Pension Fund Capitalism and Financial Crisis. IHS Political Science Series 126, December 2011

Basic public pension schemes and cut backs in earnings-related public pensions led to an increasing role of supplementary pensions such as pension funds for old-age incomes. In addition to demographic changes that challenge public pensions, private pensions face financial market risks. To what extent are the scope of pension fund capitalism and the impact of financial crises on pension funds related to different institutional arrangements? Given that different production regimes reflect different pension systems, we expect systematic diversities with regard to the public-private pension mix and the specific design of supplementary pensions. These varieties should be mirrored in different forms of vulnerability of pension funds to financial market crises. We hypothesize a higher scope of pension fund capitalism and vulnerability to financial market crises in countries with predominant market-based coordination mechanisms and short term strategies on financial markets (i.e. Liberal Market Economies)

Coordination of collective action in the agro-food sector

Collaboration between stakeholders in the agro-food sector is nowadays a common phenomenon. Despite the huge diversity observed, this paper argues that collective action always results in the establishment of a collective organization (whether formally organized or not), which is characterized by the presence of a coordination centre. This organism represents all partners united in the collective and performs tasks by order of the individual members and the group. From a theoretical point of view, all collective organizations qualify as hybrid organizations, which can be studied through the lens of Transaction Costs Economics. Hybrids governance structures are a large set of arrangements that are situated between markets and hierarchies. When organizing transactions, hybrids do not purely rely on the price mechanism or authority, but rather on an interplay of four coordination mechanisms. These coordination mechanisms are the central element of this paper and we hypothesize that their degree of formalization is positively correlated with the complexity of the tasks faced by the coordination centre. To test this hypothesis, a survey was designed and information was gathered on some general and organizational characteristics of 65 collective initiatives in the Flemish agro-food sector. Information on the coordination mechanism could thereby be directly gathered, but the complexity of the tasks was approximated by the collective organization’s objectives, the characteristics of the specifications in force and the entry rules for members. The analysis proves that there is indeed a positive relationship between the degree of formalization of the coordination mechanisms on the hand and the complexity of coordination centre’s tasks. Information devices occurs in combination with informal cooperation in small groups, contracts are adopted by groups of 5 to 14 members to realize medium complex objectives and formal coordination (extern regulation and new governance bodies) is finally linked to quality differentiation, which requires considerable efforts in the definition and enforcement of product and/or process specifications.Collective action, coordination mechanisms, hybrid governance structures, Agribusiness,

Classification and reduction of pilot error

Human error is a primary or contributing factor in about two-thirds of commercial aviation accidents worldwide. With the ultimate goal of reducing pilot error accidents, this contract effort is aimed at understanding the factors underlying error events and reducing the probability of certain types of errors by modifying underlying factors such as flight deck design and procedures. A review of the literature relevant to error classification was conducted. Classification includes categorizing types of errors, the information processing mechanisms and factors underlying them, and identifying factor-mechanism-error relationships. The classification scheme developed by Jens Rasmussen was adopted because it provided a comprehensive yet basic error classification shell or structure that could easily accommodate addition of details on domain-specific factors. For these purposes, factors specific to the aviation environment were incorporated. Hypotheses concerning the relationship of a small number of underlying factors, information processing mechanisms, and error types types identified in the classification scheme were formulated. ASRS data were reviewed and a simulation experiment was performed to evaluate and quantify the hypotheses

Cooperative Strategies in Groups of Strangers: An Experiment

We study cooperation in four-person economies of indefinite duration. Subjects interact anonymously playing a prisoner’s dilemma. We identify and characterize the strategies employed at the aggregate and at the individual level. We find that (i) grim trigger well describes aggregate play, but not individual play; (ii) individual behavior is persistently heterogeneous; (iii) coordination on cooperative strategies does not improve with experience; (iv) systematic defection does not crowd-out systematic cooperation.repeated games, equilibrium selection, prisoners’ dilemma, random matching

The Open Method of Co-ordination on Pensions - An Economic Analysis of its Effects on Pension Reforms

This paper analyses the potential effects of the open method of co-ordination on pension reforms in the European Union from an economic point of view. The main results are: (1) For the first time, the Commission formally participates in the input of pension policy-formation of the member states, but without affecting their ultimate decision-making powers. (2) However, the OMC might foster yardstick competition and thus mutual learning from the reform experiences of other member states. (3) In contrast to that, no clear effects on the rent-seeking behaviour of special-interest groups and thus on their influence in shaping pension reforms can be derived.Pension Reform, EU Integration, Regulatory Competition

Coordination mechanisms and software in industrial networks - a literature review

This paper groups recent supply chain management research focused on organizational design and its software support. The classification encompasses criteria related to research methodology and content. Empirical studies from management science focus on network types and organizational fit. Novel planning algorithms and innovative coordination schemes are developed mostly in the field of operations research in order to propose new software features. Operations and production management realize cost-benefit analysis of IT software implementations. The success of software solutions for network coordination depends strongly on the fit of three dimensions: network configuration, coordination scheme and software functionality. This paper concludes with proposals for future research on unaddressed issues within and among the identified research streams

Socio-economic assessment of two small-scale irrigation schemes in Adami Tullu Jido Kombolcha Woreda, Central Rift Valley of Ethiopia

The sustainability of irrigated agriculture is questioned and the challenge is to increase simultaneously land and water productivity in the face of the limited availability of land and water in the CRV, the Central Rift Valley. The aim of this research is to assess the social-economic performance of two communitybased small-scale irrigation schemes in Adami Tullu Jido Kombolcha Woreda (ATJK) and to identify options to improve irrigation performance and resource managemen

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.Distribution;E-fulfillment;Literature Review;Online Retailing

The role of GP’s compensation schemes in diabetes care: evidence from panel data

The design of incentive schemes that improve quality of care is a central issue for the healthcare sector. Nowadays we observe many pay-for-performance programs, where payment is contingent on meeting indicators of provider effort, but also other alternative strategies have been introduced, for example programs rewarding physicians for participation in diseases management plans. Although it has been recognised that incentive-based remuneration schemes can have an impact on GP behaviour, there is still weak empirical evidence on the extent to which such programs influence health outcomes. We investigate the impact of financial incentives in Regional and Local Health Authority contracts for primary care in the Italian Region Emilia Romagna for the years 2003-05. We focus on avoidable hospitalisations (Ambulatory Care Sensitive Conditions) for patients affected by type 2 diabetes mellitus, for which the assumption of responsibility and the adoption of clinical guidelines are specifically rewarded. We estimate a panel count data model using a Negative Binomial distribution to test the hypothesis that, other things equal, patients under the responsibility of GPs receiving a higher share of their income through these programs are less likely to experience avoidable hospitalisations. Our findings support the hypothesis that financial transfers may contribute to improve quality of care, even when they are not based on the ex-post verification of performances.