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Cullen: The good oil – State roles in the Norweigian petroleum sector

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ABSTRACT: Oil and gas have been produced on the Norwegian continental shelf since 1971. Exploration rates, extraction rates, employment, expertise levels, exports of oil and gas have all increased many fold during 1971–‐2013. The State has several roles in the Norwegian petroleum sector including basic research

Aguilera, Rupp, Williams & Ganapathi: Putting the S Back in Corporate Social Responsibility – A Mulit-Level Theory of Social Change in Organizations

corporate-governance_2736-29

ABSTRACT: This paper provides a multi-level theoretical model to understand why business organizations are increasingly engaging in corporate social responsibility (CSR) initiatives, and thereby exhibiting the potential to exert positive social change. Our model integrates theories of micro-level organizational justice, meso-level corporate governance and macro-level

Bucher-Koenen & Lamla: The Long Shadow of Socialism: On East-West German Differences in Financial Literacy

gernmany

ABSTRACT: We use the German reunification as a natural experiment to understand drivers of financial literacy accumulation. With the transformation from a planned to a market-based economy in 1990, the incentives to invest in financial literacy were changed exogenously for East Germans and remained the

Ross; What have we learned about the resource curse?

Offshore-Oil-Rig-570x393

ABSTRACT: Since 2001, hundreds of academic studies have examined the “resource curse,” meaning the claim that natural resource wealth tends to perversely affect a country’s governance. There is now robust evidence that one type of mineral wealth, petroleum, has at least three harmful effects: it

Vaughan-Whitehead: Is Europe Losing Its Soul? The European Social Model in Times of Crisis

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From the Introduction (available here):   This book is the final result of a series of projects started in the early 2000s carried out by the ILO and the European Commission to ensure regular and systematic monitoring of social policies and industrial relations. From the

Cullen: The good oil – State roles in the Norweigian petroleum sector

imagesCAUSRMNQ

ABSTRACT:

Oil and gas have been produced on the Norwegian continental shelf since 1971. Exploration rates, extraction rates, employment, expertise levels, exports of oil and gas have all increased many fold during 1971–‐2013. The State has several roles in the Norwegian petroleum sector including basic research provider, allocator of exploration rights, investor, infrastructure owner, taxation collector, Sovereign Wealth Fund owner. In this paper I review the development of the petroleum sector in Norway, and highlight the various roles of the State in the development of the sector. The paper provides an overview of the macroeconomic importance of oil and gas in the Norwegian economy and critiques selected petroleum related policies.

Available for download here.

Aguilera, Rupp, Williams & Ganapathi: Putting the S Back in Corporate Social Responsibility – A Mulit-Level Theory of Social Change in Organizations

corporate-governance_2736-29

ABSTRACT:

This paper provides a multi-level theoretical model to understand why business organizations are increasingly engaging in corporate social responsibility (CSR) initiatives, and thereby exhibiting the potential to exert positive social change. Our model integrates theories of micro-level organizational justice, meso-level corporate governance and macro-level varieties of capitalisms. Using a theoretical framework presented in the justice literature, we argue that organizations are pressured to engage in CSR by many different actors, each driven by instrumental, relational and moral motives. These actors are nested within four “levels” of analysis: individual, organizational, national and transnational. After discussing the motives affecting actors at each level and the mechanisms used at each level to exercise influence, as well as the interactions of motives within levels, we examine forces across levels to propose the complex web of factors, which both facilitate and impede social change by organizations. Ultimately, this proposed framework can be used to systematize our understanding of the complex social phenomenon of increasing CSR engagement, and to develop testable hypotheses. We conclude by highlighting some empirical questions for future research, and develop a number of managerial implications.

 

Available for download here.

