Structural Reforms and Competitiveness: Will Europe Overtake America?

http://deepblue.lib.umich.edu/bitstream/2027.42/39930/3/wp545.pd

Public-private partnerships in transport

This paper summarizes the evidence on the evolution of transport PPPs over the last 15 years or so. In the process, it provides a primer on the associated policy issues, including of the central role of project finance in the implementation of PPP policies and the debates on risk allocation in the design of PPPs. The paper also offers a discussion of the increasingly well recognized residual roles for the public sector in transport, with an emphasis on the regulatory debates surrounding the adoption of PPPs.Transport Economics Policy&Planning,Debt Markets,Banks&Banking Reform,Access to Finance,

Rethinking China.s Path of Industrialization

This study shows that China.s post-1949 state-led industrialization has closely followed an underlying path that began in the late nineteenth century. It was initiated by pressing national defence needs and has since been motivated by the same and strong incentives for a faster catch-up with the West despite radical regime shifts. Government determined or influenced resource allocation benefited selected industries and hence nurtured vested interest groups connecting and integrating with the ruling elite, which have strengthened and sustained the path. This means that the path is inherently inefficient which is evidenced by a newly constructed dataset. Reform measures can only temporarily improve efficiency performance, but are unable to break the path in the absence of a genuine political democracy.government engineered industrialization, path dependence, central planning, economic reform, efficiency

Moral hazard and the financial crisis of 2007-9: An Explanation for why the subprime mortgage defaults and the housing market collapse produced a financial crisis that was more severe than any previous crashes (with exception of the Great Depression of 1929)

This paper examines the financial crisis in 2007-9 that was more severe than previous crashes, including the dot-com crash of 2001 and the market crash of 1987 (with the exception of the Great Depression of 1929). This severity was due to excessively risky speculative bets taken by the executives of financial institutions. When the ?housing bubble? burst, these speculative bets, which were based on the U.S. housing market and the subprime mortgages, triggered the financial systemic failures of the U.S. in June 2007 (the subprime mortgage crisis) and September 2008 (the shadow-banking crisis). The systemic financial failure of September 2008 (the shadow-banking crisis) was greatly amplified by excessively risky speculations and this led to a rapid deterioration of the entire global economy. This paper examines the potential for moral hazard in the financial system leading up to this crisis, and attempts to determine if this was a motivating factor in these risky bets.moral hazard, financial crisis of 2007-9, burst of the housing bubble, subprime mortgages crisis, shadow-banking crisis

Competition Policy and Innovation

We briefly review the rationale behind technological alliances and provide a snapshot of their role in global competition, especially insofar as it is based around intellectual capital. They nicely illustrate the increased importance of horizontal agreements and thus establish the relevance of the topic. We move on to discuss the organisation of industries in a dynamic context and draw out consequences for competition policy. We conclude with an outlook on the underlying tensions between technology alliances, competition policy, and industrial policy.competition policy; innovation; alliances; industrial policy

(Re)discovering the social responsibility of business in Germany

Die gesellschaftliche Verantwortung von Unternehmen war in Deutschland lange Zeit kein öffentliches Thema; gleichwohl haben gesellschaftliche Normen, gesetzliche Regelungen und sozialpartnerschaftliche Konfliktregulierung auf eben diese Verantwortung Bezug genommen. In den letzten Jahren haben Unternehmen, auch in Deutschland, begonnen, in Auseinandersetzung mit verschiedenen gesellschaftlichen Gruppen ihre gesellschaftliche Verantwortung - oft angestoßen durch ihre multinationale Geschäftstätigkeit - neu zu interpretieren. Dieser Artikel zeigt Möglichkeiten auf, wie in Deutschland, auf den eigenen Traditionen sozialer Verantwortlichkeit aufbauend, institutionelle Arrangements im Hinblick auf sich wandelnde Aufgaben- und Verantwortungsverteilungen gefunden werden können, um eine bessere Balance von sozialen, ökonomischen und umweltbezogenen Bedürfnissen zu erzielen. -- The concept of CSR is a relatively recent addition to the agenda in Germany, although the country has a long history of practicing corporate social responsibility. The expectations of society had remained stable for many years, encapsulated in laws, societal norms, and industrial relations agreements. But over the past decade, German companies, often triggered by their multinational activities, have had to engage with diverse stakeholders to redefine the nature of their social responsibilities. This contribution reviews and illustrates the development of corporate social responsibility in Germany and analyses how the actors in business and society can build on traditional strengths to find new institutional arrangements for sharing tasks and responsibilities in the interests of achieving a better balance between societal, economic, and environmental needs.