Browsing Department of Economics (ECON) by Title
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Bennedsen, Morten; Schultz, Christian (København, 2003)[More information][Less information]
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Evidence from Unexpected Inheritance due to Sudden DeathAndersen, Steffen; Meisner Nielsen, Kasper (Frederiksberg, 2010)[More information][Less information]
Abstract: We use a natural experiment to investigate the impact of participation constraints on individuals' decisions to invest in the stock market. Unexpected inheritance due to sudden deaths results in exogenous variation in financial wealth and allows us to examine whether fixed entry and ongoing participation costs cause non-participation. We have three key findings. First, windfall wealth has a positive effect on participation. Second, the majority of households do not react to sizeable windfalls by entering the stock market, but hold on to substantial safe assets—even over longer horizons. Third, the majority of households inheriting stock holdings actively sell the entire portfolio. Overall, these findings suggest that participation by many individuals is unlikely to be constrained by financial participation costs. URI: http://hdl.handle.net/10398/8169 Files in this item: 1
wp3-2010.pdf (254.6Kb) -
Bennedsen, Morten (København, 1999)[More information][Less information]
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Mayer, Wolfgang; Raimondos-Møller, Pascalis (København, 1999)[More information][Less information]
Abstract: Why do donor countries give foreign aid? The answers found in the literature are: (i) because donor countries care for recipient countries (e.g. altruism), and/or (ii) because there exist distortions that make the indirect gains from foreign aid (e.g. terms of trade effects) to be larger than the direct losses. This paper proposes a third answer to the above question, namely that aid is determined through the domestic political process of the donor country. The paper demonstrates how foreign aid affects the donor country’s income distribution and how, in a direct democracy, the majority of voters might benefit from foreign aid giving even though the country’s social welfare is reduced. JEL Classification: F35 Keywords: foreign aid, politics, majority voting. URI: http://hdl.handle.net/10398/7488 Files in this item: 1
1999_4.pdf (89.81Kb) -
Risager, Ole (København, 2004)[More information][Less information]
Abstract: Price-earnings ratios are part of the toolkit that is used for assessing the valuation of individual firms on the stock market as well as the entire market itself. This paper presents consistent P/E series for the liquid Danish shares adjusted for share buybacks. The results show that over the period from 1969 to 2003, the average (trailing) P/E equals 13.5. The P/E reaches its lowest level in 1980, which is likely to be due to a soaring oil price, high wage increases and interest rates approaching 20 percent. Notwithstanding optimistic equity pricing also in Denmark in the late 1990s, the upturn in Danish valuations was more moderate than in the US. The correction that sets in subsequently reversed essentially the gains in the Danish P/E in the 1990s. URI: http://hdl.handle.net/10398/7620 Files in this item: 1
wpec132004.pdf (395.4Kb) -
Separating the Impact of Dual Class Shares, Pyramids and Cross-ownership on Firm Value Across Legal Regimes in Western EuropeBennedsen, Morten; Meisner Nielsen, Kasper (København, 2005)[More information][Less information]
Abstract: Recent policy initiatives within the harmonization of European company laws have promoted a so-called "principle of proportionality" through proposals that regulate mechanisms opposing a proportional distribution of ownership and control. We scrutinize the foundation for these initiatives by analyzing the use of instruments to separate ownership from control across legal regimes in a sample of over 4,000 publicly traded firms from 14 Western European countries. First, we confirm the negative impact on firm value from disproportional ownership structures previously established in a sample of Asian firms by Claessens et al. (2002). Second, we show that dual class shares have a larger and more significant negative effect on firm value than pyramids and cross holdings. Third, we find that the impact of disproportionality and the underlying instruments is inversely related to the level of investor protection. Thus, dual class shares and pyramids substitute legal protection in countries with inadequate investor protection. Fourth, we find no evidence of a significant effect of disproportionality instruments on earnings performance. Finally, we discuss policy implications of these findings in relationship to the process of harmonization of the European capital markets. JEL classifications: G30, G32, G34 and G38 Keywords: Ownership Structure, Dual Class Shares, Pyramids, EU company laws. URI: http://hdl.handle.net/10398/7544 Files in this item: 1
