and stock prices in the monetary‐policy transmission mechanism in the US, using a structural vector autoregressive model. If we allow the interest rate and asset prices to react simultaneously to news, we find different roles for house prices and stock prices in the monetary transmission mechanism. Following a contractionary monetary‐policy shock, stock prices fall immediately, while the response in house prices is more gradual. Regarding the systematic response in monetary policy, stock prices play a more important role than house prices. As a consequence, house prices contribute more than stock prices to fluctuations in gross domestic product and inflation.     

The significance of sustained entrepreneurial orientation on performance of firms – A longitudinal analysis

This study focuses on the importance of changes in entrepreneurial orientation (EO) over time for subsequent firm performance, and the significance which inimitable resources (networks, governance system and unique competence) might have in this connection. Hypotheses are developed to test the effects that changes in EO level over a time period and resources have on subsequent firm performance. The study is based on data from 168 Norwegian SMEs, interviewed both in 2000 and 2003. The primary contribution of this study is that a change in EO over time (increased or decreased), may be of importance for a firm's performance represented by performance compared to competitors, and employment growth. A focus on entrepreneurial activities seems to be beneficial in the long run (increasing EO), while the opposite is the case if the EO level decreases. It is especially encouraging to see that firms focusing on EO (increased or the same) are positively associated with employment growth, one of the primary policy goals world-wide. Another contribution from this study is that resources that may be inimitable for firms have some influence on performance compared to competitors. Implications for policy-makers, practitioners and further research are discussed.     

Does Improved Environmental Policy Enhance Economic Growth?

The environmental impacts on an economy is studied over time using endogenous growth theory. Externalities from the environment on production are central in the analysis, and we examine whether an optimal path realizes more rapid economic growth. The paper focuses mainly on developing countries, where production is largely influenced by the environmental quality. The result of the analysis indicates that the economic growth rate may not depend on the internalization of the environmental externality, but rather on the internalization of the human capital externality. The level of economic activity, however, generally seems to depend on the internalization of both externalities.     

Can a Wealthy Economy Gain from an EU Membership? Adjustment Costs and Long Term Welfare Effects of Full Integration—The Norwegian Case

We employ a large scale macroeconometric model to study adjustment problems and long term welfare effects of a Norwegian EU-membership. Accession costs depend significantly on the country's level of GDP, the size of its agricultural sector and tariff and VAT revenues as these elements determine the net membership contribution. Without the transfers, integrating the economy into EU generates a small welfare gain. This result is strongly affected by a long period with under-utilisation of resources. With the net contribution included, we identify a welfare loss. This is especially so if fiscal policy is changed to maintain the public sector budgetary balance.