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We use unique enterprise survey data to explore the export behavior of firms in Tunisia, a small, trade-dependent country with a complex policy environment regarding exporting. Firms may export directly or indirectly through intermediaries, and can also sell to ‘offshore’ firms, which are export manufacturing firms with special legal status. Firm size, a proxy for productivity, is strongly associated with exporting of either type as well as with sales to offshore firms. In contrast to some studies, exporting is not positively associated with firm age (i.e., experience). Domestic-owned firms are more likely to use intermediaries to export while foreign-owned firms as well as those with more educated managers are more likely to export directly. Multinomial logit results reject the hypothesis of progression from indirect exports through direct plus indirect exporting and then to direct-only exporting as firm size increases; instead, the largest exporting firms are more likely to combine direct and indirect exporting, possibly to reduce risk. The findings from this study – the first to examine the heterogeneity of exporting behavior in Tunisia – reveal a complex picture of such behavior and confirm the importance of trade intermediaries for less sophisticated firms (those with lower manager education and internet access), pointing to potential measures to encourage exporting among such enterprises. The findings also suggest that efforts to encourage exporting may also improve firms’ ability to sell to ‘offshore’ firms, enhancing the so far elusive linkages of that sector with the rest of the economy. [ABSTRACT FROM AUTHOR]

Digitalisation offers many business opportunities for professional service firms (PSFs) in general and for tax consulting in particular. Digitalisation is changing the cost structures of PSFs, which affects the scope and scale of PSFs and their service offering. Scope, scale and offered services are part of a business model. Given the increasing importance of PSFs to an economy, it is unfortunate that evidence is lacking on whether and how digitalisation is changing PSFs’ business models. This study provides insights into how tax accountants, as a subgroup of PSFs, are changing their business model in the wake of digitalisation. Tax professionals can respond reactively or proactively to digitisation, either meeting client needs or actively engaging with new technologies. However, smaller accounting firms may face challenges due to resource constraints and lack of expertise, which could be addressed through collaboration, alongside considerations of data security and regulatory compliance. [ABSTRACT FROM AUTHOR]

Using the data of listed agriculture-affiliated companies with customer-supplier association information, we examine the diffusion effect of the digitalisation of listed agricultural companies on the digital transformation of agriculture-affiliated enterprises from the perspective of supply chain. We show that the supply chain diffusion effect of digitalisation mainly exists in ‘customer enterprises-suppliers enterprises’ and ‘leading enterprises-other enterprises’. And the digital transformation of agriculture-affiliated customer enterprises forces suppliers to respond to customer innovation demands, thereby improving the digitalisation level of suppliers, while leading agriculture-affiliated enterprises improve the digitisation level of other agriculture-affiliated enterprises in the supply chain network through knowledge flow. Additionally, the supply chain diffusion effect of digital transformation is stronger under the conditions of smaller ‘digital divide’, lower geographic distance, the downstream consumer end and more government support of agriculture-affiliated enterprises. We provide theoretical and practical implications for promoting the digitalisation of the entire agricultural chain and improving the scale effect of digitalisation. [ABSTRACT FROM AUTHOR]

AbstractUsing China’s Annual Survey of Industrial Firms (ASIF) and the China Customs Database (CCD) from 2000 to 2013, this study explores the impact of adopting industrial robots on the employment in Chinese manufacturing firms. We find a positive association between the adoption of industrial robots and the employment scale of China’s manufacturing enterprises. We also find evidence that the positive association is more pronounced in capital-intensive industries, non-state-owned firms, and firms in coastal areas. Mechanism test indicates that ‘scale expansion effects’ and ‘productivity effects’ are the main channels through which industrial robots promote employment growth. Further analysis indicates that the adoption of industrial robots did not have obvious industry spillover effects. Additionally, other labor market results demonstrate that the adoption of industrial robots significantly increases the average wage level of enterprises while decreasing their labor share. This study provides micro-level evidence revealing the impact of adopting industrial robots on employment in developing countries. It also provides important policy implications for countries worldwide seeking to promote automated production. [ABSTRACT FROM AUTHOR]

In developing countries, implementing effective industrial policies faces challenges due to capacity and governance constraints, hindering accumulation of recognised success stories. This impedes our understanding of effective industrial policy tools in countries with accountability deficits. This article explores Russia’s Industrial Development Fund (IDF) support programmes, initiated since 2014, aimed at promoting import substitution through low-interest loans to industrial firms. These IDF programmes appeared to be more effective than most of Russia’s other industrial policy instruments. The article shows that they have resulted in statistically significant sales growth for supported businesses. It highlights institutional features contributing to programme effectiveness, ensuring the integrity of beneficiary selection and project support. It offers valuable insights for organisations implementing state support programmes in challenging governance conditions. Additionally, the recent emergence of more effective industrial policy tools like the IDF may partly explain Russia’s increased economic resilience against international sanctions imposed due to the war in Ukraine. [ABSTRACT FROM AUTHOR]