wp22-2005.pdf (414.4Kb) -
Blomgren-Hansen, Niels (København, 1998)[More information][Less information]
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Lund, Lars (København, 2003)[More information][Less information]
Abstract: Abstract: The balance of payments of Greenland has special features due to an important current transfer, bloktilskud, from Denmark. The trade balance does not exhibit a deficit of this order of magnitude but comparison of the bloktilskud and the deficit is difficult as official figures are available for the merchandise trade only. Figures for services are missing. However, guesses about the size of a deficit in the services’ trade do not easily discard the impression of a large surplus on the current account. Over a ten year period it is suggested that accumulated surpluses could be twice the level of Greenland’s GDP. This seems unlikely, but the available data raise a puzzle that ought to be addressed as it nourishes suspicion of unobserved accumulation of wealth. URI: http://hdl.handle.net/10398/7550 Files in this item: 1
wpec052003.pdf (304.0Kb) -
a welfare-theoretical approachOlai Hansen, Bodil; Keiding, Hans (København, 1999)[More information][Less information]
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Junge, Martin; Severgnini, Battista; Sørensen, Anders (Frederiksberg, 2012)[More information][Less information]
Abstract: The role of product and marketing innovation for productivity growth is addressed using survey and register data for the Danish economy. It is argued that marketing and product innovation are complementary inputs and that innovation activities are skill-intensive. It is found that product and marketing innovation in skill-intensive firms results in significantly faster productivity growth than in unskilled-intensive firms that introduce this combination of innovation activities. More precisely, an increase in the share of educated workers of one percentage point, increases productivity growth by around 0.1 percentage point in firms with product and marketing innovation. In addition, it is found that firms that engage in product innovation but not in marketing innovation or the other way around do not demonstrate a growth effect from their innovation activities. It is also found that product and marketing innovation has an independent role in productivity growth that cannot be attributed to organisational changes, even though the majority of innovative firms engage in this latter innovation type. URI: http://hdl.handle.net/10398/8468 Files in this item: 1
JungeSevergniniSoerensen-WP-1-2012.pdf (417.0Kb) -
Andersen, Torben M.; Skaksen, Jan Rose (København, 2003)[More information][Less information]
Abstract: Product Market Integration, Comparative Advantages and Labour Market Performance* In a two-country model with trade driven by comparative advantages, it is considered how imperfectly competitive labour markets are affected by lower frictions in international goods trade. Easier goods trading is equivalent to increased mobility of employment across countries and thus a change in the trade-off between wages and employment faced by wage setters. While the effects of product market integration on the trade-off between wages and employment in general is ambiguous, it is shown that product market integration works like a general improvement in productivity via the specialization it allows through trade. Unambiguously, real wages and employment and welfare improve upon reductions in trade frictions, and therefore workers are better off irrespective of whether the market power of unions is enhanced or muted. JEL Classification: F15, J30, J50 Keywords: trade frictions, wage formation, employment, welfare gains URI: http://hdl.handle.net/10398/7506 Files in this item: 1
dp698.pdf (424.7Kb) -
Andersen, Torben M.; Rose Skaksen, Jan (København, 2004)[More information][Less information]
Abstract: In this paper, we set up a two-country general equilibrium model where trade unions have wage bargaining power. We show that a decrease in trade distortions inducing further product market integration gives rise to specialization gains as well as a labour market reform effect. The implications of the specialization gains are similar to an increase in labour productivity, whereas the labour market reform effect is similar to an increase in the degree of competition in the labour market. Wages, employment and welfare increase as a result of further product market integration. It is interesting to note that the labour market reform effect of product market integration is achieved despite an increase in the wage level. JEL Classification: F15, J30, J50. Keywords: Trade frictions, wage formation, employment, welfare gains. URI: http://hdl.handle.net/10398/7655 Files in this item: 1
