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During the nineties of the last century, several formerly monopolistic markets (telecommunication, electricity, gas, and railway) have been deregulated in Germany based on European directives and theoretically inspired by the theory of contestable markets. The original contestable market theory implied three assumptions necessary to be satisfied to establish potential competition: Free market entry, market exit possible without any costs, and the price adjustment lag exceeding the entry is shows that if the incumbent reduces its prices slowly (high adjustment lag) and the market entry can be performed quickly (low entry lag), a new competitor will be able to earn back sunk costs. Therefore it is not necessary that all three conditions are complied with for potential competition to exist. Applying this 'revised' contestable market theory to the deregulated sectors in Germany sections, natural monopolies can be identified in telecommunication local loops and local/regional connection networks, in the national electricity grid and the regional/local electricity distribution networks, in the national and regional/local gas transmission/distribution sections, and in the railroad network only. These sections are not contestable due to sunk costs, high entry lags expected and a probable short price adjustment lag. They are identified as bottlenecks which should be regulated. The function of system operators in energy and railroad are closely related to the non contestable monopolistic networks.
Despite the scepticism raised by the German Monopoly Commission our analysis shows that the revised theory of contestable markets can be applied to the telecommunications market better than expected. The original contestable market theory implied three assumptions necessary to be satisfied to establish potential competition: Free market entry, market exits possible without any costs, and the price adjustment lag exceeds the entry lag. Our analysis shows that if the incumbent reduces its prices slowly (high adjustment lag) and the market entry can be performed quickly (low entry lag), a new competitor will be able to earn back sunk costs. Therefore it is not necessary that all three conditions are complied with for potential competition to exist. We applied the 'revised' contestable market theory to the German telecommunication market and have been able to clearly identify the sections in which regulation is required. Under the present conditions local loops - which should be seen as natural monopolies - are not contestable due to sunk costs, high entry lags expected and a probable short price adjustment lag. Local loops can be identified as bottlenecks therefore. Regional and local connection networks should also be regulated because a high entry lag and a low price adjustment lag have to be expected as well as current competition does not exist today. The national connection network shows current competition between several network providers, hence regulation can be abolished in this field. Moreover, services can be supplied by several firms, and we predict strong potential competition.. There are no arguments favouring a natural monopoly in the section of terminals.
Dieser Aufsatz wurde anlässlich eines Symposiums in einer Festschrift zu Ehren von Prof. Dr. Heinrich Reichmann veröffentlicht. Es geht um seine Verdienste im Bereich Electronic Government (E-Government) und Verwaltungsreform.
The aim of these lecture notes is to give a quick introduction into neural networks, its algorithms and applications. The notes are not intended as a replacement of a comprehensive textbook.
Übersicht über Aspekte der modernen Kindheit
This paper discusses the interdependencies that exist between vertically-linked industries in the (Spence-)Dixit-Stiglitz model of monopolistic competition. The main objective is to develop a concept for quantifying the magnitude of sectoral coherence in models of the New Economic Geography. It is motivated by the suggestion, by Venables (1996), that 'strategic industries' be identi®ed in terms of their agglomeration potential. Using a partial-analytic approach, we focus on inter-industrial relations in a closed economy to draw conclusions regarding international trade. We ascertain that two factors have an impact upon the strength of industrial linkages: 1) the monopolistic scope of intermediate suppliers, in terms of (technical) substitution elasticity; and the share in downstream costs for intermediates. Within a simulation study, this paper applies this new theoretical concept to eight basic industries across ten European countries.
In the course of railway reforms at the end of the last century, European national governments, as well the EU Commission, decided to open markets and to separate railway networks from train operations. Vertically integrated railway companies argue that such a separation of infrastructure and operations would diminish the advantages of vertical integration and would therefore not be suitable to raise economic welfare. In this paper, we conduct a pan-European analysis to investigate the performance of European railways with a particular focus on economies of scope associated with vertical integration. We test the hypothesis that integrated railways realize economies of joint production and, thus, produce railway services on a higher level of e±ciency. To determine whether joint or separate production is more e±cient we apply an innovative Data Envelopment Analysis super-e±ciency bootstrapping model which relates the e±ciency for integrated production to a virtual reference set consisting of the separated production technology and which is applicable to other network industries as energy and telecommunication as well. Our ¯ndings are that for a majority of European Railway companies economies of scope exist.
Abstract: A recent survey of 54 micro-econometric studies reveals that exporting firms are more productive than non-exporters. On the other hand, previous empirical studies show that exporting does not necessarily improve productivity. One possible reason for this result is that most previous studies are restricted to analysing the relationship between a firm’s export status and the growth of its labour productivity, using the firms’ export status as a binary treatment variable and comparing the performance of exporting and non-exporting firms. In this paper, we apply the newly developed generalised propensity score (GPS) methodology that allows for continuous treatment, that is, different levels of the firms’ export activities. Using the GPS method and a large panel data set for German manufacturing firms, we estimate the relationship between a firm’s export-sales ratio and its labour productivity growth rate. We find that there is a causal effect of firms’ export activities on labour productivity growth. However, exporting improves labour productivity growth only within a sub-interval of the range of firms’ export-sales ratios.
This paper discusses a model of vertical and horizontal product differentiation within the Dixit-Stiglitz framework of monopolistic competition. Firms compete not only in prices and horizontal attributes of their products, but also in the quality that can be controlled by R&D activities. Based upon the results of a general equilibrium model, intra-sectoral trade and the welfare implications of public intervention in terms of research promotion are considered. The analysis involves a numerical application to ten basic European industries.
