Limited managerial attention and corporate aging

As firms have more assets in place, more of management’s limited attention is focused on managing assets in place rather than developing new growth options. Consequently, as firms grow older, they have fewer growth options and a lower ability to generate new growth options. This simple theory predicts that Tobin’s q falls with age. Further, competition in the product market is expected to slow down the decrease in Tobin’s q because it forces firms to look for alternative sources of rents. Similarly, greater competition in the labor market reduces the decrease in Tobin’s q with age because old firms are in a better position to hire employees that can help with innovation. In contrast, competition in the market for corporate control should accelerate the decline because it forces management to focus more on managing assets in place whose performance is more directly observable than on developing growth options where results may not be observable for some time. We find strong support for these predictions in tests using exogenous variation in competition.

Staatliche Gründungsfinanzierung: Stand der Forschung und offene Fragen

Der Beitrag gibt einen Überblick über den Stand der Forschung zur staatlichen Gründungsfinanzierung, speziell in Deutschland. Dabei steht die Frage im Vordergrund, ob eine öffentliche Gründungsfinanzierung aus wirtschaftspolitischer Sicht zu rechtfertigen ist. Konkret werden vier Forschungsfragen untersucht. Die erste Frage lautet, ob Unternehmensgründungen für eine Wirtschaft überhaupt Nutzen stiften. Die zweite Frage lautet, ob auf dem Markt der Finanzierung von Gründungsunternehmen Unvollkommenheiten bzw. Marktversagen feststellbar sind. Die dritte Frage lautet, ob staatliche Maßnahmen der Gründungsfinanzierung einzelwirtschaftlich effektiv sind, dass sich also geförderte Unternehmen als erfolgreicher erweisen als nicht geförderte. Die vierte Frage lautet, ob eine staatliche Gründungsfinanzierung die angestrebten wirtschaftspolitischen Ziele zu den niedrigstmöglichen Kosten erreicht, also effizient ist. Die Antworten sind durchweg negativ und zeigen, dass die bisherige Forschung keine ausreichende Rechtfertigung für eine staatliche Gründungsfinanzierung bieten kann.

The Road to Bali: ERIA Perspectives on the WTO Ministerial and Asian Integration

The World Trade Organization’s (WTO) forthcoming Ninth Ministerial Conference in Bali comes at a critical juncture for the multilateral trade body, long mired in the Doha Round stalemate. Beyond offering a critical first test at consensus-building and institutional renewal, the Bali Ministerial affords a unique opportunity to gauge contrasting perceptions across ASEAN and East Asian countries of the continued relevance of the WTO to trade and economic governance within the region and beyond. Resulting from the collaborative efforts of the Economic Research Institute for ASEAN and East Asia (ERIA), the Universitas Pelita Harapan (UPH) and the World Trade Institute at the University of Bern (WTI), this policy research initiative offers comparative scholarship on some of the key questions arising from the forthcoming WTO Ministerial gathering from an East Asian perspective. Specifically, it explores what scholars in the region expect the Bali Ministerial to produce by way of tangible outcomes and whether the Ministerial will restore the momentum needed to bring the Doha Round to a successful conclusion. Contributors also investigate how relevant the WTO remains to the multiple processes of deepening economic integration in ASEAN and East Asia (e.g. AEC, TPP, RCEP) and, importantly, what lessons in rule-design and market opening WTO Members could usefully draw from the ongoing march towards the establishment of an ASEAN Economic Community.

Global Change and Sustainable Development: A Synthesis of Regional Experiences from Research Partnerships

Humankind today is challenged by numerous threats brought about by the speed and scope of global change dynamics. A concerted and informed approach to solutions is needed to face the severity and magnitude of current development problems. Generating shared knowledge is a key to addressing global challenges. This requires developing the ability to cross multiple borders wherever radically different understandings of issues such as health and environmental sanitation, governance and conflict, livelihood options and globalisation, and natural resources and development exist. Global Change and Sustainable Development presents 36 peer-reviewed articles written by interdisciplinary teams of authors who reflected on results of development-oriented research conducted from 2001 to 2008. Scientific activities were – and continue to be – carried out in partnerships involving people and institutions in the global North, South and East, guided by principles of sustainability. The articles seek to inform solutions for mitigating, or adapting to, the negative impacts of global dynamics in the social, political, ecological, institutional and economic spheres.

Accessibility as a determinant of environmental dynamics in socio-economic disparities in mainland Southeast Asia

Access and accessibility are important determinants of people’s ability to utilise natural resources, and have a strong impact on household welfare. Physical accessibility of natural resources, on the other hand, has generally been regarded as one of the most important drivers of land-use and land-cover changes. Based on two case studies, this article discusses evidence of the impact of access to services and access to natural resources on household poverty and on the environment. We show that socio-cultural distances are a key limiting factor for gaining access to services, and thereby for improved household welfare. We also discuss the impact of socio-cultural distances on access to natural resources, and show that large-scale commercial exploitation of natural resources tends to occur beyond the spatial reach of socio-culturally and economically marginalised population segments. We conclude that it is essential to pay more attention to improving the structural environment that presently leaves social minority groups marginalised. Innovative approaches that use natural resource management to induce poverty reduction – for example, through compensation of local farmers for environmental services – appear to be promising avenues that can lead to integration of the objectives of poverty reduction and sustainable environmental stewardship.

Implants versus short-span fixed bridges: survival, complications, patients' benefits. A systematic review on economic aspects

To systematically evaluate the existing evidence to answer the focused question: For a patient with a single tooth to be replaced, is the implant crown, based on economic considerations, preferred to a conventional fixed partial denture?