wpec082004.pdf (310.3Kb) -
En analyse på baggrund af en detaljeret uddannelsesopdeling. Teknisk baggrundsnotatFosse, Henrik Barslund; Højbjerg Jacobsen, Rasmus (Frederiksberg, 2013)[More information][Less information]
Abstract: CEBR har for Djøf udført en opgave, der har bestået i at få klarlagt produktivitetseffekter af uddannelse på et relativt højt detaljeniveau. Opgaven omfatter to dele: Den første del er en klarlægning af såkaldte egen- og fælleseffekter på 16 uddannelsesgrupper defineret ud fra fire uddannelseslængder og fire uddannelsesretninger. Beregningerne er udført på brancheniveau og inden for sektorerne privat fremstilling og privat service. Den anden del af opgaven omfatter en konsekvensberegning af at løfte Danmark op i OECD’s top 5, når det gælder andel af personer på arbejdsmarkedet med en videregående uddannelse. CEBR har beregnet produktivitetseffekter inden for sektorerne privat fremstilling og privat service. Endelig har Djøf ønsket, at de samlede produktivitetsgevinster af et uddannelsesløft omsættes til populære størrelser i velfærdsdebatten. Dette notat indeholder en beskrivelse af beregninger af uddannelseseffekter. Beregningerne tager udgangspunkt i allerede estimerede marginaleffekter og følger tidligere anvendte metoder. Notatet inddelt som følger: Kapitel 2 er et kort teknisk kapitel, der informerer om data samt kort opremser litteraturgrundlaget og de anvendte metoder til at beregne effekterne af uddannelse. URI: http://hdl.handle.net/10398/8742 Files in this item: 1
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En analyse på baggrund af en detaljeret uddannelsesopdelingFosse, Henrik Barslund; Højbjerg Jacobsen, Rasmus; Lykkebo, Ole Bech; Brandt, Kathrine Marie Skou (København, 2013)[More information][Less information]
Abstract: Denne rapport handler om den ekstra værdi, som højtuddannede er med til at skabe i de virksomheder, hvor de er ansat. En ekstra værdi som sætter virksomhederne i stand til at levere kunderne serviceydelser og produkter i en højere kvalitet eller til en lavere pris end ellers. Den ekstra værdi kan opstå på mange forskellige måder afhængigt af uddannelse og branche. Eksempelvis skaber det ekstra værdi, at kvinden med boret er uddannet tandlæge, når man sætter sig i tandlægestolen for at få en omfattende og måske bekostelig behandling. For en familie, der køber og renoverer et gammelt hus, har det også ekstra værdi, at det er en uddannet el-installatør, som udfører el-arbejdet. Det kræver loven i øvrigt også. Ligesom det har værdi for en dansk vækstvirksomhed, som opkøber en udenlandsk konkurrent, at uddannede jurister har styr på kontrakten, så investeringen sker på det rette grundlag. Denne rapport sætter for første gang i en dansk sammenhæng krone og ører på den ekstra værdi – også kaldet højere produktivitet – som samlet er forbundet med alle de meget forskellige kategorier af videregående uddannelser i den private sektor1. Analyserne viser effekterne opdelt på uddannelseslængde, fagretning og branche. Mere uddannelse skaber højere værditilvækst pr. præsteret time i den private sektor. Dermed er der udsigt til højere produktivitet ved at øge uddannelsesniveauet. Samtidig foretages en samlet beregning som viser, at velstanden i Danmark vil stige betydeligt i form af øget BNP, hvis en større andel af de privatansatte har en videregående uddannelse. Flere højt-uddannede privatansatte vil forbedre virksomhedernes produktivitet og dermed styrke konkurrenceevnen. Det vil også kunne få en gunstig indvirkning på eksport og beskæftigelse. URI: http://hdl.handle.net/10398/8741 Files in this item: 1
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Hansen, Bodil O.; Keiding, Hans (København, 2006)[More information][Less information]
Abstract: We consider a model of commercial television market, where private broadcasters coexist with a public television broadcaster. Assuming that the public TV station follows a policy of Ramsey pricing whereas the private stations are profit maximizers, we consider the equilibria in this market and compare with a situation where the public station is privatized and acts as another private TV broadcaster. A closer scrutiny of the market for commercial television leads to a distinction between target rating points, which are the prime unit of account in TV advertising, and net coverage, which is the final goal of advertisers. Working with net coverage as the fundamental concept, we exploit the models of competition between public and private price and quantity in order to show that privatization of the public TV station entails a welfare loss and results in TV advertising becoming more expensive. Keywords: TV broadcasting, imperfect competition, Ramsey pricing, welfare comparison. JEL classification: L11, L82, L33 URI: http://hdl.handle.net/10398/7501 Files in this item: 1