The paper demonstrates how the E–stability principle introduced by Evans and Honkapohja can be applied to models with heterogeneous and private information in order to assess the stability of rational expectations equilibria under learning. The paper extends already known stability results for the Grossman and Stiglitz model to a more general case with many differentially informed agents and to the case where information is endogenously acquired by optimizing agents. In both cases it turns out that the rational expectations equilibrium of the model is inherently E-stable and thus locally stable under recursive least squares learning.
In this paper, we conduct a pan-European efficiency analysis to investigate the performance of European railways with a particular focus on economies of vertical integration. We test the hypothesis that integrated railways realize economies of scope and, thus, produce railway services with a higher level of efficiency. To determine whether joint or separate production is more efficient, we apply a Data Envelopment Analysis super-efficiency bootstrapping model which relates the efficiency for integrated production to a reference set consisting of separated firms which use a different production technology. We find that for a majority of European railways economies of scope exist.
The European Union’s Council Regulation on support for rural development by the European Agricultural Fund for Rural Development has introduced auctioning as a new instrument for granting agri-environmental payments and awarding conservation contracts for the recent multi-annual budgetary plan. This paper therefore deals with the conception and results of two case study auctions for conservation contracts. Results of two field experiments show much differentiated bid prices in the model-region and budgetary cost-effectiveness gains of up to 21% in the first auction and up to 36% in the repeated auction. Besides these promising results, some critical aspects as well as lessons to be learned will also be discussed in this paper to improve the design and performance of upcoming conservation auctions.
In theory we pursue a sustainable development, but in reality we do not. An economy based on continuous growth, which evidently is not sustainable, is however the priority model almost everywhere. If we really aim at implementing sustainability, then we must radically change our economic model. Sufficiency - which calls for individuals mainly from so-called “developed countries” not to consume more than is really needed - may offer a useful alternative. We can still find some - last - examples of indigenous peoples living in a sufficient manner, all of them nowadays in those “developing countries”. We could learn at least from them that it is possible to live differently, i.e., in harmony with ourselves and our environment. This would pave the way for their - and for our all - protection, as well as the manner in which we understand at present development politics.
Many fewer women than men try the entrepreneurial way in Germany. Any explanation for this phenomenon must be complex, as many factors are relevant for its production. Among other things, it is possible to speculate on sexual/gender discrimination, on more or less voluntary decisions of women or on different starting conditions for potential entrepreneurs. We assume that these options are closely related. This paper will concentrate, though, on the third alternative. Its focus will be set on the “family field,” or more precisely, on the role of family law in hindering women from trying self-employment. The family field in Germany has not evolved in the sense of gender equality along with all other areas of society - e.g., entrepreneurship. No gender equality is possible if the family field is not part of it. This paper analyses causes and consequences for this phenomenon.
Key Words: Gender studies, Family Law, Entrepreneurship, chance equality, social sustainability
This research report presents a transdisciplinary student research project on the development of climate resilience of communities on the Caribbean Island Dominica.
The research was conducted through a partnership between the Leuphana University Lüneburg and the Sustainable Marine Financing Programme (SMF) of the GIZ.
For the GIZ, the research project aimed at improving the understanding of the socio-ecological resilience framework for tackling problems of Marine Managed Areas and Marine Protected Areas. Also, it enabled new thoughts on how the GIZ and other development agencies can more effectively assists island states to better cope with the challenges of climate change.
The role of the students from the “Global Environmental and Sustainability Sciences” programme of Leuphana University included the design of four transdisciplinary research projects to research aspects of resilience of Caribbean communities.
The developing island states in the Caribbean are extremely vulnerable to more frequent and intense natural hazards while relying on the ecosystem services that are also at risk from extreme weather events, in particular Hurricanes. Low economic stability leads to a dependency of the states on international assistance. To decrease the vulnerability to shocks, counteracting measures that encourage learning and adaptation can increase the resilience against extreme weather events and their consequences.
Concepts that were considered during the design of the transdisciplinary research projects were the adaptation of systems, diversity and stakeholder participation and resilience-focused management systems. Also, the students critically assessed the concept of foreign aid and how it can be successful, mitigating the risk of introducing neo-colonial structures. Flood Management, Biodiversity, Small-Scale Agriculture and Foreign Aid on Dominica were the topics of the transdisciplinary projects. The research methods of a literature review, stakeholder mapping, interviews, scenario development and visioning were used in the projects.
In four scenarios developed in the ‘Flood Management’ project, it became evident that a broad as well as coordinated stakeholder engagement and a variety of measures are required for community resilience. A key finding of the ‘Biodiversity’ project was the identity dimension of community resilience, underlining the importance of the relationship between individuals and nature. The interlinkage of social identity processes and a resilient disaster response was also stressed by the project ‘Foreign Aid’, which highlighted that financial support is similarly important to inclusivity and reflexivity in the process of resource distribution. To recover from extreme weather events, the social memory also plays an important role. The project on ‘Small-scale Agriculture’ concluded, that the memory-making of local communities is as vital to community resilience as formal plans and trainings.
The research project was based on the research approach of transdisciplinarity because of its solution-orientation. It links different academic disciplines and concepts, and non-scientific stakeholders are included to find solutions for societal and related scientific problems. In the four projects, principles of transdisciplinary research were party applied, but some challenges arose due to the geographical distance, time constraints and a strong focus on the scientific part in some phases. Nonetheless, the findings of the projects provide valuable learning lessons to be applied in practice and that can prove useful for future research.