The global COVID-19 pandemic triggered a renewed impetus for the countercyclical role of development banks, marked by widespread adoption of diverse instruments to mitigate its impact. Argentina's development bank (BICE, Banco de Inversión y Comercio Exterior, specialized in loan for long term investment, responded to the 2020 health and economic crises implementing a working capital loan program. Amidst a lack of substantial evidence on the efficacy of similar counter-cyclical interventions, we employed a quasi-experimental methodology, incorporating Propensity Score Matching (PSM) and Fixed Effects (FE) estimations, to evaluate the program's impact. Our results demonstrate that firms benefiting from the loan maintained employment levels, in stark contrast to a nearly 6 per cent decrease for those without it. The program effectively mitigated the employment impact of the transient shock. Robustness checks, along with falsification tests, bolster our identification strategy. Complementary findings emphasize that the program's success lies in providing credit during adverse conditions, when private sector credit contracts. This insight, rather than the exceptional terms of the credit, offers a crucial lesson for the future. [ABSTRACT FROM AUTHOR]

AbstractUsing the 2009 consumption-based value-added tax (VAT) reform in China as a quasi-natural experiment for investment tax incentives, we investigate the impact of investment tax incentives on firm pollution abatement investment via a difference-in-differences (DID) approach. We find that the investment tax incentives have significantly raised firm pollution abatement investment of the eligible firms over the ineligible firms by 21.7%. Moreover, the effect is more pronounced for firms with political connection and firms located in regions with stricter environment regulation and lower pollution abatement costs. Our mechanism shows that the motivations for tax deduction play an important role in increasing pollution abatement investment. We also find that VAT reform has a negative indirect impact on firm environmental fine and firm employments and has a positive impact on firm’s capital-labor ratio and labor productivity. [ABSTRACT FROM AUTHOR]

Energy efficiency improvement (EEI) is generally known to be a cost-effective measure for meeting energy, climate, and sustainable growth targets. Unfortunately, behavioral responses to such improvements (called energy rebound effects) may reduce the expected savings in energy and emissions from EEI. Hence, the size of this effect should be considered to help design efficient energy and climate targets. Currently, there are significant differences in approaches for measuring the rebound effect. Here, we used a two-step procedure to measure both short- and long-term energy rebound effects in the Swedish manufacturing industry. In the first step, we used data envelopment analysis (DEA) to measure energy efficiency. In the second step, we use the efficiency scores and estimated a derived energy demand equation including rebound effects using a dynamic panel regression model. This approach was applied to a firm-level panel dataset covering 14 sectors in Swedish manufacturing over the period 1997–2008. We showed that, in the short run, partial and statistically significant rebound effects exist within all manufacturing sectors, meaning that the rebound effect decreased the energy and emission savings expected from EEI. The long-term rebound effect was in general smaller than the short-term effect, implying that within each sector, energy and emission savings due to EEI are larger in the long run compared to the short run. Using our estimates of energy efficiency and rebound effect, we further performed a post-estimation analysis to provide a guide to policy makers by identifying sectors where EEI have the most potential to promote sustainable economic growth with the lowest environmental impact. [ABSTRACT FROM AUTHOR]

We analyze the spatio-temporal agglomeration dynamics that occurred in the Italian manufacturing industry during the recent period of the Great Recession. To study this phenomenon, we employ three different statistical methods—namely, Ellison and Glaeser's index of industrial geographic concentration, the spatial K-function, and the space–time K-function—, and rely on a large sample of geo-referenced, single-plant manufacturing firms observed over the period 2007–2012. First, we demonstrate that different statistical techniques can lead to (very) different results. Second, we find that most Italian manufacturing sectors experienced spatial dispersion processes during the period of the Great Recession. Finally, we show that space–time dispersion processes occurred at small spatial distances and short time horizon, although we do not detect statistically significant space–time interactions. [ABSTRACT FROM AUTHOR]

Little is known about how firms change energy consumption over time. Yet, to meet global climate change targets, understanding how changes in firm investment impact environmental performance is important for policymakers and firms alike. To investigate the environmental performance of firms, we measure the energy consumption and efficiency of firms in the Netherlands' manufacturing industries before and after large capital expenditures over the 2000 to 2008 period. Unique to this data set is that firm investment is decomposed into the following three streams: investment in buildings only, investment in equipment only, or a simultaneous investment in both buildings and equipment. We find that firms increase energy consumption when experiencing a simultaneous investment. However, after large capital expenditures, energy efficiency increases. Further decomposition by firm types suggests that the building capital investments of firms active in high-tech, energy-intensive, and low labor-intensive industries do not coincide with energy efficiency improvements while energy efficiency does increase with capital expenditures in equipment. From a policy perspective, it is important for regulators to understand firm investment and production processes, which help regulators understand when and where energy efficiency increases are feasible across firm types and expansionary production strategies. Firms, regulators, and other third parties may work together to develop an energy efficiency plan in line with investment strategies, including enhanced transparency by firms, energy efficiency subsidies, and R&D tax credits, for innovation. Targeted agreements may work to cooperatively improve energy performance. [ABSTRACT FROM AUTHOR]