wp2-2006.pdf (146.8Kb) -
Ahsan, Syed M.; Tsigaris, Panagiotis (København, 1998)[More information][Less information]
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Keuschnigg, Christian; Nielsen, Søren Bo (København, 2003)[More information][Less information]
Abstract: This paper proposes and analyses a model of start-up investment. Innovative entrepreneurs are commercially inexperienced and can benefit from venture capital support. Only part of them succeed in matching with a venture capitalist while the rest must resort to standard bank finance. We consider a number of policies to promote entrepreneurship and venture capital backed innovation. JEL Classification: D82, G24, G28, H24. Keywords: venture capital bank finance, matching, moral hazard, public policy. URI: http://hdl.handle.net/10398/7658 Files in this item: 1
cesifo working paper no. 850.pdf (392.7Kb) -
Keuschnigg, Christian; Nielsen, Søren Bo (København, 2001)[More information][Less information]
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Keuschnigg, Christian; Nielsen, Søren Bo (København, 2006)[More information][Less information]
Abstract: In recent years, venture capital has become an important source for nancing young entrepreneurial rms. Given the apparently more innovative nature and extra value added of venture capital backed rms compared to other firms, policy makers have taken an increasing interest in an active venture capital industry. We explore how selected policy instruments determine the incentives of individuals to start up new rms and of venture capitalists to nance and advise them, and how policy thereby influences the size and nature of the industry and how it aspects aggregate welfare. We examine the impact of wage and corporate income taxes as well as capital gains taxes and start-up capital subsidies on the volume and quality of venture capital backed entrepreneurship. JEL-Classi cation: D82, G24, H24, H25 Keywords: Entrepreneurship, venture capital, double moral hazard, taxes, sub-sidies. URI: http://hdl.handle.net/10398/7569 Files in this item: 1
wp15-06.pdf (291.5Kb) -
An explorative study of the contracts of the Tender Electronic Daily (TED)la Cour, Lisbeth; Milhøj, Anders (Frederiksberg, 2013)[More information][Less information]
Abstract: Public procurement is estimated to constitute more than 16% of GDP in the EU, see e.g. Ramsey (2006). This is one of the reasons why a lot of interest has been attached to this topic. Most of the papers in this field have been of a theoretical nature but during the last ten years also a few empirical studies have become available, see e.g. Marion, J. (2007) and Bajari et al (2008). At the EU level liberalizations have been going on since the late 80’ies (see e.g. the EU commission (1985). Here certain regulations imply that public projects of a certain size need to be subject to a public tender. Again according to Ramsey (2006) around 16% of all public procurement in the EU is subject to these rules and regulations and information on the contracts corresponding to these 16% can be found in Tenders Electronic Daily (TED) database. In general, the hypothesis is that public procurement will increase competition and ultimately lead to cheaper contracts for the authorities, see e.g. Cecchini (1988) for the economic arguments. But in practice: do the rules and regulations ensure more competition? Do they lead to more internationalization in the sense that more foreign firms become contract winners? Do the government and municipalities in the EU countries actually gain economically from the procurement? Does the choice of type of procedure matter? A lot of interesting questions immediately pops up and some of them – but only some of them - may be analyzed based on the content of this data base. Still, due to the large coverage and the international nature of the data base we believe that a thoroughly study of the possibilities of TED is of major interest and the present study is just a first step in this direction. One of the students who extracted the TED data has also used them for analysis in his master thesis, see Bundsgaard (2010). He has, however, limited his interest to analyze the choice of procedure: auction vs. negotiation and therefore our study has a broader scope when it comes to available variables. To our knowledge we are the first group of researchers who begins to analyze the content of this database using explorative statistical techniques based on a broad range of variables. URI: http://hdl.handle.net/10398/8686 Files in this item: 1
Lisbeth la Cour_SYMP_13.pdf (172.5Kb)