Options for a Euro-area fiscal capacity. Bruegel Policy Brief 2013/01, January 2013

Europe has responded to the crisis with strengthened budgetary and macroeconomic surveillance, the creation of the European Stability Mechanism, liquidity provisioning by resilient economies and the European Central Bank and a process towards a banking union. However, a monetary union requires some form of budget for fiscal stabilisation in case of shocks, and as a backstop to the banking union. This paper compares four quantitatively different schemes of fiscal stabilisation and proposes a new scheme based on GDP-indexed bonds. The options considered are: (i) A federal budget with unemployment and corporate taxes shifted to euro-area level; (ii) a support scheme based on deviations from potential output;(iii) an insurance scheme via which governments would issue bonds indexed to GDP, and (iv) a scheme in which access to jointly guaranteed borrowing is combined with gradual withdrawal of fiscal sovereignty. Our comparison is based on strong assumptions. We carry out a preliminary, limited simulation of how the debt-to-GDP ratio would have developed between 2008-14 under the four schemes for Greece, Ireland, Portugal, Spain and an ‘average’ country.The schemes have varying implications in each case for debt sustainability

Land use for England and Wales: evaluation of management options to support 'good ecological status' in surface freshwaters

This paper analyses historic records of agricultural land use and management for England and Wales from 1931 and 1991 and uses export coefficient modelling to hindcast the impact of these practices on the rates of diffuse nitrogen (N) and phosphorus (P) export to water bodies for each of the major geo-climatic regions of England and Wales. Key trends indicate the importance of animal agriculture as a contributor to the total diffuse agricultural nutrient loading on waters, and the need to bring these sources under control if conditions suitable for sustaining 'Good Ecological Status' under the Water Framework Directive are to be generated. The analysis highlights the importance of measuring changes in nutrient loading in relation to the catchment-specific baseline state for different water bodies. The approach is also used to forecast the likely impact of broad regional scale scenarios on nutrient export to waters and highlights the need to take sensitive land out of production, introduce ceilings on fertilizer use and stocking densities, and controls on agricultural practice in higher risk areas where intensive agriculture is combined with a low intrinsic nutrient retention capacity, although the uncertainties associated with the modelling applied at this scale should be taken into account in the interpretation of model output. The paper advocates the need for a two-tiered approach to nutrient management, combining broad regional policies with targeted management in high risk areas at the catchment and farm scale.

The influence of individual characteristics on employee creative participation

In a knowledge-based economy and dynamic work environment retaining competitiveness is increasingly dependent on creativity, skills, individual abilities and appropriate motivation. For instance, the UK government explicitly stated in the recent "Review of Employee Engagement and Investment" report that new ways are required through which British companies could boost employee engagement at work, improving staff commitment and, thereby, increase workplace productivity. Although creativity and innovation have been studied extensively, little is known about employees' intrinsic willingness to contribute novel ideas and solutions (defined here as creative participation). For instance, the same individual can thrive in one organisation but be completely isolated in another and the question is to what extent this depends on individual characteristics and organisational settings. The main aim of this research is, therefore, to provide a conceptual framework for identification of individual characteristics that influence employees' willingness to contribute new ideas. In order to achieve this aim the investigation will be based on a developed psychological experiment, and will include personal-profiling inventory and a questionnaire. Understanding how these parameters influence willingness of an individual to put forward created ideas would offer an opportunity for companies to improve motivation practices and team efficiency, and can consequently lead to better overall performance.

Mitigation options for sediment and phosphorus loss from winter-sown arable crops

Sediment and P inputs to freshwaters from agriculture are a major problem in the United Kingdom (UK). This study investigated mitigation options for diffuse pollution losses from arable land. Field trials were undertaken at the hillslope scale over three winters at three UK sites with silt (Oxyaquic Hapludalf), sand (Udic Haplustept), and clay (Typic Haplaquept) soils. None of the mitigation treatments was effective in every year trialled, but each showed overall average reductions in losses. Over five site years, breaking up the compaction in tramlines (tractor wheel tracks) using a tine reduced losses of sediment and P to losses similar to those observed from areas without tramlines, with an average reduction in P loss of 1.06 kg TP ha(-1) Compared to traditional plowing, TP losses under minimum tillage were reduced by 0.30 kg TT ha(-1) over five site years, TP losses under contour cultivation were reduced by 0.30 kg TP ha(-1) over two site years, and TP losses using in-field barriers were reduced by 0.24 kg TP ha(-1) over two site years. In one site year, reductions in losses due to crop residue incorporation were nor significant. Each of the mitigation options trialled. is associated with a small cost at the farm-scale of up to 5 pound ha(-1), or with cost savings. The results indicate that each of the treatments his the potential to be a cost-effective mitigation option, but that tramline management is the most promising treatment, because tramlines dominate sediment and P transfer in surface runoff from arable hillslopes.

Participatory Farm Management methods for assessing the suitability of potential innovations. A case study on green manuring options for tomato producers in Ghana

This paper examines the potential of using Participatory Farm Management methods to examine the suitability of a technology with farmers prior to on-farm trials. A study examining the suitability of green manuring as a technology for use with wet season tomato producers in Ghana is described. Findings from this case-study demonstrate that Participatory Budgeting can be used by farmers and researchers to analyse current cultivation practices, identify the options for including green manures into the system and explore the direct and wider resource implications of the technology. Scored-Causal Diagrams can be used to identify farmers' perceptions of the relative importance of the problem that the technology seeks to address. The use of the methods in this examine evaluation process appears to have the potential to improve the effectiveness and efficiency of the adaptive research process. This ensures that technologies subsequently examined in trials ate relevant to farmers' interests, existing systems and resources, thereby increasing the chances of farmer adoption. It is concluded that this process has potential for use-with other technologies and in other farming systems. (C) 2002 Elsevier Science Ltd. All rights reserved.

Fragmentation or creative diversity? Options in the provision of land management advisory services

Rural land managers need access to sound advice and information to respond to pressures from environmental regulations, declining farm incomes, changing patterns in international trade and new institutional arrangements within the domestic food chain. Governments have cut back their provision of advisory services but need more than ever to influence land managers' decisions to achieve a growing array of policy objectives: The paper develops a conceptual framework for analysing advisory services and concludes, through a review of sixteen case studies, that the needs of both governments and land managers can be met by a diverse mixture of private and public sector provision. (C) 2003 Elsevier Ltd. All rights reserved.