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  • ddc:330  (189,302)
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  • 1
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    Chicago: University of Chicago Press | ZBW – Leibniz Information Centre for Economics Kiel, Hamburg
    Publication Date: 2019-10-22
    Description: 9-ending prices, which comprise between 40%–95% of retail prices, are popular because shoppers perceive them as being low. We study whether this belief is justified using scanner price-data with over 98-million observations from a large US grocery-chain. We find that 9-ending prices are higher than non 9-ending prices, by as much as 18%. Two factors explain why shoppers believe, mistakenly, that 9-ending prices are low. First, we find that among sale-prices, 9-ending prices are indeed lower than non 9-ending prices, giving 9-ending prices an aura of being low. Second, at first, 9-ending prices were indeed lower than other prices. Shoppers, therefore, learned to associate 9-endings with low prices. Over time, however, 9-ending prices rose substantially, which shoppers failed to notice, because the continuous use of 9-ending prices for promoting deep price cuts draws shoppers’ attention to them, and helps to maintain-and-preserve the image of 9-ending prices as bargain prices.
    Description: Special Issue on Behavioral Pricing
    Keywords: M30 ; M31 ; L11 ; L16 ; L81 ; D12 ; D22 ; D40 ; D90 ; D91 ; E31 ; ddc:330 ; Behavioral Pricing ; Psychological Prices ; Price Perception ; Image Effect ; 9-Ending Prices ; Price Points ; Regular Prices ; Sale Prices
    Language: English
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  • 2
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    Hoboken: Wiley | Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2020-11-27
    Description: We study the cost of breaching an implicit contract in a goods market. Young and Levy (2014) document an implicit contract between the Coca-Cola Company and its consumers. This implicit contract included a promise of constant quality. We offer two types of evidence of the costs of breach. First, we document a case in 1930 when the Coca-Cola Company chose to avoid quality adjustment by incurring a permanently higher marginal cost of production, instead of a one-time increase in the fixed cost. Second, we explore the consequences of the company’s 1985 introduction of “New Coke” to replace the original beverage. Using the Hirschman’s (1970) model of Exit, Voice, and Loyalty, we argue that the public outcry that followed New Coke’s introduction was a response to the implicit contract breach.
    Keywords: ddc:330 ; E31 ; K10 ; L11 ; L16 ; L66 ; M20 ; M30 ; N80 ; N82 ; Invisible Handshake ; Implicit Contract ; Customer Market ; Long-Term Relationship ; Cost of Breaching a Contract ; Cost of Breaking a Contract ; Coca-Cola ; New Coke ; Exit, Voice, and Loyalty ; Nickel Coke ; Sticky Prices ; Price Stickiness ; Rigid Prices ; Price Rigidity ; Cost of Price Adjustment ; Menu Cost ; Cost of Quality Adjustment
    Language: English
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  • 3
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    Hoboken: Wiley
    Publication Date: 2020-12-19
    Description: Globally, grasslands are shaped by grazing and fire, and grassland plants are adapted to these disturbances. However, temperate grasslands have been hotspots of land-use change, and how such changes affect interrelations between herbivory, fire and vegetation are poorly understood. Such land-use changes are widespread on the Eurasian steppe, where the dissolution of the Soviet Union in 1991 triggered the abandonment of cropland and pasture on globally relevant scales. Thus, to determine how relationships between plant functional composition, grazing and fire patterns changed after the Soviet Union dissolved, we studied a 358,000 km² region in the dry steppe of Kazakhstan, combining a large field dataset on plant functional traits with multi-scale satellite data. We found that increases in burned area corresponded to decreases in livestock grazing across large areas. Furthermore, fires occurred more often with high cover of grasses with high leaf dry matter content and thus higher flammability, whereas higher grazing pressure favoured grazing-tolerant woody forbs and ruderal plants with high specific leaf area. The current situation of low grazing pressure represents a historically exceptional, potentially non-analogue state. We suggest that the dissolution of the Soviet Union caused the disturbance regime to shift from grazer to fire control. As grazing and fire each result in different plant functional compositions, we propose that this led to widespread increases in grasses and associated changes in steppe plant community structure. These changes have potentially occurred across an area of more than 2 million km², representing much of the world's largest temperate grassland area, with globally relevant, yet poorly understood implications for biodiversity and ecosystem functions such as carbon cycling. Additionally, future steppe management must also consider positive implications of abandonment (‘rewilding’) because reverting the regime shift in disturbance and associated changes in vegetation would require grazing animals to be reintroduced across vast areas.
    Keywords: ddc:330 ; disturbance ; grassland ; Kazakhstan ; land use ; Landsat ; livestock decline ; MODIS ; regime shift
    Language: English
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  • 4
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: Self-employment contributes to employment growth and innovativeness and many individuals want to become self-employed due to the autonomy and exibility it brings. Using "subjective well-being" as a broad summary measure that evaluates an individual's experience of being self-employed, the chapter discusses evidence and explanations why self-employment is positively associated with job satisfaction, even though the self-employed often earn less than their employed peers, work longer hours and experience more stress and higher job demands. Despite being more satisfied with their jobs, the self-employed do not necessarily enjoy higher overall life satisfaction, which is due to heterogeneity of types of self-employment, as well as motivational factors, work characteristics and institutional setups across countries.
    Keywords: ddc:330 ; L26 ; J24 ; J28 ; self-employment ; entrepreneurship ; subjective well-being ; job satisfaction ; life satisfaction
    Language: English
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  • 5
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: What is the effect of the COVID-19 pandemic on the 2020 U.S. presidential election? Guided by a pre-analysis plan, we estimate the effect of COVID- 19 cases and deaths on the change in county-level voting for Donald Trump between 2016 and 2020. To account for potential confounders, we include a large number of COVID-19-related controls as well as demographic and so- cioeconomic variables. Moreover, we instrument the numbers of cases and deaths with the share of workers employed in meat-processing factories to sharpen our identification strategy. We find that COVID-19 cases negatively affected Trump's vote share. The estimated effect appears strongest in ur- ban counties, in states without stay-at-home orders, in swing states, and in states that Trump won in 2016. A simple counterfactual analysis suggests that Trump would likely have won re-election if COVID-19 cases had been 5 percent lower. We also find some evidence that the COVID-19 incidence had a positive effect on voters' mobilization, helping Biden win the presidency.
    Keywords: ddc:330 ; D72 ; I18 ; COVID-19 ; pandemic ; elections ; political behavior ; pre-analysis plan
    Language: English
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  • 6
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: The availability of child-care services has often been advocated as one of the instruments to counter the fertility decline observed in many high-income countries. In the recent past large inflows of lowskilled migrants have substantially increased the supply of child-care services. In this paper we examine if the flow of immigrants as actually affected fertility exploiting the natural experiment occurred in Italy in 2007, when a large inflow of migrants - many of them specialized in the supply of child care - arrived unexpectedly. With a difference-in-differences method, we show that newly arrived immigrant female workers have increased the number of native births by roughly 2 per cent. We validate our result by the implementation of an instrumental variable approach and several robustness tests, all concluding that the increase in the supply of child-care services by immigrants has positively affected native fertility choice.
    Keywords: ddc:330 ; D12 ; F22 ; J13 ; J61 ; Household Economics ; Fertility ; Immigrant Labour ; International Migration
    Language: English
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  • 7
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: This paper studies whether research universities can boost regional economic development through an exogenous shock of a forced relocation of a research university in China. We analyze the development in the treated regions compared with a set of control regions that are created using the synthetic control method and find that research universities can have negative effects on local economic development. We then perform a series of robustness checks. Our main results carry through. By employing a more exogenous shock and more reliable identification strategies, our study provides evidence that research universities do not necessarily promote regional economic development.
    Keywords: ddc:330 ; O15 ; O18 ; R11 ; Research Universities ; Regional Economic Development ; Synthetic Control Method
    Language: English
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  • 8
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: The ‘mobility transition’ hypothesis – with emigration first increasing and then decreasing as a country develops – (Zelinsky, 1971) is often interpreted as a stylised fact, which bears the implication that immigration into rich countries will grow as low-income countries develop. This paper tests the relationships between development and emigration from 130 developing countries during 25 years. Results, robust to different semiparametric and parametric specifications, show that emigration from low to middle-income countries declines as income increases, education improves or population growth slows down. The stage of development at home also affects the main destinations of emigration. Immigration into rich economies increases from countries at intermediate levels of development. Hence, policies supporting development in low-income countries are associated with less emigration to all destinations, including that to rich economies.
    Keywords: ddc:330 ; F22 ; J11 ; O11 ; emigration ; income ; development ; demographic transitions
    Language: English
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  • 9
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: The UK Welfare Reform Act 2012 imposed a series of welfare cuts, which disproportionately impacted ex-ante poorer areas. In this paper, we consider the impact of these austerity measures on two different but complementary elements of crime - the crime rate and the less-studied concentration of crime - over the period 2011-2015 in England and Wales, and document four new facts. First, areas more exposed to the welfare reforms experience increased levels of crime, an effect driven by a rise in violent crime. Second, both violent and property crime become more concentrated within an area due to the welfare reforms. Third, it is ex-ante more deprived neighborhoods that bear the brunt of the crime increases over this period. Fourth, we find no evidence that the welfare reforms increased recidivism, suggesting that the changes in crime we find are likely driven by new criminals. Combining these results, we document unambiguous evidence of a negative spillover of the welfare reforms at the heart of the UK government's austerity program on social welfare, which reinforced the direct inequality-worsening effect of this program. More deprived districts are more exposed to the welfare reforms, and it is these districts that then experience the further negative consequences of the reforms via increased crime. Our findings underscore the importance of considering both multiple dimensions of crime as well as considering different levels of spatial aggregation of crime data. Given that it is violent crime that responds to the (economicallybased) welfare cuts, our work also highlights the need to develop better economic models of non-rational crime.