We investigate the role of technology in the decision of dairy farmers to convert to organic production methods. We measure the characteristics of the production technology using data from the USDA Agricultural Resource Management Survey and a recently developed functional form that allows for a global approximation to the unknown distance function without compromising approximation at the data boundaries. Conventional dairies with lower technical efficiency, higher returns to scale, and the ability to easily substitute away from restricted inputs are more likely to convert to organic production. Findings suggest further consolidation in the conventional industry as low‐performing farms exits for the organic industry. [ABSTRACT FROM AUTHOR]

The goal of this paper is to identify the characteristics of firms that drive the adoption of energy efficiency investments. Particular attention is given to the distortive effect of the adoption of fixed-term job contracts on firms' orientation toward the investment in energy savings. From a panel data analysis, three regularities emerge. First, extensive use of job flexibility determines a lower incentive for firms to make an energy efficiency investment. Second, firm performance significantly ameliorates the expenditure in energy savings. Third, substantial differences in energy efficiency investment are present within sectors, international regions, regional areas, and firms of differing size. [ABSTRACT FROM AUTHOR]

This work proposes a multidimensional framework that is based on a latent class model to identify various types of corruption and to outline their importance. A dataset of Eastern European and Central Asian countries is used to identify four groups of corrupt activities, which go beyond the usual classification of corruption into administrative and political corruption. Our estimates are validated by means of a direct administrative corruption index that is derived from the same dataset and also by a comparison with the corruption perception rankings that are published by Transparency International. The potential of the proposed approach is illustrated with an application to the relationship between firms' competitiveness and the latent classes of corruption that we have identified. [ABSTRACT FROM AUTHOR]

This study investigates the producer/farm characteristics that influence the adoption and extent of adoption of georeferenced grid soil sampling technology, using the two-part model, among cotton producers in the southern U.S. The extent of adoption is the number of acres grid soil sampled. Soil sampling is sometimes seen as the foundation of precision agriculture. The study uses the 2013 survey data on active cotton producers in 14 southern U.S states conducted by Cotton Incorporated. The study identified producers’ awareness of a cost-share reimbursement program, percentage of income from cotton production, the use of yield map, ownership of livestock, land acreage devoted to other crops, and cotton production in Mississippi and Tennessee as important variables that influence the extent of adoption of georeferenced soil sampling technology. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between the control of airport slots by major airlines and their incentives to engage in service quality. We investigate a set of airline strategies regarding possible practices of slot hoarding and slot concentration through mergers aiming at erecting airport barriers to entry. We develop an econometric model of flight disruptions by allowing an integrated management of flight delays, cancellations, aircraft size, price and passengers per flight. We consider the case of the domestic airline industry in Brazil. We find evidence of the internalization of congestion externalities by dominant carriers. We also have some evidence of schedule padding, a strategic trade-off between delays and cancelations, and slot hoarding following a merger. Our results suggest that carriers intensify the internalization of congestion externalities when slot flight concentration increases. [ABSTRACT FROM AUTHOR]

There is a long standing debate regarding the link between environmental and financial performance. To date, this debate results controversial findings, triggering for further research in different industries and countries. The specific study examines the relationship between environmental and financial performance in Greek manufacturing. Environmental performance is measured according to accounting data following the Eco Management and Auditing Scheme guidelines and ISO certification. Return on assets and return on sales ratios are used as indicators of financial performance. Empirical findings suggest that there seems to be a link between these dimensions irrespectively of the particular sector of activity. Contrary to similar studies a “virtuous circle” does not exist, as the avoidance of environmental improving investments is related to a better financial performance. On the other hand, firms with superior financial performance seem to achieve a better environmental performance. At the same time, firm specific and market characteristics significantly affect this relationship. These findings provide evidence that governmental and corporate actions are necessary in order to lead to a more sustainable corporate performance in the long run. [ABSTRACT FROM AUTHOR]

