Institutional constraints on organizations: The case of Spanish car dealerships

We study the effect of organizational choice and institutions on the performance ofSpanish car dealerships. Using outlet-level data from 1994, we find that verticallyintegrateddealerships showed substantially lower labor productivity, higher labor costs andlower profitability than franchised ones. Despite these gaps in performance, no verticallyintegratedoutlet was separated until 1994, yet the few outlets that were eventuallyseparated systematically improved their performance. We argue that the conversion ofintegrated outlets into franchised ones involved significant transaction costs, due to aninstitutional environment favoring permanent, highly-unionized employment relations. Inline with this argument, we find that the observed separations occurred in distributionnetworks that underwent marked reductions in worker unionization rates, following thelegalization of temporary labor contracts.

Demand for private health insurance: Is there a quality gap?

Quality of care is qualified as a main determinant of the demand forvoluntary private health insurance (PHI) in National Health Systems(NHS). This paper provides new evidence on the influence of the qualitygap between public and private health insurance and other demanddeterminants in the demand for PHI in Catalonia. The demand for PHI ismodelled as a demand for health care quality. Unlike previous studies, the database employed allows for the development of a link between thetheoretical and the empirical model dealing with unobserved heterogeneityand endogeneity issues. Results suggest that a rise in PHI qualityenhances an equivalent influence in the demand for PHI as an equalreduction of NHS quality. Income and price elasticity estimates areconsistent with the observed feature that PHI appears to be a luxurygood and individuals tend to be relatively insensible to tax relief'sand monetary co-payments in insurance contracts.

Does privatising public service provision reduce accountability?

This paper studies how privatising service provision (shifting control rights and contractualobligations to providers) affects accountability. There are two main effects. (1) Privatisation demotivates governments from investigating and responding to public demands, since providers then hold up service adaptations. (2) Privatisation demotivates the public from mobilising to pressure for service adaptations, since providers then indirectly holdup the public by inflating the government s cost of implementing these adaptations. So, when choosing governance mode, politicians may be biased towards privatising as a way to escape public attention; relatedly, privatising utilities may reduce public pressure and increase consumer prices.

Competition, innovation and growth with limited commitment

We study how barriers to business start-up affect the investment in knowledge capital when contracts are not enforceable. Barriers to business start-up lower the competition for knowledge capital and, in absence of commitment, reduce the incentive to accumulate knowledge. As a result, countries with large barriers experience lower income and growth. Our results are consistent with cross-country evidence showing that the cost of business start-up is negatively correlated with the level and growth of income.

Globalization and the provision of incentives inside the firm: The effect of foreign competition

This paper studies the effect of changes in foreign competition on the structureof compensation and incentives of U.S. executives. We measure foreign competitionas import penetration and use tariffs and exchange rates as instrumental variables toestimate its causal effect on pay. We find that higher foreign competition leads tomore incentive provision in a variety of ways. First, it increases the sensitivity of payto performance. Second, it increases whithin-firm pay differentials between executivelevels, with CEOs typically experiencing the largest wage increases, partly becausethey receive the steepest incentive contracts. Finally, higher foreign competition is alsoassociated with a higher demand for talent. These results indicate that increased foreigncompetition can explain some of the recent trends in compensation structures.

The role of institutions in the contractual process

Human beings increase their productivity by specializingtheir resources and exchanging their products. Theorganization of exchange is costly, however, becausespecialized activities need coordination and incentiveshave to be aligned. This work first describes how theseexchanges are organized in an institutional environment.It then focuses on the dual effect of this environment-as with any other specialized resource, institutions maybe used for expropriation purposes. They enjoyspecialization advantages in safeguarding exchange butthey also make possible new forms of opportunism,causing new costs of exchange. Three perverse tendenciesare identified:In the legal field, there is a surplus ofmandatory rules and, at the same time, a deficit in default rules. Second, courts activity is biased againstthe quasi-judicial role of the parties and the market. Third, Market enforcement is based on reputationalassets that are badly exposed to opportunism.