Bucher-Koenen & Lamla: The Long Shadow of Socialism: On East-West German Differences in Financial Literacy

gernmany

ABSTRACT:

We use the German reunification as a natural experiment to understand drivers of financial literacy accumulation. With the transformation from a planned to a market-based economy in 1990, the incentives to invest in financial literacy were changed exogenously for East Germans and remained the same for West Germans. Our results show that even 20 years after reunification there is evidence for a significant financial literacy gap between East and West. While some groups, for instance women and those who have migrated from the East to the West, show similar levels of financial literacy compared with their West German peers, others do not. Differences in financial literacy are present across all educational groups and at the top and the bottom of the income distribution. We decompose the financial literacy gap taking account of factors commonly integrated in theoretical models of financial literacy. Most of the gap remains unexplained. Extending empirical and theoretical models by including differences in attitudes and values might improve our understanding of financial literacy acquisition.

 

Available for download here.

Ross; What have we learned about the resource curse?

Offshore-Oil-Rig-570x393

ABSTRACT:

Since 2001, hundreds of academic studies have examined the “resource curse,” meaning the claim that natural resource wealth tends to perversely affect a country’s governance. There is now robust evidence that one type of mineral wealth, petroleum, has at least three harmful effects: it tends to make authoritarian regimes more durable, to increase certain types of corruption, and to help trigger violent conflict in low and middle income countries. Scholars have also made progress toward understanding the mechanisms that lead to these outcomes, and the conditions that make them more likely. This essay reviews the evidence behind these claims, the debates over their validity, and some of the unresolved puzzles for future research.

Available for download here.

Vaughan-Whitehead: Is Europe Losing Its Soul? The European Social Model in Times of Crisis

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From the Introduction (available here):

 

This book is the final result of a series of projects started in the early 2000s carried out by the ILO and the European Commission to ensure regular and systematic monitoring of social policies and industrial relations. From the EU accession of Central and Eastern European countries (with Cyprus and Malta) we started to question the future of the European Social Model (Vaughan-Whitehead 2003), and tried to forecast whether working conditions in the enlarged EU would diverge from or converge around the European Social Model (ILO-EC project 2004–2005). We monitored the world of work in the enlarged EU with a focus on the quality of employment and working conditions (ILOEC project 2006–2007). Then came the financial and economic crisis and we analysed its social outcome and identified how it challenged social cohesion within the EU and increased inequalities. In particular the most vulnerable workers were identified in the crisis (ILO-EC project 2008–2010). Among the categories most at risk, a particular group was identified in the second part of the crisis characterised by austerity packages, public sector employees, and we carried out a comparative study to identify the public sector shock and its short- and long-term effects (ILO-EC project 2011–2012). However, the extent of adjustments and reforms in the past few years induced us to enlarge this study to carry out a more comprehensive assessment of all the areas and elements of the European Social Model. Undoubtedly, there are elements of the European Social Model – such as pension systems – that may need to be reformed to make them more sustainable under demographic and new economic and social pressures. However, under the pressure of the financial crisis and following the introduction of austerity packages to reduce debt, we witnessed most European countries changing – often hastily – several elements of that model: social protection, pensions, public services, workers’ rights, job quality and working conditions and social dialogue. A paradox considering that it had taken EU countries more than 60 years, since the Treaty of Rome in 1956, to agree on common views and principles and to develop a coherent set of national and EU regulations and institutions concerning social issues. This social dimension, accompanying and even stimulating economic growth, undoubtedly represents the soul of the European Union, envied and copied by other regions and countries in the world.

Is Europe currently losing this legacy? And if so, what were the motivations behind these changes and what are the effects? On the social side, will it not lead to ever growing inequalities, social exclusion and poverty, and to increased social conflicts? On the economic side, is this not leading to unbalanced growth and thus also endangering the long-term sustainability of our economic model?

Rentsch & Finger: Yes, no, maybe: the ambiguous relationships between State-owned enterprises and States

ABSTRACT:

In the process of liberalization and, with the introduction of sector-specific regulators, the position of State-owned enterprises (SOEs) of the network industries has changed not only within national economies, but also vis-à-vis their respective States. Reacting to this new environment, many SOEs started to pursue ambiguous non-market strategies, simultaneously seeking autonomy and State protection. In response to these strategies, States, in their various roles, particularly as both owners and regulators of SOEs, became especially interested in the control of strategically important SOEs. In this paper, we observe ambiguous relationships of SOEs with the French, German and Swiss State. We show that the positions of States vis-à-vis their enterprises is also ambiguous and the behavior, thus, may not always be effective, due mainly to role conflicts.