Performance-raising practices tend to diffuse slowly in the health care sector. To understand how incentives drive adoption, I study a practice that generates revenue for hospitals: submitting detailed documentation about patients. After a 2008 reform, hospitals could raise their Medicare revenue over 2% by always specifying a patient's type of heart failure. Hospitals only captured around half of this revenue, indicating that large frictions impeded takeup. Exploiting the fact that many doctors practice at multiple hospitals, I find that four-fifths of the dispersion in adoption reflects differences in the ability of hospitals to extract documentation from physicians. A hospital's adoption of coding is robustly correlated with its heart attack survival rate and its use of inexpensive survival-raising care. Hospital-physician integration and electronic medical records are also associated with adoption. These findings highlight the potential for institution-level frictions, including agency conflicts, to explain variations in health care performance across providers. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to examine the determinants and motives for supply of trade credit among agro-food manufacturing firms in African countries.Design/methodology/approach The paper uses a subsample of food manufacturing firms from World Bank Enterprise Survey in eight African countries in 2014. Two-limit Tobit models are specified for the determinants of trade credit supply (TCS) and the motives for TCS are inferred from the determinants. An instrumental variable two-limit Tobit model is estimated to check the endogeneity of trade credit received (TCR) in relation to trade credit supplied.Findings The level of TCS is significantly related with degree of product diversification, manager experience, level of TCR and overdraft availability. From the results, financing motives (particularly liquidity and redistribution) and commercial motives (particularly marketing and quality guarantee motives) for TCS are implied.Research limitations/implications The parameter estimates may contain both demand and supply effects as the two effects cannot be separated due to absence of information on firms’ customers in the data set. The results should be interpreted in this context.Originality/value The motives for TCS by agro-food firms is less understood in the agricultural finance literature and this paper makes an important contribution in this regard. In particular, the paper shows the degree of product diversification is directly associated with TCS, a relationship which has not been explored in the trade credit literature. [ABSTRACT FROM AUTHOR]

This study analyzes how changes in flight frequencies contemporarily affect the pricing strategy of airlines. Focusing on the low-cost carrier (LCC) framework, we compare easyJet’s 2012 average fares on all routes with their 2011 counterpart in the same “equivalent” week. Empirical analyses show that changes in frequency are negatively correlated with fare variations, both in monopolistic and competitive contexts. Our conjecture is that if the load factor has to be maintained within a sustainable range and the demand level can be assumed roughly constant, at least in the short period, variations in average fares should be negatively correlated with changes in frequency at the route level. Moreover, by analyzing easyJet’s price discrimination dynamics, we find that an increase in weekly flights leads the airline to strategically price discriminate demand among offered flights ( between-flights discrimination ) , especially in competitive situations, while reducing its ability to intertemporally price discriminate on the same flight ( within-flight discrimination ). [ABSTRACT FROM AUTHOR]

We construct a model of technology adoption with agents differing on two dimensions: their cognitive ability and their receptiveness to advice. While cognitive ability unambiguously speeds adoption, receptiveness to advice may speed adoption for individuals with low cognitive ability, but slow adoption for individuals with high cognitive ability. We conduct economic experiments measuring US farmers’ cognitive ability and receptiveness to advice and examine how these characteristics impact their speed of adoption of genetically modified (GM) corn seeds. The empirical analysis shows that early adopters are those who are both quite able cognitively and not receptive to advice. [ABSTRACT FROM AUTHOR]

Market concentration is a widely recognized metric for assessing effective competition, as it provides a quantification of the relative success of large, mid-sized and smaller firms in the battle for consumers. Concentration has been a public policy issue in the airline industry since deregulation, due to the long-standing airport dominance by major carriers, which is a concern that is recurrently intensified by merger announcements. This paper develops an empirical model to examine the evolution of concentration in the airline markets. We analyze the case of the Brazilian airline industry, in which the two major carriers acquired a combined market share of more than 90% in the late 2000s and have experienced a sharp reversion since then. We test hypotheses regarding the association of market concentration with market size and service quality, as well as the impacts of vertical relationships after airport privatization. Our results suggest that the entry-attraction effect of market size more than compensates for the economies-of-density effect, while the vertical product differentiation created by the strategic investment in capacity is a key driver of concentration in the airline industry. [ABSTRACT FROM AUTHOR]

Our study compares the motivations of Australian and German book publishers. The results demonstrate remarkable similarities, but also a significant difference regarding the effects of the publishers’ self-concept. In the German case the publishers with a dominant economic orientation are more proactive than the publishers with a dominant cultural orientation. In the Australian case, this correlation does not exist. The same difference holds for the relationship between the economic orientation and extrinsic motivation. We discuss these results and examine empirical evidence and theoretical suggestions to explain the differing findings. The data stem from surveys conducted in the two countries with responses of 196 (Germany) and 54 publishers (Australia). [ABSTRACT FROM AUTHOR]

We empirically investigate the capacity responses of major incumbent airlines facing the entry of a new low cost carrier in a secondary airport of a multiple airports region. We develop an empirical model that allows for time-varying strategic responses, aiming at identifying possible degrees of route entry threat. We consider the case of the entry of Azul Airlines in the densest conurbation in Brazil. Our results suggest that the incumbents preemptively fortified their flight frequency positions on threatened routes to deter the anticipated march of the newcomer from the secondary airport toward the existing primary airports. [ABSTRACT FROM AUTHOR]

