Business case assessment

For use when assessing a business case

Report on Knowledge Exchange workshop Sustainable Business Models for Open Access Services

The work on the sustainability of organisations which exist to provide services to the Open Access community, commissioned by Knowledge Exchange, identified that such organisations need to have a business-like approach and that the absence of rigorous attention to all aspects of the business may lead to sub-optimal performance and, potentially, failure. With this in mind, a Sustainability Index was drafted for consideration by attendees at the Knowledge Exchange workshop on sustainability in Utrecht (February 2014). Over fifty participants, representing Open Access service providers, IT-infrastructure and research funders, and users,worked to making past recommendations from KE work on Open Access actionable.

Open Access Business Models for Research Funders and Universities

This briefing paper offers insight into various open access business models, from institutional to subject repositories, from open access journals to research data and monographs. This overview shows that there is a considerable variety in business models within a common framework of public funding. Open access through institutional repositories requires funding from particular institutions to set up and maintain a repository, while subject repositories often require contributions from a number of institutions or funding agencies to maintain a subject repository hosted at one institution. Open access through publication in open access journals generally requires a mix of funding sources to meet the cost of publishing. Public or charitable research funding bodies may contribute part of the cost of publishing in an open access journal but institutions also meet part of the cost, particularly when the author does not have a research grant from a research funding body

Income Taxation and Growth in an OLG Economy: Does Aggregate Uncertainty Play any Role?

We analyze the effects of capital income taxation on long-run growth in a stochastic, two-period overlapping generations economy. Endogenous growth is driven by a positive externality of physical capital in the production sector that makes firms exhibit an aggregate technology in equilibrium. We distinguish between capital income and labor income, and between attitudes towards risk and intertemporal substitution of consumption. We show necessary and sufficient conditions such that i) increments in the capital income taxation lead to higher equilibrium growth rates, and ii) the effect of changes in the capital income tax rate on the equilibrium growth may be of opposite signs in stochastic and in deterministic economies. Such a sign reversal is shown to be more likely depending on i) how the intertemporal elasticity of substitution compares to one, and ii) the size of second- period labor supply. Numerical simulations show that for reasonable values of the intertemporal elasticity of substitution, a sign reversal shows up only for implausibly high values of the second- period’s labor supply. The conclusion is that deterministic OLG economies are a good approximation of the effect of taxes on the equilibrium growth rate as in Smith (1996).