Leasing como alternativa de financiamento de empresas em Cabo Verde - Análise prática de efeitos económicos, financeiros e contabilísticos

Criar mecanismos que produzam e dinamizem o alcance de novos produtos financeiros surge como uma condição necessária para estimular o investimento. Além das condições intrínsecas próprias de uma economia o financiamento é quase que a espinha dorsal para favorecer o desenvolvimento e crescimento económicos. Diversificar as fontes de financiamento para que estas se adaptem à realidade económico-financeira das empresas é essencial, pois não só possibilita o crescimento das empresas nacionais, mas também cria um ambiente de negócios propício ao investimento externo. Convicto da relevância, o presente trabalho tem como escopo uma temática que a nível nacional pouco se tem abordado: trata-se locação financeira que na gíria financeira é entendida por leasing - que de forma sintética se traduz num contrato pelo qual uma das partes concede à outra o gozo temporário de uma coisa contra uma retribuição, e que posteriormente pode ser adquirida, num prazo convencionado, mediante pagamento de um preço determinado ou determinável, nos termos do próprio contrato. O enfoque está em estudar a relevância assumida pelo leasing enquanto fonte de financiamento de médio e longo prazo, no contexto cabo-verdiano, comparativamente à outra fonte – empréstimo bancário de médio e longo prazo. O trabalho reveste-se de uma componente teórica e uma prática. Na componente teórica trata-se do tema no geral, abrangendo uma resenha histórica, o enquadramento legal, das sociedades de locação financeira e dos contratos de locação financeira, tratamento contabilístico, as características específicas que se associam ao tema em apreço e igualmente uma breve análise fiscal. A parte prática desenvolve uma análise comparativa do leasing com o empréstimo bancário de médio e longo prazo onde foram retiradas as conclusões chegadas com o estudo. Resumidamente, pode-se que o leasing é certamente uma das melhores opções de financiamento não só para empresas como igualmente para clientes particulares, sendo, uma opção rápida, simples e vantajosa para o cliente bancário, especialmente se o facto de a propriedade do bem não pertencer ao titular do leasing não causar qualquer incómodo. Create mechanisms that produce and streamline the range of new financial products emerges as a necessary condition to stimulate investment. In addition to its own intrinsic conditions of an economy funding is almost the backbone to promote economic development and growth. Diversify the sources of funding for these adapt to the reality of the economic-financial firms is essential because not only enables the growth of domestic companies, but also creates a business environment conducive to foreign investment. Convinced of the relevance, this work is scoped to a theme that nationally there has been little discussed: it is leasing in slang that is understood by financial leasing - which synthetically translates into a contract whereby one party grants to the another the temporary enjoyment of a thing against retribution, and that can later be acquired within the agreed upon payment of a specified or ascertainable under the contract. The focus is on studying the relevance assumed by leasing as a source of financing medium and long term, the Cape Verdean context, compared to other sources - bank loan of medium and long term. The work has a theoretical and a practical component. In the theoretical part it is the theme in general, covering a historical perspective, the legal framework, the leasing companies and financial leasing contracts, accounting treatment, specific characteristics that are associated to the topic at hand and equally a brief fiscal analysis. The practical part develops a comparative analysis of leasing with bank loan of medium and long term which were withdrawn with the conclusions reached with the study. Briefly, it may be that leasing is certainly one of the best financing options not only by companies as also by private customers, being a fast, simple and profitable for the bank customer, especially if the fact that the ownership of the property does not belong the holder of the lease does not cause any discomfort.

Wage structures and family economies in the Catalan textile industry in an age of nascent capitalism

This paper deals with changes in managerial practices in Catalonia in anage of nascent capitalism (1830-1925) and adaptive family strategies inorder to face the absence of state welfare. During the 19 t h Century andin the absence of recorded labor contracts, human resources of the firmwere organized by means of implicit contracts and informal labor markets.With the advent of scientific organization of labor, wage per hour workedbegan to be recorded. This is why in the 1920s the perfect competitionmodel applies to our case. On the other hand, in the same period, and inthe absence of state welfare, ideas stemming from cooperative game theoryapply to the pattern of household income formation. Kin related networkswere used to improve the living standards of the household. In thisparticular direction we also show that there was a demonstration effectby means of which migrant s living standards were higher than those ofnatives.