Water withdrawals for the energy sector are the largest use of fresh water in the United States. Using an econometric model of monthly plant-level electricity generation levels between 2001 and 2012, we estimate the effect of water scarcity on the US electricity fuel mix. We find that hydroelectric generation decreases substantially in response to drought, although this baseline generation is offset primarily by natural gas, depending on the geographic region. We provide empirical evidence that drought can increase emissions of CO 2 and local pollutants. We quantify the social costs of water scarcity to be $330,000 per month for each plant that experiences a one-standard deviation increase in water scarcity (2015 dollars), a relationship that persists under future projections of water scarcity. [ABSTRACT FROM AUTHOR]

This paper analyzes the interactions between three dimensions of firm performance – productivity, energy efficiency, and environmental performance – and especially sheds light on the role of environmental management. In this context, environmental management is investments to reduce environmental impact, which may also affect firm competitiveness, in terms of change in productivity, and spur more (or less) efficient use of energy. We apply data envelopment analysis (DEA) technique to calculate the Malmquist firm performance indexes, and a panel vector auto-regression (VAR) methodology is utilized to investigate the dynamic and causal relationship between the three dimensions of firm performance and environmental investment. Main results show that energy efficiency and environmental performance are integrated, and energy efficiency and productivity positively reinforce each other, signifying the cost saving property of more efficient use of energy. Hence, increasing energy efficiency, as advocated in many of today's energy policies, could capture multiple benefits. The results also show that improved environmental performance and environmental investments constrain next period productivity, a result that would be in contrast with the Porter hypothesis and strategic corporate social responsibility; both concepts conveying the notion that pro-environmental management can boost productivity and competitiveness. [ABSTRACT FROM AUTHOR]

Our study explores the effects of regulatory monitoring and enforcement activities on facilities' compliance with environmental regulatory laws. In particular, our study examines regulated facilities' perceptions of the effectiveness of monitoring and enforcement efforts for inducing compliance and the influence of these perceptions on facilities' responses to actual inspections and enforcement actions. No previous study explores this influence. For our conceptual analysis, we extend standard deterrence theory by incorporating the behavioral dimension of intrinsic motivation. For our empirical analysis, we examine chemical manufacturing facilities permitted under the Clean Water Act during the years 2002 to 2004. Using an original survey, we collect data on facilities' perceptions. We then compare responses to government interventions between facilities that perceive enforcement as effective and those that do not. For facilities perceiving enforcement as effective, increased deterrence of any type generates little gain. In contrast, for those facilities who perceive enforcement as ineffective, increased deterrence from inspections improves compliance with the Clean Water Act. [ABSTRACT FROM AUTHOR]

Location processes are constitutive for the formation of economic landscape. Largest enterprises represent one of the most important units of territorial economies. Their role is palpable mainly in the sphere of employment, technological level, value chains, competition as well as overall economic power. It is far from surprising that the weight of enterprise headquarters is higher than that of their affiliates. Therefore, the main objective of our article is to analyze and assess the development of spatial organization of one hundred largest enterprise head offices in the Czech Republic from both quantitative and qualitative perspectives. Due to data limitations, size of the enterprise is measured by its turnover. Spatial distribution of one hundred largest Czech enterprises and its development over time represent the focal point of our evaluation from quantitative point of view. The analysis was based upon annually published top 100 databases. Qualitative assessment is underpinned by the results of the questionnaire, which was focused on particular location factors accentuated by largest enterprises. Consistency analysis and exploratory factor analysis provide us with useful instrument for the evaluation of qualitative dimension of the issue and help us to conceptualize location preferences of largest enterprises in the country. [ABSTRACT FROM AUTHOR]

Usingmicro-data for Dutch firms, we argue that both the geographic component (what country is the import from) and the intensity component (what type of good is imported) is crucial for measuring and understanding productivity premia associated with importing. For example, our results indicate that the productivity premium associated with importing technology-intensive products from Taiwan differs from importing unskilled-labor-intensive products from Switzerland. We show that increasing distance and decreasing levels of development of the origin economy are negatively associated with the productivity premia of importing. Similarly, these premia are larger for technology- intensive goods and smaller for unskilled-labor-intensive goods. This implies that the geographic-intensity markets are unique and cannot be lumped together. In addition, a more dispersed import portfolio (the extensive dimension) is always positively associated with firm-level productivity. [ABSTRACT FROM AUTHOR]

In many developing countries like China, the rising housing demand is accompanied by developers' strategic delay of land development. To explain this puzzle, this paper employs the framework of Option Games with incomplete information, and examines how incomplete information affects the timing and phasing strategy of real estate development. Based on a project-level dataset from Hangzhou city of China, we estimate a hazard model for development timing, and take into account the developer's self-selection of phasing strategies. Major findings of this research are: first, incomplete information undermines the acceleration effect of competition on development timing. Second, this delay effect disappears when the project is developed in multi-phases. Moreover, we show that the estimation can be severely biased without addressing developer's selection problem. Based on our results, we suggest the government should promote the establishment of a public housing transaction platform, to help the developers overcome the limitations of incomplete information and speed up the development cycle. [ABSTRACT FROM AUTHOR]