    Keywords: ddc:330
    Language: English
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  • 10
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: Employing nonparametric bounds, we examine the effect of military service on incarceration outcomes using the Vietnam draft lotteries as a possibly invalid instrumental variable for military service. The draft is allowed to have a direct effect on the outcomes independently of military service, disposing of the exclusion restriction. We find: (i) suggestive but not strong statistical evidence that the direct effect of the draft increases the incarceration rate for violent offenses for a particular cohort of draft avoiders, and (ii) military service increases the incarceration rate for violent and nonviolent crimes of white volunteers and veterans in certain birth cohorts.
    Keywords: ddc:330 ; K4 ; C31 ; C36 ; Conscription ; Military Service ; Incarceration ; Crime ; Nonparametric Bounds
    Language: English
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  • 11
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: This study explores the effects of imbalances in the sex ratio, and their impact on intra-household bargaining, on both the quantity and the quality of children. We first present the theoretical model of intra-household bargaining in the presence of con icting family goals within a couple, and show that male scarcity (a decrease in the male to female sex ratio) induces an increase in the number of children, but a decrease in the quality of children. Second, using the impact of World War II on the sex ratio, as a quasi-natural experiment, we establish empirically that the decrease in the male to female sex ratio in World War II contributed to a lower decline in fertility and child mortality rates in postwar Japan. In particular, the fertility rate would have fallen by an additional 12% and the child mortality rate by an additional 13% between 1948 and 1970, in the absence of the decrease in the sex ratio.
    Keywords: ddc:330 ; J11 ; J12 ; J13 ; J16 ; N15 ; N35 ; quantity-quality trade-off of children ; bargaining power ; marriage mar- ket ; sex ratio
    Language: English
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  • 12
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-05
    Description: This paper explores the relationship between social identity and labor market outcomes of immigrants. Using survey data from Italy, we provide robust evidence that immigrants with stronger feelings of belonging to the societies of both the host and home country have higher employment rates, while those who exclusively identify with the host country culture do not have a net occupational advantage. Analysis of the potential mechanisms suggests that, although simultaneous identification with host and home country groups can be costly, the positive effect of multiple social identities is especially triggered by the enlarged information transmission and in-group favoritism that identification with, and membership of, extended communities ensure.
    Keywords: ddc:330 ; F22 ; J15 ; J61 ; Z1 ; Migration ; Integration ; Ethnic identity ; Acculturation ; Culture ; Labor market
    Language: English
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  • 13
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    Gütersloh: Bertelsmann Foundation | Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2020-10-29
    Description: The Gnassingbé clan has ruled the country since 1967. The demand for political alternance, initiated by institutional and electoral reforms, constituted the major contentious issue between the government and the challengers of the Gnassingbé regime throughout the survey period. The legislative elections of 20 December 2018, boycotted by the major opposition parties, resulted in an easy victory of the ruling party. The first local elections since more than 30 years took finally place on 30 June 2019 and resulted in the victory of the ruling party. Shortly afterwards, in February 2020, the President won also the disputed presidential elections and even consolidated his power, assisted by the loyal army and security services. The outbreak of the Corona epidemic in Togo in April and the subsequent economic recession may have contributed to limit popular protest against the Gnassingbé regime. The human rights record of the government has improved but remains poor. Despite undeniable improvements to the framework and appearance of the regime's key institutions during the review period, democracy remains far from complete. However, the international community, notably Togo’s African peers, the AU and ECOWAS, followed a ‘laissez-faire’ approach in the interests of regional stability and their national interests in dealing with Togo. Economic growth remained stable at about 5% per annum (before Corona). Public investment in infrastructure and increases in agricultural productivity, notably of export crops, had been the key drivers of economic growth. However, growth remains vulnerable to external shocks and the climate and has not been inclusive. Positive growth was overshadowed by increasing inter-personal and regional inequality as well as an increase in extreme poverty. Moreover, money-laundering, illegal money transfers and trafficking grew alarmingly. The business climate improved considerably nevertheless.
    Description: Author's enhanced version
    Description: RÉSUMÉ: Le clan Gnassingbé dirige le pays depuis 1967. La revendication d'alternance politique, initiée par des réformes institutionnelles et électorales, a constitué le principal litige entre le gouvernement et les challengers du régime Gnassingbé tout au long de la période d'enquête. Les élections législatives du 20 décembre 2018, boycottées par les principaux partis d'opposition, se sont soldées par une victoire facile du parti au pouvoir. Les premières élections locales depuis plus de 30 ans ont finalement eu lieu le 30 juin 2019 et ont abouti à la victoire du parti au pouvoir. Peu de temps après, en février 2020, le président a remporté également les élections présidentielles contestées. Par cela il a même consolidé son pouvoir, aidé par l'armée fidèle et les services de sécurité. Le déclenchement de l'épidémie de Corona au Togo en avril 2020 et la récession économique qui a suivi, ont peut-être contribué à limiter les protestations populaires contre le régime de Gnassingbé. Le bilan du gouvernement en matière de droits humains s'est amélioré, mais reste médiocre. Malgré des améliorations indéniables du cadre et de l'apparence des principales institutions du régime pendant la période à l'examen, la démocratie reste loin d'être achevée. Cependant, la communauté internationale, notamment les pairs africains du Togo, l’UA et la CEDEAO, ont suivi une approche de «laissez-faire» dans l’intérêt de la stabilité régionale et de leurs intérêts nationaux face au Togo. La croissance économique est restée stable à environ 5 % par an (avant Corona). Les investissements publics dans les infrastructures et les augmentations de la productivité agricole, notamment des cultures d'exportation, ont été les principaux moteurs de la croissance économique. Cependant, la croissance reste vulnérable aux chocs externes et au climat, et le développement n'a pas été inclusive. La croissance positive a été éclipsée par l'augmentation des inégalités interpersonnelles et régionales ainsi que par une augmentation de l'extrême pauvreté. En outre, le blanchiment d’argent, les transferts d’argent illégaux et le trafic ont augmenté de façon alarmante. Le climat des affaires s'est néanmoins considérablement amélioré. ------------------------------------------------------------------------------------------------------------------------------------ ZUSAMMENFASSUNG: Der Gnassingbé-Clan regiert das Land seit 1967. Die Forderung nach politischer Abwechslung, die durch institutionelle Reformen und Wahlreformen ausgelöst wurde, war das Hauptstreitpunkt zwischen der Regierung und den Herausforderern des Gnassingbé-Regimes während des gesamten Untersuchungszeitraums. Die von den großen Oppositionsparteien boykottierten Parlamentswahlen vom 20. Dezember 2018 führten zu einem leichten Sieg der Regierungspartei. Die ersten Kommunalwahlen seit mehr als 30 Jahren fanden schließlich am 30. Juni 2019 statt und führten zum Sieg der Regierungspartei. Kurz darauf, im Februar 2020, gewann der Präsident auch die umstrittenen Präsidentschaftswahlen. Somit festigte er sogar seine Macht, unterstützt von der loyalen Armee und den Sicherheitsdiensten. Der Ausbruch der Corona-Epidemie in Togo im April und die anschließende wirtschaftliche Rezession haben möglicherweise dazu beigetragen, den Protest der Bevölkerung gegen das Gnassingbé-Regime zu begrenzen. Die Menschenrechtsbilanz der Regierung hat sich verbessert, ist aber weiterhin schlecht. Trotz unbestreitbarer Verbesserungen des Rahmens und des Erscheinungsbilds der wichtigsten Institutionen des Regimes im Berichtszeitraum bleibt die Demokratie bei weitem nicht umfassend. Die internationale Gemeinschaft, insbesondere die afrikanischen Kollegen Faure Gnassingbés in der AU und ECOWAS, verfolgten jedoch im Interesse der regionalen Stabilität und in ihren nationalen Interessen im Umgang mit Togo einen „Laissez-Faire“-Ansatz. Das Wirtschaftswachstum blieb stabil bei etwa 5% pro Jahr (vor Corona). Öffentliche Investitionen in die Infrastruktur und die Steigerung der landwirtschaftlichen Produktivität, insbesondere in Exportkulturen, waren die Haupttreiber des Wirtschaftswachstums. Das Wachstum bleibt jedoch anfällig für externe Schocks und das Klima und war nicht inklusiv. Das positive Wachstum wurde durch die zunehmende zwischenmenschliche und regionale Ungleichheit sowie die Zunahme der extremen Armut überschattet. Darüber hinaus nahmen Geldwäsche, illegale Geldtransfers und Menschenhandel alarmierend zu. Das Geschäftsklima hat sich dennoch erheblich verbessert.