Influence activity and the organization of research and development

The organizational design of research and development conditions theincentives of the researchers of the research project. In particular,the organizational form determines the allocation of effort of theresearcher between time spent on research and time spent lobbying management. Researchers prefer to spend their time on research. However,the researchers only get utility from performing research if theproject is approved for its full duration. Spending time lobbyingmanagement for the continuation of the researcher s project increasesthe probability that the management observes a favorable signal aboutthe project. Organizing a research joint venture increases theflexibility of the organizational form with respect to the continuationdecision. For low correlation between the signals of the partners aboutthe expected profitability of the project, we find that the organizationof a research joint venture reduces influence activity by the researchersand increases expected profits of the partners. For high correlationbetween the signals, internal research projects lower influence activityby the researchers. We try to relate the correlation of the partnerssignals to the characteristics of basic research versus more appliedresearch projects, and find that the model is consistent with theobservation that research joint ventures seem involved in more basicresearch projects compared to internal R&D departments, whichconcentrate on more applied research.

The long term effects of legalizing divorce on children

We estimate the effect of divorce legalization on the long-term well-being ofchildren. Our identification strategy relies on exploiting the different timing of divorcelegalization across European countries. Using European Community Household Paneldata, we compare the adult outcomes of cohorts who were raised in an environmentwhere divorce was banned with cohorts raised after divorce was legalized in the samecountry. We also have control countries where all cohorts were exposed (or notexposed) to divorce as children, thus leading to a difference-in-differences approach. Wefind that women who grew up under legal divorce have lower earnings and income aswell as worse health as adults compared with women who grew up under illegal divorce.These effects are not found for men. We find no effects of divorce legalization onchildren s family formation or dissolution patterns.

How binding are legal limits? Transitions from temporary to permanent work in Spain

This paper studies the duration pattern of xed-term contracts and the determinantsof their conversion into permanent ones in Spain, where the share of xed-termemployment is the highest in Europe. We estimate a duration model for temporaryemployment, with competing risks of terminating into permanent employment versusalternative states, and exible duration dependence. We nd that conversion rates aregenerally below 10%. Our estimated conversion rates roughly increase with tenure,with a pronounced spike at the legal limit, when there is no legal way to retain theworker on a temporary contract. We argue that estimated di¤erences in conversionrates across categories of workers can stem from di¤erences in worker outside optionsand thus the power to credibly threat to quit temporary jobs.

To use it or not to use it: differences between adolescent males carrying a weapon and those using it in a fight

Purpose Data indicate that 19% of male adolescents living in Switzerland carried a weapon in the last 12 months. The main objective of this research is to compare the characteristics of male adolescents carrying a weapon and having used it in a fight from those who have carried but not used it in the previous 12 months. Methods Data were drawn from the 2002 Swiss Multicenter Adolescent Survey on Health (SMASH02) data base, a survey including 7,548[3,710 males] in-school adolescents aged 16-20 years in Switzerland. Only males declaring having carried a weapon (N = 711; 19.2% of the sample) were included in the analysis. Three groups were created: those not having used a weapon (WO; N = 538 subjects), those having used a weapon in a fight once or twice (W12; N = 127), and those having used a weapon in a fight 3 or more times (W3+; N = 46). Multinomial logistic regression was performed to compare the 3 groups on individual, family, school, and social factors using WO as the reference category. Analyses were performed with STATA9. Results are presented as relative risk ratios (RRR). Results W12 males were significantly more likely to perceive their puberty as advanced compared to their peers (RRR: 2.1), to be foreign born (RRR: 2.6), to live in an urban environment (RRR: 1.9), to be in vocational school (RRR: 4.7), to have a poor school connectedness (RRR: 1.8), to skip classes (RRR: 2.1) and to quarrel while intoxicated (RRR: 5.3). W3+ males were significantly more likely to be foreign born (RRR: 3.6) and to live in an urban environment (RRR: 2.4), to be current users of illegal drugs other than cannabis (RRR: 3.8) and to quarrel while intoxicated (RRR: 4.1). No differences were found between groups for tobacco, alcohol, or cannabis use. Conclusions Within a national sample of Swiss youth aged 16-20 years, almost one fifth of male adolescents have carried a weapon in the previous 12 months. Nevertheless, most of them (75.7%) have never used a weapon in a fight. Whether they carry a weapon for defense purposes or as a manly behavior remains to be elucidated. However, urban foreign-born adolescents who quarrel while intoxicated are the most at risk of using a weapon in a fight, and therefore culturally-sensitive prevention approaches need to be developed to decrease violence in this specific population of youth. Having school problems or using illegal drugs other than cannabis seem to differentiate between those who use it in a fight occasionally (once or twice) and those who do it more often.