Pay What You Want (PWYW) and Name Your Own Price (NYOP) are customer-driven pricing mechanisms that give customers (some) pricing power. Both have been used in service industries with high fixed costs to price discriminate without setting a reference price. Their participatory and innovative nature gives rise to promotional benefits that do not accrue to posted-price sellers. We explore the nature and effects of these benefits and compare PWYW and NYOP using controlled lab experiments. We show that PWYW is a very aggressive strategy that achieves almost full market penetration. It can be profitable if there are promotional benefits and if marginal costs are low. In contrast, NYOP can be used profitably also if marginal costs are high and if there are no such benefits. It reduces price competition and segments the market. In a second experiment, we generate promotional benefits endogenously. We show that PWYW monopolizes the follow-up market but fails to be profitable. NYOP is less successful in penetrating the market but yields much higher profits. [ABSTRACT FROM AUTHOR]

This article empirically investigates the impact of transaction costs for monitoring, reporting, and verification (MRV) of emissions on companies regulated by the EU Emissions Trading System (EU ETS) in Germany. Based on a unique panel dataset, we investigate if MRV costs are dependent on the amount of annual emissions of regulated companies and if there are differences in transaction costs between economic sectors. The results indicate that administrative costs are dependent on the amount of annual emissions for larger companies, which has implications for the economic efficiency of the EU ETS. The most important finding, however, is that there are significant differences in MRV transaction costs dependent on the type and size of companies. This implies the existence of considerable economies of scale. Overall, the EU ETS could benefit from reforms by means of a push towards upstream regulation as this would likely increase administrative efficiency. Policy relevance statement Transaction costs are, among other things, an important aspect of market-based climate policy design. A policy instrument with low transaction costs is preferred over instruments with larger transaction costs under equal conditions. This is occasionally referred to as administrative efficiency, and its importance was acknowledged in directive 2009/29/EC of the European Commission. Thoughtful empirical examination of transaction costs is essential in order to inform about the extent and impact of these costs. This article provides an analysis of transaction costs for monitoring, reporting, and verification (MRV) of emissions in the EU ETS. It is shown that administrative costs will likely have negative effects on the cost efficiency of the EU ETS. However, the most relevant finding is that small companies (<250 employees) or firms emitting small amounts of carbon dioxide per year face far higher average transaction costs compared with larger firms or emitters. Thus, there is a tendency for the EU ETS to cause MRV transaction costs that are disadvantageous for small companies. A regulation that is more upstream-oriented could mitigate this negative effect to some extent. The EU ETS could initiate a reform that is targeted on putting a price on the carbon content of fossil fuels instead of directly regulating emissions in a so-called ‘end-of-the-pipe’ way at the installation level. [ABSTRACT FROM PUBLISHER]

To finance transportation infrastructure and to address social and environmental negative externalities of road transports, several countries have recently introduced or consider a distance based tax on trucks. In competitive retail and transportation markets, such tax can be expected to lower the demand and thereby reduce CO 2 emissions of road transports. However, as we show in this paper, such tax might also slow down the transition towards e-tailing. Considering that previous research indicates that a consumer switching from brick-and-mortar shopping to e-tailing reduces her CO 2 emissions substantially, the direction and magnitude of the environmental net effect of the tax is unclear. In this paper, we assess the net effect in a Swedish regional retail market where the tax not yet is in place. We predict the net effect on CO 2 emissions to be positive, but off-set by about 50% because of a slower transition to e-tailing. [ABSTRACT FROM AUTHOR]

We investigate whether alternative city- or airport pairs are viable substitutes and the extent to which they impact airline competition between the United Kingdom and continental Europe. To this end, we employ and measure airlines’ best responses in equilibrium. Using monthly airline-route seat capacity levels and two stage least-squares dummy-variables regression models, we estimate airlines’ strategic reaction to the competitors’ capacity levels, including competitors on other routes. We show that airlines’ relevant market extends beyond the airport-pair level. Strategic reactions depend on airline type, but all airline types have a similar strategic reaction towards high speed rail. [ABSTRACT FROM AUTHOR]

This paper develops an empirical model of online airfares to inspect the impact of the entry of a low-cost carrier (LCC). We utilize a database collected from the website of an online travel agent in Brazil. We test whether incumbents reshape their airfare temporal profiles in an attempt to attract the price-sensitive passengers who constitute the target market of the newcomer. Our results suggest that LCC entry partially spoils the existing market segmentation schemes of incumbents, forcing them to revise their distribution management strategy, simplify their fare structure and migrate from a non-monotonic to a weakly monotonic price curve. [ABSTRACT FROM AUTHOR]