    Keywords: ddc:330 ; A14 ; F35 ; N97 ; O17 ; O55 ; Z13 ; Togo ; WAEMU ; ECOWAS ; West Africa ; African Studies ; Democratization ; Governance ; Fragile States ; Development ; ODA
    Language: English
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  • 14
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    Amsterdam [u.a.]: Elsevier
    Publication Date: 2020-11-24
    Description: This study analyses the effect of Kazakhstan’s 2003–2005 agricultural land reform on land rental and credit market participation. Although the reform declared an intention to facilitate efficient land allocation, we observe a major land concentration. We analyze whether new land relations stimulated land sales and rental markets and made credit more accessible. Utilizing data from two independent surveys before and after private land ownership was introduced, we demonstrate that the reform did not affect the land sales market but reorganized the land-rental market in a top-down fashion with the state remaining the principal landlord. The reform did not achieve the goal of providing access to land for the more skilled producers and did little to facilitate the use of owned land as collateral. The reform achievements are modest and bolder steps will be necessary to improve the functioning of Kazakhstan’s agricultural land markets.
    Keywords: ddc:330 ; land rental market ; credit market ; land reforms ; allocative efficiency ; Kazakhstan
    Language: English
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  • 15
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    Berlin: Springer
    Publication Date: 2020-11-20
    Description: Digitalisierung und Industrie 4.0 spielen im Rahmen der digitalen Vernetzung eine immer größere Rolle für den Maschinen- und Anlagenbau – und das sowohl als Anbieter als auch als Anwender digitaler Produkte. Digitale Geschäftsmodelle und neue Wettbewerber aus dem Bereich digitaler Plattformen stellen zunehmend Herausforderungen für die Maschinenbauunternehmen dar. Der Beitrag befasst sich mit den Digitalisierungsstrategien der Maschinenbauunternehmen ebenso wie mit dem Stand der Digitalisierung bei den Prozessen, Produkten und Geschäftsmodellen. Es werden Wirkungen der digitalen Transformation auf Beschäftigung untersucht sowie arbeits- und beschäftigungspolitische Herausforderungen in der Branche aus Sicht von Mitbestimmungsakteuren diskutiert. Daraus werden Gestaltungsfelder und strategische Orientierungen für die Mitbestimmungsträger erarbeitet.
    Keywords: ddc:330 ; Maschinenbau ; Digitalisierung ; Beschäftigung ; Mitbestimmung
    Language: German
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  • 16
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    Sevilla: Universidad Pablo De Olavide
    Publication Date: 2021-01-06
    Description: The unexpected occurrence of the COVID-19 outbreak has undeniably disrupted the normalcy of life. Stress has become an important concern in education since the COVID-19 outbreak. This descriptive-correlational online survey administered in August 2020 utilized the COVID-19 Perceived Stress Scale (COVID-19 PSS-10) to assess the COVID-19 perceived stress among employed Filipino teachers. Whitney U and Kruskal–Wallis tested for differences while Spearman’s rho was used to analyze the correlation between variables. Results demonstrated that more than half of teachers experienced moderate COVID-19 stress. Females experienced significantly higher COVID-19 stress compared to males. A negative correlation was noted between self-rated health and COVID-19 stress while a positive correlation was found between the perceive risk of getting COVID-19 infection and COVID-19 stress. This study highlights that steps must be undertaken to help teachers deal with the stress of the COVID-19 crisis as well as they must be provided or taught with stress management interventions during this pandemic. This study could be used as a baseline for future research to assess the impact of COVID-19 stress among professional teachers.
    Description: La aparición inesperada del brote de COVID-19 ha interrumpido sin lugar a dudas la normalidad de la vida. El estrés se ha convertido en una preocupación importante en la educación desde el brote de COVID-19. Esta encuesta en línea descriptiva-correlacional administrada en agosto de 2020 utilizó la Escala de estrés percibido COVID-19 (COVID-19 PSS-10) para evaluar el estrés percibido por COVID-19 entre los profesores filipinos empleados. Whitney U y Kruskal-Wallis probaron las diferencias mientras que la rho de Spearman se utilizó para analizar la correlación entre las variables. Los resultados demostraron que más de la mitad de los maestros experimentaron un estrés moderado por COVID-19. Las mujeres experimentaron un estrés por COVID-19 significativamente mayor en comparación con los hombres. Se observó una correlación negativa entre la salud autoevaluada y el estrés por COVID-19, mientras que se encontró una correlación positiva entre el riesgo percibido de contraer la infección por COVID-19 y el estrés por COVID-19. Este estudio destaca que se deben tomar medidas para ayudar a los maestros a lidiar con el estrés de la crisis de COVID-19, así como se les debe proporcionar o enseñar intervenciones de manejo del estrés durante esta pandemia. Este estudio podría usarse como base para futuras investigaciones para evaluar el impacto del estrés por COVID-19 entre los profesores profesionales.
    Keywords: ddc:330 ; COVID-19 ; corona virus ; pandemic ; mental health ; stress ; psychological well-being ; teachers ; educators
    Language: English
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  • 17
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-06
    Description: Pro-environmental behaviour (PEB) is often promoted by reinforcing or highlighting own benefits. However, considering that actors also care about the outcomes for others (i.e. they hold other-regarding preferences), PEB may also be encouraged by addressing these other-regarding preferences. In this paper, we review the results from social science experiments where interventions addressing other-regarding preferences were used to promote PEB. Based on our synthesis, we conclude that addressing other-regarding preferences can be effective in promoting (various types of) PEB in some, but not in all instances. Whether an intervention was effective depended inter alia on the pre-established preferences, cost structures and the perceived cooperation of others. Effective interventions included the provision of information on behavioural consequences, perspective-taking, direct appeals, framing and re-categorization. The interventions worked by activating other-regarding preferences, raising awareness about adverse consequences, evoking empathic concern and expanding the moral circle. We propose to take these findings as an impulse to examine policy instruments and institutions in terms of whether they activate and strengthen other-regarding preferences, thereby enabling collective engagement in PEB.
    Keywords: ddc:330 ; Q56 ; Y80 ; D90 ; pro-environmental behaviour ; experiments ; other-regarding preferences ; empathic concern ; preference activation ; review
    Language: English
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  • 18
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-08
    Description: Overall mobility declined during the COVID-19 pandemic because of government lockdowns and voluntary social distancing. Yet, aggregate data mask important heterogeneous effects across segments of the population. Using unique mobility indicators based on anonymized and aggregate data provided by Vodafone for Italy, Portugal, and Spain, we find that lockdowns had a larger impact on the mobility of women and younger cohorts. Younger people also experienced a sharper drop in mobility in response to rising COVID-19 infections. Our findings, which are consistent across estimation methods and robust to a variety of tests, warn about a possible widening of gender and inter-generational inequality.
    Keywords: ddc:330 ; E1 ; I1 ; H0 ; COVID-19 ; lockdown ; mobility ; gender ; age
    Language: English
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  • 19
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    Hamburg: University of Hamburg, Institute of Law and Economics (ILE)
    Publication Date: 2021-01-08
    Description: International environmental agreements (IEAs) address cross-border public goods, therefore they are faced with free-riding problems. Generally, the incentives of states to comply with such treaties are low as the benefits of compliance do not always outweigh the cost. Previous literature has pointed towards the importance of the treaty design characteristics in motivating compliance and deterring free-riding. The aim of this paper is to investigate the association of using of those mechanisms -treaty linkages- and the compliance with IEAs. By using data on 92 IEAs from the international regime database (IRD), the paper finds that the number of reinforcing links per treaty has a positive and significant association with better compliance. Counter to existing literature, trade links, however, do not exhibit a significant association with better compliance.
    Keywords: ddc:330 ; H41 ; K33 ; O19 ; Q50 ; Q56 ; International Environmental agreements ; Treaty linkages ; Compliance ; Public goods
    Language: English
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  • 20
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-08
    Description: The large economic costs of full-blown lockdowns in response to COVID-19 outbreaks, coupled with heterogeneous mortality rates across age groups, led to question non-discriminatory containment mea- sures. In this paper we provide an assessment of the targeted approach to containment. We propose a SIR-macro model that allows for heterogeneous agents in terms of mortality rates and contact rates, and in which the government optimally bans people from working. We find that under a targeted pol- icy, the optimal containment reaches a larger portion of the population than under a blanket policy and is held in place for longer. Compared to a blanket policy, a targeted approach results in a smaller death count. Yet, it is not a panacea: the recession is larger under such approach as the containment policy applies to a larger fraction of people, remains in place for longer, and herd immunity is achieved later. Moreover, we find that increased interactions between low- and high-risk individuals effectively reduce the benefits of a targeted approach to containment.
    Keywords: ddc:330 ; E10 ; H00 ; I10 ; Optimal containment policies ; COVID-19 ; heterogeneous agents ; mortality rate ; voluntary social distancing
    Language: English
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-07
    Description: Community-Led Local Development (CLLD) – in rural areas implemented as LEADER – is a well-established “territorial delivery mechanism”. The research topic of this contribution is to discuss the influence of different variables of the LEADER implementation on the performance of this place-based and participatory approach. The results are related to single variables of the LEADER implementation and their impact on LEADER performance.