Screening for Chlamydia trachomatis: a systematic review of the economic evaluations and modelling

OBJECTIVE: To review systematically and critically, evidence used to derive estimates of costs and cost effectiveness of chlamydia screening. METHODS: Systematic review. A search of 11 electronic bibliographic databases from the earliest date available to August 2004 using keywords including chlamydia, pelvic inflammatory disease, economic evaluation, and cost. We included studies of chlamydia screening in males and/or females over 14 years, including studies of diagnostic tests, contact tracing, and treatment as part of a screening programme. Outcomes included cases of chlamydia identified and major outcomes averted. We assessed methodological quality and the modelling approach used. RESULTS: Of 713 identified papers we included 57 formal economic evaluations and two cost studies. Most studies found chlamydia screening to be cost effective, partner notification to be an effective adjunct, and testing with nucleic acid amplification tests, and treatment with azithromycin to be cost effective. Methodological problems limited the validity of these findings: most studies used static models that are inappropriate for infectious diseases; restricted outcomes were used as a basis for policy recommendations; and high estimates of the probability of chlamydia associated complications might have overestimated cost effectiveness. Two high quality dynamic modelling studies found opportunistic screening to be cost effective but poor reporting or uncertainty about complication rates make interpretation difficult. CONCLUSION: The inappropriate use of static models to study interventions to prevent a communicable disease means that uncertainty remains about whether chlamydia screening programmes are cost effective or not. The results of this review can be used by health service managers in the allocation of resources, and health economists and other researchers who are considering further research in this area.

Research Partnerships for Addressing Global Challenges: Opening Speech

Humankind today is challenged by numerous threats brought about by global change. Climate has been and is being modified by human activities, which calls for mitigation and adaptation measures at an unprecedented scale. Natural resources have been degraded by human development by means of land cover and land use changes, for which protective and restoration measures have to be taken by land users and governments in most countries of the North and South. Low levels of economic development and insufficient policies in most developing countries have led to widespread poverty, which affects nearly half of the world’s population and directly threatens almost one billion people. Finally, uncontrolled economic growth has increased disparities between and within populations and has led to widespread environmental problems in many nations. Generating and sharing knowledge is a key to addressing such global challenges. Knowledge can be used to develop the best solutions and to avoid or repair threats. Research partnerships have proven to be suitable means to bridge the divides and disparities between knowledge societies and developing countries, thereby reducing gaps. Research partnerships are tools for further capacity development and thereby lead to societal empowerment. Institutional settings allowing for research partnerships are needed both in the North and the South, so that the different networks can work together in a long-term enabling environment.

Tropical cyclone-related socio-economic losses in the western North Pacific region

The western North Pacific (WNP) is the area of the world most frequently affected by tropical cyclones (TCs). However, little is known about the socio-economic impacts of TCs in this region, probably because of the limited relevant loss data. Here, loss data from Munich RE's NatCatSERVICE database is used, a high-quality and widely consulted database of natural disasters. In the country-level loss normalisation technique we apply, the original loss data are normalised to present-day exposure levels by using the respective country's nominal gross domestic product at purchasing power parity as a proxy for wealth. The main focus of our study is on the question of whether the decadal-scale TC variability observed in the Northwest Pacific region in recent decades can be shown to manifest itself economically in an associated variability in losses. It is shown that since 1980 the frequency of TC-related loss events in the WNP exhibited, apart from seasonal and interannual variations, interdecadal variability with a period of about 22 yr – driven primarily by corresponding variations of Northwest Pacific TCs. Compared to the long-term mean, the number of loss events was found to be higher (lower) by 14% (9%) in the positive (negative) phase of the decadal-scale WNP TC frequency variability. This was identified for the period 1980–2008 by applying a wavelet analysis technique. It was also possible to demonstrate the same low-frequency variability in normalised direct economic losses from TCs in the WNP region. The identification of possible physical mechanisms responsible for the observed decadal-scale Northwest Pacific TC variability will be the subject of future research, even if suggestions have already been made in earlier studies.

Assessing the state of Sustainable Land Management research in Kyrgyzstan and Tajikistan

This article synthesizes findings from a review of the state of research on sustainable land management in Kyrgyzstan and Tajikistan and from an analysis of the interface between research and action. Using the Global Land Project (GLP 2005) analytical framework, we analyzed the distribution of 131 selected publications (including a clearly defined set of local and international academic and gray literature) across the framework's components and links in a social–ecological system. There is a strong emphasis in the literature on the impact of changes in land use and management on ecosystems; however, there is little research on the implications for ecosystem services. This finding is opposed to that of a similar analysis of publications at the global scale (Björnsen Gurung et al 2012). Another major gap was the lack of research on Kyrgyzstan and Tajikistan regarding the influence of global factors on social and ecological systems, despite social, economic, and political integration into global structures since the collapse of the Soviet Union and the increasing influence of climate change. Our analysis disaggregated academic literature published in the region and international academic literature, revealing stark differences. These differences are partly attributable to the legacy of the late Soviet era principle of “rational use of land resources,” which fit the planned economy but lacks approaches for decentralized resource governance. Finally, the emphasis of research on systems knowledge, the lack of transdisciplinary research, and the critical feedback of stakeholders at a regional sustainable land management forum suggest that actionable sustainable land management research on Kyrgyzstan and Tajikistan is rare. Recommendations are made for targeted, application-focused, multistakeholder research and knowledge sharing, including local and international researchers as well as practitioners, policy-makers, and land users.