Mental models and institutional inertia

Abstract Institutional inertia as one of the underlying reasons for hysteresis is often ascribed to external factors such as the distribution of wealth and income. Complementing these findings, the paper focuses on important internal factors, which render institutions stable and which prevent fast institutional changes, namely the role of mental models. Their importance is derived from the analysis of an important set of institutions, which can be described as enabling rules. Such rules enable actors to do certain things, such as speaking a language or playing chess. In doing so, enabling rules arguably require complementary mental models, which contain not only knowledge about the rules and the context in which they are applied, but also about how to apply the rules successfully. An important implication of this conceptualisation is that institutions and their representation are interdependent and mutually stabilising

Zur Messung von Lohnzurückhaltung

Angesichts der hohen Arbeitslosigkeit wird in der wirtschaftswissenschaftlichen Literatur die Frage diskutiert, inwieweit Lohnzurückhaltung auf Arbeitnehmerseite zu einer Beschäftigungsausweitung beitragen kann. Wie sind die zugrundeliegenden theoretischen Konzepte zu beurteilen? --

Development of Sustainability Scenarios

The purpose of the report is twofold. To begin with, it seeks to set out the objectives of, and methodologies for, the development of socio-economic and environmental scenarios for the European Union up until 2050f. In addition, the report undertakes to place scenario building in a wider political and socio-economic context. The report is structured as follows. In section II, the report compares forecasts and scenarios with a view to highlight common aspects and differences. In section III, the report discusses in more detail the purpose of scenario building against the background of the policy objective to reach sustainability. Section IV, finally, examines some of the methodological issues involved in scenario building and sketches out how scenarios can be built in a meaningful and feasible manner. The report is largely exploratory in nature as it seeks to identify critical issues and questions. The report is, in this respect, akin to one of the key purposes of scenario building itself. Accordingly, scenarios are not only developed as long range planning tool, but also with a view to foster and facilitate communication and reflection.JRC.H.8-Sustainability Assessmen

Wirtschaftswissenschaftliche Transformationsforschung: Stand, Probleme und Perspektiven

Bei der Transformation der mittel- und osteuropäischen Länder handelt es sich um einen tiefgreifenden Wandel der ökonomischen, sozialen und kulturellen Lebenswelten. Unterschiede gibt es zwischen den einzelnen Ländern hinsichtlich der Implementierung von Reformen, der praktizierten Politiken sowie der Bewertung der Reformen. Aus ökonomischer Perspektive besteht der Systemwechsel in Mittel-Osteuropa aus makroökonomischer Stabilisierung, Liberalisierung, Privatisierung und Institutionalisierung. Diese Stufen werden indes von den zahlreichen Denkschulen in der Ökonomie unterschiedlich beurteilt. Der Aufsatz geht ausführlich auf den Ansatz der Politischen Ökonomie ein, die den Erfolg der Transformationspolitiken auf die Akteurskonstellation und auf ein ausgewogenes reformpolitisches Design zurückführt. Am Beispiel von Forschungsergebnissen zur Privatisierung und zur Reform des Sozialversicherungssystems wird die Rolle der Akteure und des "institutional designs" nachgezeichnet.The transformation in Central and Eastern European states involves far-reaching restructuring of the economic, social and cultural life. There are differences between the individual countries in terms of the implementation of reforms, the practised policies and the evaluation of reforms. From an economic point of view, the system transformation in Central Eastern Europe consists of a macro-economic stabilisation, liberalisation, privatisation and in stitutionalisation. The various schools of economic philosophy view these stages differently. This article deals extensively with the approach of political economy that attributes the success of the transformation policies to the protagonists constellation and the balanced design of the reform policies. The role of the protagonists and institutional design are described using the example of the research results for privatisation and the reform of the national insurance systems

The debate on the EU Better Regulation Agenda: a literature review

This report addresses the debate on the Better Regulation Agenda adopted by the European Commission in 2015 (BR 2015). The review is structured according to the following major areas: i) evidence-based policy-making, including methodology and quantification; ii) integrated policy cycle (including Impact Assessments, and evaluation); iii) stakeholder consultation, participation and involvement; iv) level of regulation, including REFIT; v) regulatory scrutiny and quality assurance; vi) transparency in policy making; vii) inter-institutional relations; viii) subsidiarity and proportionality. For each of these areas, the main messages of the various authors on achievements, remaining issues and what can be further improved have been identified, analysed and brought together. The debate addresses a wide range of aspects, from the technical to the political level. The presence of often little consensus, together with the still scarce empirical evidence, makes a synthesis very challenging. The great majority of the publications welcome the ambition of the reform and one or more specific aspects of the BR 2015, which is seen as further strengthening the EU regulation system. At the same time, authors also point out at the remaining issues and make observations on what could be further improved.JRC.I.2-Foresight, Modelling, Behavioural Insights & Design for Polic

Green Growth – Magic Bullet or Damp Squib?

The paper identifies various conceptualisations of green growth with a view to identify the causal mechanisms which can support a green growth policy agenda, to investigate the implications of these conceptualisations for measuring progress towards green growth, identify possible trade-offs and integrate measures, and to explore the governance challenges which a green growth agenda is likely to pose against the background that many environmental problems have a bearing on multiple levels of governance.JRC.I.1-Modelling, Indicators and Impact Evaluatio

Zero growth and structural change in a post-Keynesian growth model

Continuous albeit oscillating economic growth has become a hallmark of modern economies. Argu-ing on the basis of theoretical models, some authors maintain that growth is even a systemic re-quirement of capitalist economies. Thus the latter remain only stable as long as they grow. From an empirical point of view, phases of negative growth (recessions) go often hand in hand with economically and socially detrimental side effects, which policy makers seek to avoid at virtually all costs. This is why a stagnant or even degrowing economy is also an anathema for policy makers and arguably the public at large. Concomitantly, economic research has focused mainly on the drivers of growth rather than the conditions under which stagnant economies can exist. The present paper seeks to contribute to the analysis of stagnant economies by investigating the interrelationship of zero growth and technological progress in the context of a Kaleckian growth model. The analysis starts by showing that a Kaleckian model allows zero growth if depreciation is taken into account and if animal spirits are somewhat (but not too) pessimistic. Combining these conditions with technological progress and wage bargaining, the further analysis then indicates that in a profit driven economy, the overall stability of the system is no longer guaranteed if zero growth is actively imposed, leading to a downward spiral, while in a wage-driven economy, stability can be induced under conditions of zero growth and technological progress while it may not be guaranteed for positive growth.JRC.H.8-Sustainability Assessmen

Interpersonal comparisons of utility: positive, normative or value-laden?

The paper examines whether interpersonal comparisons of utility have to be interpreted as positive, normative or value-laden. It suggests first that recent arguments advanced by John Davis which appeal to the functional role of utility comparisons neither suffice to characterise utility comparisons as value-laden nor warrant the derivation of specific normative conclusions. An alternative approach is then developed which focuses on the extent to which value judgements are necessary in the course of making utility-comparisons. This approach is then applied to the notion of utility comparisons and to the concept of efficiency. It is argued that value-judgements do not provide a sufficient basis for deriving economic policy recommendations from interpersonal comparisons.interpersonal comparisons, utility, value-judgements, methodology, efficiency, economic policy,