    Keywords: ddc:330 ; R19 ; LEADER ; rural development
    Language: English
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-07
    Description: Fostering innovation-driven regional development has become a major priority for public policy. Thus innovation is a crucial issue in Rural Development Programmes (RDP) to overcome challenges like economic development and demographic change. One part of RDP funded by the European Union, which explicitly addresses innovation, is LEADER: a bottom-up-oriented, participatory approach which relies on cooperation between local actors in the sense of a Community-led local development (CLLD). Stakeholders of different institutions and origins come together in a Local Action Group (LAG) to decide on the projects to be financed. Previous research provides evidence that rural communities are innovative when they have the necessary space and power to act. There is, however, little knowledge about the factors, which are crucial for the power to act, and about the policy framework that provides the necessary space in CLLD-context. The aim of the paper is hence to identify factors, which influence the implementation of innovative projects. Our analysis builds on surveys among LAG-managers, LAG-members and beneficiaries in 115 LEADER areas in four federal states in Germany (Hesse, Lower-Saxony, North Rhine-Westphalia and Schleswig-Holstein). Since the explanatory is a dummy variable we used logit models for the analysis. Overall, 56% of the beneficiaries classified their own project as innovative. There are, however, large differences between the different federal states. Our econometric results suggest that origin of the project idea and the type of beneficiary significantly influence the likelihood of innovation. The expectation that heterogeneity fosters innovative ideas is not supported by our analyses.Fostering innovation-driven regional development has become a major priority for public policy. Thus innovation is a crucial issue in Rural Development Programmes (RDP) to overcome challenges like economic development and demographic change. One part of RDP funded by the European Union, which explicitly addresses innovation, is LEADER: a bottom-up-oriented, participatory approach which relies on cooperation between local actors in the sense of a Community-led local development (CLLD). Stakeholders of different institutions and origins come together in a Local Action Group (LAG) to decide on the projects to be financed. Previous research provides evidence that rural communities are innovative when they have the necessary space and power to act. There is, however, little knowledge about the factors, which are crucial for the power to act, and about the policy framework that provides the necessary space in CLLD-context. The aim of the paper is hence to identify factors, which influence the implementation of innovative projects. Our analysis builds on surveys among LAG-managers, LAG-members and beneficiaries in 115 LEADER areas in four federal states in Germany (Hesse, Lower-Saxony, North Rhine-Westphalia and Schleswig-Holstein). Since the explanatory is a dummy variable we used logit models for the analysis. Overall, 56% of the beneficiaries classified their own project as innovative. There are, however, large differences between the different federal states. Our econometric results suggest that origin of the project idea and the type of beneficiary significantly influence the likelihood of innovation. The expectation that heterogeneity fosters innovative ideas is not supported by our analyses.
    Keywords: ddc:330 ; R1 ; Innovation ; Rural development ; LEADER ; evaluation
    Language: English
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-14
    Description: This chapter provides the historical context for the past half-century in Europe focusing specifically on the link between migration and economic development and inequality. The literature review suggests that there are several channels through which migration affects economic inequality between countries in one or the other direction. The net effects are an open empirical question and are likely to depend on the economic, demographic and institutional and policy contexts; sources, types and selectivity of migration, as well as responses of the receiving societies as well as migrants themselves. We undertake an empirical analysis and find that immigration has contributed to reducing inequality within the 25 EU countries over the 2003-2017 period. As the EU attracted relatively highly qualified immigrants throughout this period, our results are consistent with the ameliorating effect of skilled migration on within-country inequality, as predicted by theory.
    Keywords: ddc:330 ; D31 ; D60 ; O15 ; immigration ; inequality ; labour mobility ; income distribution ; EU enlargement
    Language: English
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  • 24
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    Frankfurt a. M.: Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
    Publication Date: 2021-01-15
    Description: Structural macroeconometric analysis and new HANK-type models with extremely high dimensionality require fast and robust methods to efficiently deal with occasionally binding constraints (OBCs), especially since major developed economies have again hit the zero lower bound on nominal interest rates. This paper shows that a linear dynamic rational expectations system with OBCs, depending on the expected duration of the constraint, can be represented in closed form. Combined with a set of simple equilibrium conditions, this can be exploited to avoid matrix inversions and simulations at runtime for significant gains in computational speed. An efficient implementation is provided in Python programming language. Benchmarking results show that for medium-scale models with an OBC, more than 150,000 state vectors can be evaluated per second. This is an improvement of more than three orders of magnitude over existing alternatives. Even state evaluations of large HANK-type models with almost 1000 endogenous variables require only 0.1 ms.
    Keywords: ddc:330 ; Occasionally Binding Constraints ; Effective Lower Bound ; Computational Methods
    Language: English
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    Halle (Saale): Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
    Publication Date: 2021-01-15
    Description: Using a newly collected dataset of robot use at the plant level from 2014 to 2018, we provide the first microscopic portrait of robotisation in Germany and study the potential determinants of robot adoption. Our descriptive analysis uncovers five stylised facts concerning both extensive and, perhaps more importantly, intensive margin of plant-level robot use: (1) Robot use is relatively rare with only 1.55% German plants using robots in 2018. (2) The distribution of robots is highly skewed. (3) New robot adopters contribute substantially to the recent robotisation. (4) Robot users are exceptional along several dimensions of plant-level characteristics. (5) Heterogeneity in robot types matters. Our regression results further suggest plant size, low-skilled labour share, and exporter status to have strong and positive effect on future probability of robot adoption. Manufacturing plants impacted by the introduction of minimum wage in 2015 are also more likely to adopt robots. However, controlling for plant size, we find that plant-level productivity has no, if not negative, impact on robot adoption.
    Description: This Draft: January 2021
    Keywords: ddc:330 ; J24 ; O14 ; O33 ; robots ; robot adoption ; automation ; labour ; productivity ; plant-level
    Language: English
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  • 26
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    Geneva: World Trade Organization (WTO)
    Publication Date: 2021-01-15
    Description: On the occasion of the 25th anniversary of the WTO, this paper re-estimates the impact of WTO accession on growth. Joining the multilateral trading system not only expands access to international markets but also requires commitment to domestic reforms. Tang and Wei (2009) showed that there is in fact a positive effect of WTO on growth also during the period of accession when these commitments are undertaken. In this paper, we extend Tang and Wei's analysis to the sample of 32 newly acceded countries. We find that WTO accession is associated with a significant positive increase in GDP growth. This effect is larger than previously estimated. We find that five years after accession an economy is 30% larger, and that the impact of WTO entry on growth persists beyond the first five years.
    Keywords: ddc:330 ; F1 ; Dynamic gains from trade ; economic growth ; trade liberalization ; newly acceded countries ; Article XII countries
    Language: English
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    Cologne: University of Cologne, Centre for Financial Research (CFR)
    Publication Date: 2021-01-15
    Description: We document a long-lasting association between a common societal phenomenon, early-life family disruption, and investment behavior. Controlling for socioeconomic status and family background, we find fund managers who experienced the death or divorce of their parents during childhood exhibit a stronger disposition effect, take lower risk, and are more likely to sell their holdings following risk-increasing firm events. The results are consistent with persistent symptoms of post-traumatic stress and strengthen as treatment intensifies. The evidence adds to our understanding of the role of social factors and "nurture" in finance as well as the origin of investment biases.
    Description: January 2021
    Keywords: ddc:330 ; G11 ; G23 ; G41 ; Disposition effect ; Family disruption ; Feelings ; Formative experience ; Investor behavior ; Risk-taking ; Social finance
    Language: English
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  • 28
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    Göttingen: Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh)
    Publication Date: 2021-01-15
    Description: Die vorliegende Studie untersucht die ökonomische Reaktion des Handwerks in Baden-Württemberg auf die Corona-Krise anhand von mehreren Indikatoren. Betrachtet werden zum einen die Ein- und Austragungsdynamik in die Handwerkskammerverzeichnisse während der Corona-Krise und in Vergleichszeiträumen, die Altersstruktur sowie Eintragungsgründe. Zum anderen erfolgt eine Betrachtung der Gründungsfinanzierung in Deutschland und eine Analyse der Gründungsunterstützung in Baden-Württemberg sowie eine Betrachtung der Entwicklung der Meisterkurse und der erwarteten Absolventenzahlen. Auf Basis dieser Indikatoren zur Wirkung der Corona-Krise können Rückschlüsse auf Gründungen und Betriebsübernahmen im Handwerk in Baden-Württemberg gezogen werden.
    Keywords: ddc:330 ; Betriebsaufgaben ; Betriebsgründungen ; Corona-Krise ; Gründungsfinanzierung ; Handwerk ; Konjunktur ; Meisterkurse
    Language: German
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  • 29
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    Kiel: Kiel Institute for the World Economy (IfW)
    Publication Date: 2021-01-15
    Description: Sovereign debt crises are difficult to solve. This paper studies the "holdout problem", meaning the risk that creditors refuse to participate in a debt restructuring. We document a large variation in holdout rates, based on a comprehensive new dataset of 23 bond restructurings with external creditors since 1994. We then study the determinants of holdouts and find that the size of creditor losses (haircuts) is among the best predictors at the bond level. In a restructuring, bonds with higher haircuts see higher holdout rates, and the same is true for small bonds and those issued under foreign law. Collective action clauses (CACs) are effective in reducing holdout risks. However, classic CACs, with bond-by-bond voting, are not sufficient to assure high participation rates. Only the strongest form of CACs, with single-limb aggregate voting, minimizes the holdout problem according to our simulations. The results help to inform theory as well as current policy initiatives on reforming sovereign bond markets.