 

Available for download here.

Acocella: Forward Guidance Announcments and Policy Effectiveness

Marriner_S._Eccles_Federal_Reserve_Board_Building

ABSTRACT

In this paper we investigate the foundations of forward guidance in the light of the theory of controllability in a strategic context. The announcement of future suitable policies can facilitate the control of the economic system by the policymaker, where the term ‘control’ is used in the sense of the ‘classical’ theory of economic policy developed by Tinbergen (1952) and others and recently revived in a strategic context. In this context the contribution of forward guidance to controllability has been recognized. However, existing studies have not indicated either the ways through which the different types of announcement can have this effect or the necessary conditions for that.
Available for download here.

Mehri: The Differential Effects of Law, Culture and Political Risk on Fees, Performance and Risk-Taking Behavior of Islamic and Conventional Funds

islamic finance

ABSTRACT :

This paper considers an international sample of conventional and Islamic mutual funds to assess whether law, culture, and political risk affect the performance, risk-taking behavior and compensation fees of mutual funds. Overall, the results show strongly that legal conditions, culture, and political risk have robust differential effects on fees, performance and risk-taking behavior of Islamic funds and conventional funds. We find that Islamic mutual funds in countries with higher legal conditions receive lower fees, whereas conventional funds receive higher carried interest, lower fixed management fees and weaker expense ratio. In such conditions, conventional and Islamic fund managers have lower performance and take higher specific and systematic risk. Overall, Hoefsted culture’s measures affect significantly the fees structure, performance and risk-taking behavior with robust differential effects on Islamic and conventional funds. Focusing on political risk effects, we show that, in countries with higher political risk, carried interest and performance will be higher, whereas the specific and systematic risk will be stronger for Islamic and conventional funds. The components of country legality and political risk Index have significant differential effects on Islamic and conventional funds’ characteristics.

 

Available for download here.

Dees & Guntner: The International Dimension of Confidence Shocks

shadow-banking

ABSTRACT:

Building on Beaudry, Nam and Wang (2011) { hereafter BNW {, we use survey data on consumer sentiment in order to identify the causal effects of confidence shocks on real economic activity in a selection of advanced economies. Starting from a set of closed-economy VAR models, we show that these shocks have a significant and persistent impact on domestic consumption and real GDP. In line with BNW, we find that confidence shocks explain a large share of the variance in real economic activity. At the same time, the shocks we identify are significantly correlated across countries. In order to account for common global components in international confidence cycles, we extend the analysis to a FAVAR model. This approach proves effective in removing the correlation in country-specific confidence shocks and in isolating mutually orthogonal idiosyncratic components. As a result, the (domestic and cross-border) impacts of country-specific confidence shocks are smaller and their contribution to business cycle fluctuations is reduced, confirming the global dimension of confidence shocks. Overall, our evidence shows that confidence shocks play some role in business cycle fluctuations. At the same time, we show that confidence shocks have a strong global component, supporting their role in international business cycles.

Available for download here.

Driscoll & Holden: Behavioral economics and macroeconomic models

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ABSTRACT:

Over the past 20 years, macroeconomists have incorporated more and more results from behavioral economics into their models. We argue that doing so has helped fixed deficiencies with standard approaches to modeling the economy—for example, the counterfactual absence of inertia in the standard New Keynesian model of economic fluctuations. We survey efforts to use behavioral economics to improve some of the underpinnings of the New Keynesian model—specifically, consumption, the formation of expectations and determination of wages and employment that underlie aggregate supply, and the possibility of multiple equilibria and asset price bubbles. We also discuss more broadly the advantages and disadvantages of using behavioral economics features in macroeconomic models.

 

Available for download here.

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