We develop a model to assess the financial vulnerability of the Italian corporate sector over a two-year horizon under baseline and stressed scenarios. To take into account the heterogeneity of firms and their demography we use micro data, which are then integrated with macroeconomic forecasts. We find that an accommodative monetary policy combined with economic recovery and pro-growth reforms widely reduce the vulnerability of the corporate sector. However, micro firms and those operating in the construction sector remain the most vulnerable, suggesting that targeted policies would be beneficial. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between competition and investment in the wireless industry from a dynamic perspective. Using firm level data and instrumental variable estimation strategy, it finds that the relationship is inverted-U shaped. The investment maximising intensity of competition is reached when operators' gross profits represent 37 or 40 per cent of their revenues, depending on whether capital expenditures are normalised by the number of subscribers. This finding means that investment increases with competition as long as operators' profits are above the thresholds of 37 or 40 per cent of their revenues. Under these thresholds, there is a tradeoff between competition and investment. The paper also finds a significant long run effect of competition on investment which amplifies the short run effect by a factor of 3–4. [ABSTRACT FROM AUTHOR]

Using a simultaneous equations model, this paper investigates how/whether the presence of foreign direct investment (FDI) affects the performance of local firms in China's (1) leather shoe manufacturing and (2) textile and garment manufacturing industries. We use the value of sales (total revenue) as a measure of firm performance in domestic and export markets. The distinguishing feature of this paper is the use of an FDI presence measure that takes the regional dimension into account. The empirical analysis presented in this paper reveals that the presence of FDI leads to a significant positive impact on the domestic sales and export intensity of local firms in both industries. This result is found to be robust to alternative measures of FDI. Based on the result, it is recommended that, in order to maximize the benefits from inward FDI, Chinese policy-makers must encourage domestic and foreign-invested firms to locate in close geographical proximity. [ABSTRACT FROM PUBLISHER]

We examine the relation between bureaucratic corruption and firm performance in CEE countries. We show that divergent consequences of corruption found in previous studies can be explained by the specifics of the local bribery environment in which firms operate. A higher mean bribery is associated with lower firm performance, while higher dispersion of individual firm bribes appears to facilitate it. We also conduct a detailed analysis by firm sector and size, and countries' institutional environments. [ABSTRACT FROM AUTHOR]

This paper empirically investigates the impact of inward foreign direct investment (FDI) on total factor productivity (TFP) growth in a developing country, China. Utilising an endogenous growth theoretic framework, we estimate a model using 1328 firm-level data and spanning the period 2003–2008. We find that the productivity gap constrains the impact of FDI on TFP, while foreign equity participation enhances technological transfer from foreign partners thus resulting in increased TFP in the Chinese electronic industry (CEI). Our findings demonstrate the need for greater investment in the human capital skill base, adopting flexible labour regulatory policies and encouraging investment in R&D as it enhances TFP in the CEI. [ABSTRACT FROM PUBLISHER]

It has always been a concern to most airline operators why their aircraft are on the ground despite all the resources being incurred on maintenance. It is the main goal of this study to evaluate the performance of an airline maintenance programme. Primary data were sourced from the maintenance department of a local airline operator while the secondary data were sourced from aviation journals and statutory regulatory provisions respectively. The information obtained was quantitatively analysed according to maintenance practice factor (MPF), maintenance practice contribution (MPC) and analytical hierarchy process (AHP). Maintenance practices analysed were; visual inspection, servicing, lubrication, cleaning and checking. Cleaning had the highest maintenance practice with a mean MPF of 95.3%. Scheduled maintenance method had the highest contribution of use with a mean MPC of 100%, showing how effective it is. The AHP revealed that the Logistics and Planning elements of the maintenance programme contribute more to the success of the maintenance programme with a contribution of value for money of 26.1%. The consistency ratios indicate consistency in the judgments obtained from experts in the maintenance department. To have aircraft that are ready to fly, emphasis should be placed on the effectiveness and efficiency of the Logistics and Planning activities of the airline’s maintenance department. [ABSTRACT FROM PUBLISHER]

This paper statistically investigates the interaction between a carbon price signal and wholesale electricity spot prices within the Australian National Electricity Market (NEM). While prior studies in Australia have been mainly conducted based on the theoretical and simulation methods, this paper examines the issue by employing an empirical analysis using daily data from July 2010 to October 2013. The findings reveal that carbon costs would indeed be fully passed on to wholesale electricity spot prices resulting in higher electricity prices for consumers and potential windfall profits for some generators. [ABSTRACT FROM AUTHOR]

In this study I find that employment in family firms is less sensitive to performance and product market fluctuations. I show this by investigating aggregate fluctuations at the industry level as well as idiosyncratic firm level shocks. By differentiating between temporary and permanent shocks at the firm level, I find that family firms appear to be less anxious to translate temporary shocks into changes in employment. This supports the idea that family firms are able to offer their employees implicit employment protection. Family firms are believed to have longer time horizons, and are as owners more easily identified with their company and its actions. These are features that could make family firms more cautious in terms of adjusting their employment. Unlike previous contributions, I am able to identify all family firms, both private and public, by using full population data from tax registers. [ABSTRACT FROM AUTHOR]