    Keywords: ddc:330 ; F34 ; G15 ; H63 ; K22 ; Sovereign default ; debt restructuring ; international financial architecture ; creditor Coordination
    Language: English
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    Frankfurt a. M.: Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
    Publication Date: 2021-01-15
    Description: Central banks sometimes evaluate their own policies. To assess the inherent conflict of interest, we compare the research findings of central bank researchers and academic economists regarding the macroeconomic effects of quantitative easing (QE). We find that central bank papers report larger effects of QE on output and inflation. Central bankers are also more likely to report significant effects of QE on output and to use more positive language in the abstract. Central bankers who report larger QE effects on output experience more favorable career outcomes. A survey of central banks reveals substantial involvement of bank management in research production.
    Keywords: ddc:330 ; A11 ; E52 ; E58 ; G28
    Language: English
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    Frankfurt a. M.: Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
    Publication Date: 2021-01-15
    Description: With the COVID-19 pandemic, the intense debate about secular stagnation will become even more important. Empirical estimates of equilibrium real interest rates are so far mostly limited to advanced economies, since no statistical procedure suitable for a large set of countries is available. This is surprising, as equilibrium rates have strong policy implications in emerging markets and developing economies as well; current estimates of the global equilibrium rate rely on only a few countries; and estimates for a more diverse set of countries can improve understanding of the drivers. This paper proposes a model and estimation strategy that decompose ex ante real interest rates into a permanent and transitory component even with short samples and high volatility. This is done with an unobserved component local level stochastic volatility model, which is used to estimate equilibrium rates for 50 countries with Bayesian methods. Equilibrium rates were lower in emerging markets and developing economies than in advanced economies in the 1980s, similar in the 1990s, and have been higher since 2000. In line with economic integration and rising global capital markets, synchronization has been rising over time and is higher among advanced economies. Equilibrium rates of countries with stronger trade linkages and similar demographic and economic trends are more synchronized.
    Keywords: ddc:330 ; E52 ; E43 ; C32 ; equilibrium interest rate ; stochastic volatility ; Bayesian inference ; synchronization
    Language: English
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    London: Taylor & Francis | Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-13
    Description: The COVID-19 pandemic has amplified longstanding concerns about mounting levels of corporate debt in the United States. This article places the current conjuncture in its historical context, analysing corporate indebtedness against the backdrop of increasing corporate concentration. Theorising leverage as a form of power, we find that the leverage of large non-financial firms increased in recent decades, while their debt servicing burdens decreased. At the same time, smaller firms experienced sharp deleveraging alongside increasing debt servicing costs. Crucially, smaller corporations also registered severe losses over this period, while large corporations remained profitable, and in fact doubled their net profit margins from the early-1990s to the present. Taken together, the results from our mapping exercise uncover a series of dramatic changes in the financial fortunes of large versus smaller firms in recent decades, a phenomenon we refer to as the great debt divergence. We explain this divergence with reference to the dynamics of power in the era of ‘shareholder capitalism’, and we argue that the US political economy in the post-COVID 19 world is likely to resemble the pre-COVID 19 one, only with more market turmoil, more concentration, more inequality, and even less investment.
    Keywords: ddc:330 ; P16 ; H63 ; G3 ; capital as power ; corporate concentration ; Covid-19 crisis ; debt ; leverage
    Language: English
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  • 33
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-12
    Description: Basically the current study sought to assess the perception of students regarding the role of teacher communication skills in their academics success. Comprehensive questionnaire carrying information including communication skills aspects of the study were designed to achieve the set objectives. Communication skill is the ability to convey and share information with others in an efficacious way. It is a very vital skill and used widely in all work sectors. Communication is an important skill for every modern student to master. Advances in digital media, changing career landscapes, and greater competition in colleges and workplaces makes improving student communication skills a must. In any education system, teacher’s quality is the most important factor influencing student’s scholastic achievement. Teacher’s quality plays a pivotal and decisive role in students’ academic progress. These qualities are quantified by their skills, knowledge, and qualifications.
    Keywords: ddc:330 ; Professional Development ; Teacher Education ; Communication Skills
    Language: English
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  • 34
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-14
    Description: While demand side response is recognized as a useful tool in reducing the costs of integration of variable renewables, literature on demand side measures in the developing countries has been limited due to lack of publicly available data on system level end use load profiles. This article fills the gap by evaluating agricultural pumping demand as demand side resource in India. Enabled by the system of segregated power supply for irrigation, pumping load has long been used to flatten the load curve but its value to the system resource has largely been ignored. We collected data on hourly supply to 123 agriculture groups in two distribution utilities in the Indian state of Gujarat for one year and used the derived agriculture supply curves in a production cost optimization power model. We estimate that agriculture demand responds reduces the cost of grid operations by up to 6% in the current system. By suitably modifying the agriculture pumping load the cost of integrating up to 50% of renewable energy is reduced and curtailment is reduced by 3-6%. Decentralized agricultural pumps can reduce the cost of integrating and curtailment by enabling absorption of peak solar energy. We conclude that in power systems with moderate to high shares of agricultural demand, agricultural demand response can provide a cost-effective way of integrating high shares of renewable electricity. Further, even though decentralized systems may require higher feed-in-tariffs, replacing agricultural pumps dependent on centralised supply with decentralized agricultural pumps is more effective in integrating solar electricity as compared to centralized solar power plants besides having benefits for ground water conservation.
    Keywords: ddc:330 ; energy ; demand response
    Language: English
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  • 35
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    Köln: Bundesanzeiger-Verlag
    Publication Date: 2021-01-14
    Description: Der Zugelassene Wirtschaftsbeteiligte (AEO) wurde mit Wirkung vom 1. Januar 2008 geschaffen. Zwölf Jahre sind vergangen, nach denen es nun erneut gilt, eine Zwischenbilanz zu ziehen (die zweite Kurzbilanz) - wurden die Erwartungen und Antragszahlen erreicht, was gibt es an Neuerungen und welche Tendenzen sind erkennbar? Erneut werden neben den Zahlen für die EU-27/28 auch die Zahlen für Norwegen und die Schweiz dargestellt, obwohl die AEO-Zahlen in beiden Ländern weiter bescheiden sind. Die Anzahl der AEO-Bewilligungen stagniert in einigen Mitgliedstaaten, während in anderen die Zahl stark ansteigt. Die Entwicklungen in dieser Spätphase der AEO-Bewilligung sind dynamisch und teilweise überraschend aber oft schwankend, gegenläufig und nicht eindeutig. Aber ist es wirklich die Spätphase? Eine detaillierte Analyse der Erteilungsraten für 2019 deutet in manchen Mitgliedstaaten auf eine neue Erteilungswelle hin - dazu gehören Dänemark, Litauen, Rumänien und erneut Großbritannien sowie Irland (im Hinblick auf den Brexit ein deutliches Bekenntnis der britischen Wirtschaft für den Außenhandel und die Sicherheit der Lieferkette)! Großbritannien springt 2019 erstmals auf Rang 5 der AEO-Rangliste. Der Brexit brachte somit einen neuen AEO-Schub (v.a. im UK und in Irland). Ein Ausblick auf den Ende Januar 2020 vollzogenen geregelten Brexit und die Auswirkungen auf die AEO-Bewilligung wird gegeben.
    Description: Zweitveröffentlichung im kostenlosen AW-Serviceguide 2021. Erstveröffentlichung in der AW-Prax 4/2020, S. 148-153
    Keywords: ddc:330 ; K33 ; K34 ; Zollrecht ; Unionsrecht ; Unionszollkodex ; Sichere Lieferkette
    Language: German
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  • 36
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    Toronto: The Bichler and Nitzan Archives
    Publication Date: 2021-01-14
    Description: The theory of capital as power (CasP) is radically different from conventional political economy. In the conventional view, mainstream as well as heterodox, capital is seen a 'real' economic entity engaged in the production of goods and services, and capitalism is thought of as a mode of production and consumption. Finance in this approach is either a mere reflection/lubricant of the real economy (the mainstream view), or a parasitic fiction (the heterodox perspective). CasP rejects this framework. Capital, it argues, is not a productive economic entity, but a symbolic representation of organized societal power writ large, and capitalism should be analysed not as a mode of production and consumption, but as a mode of power. In this approach, finance is neither a reflection nor a fiction, but the symbolic language that organizes and creorders - or creates the order of - capitalized power. These are foundational claims. They go to the very heart of political economy, and they have far-reaching implications. So far-reaching, in fact, that if we accept them, we must rewrite, often from scratch, much of the theory, history and possible futures of the capitalist order. Many have complained about CasP being aloof. Our approach, they have argued, insists on being 'right' - to the exclusion of all others. It shows no interest in 'building bridges'. It dismisses neoclassical liberalism altogether, and although sometimes sympathetic to Marx, it aims not to revise Marxism, but to discard it altogether. In this research note - excerpted and revised from our 2020 invited-then-rejected interview with Revue de la regulation - we explain the basis for these complaints and why CasP and conventional political economy cannot be easily bridged. Stated briefly, the problem is not unwillingness but built-in barriers. As it stands, political economy cannot accept capital as power. Its very foundations prevent it from doing so.