Full insurance, asymmetric information and genetic testing

This paper extends previous resuls on optimal insurance trading in the presence of a stock market that allows continuous asset trading and substantial personal heterogeneity, and applies those results in a context of asymmetric informationwith references to the role of genetic testing in insurance markets.We find a novel and surprising result under symmetric information:agents may optimally prefer to purchase full insurance despitethe presence of unfairly priced insurance contracts, and other assets which are correlated with insurance.Asymmetric information has a Hirschleifer-type effect whichcan be solved by suspending insurance trading. Nevertheless,agents can attain their first best allocations, which suggeststhat the practice of restricting insurance not to be contingenton genetic tests can be efficient.

Extracção de areia na Praia de Calhetona (Ilha de Santiago, Cabo Verde) : causas, processos e consequências

A extracção de areia nas praias do mar, nas bacias hidrográficas e nas encostas montanhosas, tem sido prática de muitas famílias cabo-verdianas. A Praia de Calhetona foi uma das que nos últimos anos sofreu degradação significativa, em função da apanha clandestina de areia, sem qualquer plano de extracção, destinada a construção civil. A extracção de areia, para vender ou para a autoconstrução, é efectuada em família por indivíduos, maioritariamente do sexo feminino, de baixa renda ou sem profissão remunerada. O processo de extracção de areia na Praia de Calhetona teve o seu ponto alto nos anos 80, diminuindo consideravelmente com a escassez de areia e implementação do Decreto – Lei nº 69/97, de 3 de Novembro, que visava disciplinar a exploração de inertes nas praias. Em face da pesquisa feita, baseada no estudo de caso, ficou expresso que os inquiridos implicados na actividade de extracção clandestina de areia correm riscos elevados para obterem lucros reduzidos. Quem efectivamente beneficia são os camionistas que compram esse inerte e o vendem pelo dobro do preço. Qualquer actividade de exploração de recursos naturais causa impactes sobre o espaço de actuação. No caso da Praia de Calhetona, observa-se o recuo da linha de costa, a quase ausência de areia e a desertificação de propriedades nas suas proximidades, para além dos impactes negativos sobre o turismo, a função balnear e a desova de tartaruga. Apesar de tudo, constata-se uma consciência generalizada dos impactes ambientais causados pelos inquiridos, os quais, no entanto, alegam que a extracção de areia é uma das alternativas para garantir a sobrevivência individual e das suas famílias.

Extracção de areia na Praia de Calhetona (Ilha de Santiago, Cabo Verde) : causas, processos e consequências

A extracção de areia nas praias do mar, nas bacias hidrográficas e nas encostas montanhosas, tem sido prática de muitas famílias cabo-verdianas. A Praia de Calhetona foi uma das que nos últimos anos sofreu degradação significativa, em função da apanha clandestina de areia, sem qualquer plano de extracção, destinada a construção civil. A extracção de areia, para vender ou para a autoconstrução, é efectuada em família por indivíduos, maioritariamente do sexo feminino, de baixa renda ou sem profissão remunerada. O processo de extracção de areia na Praia de Calhetona teve o seu ponto alto nos anos 80, diminuindo consideravelmente com a escassez de areia e implementação do Decreto – Lei nº 69/97, de 3 de Novembro, que visava disciplinar a exploração de inertes nas praias. Em face da pesquisa feita, baseada no estudo de caso, ficou expresso que os inquiridos implicados na actividade de extracção clandestina de areia correm riscos elevados para obterem lucros reduzidos. Quem efectivamente beneficia são os camionistas que compram esse inerte e o vendem pelo dobro do preço. Qualquer actividade de exploração de recursos naturais causa impactes sobre o espaço de actuação. No caso da Praia de Calhetona, observa-se o recuo da linha de costa, a quase ausência de areia e a desertificação de propriedades nas suas proximidades, para além dos impactes negativos sobre o turismo, a função balnear e a desova de tartaruga. Apesar de tudo, constata-se uma consciência generalizada dos impactes ambientais causados pelos inquiridos, os quais, no entanto, alegam que a extracção de areia é uma das alternativas para garantir a sobrevivência individual e das suas famílias.