This paper deals with the factors affecting an adoption of information technology (IT) in micro, small and medium enterprises (SMEs) within the transition economies of the Czech–Polish region. The basic determinants of IT adoption which were identified include data sources, the use of function modules in information systems, the required IT properties and the way IT operations are implemented. The results of the questionnaire survey carried out in 2012 are evaluated by the asymmetric dependence testing and estimation of ordinal regression models. The paper describes the impact of selected determinants on IT adoption. The analysis results show a different effect of determinants in relation to the size of an economic entity (individual SME segments). When we are aware of the importance of these indicators, it can help us to improve the understanding, monitoring and support of the further development of IT adoption in SMEs as an important condition for the successful economy transformation. [ABSTRACT FROM PUBLISHER]

Competitive marketing environment requires construction companies to come up with the right strategies to progress. This only becomes possible by preparing rigorous preconstruction feasibility studies. Additionally, the effectiveness of promotion activities of the company is important to acquire a market share which can be realized by having systematic marketing concept. In this study, the perception and application level of marketing concept of construction firms are investigated. The promotion strategies which enable the companies to have systematic applications of marketing concepts in order to compete with other companies in the sector are discussed. To evaluate the marketing attitudes as applied by the companies, a questionnaire was performed with forty nine Turkish construction firms. The perception and application of the marketing are discussed based on the organizational structure and key interest areas of construction companies. The overall result deduced is that the construction companies do not have a systematic approach to marketing. The companies have primarily adopted the approaches to keep their current places in the sector. [ABSTRACT FROM AUTHOR]

This paper focuses on the role of finance constraints in determining the lack of transition of firms in India from very small family firms, which are the predominant type of firms in the informal sector, into larger informal firms that employ non-family labour. Using a rich firm-level data-set drawn from nationally representative surveys of the Indian informal manufacturing sector, this paper tests for the role played by finance constraints in firm transition in the informal sector at the firm and district level. There is evidence that the difficulty that firms face in accessing external finance acts as a significant constraint to small firm growth in the informal sector. Looking at data from India's districts, it is found that the financial development in a given district increases the likelihood that firms in the district will make the transition from household enterprises into non-household enterprises. [ABSTRACT FROM PUBLISHER]

There is concern that the carbon prices generated through climate policies are too low to create the incentives necessary to stimulate technological development. This paper empirically analyzes how the Swedish carbon dioxide (CO 2 ) tax and the European Union emission trading system (EU ETS) have affected productivity development in the Swedish pulp and paper industry 1998−2008. A Luenberger total factor productivity (TFP) indicator is computed using data envelopment analysis. The results show that climate policy had a modest impact on technological development in the pulp and paper industry, and if significant it was negative. The price of fossil fuels, on the contrary, seems to have created important incentives for technological development. Hence, the results suggest that the carbon prices faced by the industry through EU ETS and the CO 2 tax have been too low. Even though the data for this study is specific for Sweden, the models and results are applicable internationally. When designing policy to mitigate CO 2 emissions, it is vital that the policy creates a carbon price that is high enough – otherwise the pressure on technological development will not be sufficiently strong. [ABSTRACT FROM AUTHOR]

We study gatekeeping physicians’ referrals of patients to specialty care. We derive theoretical results when competition in the physician market intensifies. First, due to competitive pressure, physicians refer patients to specialty care more often. Second, physicians earn more by treating patients themselves, so refer patients to specialty care less often. We assess empirically the overall effect of competition with data from a 2008–2009 Norwegian survey, National Health Insurance Administration, and Statistics Norway. From the data we construct three measures of competition: the number of open primary physician practices with and without population adjustment, and the Herfindahl–Hirschman index. The empirical results suggest that competition has negligible or small positive effects on referrals overall. Our results do not support the policy claim that increasing the number of primary care physicians reduces secondary care. [ABSTRACT FROM AUTHOR]

Levitt and List (2007) hypothesize that pro-social individuals will be selected out of cutthroat industries. To study this, we measure the pro-social preferences of individuals in two such industries, domain trading and online adult entertainment (pornography). Contrary to the selection hypothesis, we find that these individuals exhibit a high degree of pro-sociality. They exhibit more altruism, trust, trustworthiness, and honesty than the typical student subject. They also respond differently to shame-based incentives. We offer a theory of reverse selection that can rationalize these findings. [ABSTRACT FROM AUTHOR]

The paper investigates the impact of the Common Agricultural Policy ( CAP) subsidies on farm total factor productivity ( TFP) in the European Union ( EU). We employ a structural semi-parametric estimation algorithm directly incorporating the effect of subsidies into a model of unobserved productivity. We empirically study the effects using the Farm Accountancy Data Network ( FADN) samples for the EU-15 countries. Our main findings are clear: subsidies impact negatively on farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity is more nuanced and in several countries it turned positive. [ABSTRACT FROM AUTHOR]