    Keywords: ddc:330 ; P16 ; D46 ; C18 ; capital as power ; Marxism ; neoclassical economics ; political economy ; power ; value
    Language: English
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    Köln: Institut der deutschen Wirtschaft (IW)
    Publication Date: 2021-01-14
    Description: This paper calls for an increased discourse between Fridays for Future and representatives of business. Fridays for Future play a key role in educating the public and raising awareness of scientific reports, such as the Intergovernmental Panel on Climate Change (IPCC) assessment, which demonstrate the urgency with which we must tackle climate change. This is important to gain world attention on pressing questions of our time. At the same time, it is crucial to examine the main drivers in our socio-economic system to understand that the spread of information alone is insufficient to bring fundamental change. Human behaviour remains propelled by both the quest for prosperity and the call for a fair and sustainable economic system. We need to understand how to expand our economy in a sustainable way, how business can foster sustainable innovations and how to motivate consumers to support companies by buying green products. Companies are the necessary key for green innovations. These innovations are only as strong as their demand. Concern about the environment has widely spread in our society. At the same time this concern is not always translated into our actions. Behavioural Economics integrates psychological insights of human behaviour into economic theory and shows us solutions how to overcome the attitude-behavior-gap. Our aim is to work out how behavioural economics can be used to support environmentally friendly practices with incentives. All of our purchase decisions are influenced by cognitive biases. It is estimated that 40 percent of our day-to-day decisions are based on habits. The status quo bias or the discounting of future value often hinder pro-environmental behaviour. Therefore, purely apportioning blame will not result in changes. Instead, an adjustment of the framework through restructuring incentives to overcome biases can as a piece of the puzzle help to achieve the change required. Through the recognition of human "defaults" these can then be harnessed to nudge green actions. Similarly, the individual structural pursuit of profit can be channelled towards green growth. Through the spread of information and effective incentives, we can spark innovations which defuse tensions between economic growth and environmental protection, facilitating sustainable development.
    Keywords: ddc:330 ; F64 ; Q56 ; Q58 ; Umweltmanagement ; Nachhaltige Entwicklung ; Nudge
    Language: English
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-14
    Description: We investigate the impact of removals under the Secure Communities (SC) program on the marriage patterns of immigrant women living in the U.S. where endogamous marriage is the dominant form of partnership. We focus on enforcement by MSA and country of origin and find evidence that deportations increase overall marriage rates, increase the likelihood of endogamous marriage, decrease rates of exogamous marriage to immigrants from other countries and have indeterminate effects on marriage to natives. When examining channels for behavioral responses, we find evidence pointing towards the desire to mitigate the risk of deportation through the increased importance of networks.
    Keywords: ddc:330 ; J13 ; J15 ; K37 ; Immigration Enforcement ; Marriage ; Endogamy ; Secure Communities
    Language: English
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  • 39
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-14
    Description: This paper examines the impact of terrorism on voting behavior in the United States. We rely on an exhaustive list of terror attacks over the period 1970-2016 and exploit the inherent randomness of the success or failure of terror attacks to identify the political impacts of terrorism. We first confirm that the success of terror attacks is plausibly random by showing that it is orthogonal to potential confounders. We then show that on average successful attacks have no effect on presidential and non-presidential elections. As a benchmark, we also rely on a more naïve identification strategy using all the counties not targeted by terrorists as a comparison group. We show that using this naïve identification strategy leads to strikingly different results overestimating the effect of terror attacks on voting behavior. Overall, our results indicate that terrorism has less of an in uence on voters than is usually thought.
    Keywords: ddc:330 ; D72 ; D74 ; terrorism ; voting behavior
    Language: English
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    Berlin: Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
    Publication Date: 2021-01-14
    Description: This paper offers an analysis and critique of the Green Industrial Revolution proposed by the Labour Party in 2019. It identifies this policy as a variant of the Keynesian Green New Deal, which has been interpreted favourably by many socialists as a programme for climate stabilisation and an ecologically restorative, egalitarian organisation of the economy. The Green Industrial Revolution pointed towards a hybrid mixed economy whose main features would have been state policy orientation towards and large investments in renewables, efficiencies and retrofitting; as well as a renewed public sector and reforms to corporate ownership. This was predicated on a contradictory policy of green growth. On the contrary, this paper develops a concept of the critical energy constraints to growth, which highlights how, in terms of its focus on "the national economy" and aversion to major infrastructural changes to reduce energy use, Labour's programme was insufficient. Nonetheless, its openings and advantages are considered alongside and in light of these contradictions. They suggest the need for economic and ecological policies that recognise both the critical energy constraints to growth and the antagonistic relation between capital and labour internationally.
    Keywords: ddc:330 ; Q58 ; Q43 ; F52 ; B51 ; Alternative Ökonomie ; Energiewende ; Sozialdemokratische Partei ; Keynesianismus ; Großbritannien
    Language: English
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  • 41
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-09
    Description: The global crisis and the reactions of countries to the crisis did not spread the 1930's weather conditions. This situation caused relief. However, it does not provide for policies that will slow down globalization and growth. The worldwide creeping has led to increased protectionism and more crises. New protectionism models are not similar to the developments in the 1970s and 1980s rather than the 1930s. Domestic crisis interventions in the capital and product markets and the return of America eventually led to the emergence of more defensive trade policies.
    Keywords: ddc:330 ; Economic Crisis ; Trade Policies ; Protectionism ; Keynesian Economy
    Language: English
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    Essen: Global Labor Organization (GLO)
    Publication Date: 2021-01-09
    Description: While most civil wars seem to have an economic basis, they are generally pushed by political, ethnic, and religious differences. This paper attempts to identify the drivers of the Syrian civil war of 2011 by investigating the role of ethnic divisions in starting a conflict. We integrate a variety of variables such as excluded population, power-sharing, anocracy, ethnic groups in addition to a number of economic factors. The main results indicate that ethnicity does not seem to be a very important factor in starting both the civil and ethnic conflict in Syria, but it shows that the lack of power-sharing to be the most significant factor. Therefore, where power in Syria was not inclusive and shared among different demographic segments, such as religious or urban groups, it created upheavals between different groups, as some groups disidentify with the state, paving the way to causing the conflict. Economic factors also provide an explanation of the onset of conflicts in Syria. The paper offers detailed policy suggestions that could serve as a recovery mechanism for the Syrian crisis and a preventive measurement for its reoccurrence.
    Keywords: ddc:330 ; D74 ; F51 ; H56 ; Armed Conflicts ; Ethnic Conflicts ; Ethnic Groups ; Power-Sharing ; Syria
    Language: English
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-09
    Description: Consumption rivalry generates variation in the choice sets decision-makers face. Not taking into account such variation may generate biased demand estimates. It remains unclear how this impacts estimation accuracy because researchers often lack information on temporal variation in product availability. This paper uses information on the exact set of available alternatives at the time of choosing to formulate time-variant deterministic constraints. In an application to the market for public charging infrastructure for electric vehicles, I show that incorporating this information significantly improves the out-of-sample forecasting accuracy of individual choice and hence the aggregate demand estimates for local charging facilities.
    Keywords: ddc:330 ; H23 ; H42 ; H54 ; Q41 ; Q48 ; Discrete choice ; Preference estimation ; Consumption rivalry ; Electric Vehicles
    Language: English
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  • 44
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    Kiel, Hamburg: ZBW - Leibniz Information Centre for Economics
    Publication Date: 2021-01-09
    Description: This paper examines the welfare impact of hosting refugees in Ethiopia, one of the largest refugee-hosting countries worldwide. The findings reveal different implications depending on the type of household welfare metric. While reducing consumption expenditure per capita and increasing the probability of falling into consumption poverty, it has no effect on wealth and the status of wealth poverty. Decomposing consumption expenditure per capita into food, education, and other non-food components, the results further reveal that it alters the composition of consumption, as it solely affects food consumption expenditure. The consumption effects prevail in rural areas with no effects in urban centers while no heterogeneity is found concerning wealth and wealth poverty results. Key mechanisms explaining the adverse consumption effects include displacement of hosts from salaried employment and a spike in prices of agricultural inputs but not changes in the extent of societal cooperation.
    Keywords: ddc:330 ; O12 ; O15 ; E24 ; Z13 ; Refugees ; Consumption ; Wealth ; Poverty ; Employment ; Price ; Cooperation
    Language: English
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  • 45
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    Düsseldorf: Düsseldorf Institute for Competition Economics (DICE)
    Publication Date: 2021-01-12
    Description: We study whether and how parents interfere paternalistically in their children's intertemporal decision-making. Based on experiments with over 2,000 members of 610 families, we find that parents anticipate their children's present bias and aim to mitigate it. Using a novel method to measure parental interference, we show that more than half of all parents are willing to pay money to override their children's choices. Parental interference predicts more intensive parenting styles and a lower intergenerational transmission of patience. The latter is driven by interfering parents not transmitting their own present bias, but molding their children's preferences towards more time-consistent choices.
    Keywords: ddc:330 ; C90 ; D1 ; D91 ; D64 ; J13 ; J24 ; O12 ; Parental paternalism ; Time preferences ; Convex time budgets ; Present bias ; Intergenerational transmission ; Parenting styles ; Experiment
    Language: English
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  • 46
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    Kiel, Hamburg: ZBW – Leibniz Information Centre for Economics
    Publication Date: 2020-01-10
    Description: This article examines the effect of Aid for Trade (AfT) flows on services export diversification in recipient-countries. The empirical analysis has relied on a sample of 100 recipient-countries (of which 31 Least developed countries – LDCs) over the period 2002-2014 and used the two-step system Generalized Methods of Moments (GMM) approach. It shows that total AfT flows always exert a positive effect on services export diversification over the full sample, with the magnitude of this positive effect being higher for less advanced countries such as LDCs than for relatively advanced economies. This finding also applies to the effect of the cumulated AfT flows on services export diversification. However, we find that the components of total AfT flows - namely AfT for services sectors and AfT for non-services sectors - exert a higher positive effect on services diversification in less advanced countries, notably LDCs than in relatively advanced countries. Specifically, for countries whose real per capita income exceed a certain level, these two types of capital inflows are associated with greater services export concentration. These findings have important policy implications for developing countries and notably the poorest countries among them.
    Keywords: F1 ; F14 ; F35 ; ddc:330 ; Aid for Trade ; Services Export Diversification
    Language: English
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  • 47
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    Kiel: Kiel Institute for the World Economy (IfW)
    Publication Date: 2020-01-15
    Description: This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness of macroeconomic policy in open and globally financially integrated economies is influenced by global investor decisions (Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily indebted and is perceived by the market to be poorly credible, investors hold it to a tighter intertemporal budget constraint and policies aimed to stimulate output growth dissipate into domestic currency depreciation and higher inflation, with limited or no impact on output, or with lower output and lower inflation. On the other hand, markets afford highly credible economies much greater space for effective and noninflationary macro policies. The study leads to a very basic advice: policymakers of an internationally highly integrated economy should keep public liabilities (the stock of both central bank money and public debt) at low levels: the larger the liabilities, the higher the degree of surrender of the country's national policy sovereignty to external forces and interests.
    Keywords: E31 ; E4 ; E5 ; E62 ; F31 ; G15 ; H3 ; ddc:330 ; credibility ; exchange rate ; financial integration ; fiscal and monetary policies ; global investor(s) ; inflation ; intertemporal budget constraint ; policy effectiveness ; public debt
    Language: English
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  • 48
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    Köln: Bundesanzeiger-Verlag
    Publication Date: 2020-01-15
    Description: Die Zollverwaltung hatte bislang mit dem Bekenntnis zur De-Mail Neuerungen zu den Geschäftsabläufen eingeführt. Der zweite Teil der Einführung neuer, elektronischer Geschäftsabläufe ist umfassender: seit April 2016 wird im Hintergrund von der Generalzolldirektion (GZD) an der Einführung des Bürger- und Geschäftskundenportals (BuG) gearbeitet, mit welchem die Abläufe im Zoll- und Verbrauchsteuerrecht elektrifiziert werden, z.B. die Abgabe von Steueran meldungen oder die Beantragung einer VZTA, einer EORI-Nummer oder (zu einem späteren Zeitpunkt) von Erlaubnissen und Bewilligungen. Dieser Beitrag stellt den Aufbau und die Entwicklung des BuG vor. Der Beitrag stellt die persönliche Auffassung des Autors dar.
    Description: Zweitveröffentlichung im kostenlosen AW-Service-Guide 2020. Erstveröffentlichung in der AW-Prax 9/19, S. 375 ff.
    Keywords: K34 ; H83 ; ddc:330 ; Zollverwaltung ; Informatikverfahren ; Vereinfachung
    Language: German
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  • 49
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    Kiel: Kiel Institute for the World Economy (IfW)
    Publication Date: 2020-01-15
    Description: This paper compares two methods for meta-analysis: fixed-effect models and random- effects models. Both models are applied to pass-through rates of excise taxes on alcohol beverages. Using a sample of estimates from 30 primary studies, weighted means are first reported for each method and compared against a fully- passed tax or rate of unity. Dispersion and heterogeneity statistics are used to assess the performance of each method. Second, means and dispersion statistics are reported by subgroups for country source; beverage (beer, wine-spirits); and published status. Third, tests are conducted forpublication selection bias using funnel plots and regression asymmetry tests. Fourth, threeprocedures are undertaken to reduce selection bias: trim-and-fill; cumulative meta-analysis; and meta-regressions. Based on a variety of tests and procedures, three conclusions arereached. First, a random-effects model is more appropriate for these data, reflecting diverse estimates of pass-through rates. Second, pass-through rates are approximately unity regardless of beverage. Third, greater attention needs to be given to choice of model for meta-analysis in economics.
    Keywords: C18 ; C52 ; H21 ; H22 ; I18 ; ddc:330 ; meta-analysis ; fixed-effects ; random-effects ; publication bias ; excise taxes ; pass-through rate ; alcohol
    Language: English
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  • 50
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    Gelsenkirchen: Institut Arbeit und Technik (IAT)
    Publication Date: 2020-01-15
    Description: * Die digitale Fertigung bietet vielfaltige Chancen für Handwerksbetriebe und Designunternehmen, mit innovativen Produkten und Dienstleistungen auf veränderte Kundenanforderungen zu reagieren und sich wettbewerbsfähig im Markt zu positionieren. * Die Ausschöpfung der Potenziale ist nicht nur risikoreich, sondern für viele kleine und mittlere Unternehmen aus Handwerk und Design gänzlich unmöglich. * Mit W3 - Wissen.Werkstatt.Workshop hat das Projekt 'DigiMat' über drei Jahre gemeinsam mit Handwerker/innen und Designer/innen ein Geschäftsmodell entwickelt, um diesen Herausforderungen zu begegnen. * Im Fokus steht die gewerke-/branchenübergreifende wissensbasierte und innovationsorientierte Vernetzung von Handwerksbetrieben und Designunternehmen, um ihr Wissen zu bündeln, auszutauschen, neues Wissen zu generieren und dieses in der digitalen Fertigung materieller Gegenstande zu verwerten. * Damit lassen sich Kundenanforderungen und neue technologische und materialbezogene Entwicklungen leichter antizipieren und das Risiko der digitalen Fertigung reduzieren.
    Keywords: ddc:330 ; Automatisierte Produktion ; Handwerk ; Konstruktion ; Unternehmenskooperation ; Deutschland
    Language: German
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    Copenhagen: University of Copenhagen, Department of Food and Resource Economics (IFRO)
    Publication Date: 2020-01-22
    Description: Agricultural commodity markets in developing countries are characterized by high transaction costs and risks that reduce trade flows among spatial markets. In this article, we examine whether institutionalized agricultural commodity exchange markets reduce transaction costs and hence spatial price dispersion using the introduction of the Ethiopian Commodity Exchange (ECX) as a quasi-experiment. We use a commodity level Difference-in-Difference identification strategy to compare the spatial price dispersion of cereals that are traded at ECX (maize and wheat) with a cereal traded only at the local market (teff). Results show that ECX significantly reduces the spatial price dispersion of maize and wheat compared to teff. This effect varies depending on crop type and the time length since the ECX started trading the commodity. The longer the duration, the larger the reduction in price dispersion. We also find that dissemination of price information is the main channel through which the commodity exchange affects spatial price dispersion.
    Keywords: O13 ; O18 ; Q12 ; Q13 ; ddc:330 ; Commodity Exchange ; Difference-in-Difference ; Ethiopia ; Price Dispersion ; Spatial market
    Language: English
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  • 52
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    Hamburg: University of Hamburg, Chair of International Economics
    Publication Date: 2020-01-15
    Description: This paper aims to revisit the relationship between intangible capital and labour productivity growth using the largest, up-to-date macro database (2000-2015) available to corroborate the econometric findings of earlier work and to generate novel econometric evidence by accounting for times of crisis (2008-2013) and economic recovery (2014-2015). To achieve these aims, this paper employs a cross-country growth accounting econometric estimation approach using the largest, up-to-date database available encompassing 16 EU countries over the time-period 2000-2015. The paper accounts for times of crisis (2008-2013) and of economic recovery (2014-2015). It separately estimates the contribution of three distinct dimensions of intangible capital: i) computerized information, ii) innovative property and iii) economic competencies. First, when accounting for intangibles, the paper finds that these have become the dominant source of labour productivity growth in the EU, explaining up to 66 percent of growth. Second, when accounting for times of crisis (2008-2013), in contrast to tangible capital, the paper detects a solid positive relationship between intangibles and labour productivity growth. Third, when accounting for the economic recovery (2014-2015), the paper finds a highly significant and remarkably strong relationship between intangible capital and labour productivity growth. This paper corroborates the importance of intangibles for labour productivity growth and thereby underlines the necessity to incorporate intangibles into today's national accounting frameworks in order to correctly depict the levels of capital investment being made in European economies. These levels are significantly higher than is currently reflected in official statistics.
    Keywords: C23 ; G01 ; O34 ; O47 ; O52 ; ddc:330 ; intangible capital ; labour productivity growth ; crisis ; recovery ; European Union
    Language: English
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  • 53
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    Göttingen: Georg-August-Universität Göttingen, Research Training Group (RTG) 1666 - GlobalFood
    Publication Date: 2020-01-21
    Description: GlobalG.A.P. compliance has often become a key requirement for farmers to access high-value global markets. Yet, the global spread of certification is highly uneven among countries. We assess the drivers and dynamics behind these unequal patterns, applying panel data regressions. Findings show that global agricultural trade networks remain relevant, but are no longer sufficient in explaining certification. Fostering a favourable business environment - via providing secure land tenure and a functioning judicial system - as well as investing in transportation and information infrastructure may facilitate farmers' participation in certification schemes. Stringency of existing public regulations is helpful for overcoming entry barriers.
    Keywords: O31 ; Q13 ; Q18 ; ddc:330 ; global agricultural supply chains ; GlobalG.A.P. ; private food standards ; organisational innovations ; agricultural sector transformation
    Language: English
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  • 54
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    Durham, NC: Duke University, Center for the History of Political Economy (CHOPE)
    Publication Date: 2020-01-21
    Description: During the last years of his life, the mathematician Karl Menger worked on a biography of his father, the economist and founder of the Austrian School of Economics, Carl Menger. The younger Menger never finished the work. While working in the Menger collections at Duke University's David M. Rubenstein Rare Book and Manuscript Library, we discovered draft chapters of the biography, a valuable source of information given that relatively little is known about Carl Menger's life nearly a hundred years after his death. The unfinished biography covers Carl Menger's family background and his life through early 1889. In this article, we discuss the biography and the most valuable new insights it provides into Carl Menger's life, including Carl Menger's family, his childhood, his student years, his time working as a journalist and newspaper editor, his early scientific career, and his relationship with Crown Prince Rudolf.
    Keywords: ddc:330 ; Carl Menger ; Karl Menger ; Austrian Economics ; Liberalism in Austria ; Crown Prince Rudolf ; Anton Menger
    Language: English
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  • 55
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    Göttingen: Georg-August-Universität Göttingen, Research Training Group (RTG) 1666 - GlobalFood
    Publication Date: 2020-01-21
    Description: It is often assumed that voluntary sustainability standards - such as Fairtrade - could not only improve the socioeconomic wellbeing of smallholder farmers in developing countries but could also help to reduce negative health and environmental impacts of agricultural production. The empirical evidence is thin, as most previous studies on the impact of sustainability standards only focused on economic indicators, such as prices, yields, and incomes. Here, we argue that Fairtrade and other sustainability standards can affect agrochemical input use through various mechanisms with possible positive and negative effects. We use data from farmers and rural workers in Cote d'Ivoire to analyze effects of Fairtrade certification on fertilizer and pesticide use, as well as on human health and environmental toxicity. Fairtrade increases chemical input quantities and aggregated levels of toxicity. Nevertheless, Fairtrade reduces the incidence of pesticide-related acute health symptoms among farmers and workers. Certified cooperatives are more likely to offer training and other services related to the safe handling of pesticides and occupational health, which can reduce negative externalities in spite of higher input quantities. These results suggest that simplistic assumptions about the health and environmental effects of sustainability standards may be inappropriate.
    Keywords: O12 ; Q01 ; Q12 ; Q13 ; ddc:330 ; Agrochemicals ; certification ; Fairtrade ; pesticides ; sustainability standards ; toxicity
    Language: English
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  • 56
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    Berlin: Arbeitskreis Quantitative Steuerlehre (arqus)
    Publication Date: 2020-01-21
    Description: This paper examines the effect of tax incentives in the form of bonus depreciation on the quality of investment. Using the expiration of tax incentives via bonus depreciation in East Germany and a representative panel of West German establishments, we show that bonus depreciation significantly lowers the quality of investment. The average quality of investments, measured by the responsiveness of future sales to current investment, reduces by 22.6-34.6%. This adverse effect of tax subsidies is greater for jurisdictions with higher tax rates as well as for large or high-productivity firms. Overall, while increasing investment quantity, as shown by prior literature, tax incentives such as bonus depreciation substantially reduce the quality of investments.
    Keywords: G11 ; H25 ; H32 ; M41 ; ddc:330 ; bonus depreciation ; tax incentive ; investment incentive ; investment quality
    Language: English
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  • 57
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    Berlin: Arbeitskreis Quantitative Steuerlehre (arqus)
    Publication Date: 2020-01-21
    Description: We examine whether tax audit regimes become more efficient if (i) there are audited financial statements and (ii) tax auditors have access to the internal statutory audit report revealing information about statutory audit adjustments. Our analysis is based on a standard tax compliance game that we extend to model the strategic interaction among a firm issuing financial and tax reports, a statutory auditor, and a tax auditor. We find that the efficiency effects of additional information depend on the strength of tax auditor incentives and the weight that firms place on book income. For high-powered tax auditor incentives, we obtain no information effect on our efficiency measures. For low-powered tax auditor incentives, we find an ambiguous effect, and for mediumpowered tax auditor incentives and firms that place a high weight on book income, tax audit efficiency increases if the tax auditor has access to additional information. In the latter case, we find that granting the tax auditor access to the internal statutory audit report increases firms' tax compliance, raises tax revenues, and decreases tax audit frequency.
    Keywords: H26 ; M41 ; M42 ; ddc:330 ; Tax compliance game ; Tax audit ; Statutory audit ; Tax audit efficiency ; Strategic auditing
    Language: English
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  • 58
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    Berlin: Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
    Publication Date: 2020-01-21
    Description: This paper discusses the development of Euroscepticism in France and the underlying actors and causes. First, the literature review presents a selection of distinct classifications, actors and sources for the analysis. Thus, the distinction between hard and soft Euroscepticism as well as diffuse and specific support for European integration guides the interpretation of Eurobarometer data, which show that there has been an actual increase of French discontent towards the European project since the early 1990s. The Front National represents the main actor within the Eurosceptic landscape. A socio-demographic analysis of the electorate describes the average frontiste likely to be a male, belonging to a household with lower levels of income and education, and besides immigration and security, ranking identity and national sovereignty very highly on their list of concerns. Eventually, the sources for rising Euroscepticism in France are examined in light of socio-economic, cultural and institutional factors. Once more, Eurobarometer data reveal that while economic concerns tend to fuel EU-critical positions rather than fundamental opposition, cultural aspects like national identity, immigration and national security should also be deemed as a crucial source of Euroscepticism. Institutional dissatisfaction at the national and European level -particularly related to the mismanagement of the financial and sovereign debt crisis as well as the migration crisis - has also contributed to the amplification of EU-critical attitudes.
    Keywords: ddc:330 ; Euroscepticism ; France ; Front National ; Rassemblement National ; Euro Crisis ; Migration Crisis
    Language: English
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    Berlin: Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
    Publication Date: 2020-01-21
    Description: The development of renewable energy sources is central to the goal of gaining independence from conventional fossil fuels and achieving a sustainable energy supply. As these technologies are not yetfully developed and due to multi-dimensional selection environments cannotalwayscompete with conventional energy sources in the market, renewable energy sources initially require temporary protective space. Although some research has identified important factors with regard to the development of renewable technologies, there have not been any clear empirical studies, especially focusing on the new Member Statesof the European Union. Bulgaria and Poland in particular showed divergent results with regard to the deployment of the renewables. One, Bulgaria, achieved an outstanding increase in the share of energycoming from renewablessince its target was set in 2009, while another, Poland, has seen a sluggish result with regard to its policies. The aim of this paper is to identifythe factors leading to the successful promotion of renewable energy in the new Member States by using a comparative study of the cases of Bulgaria and Poland. The comparative study is conducted based on the three protective spaces advocated by Smith & Raven (2012). As a result, two main factors can be seen as the determinants of the success of renewable energy policies; "mprovement of connection to grid networks in shielding process" and "schemes for a transition from a niche space to a socio-technical regime in an energy industry structure in empowering process." Additionally, the delay of effective renewable energy policy implementation, which in the case of Poland, led to a failure of policy.
    Keywords: ddc:330 ; Bulgaria ; Empowering ; EU ; Evolutionary theory ; New Member States ; Nurturing ; Protective space ; Poland ; Renewable energy policy ; Shielding
    Language: English
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  • 60
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    Göttingen: Georg-August-Universität Göttingen, Research Training Group (RTG) 1666 - GlobalFood
    Publication Date: 2020-01-24
    Description: Contract farming is typically seen as a useful mechanism to help smallholders. However, despite economic benefits, high dropout rates from contract schemes are commonplace. We use data from Ghana to show that smallholders benefit from a resource-providing contract in terms of higher yields and profits, but most of them still regret their decision to participate and would prefer to exit if they could. The main problem is insufficient information from the company. Farmers do not understand all contract details, which leads to mistrust. We argue that lack of transparency may explain high dropout rates in Ghana and other situations too.