The impact of government CSR supporting policies on economic growth

In this paper, we explore the link between socially responsible companies and economic growth across 25 countries during the 2000–2008 period. We extend the growth equation by incorporating corporate social responsibility (CSR) variables and a dummy variable to measure the impact of government CSR-supporting policies. We find that CSR firms are important for economic growth (positively affect growth) and that countries that strongly support CSR achieve higher growth rates. Specifically, countries without an organized and supportive CSR environment and guidelines can hardly expect to increase economy performance through the new growth channels generated by CSR companies (new markets and customers). It is thus important to investigate how CSR companies affect economic growth towards reconsideration of the government's role in CSR promotion as a means to boost economic growth.     

Governing Deviance in Public Space through Mayoral Orders: Fields Mismatch and Metropolitan Turbulence

This article addresses the issue of policy change and its consequences on the organizational field and institutional context, looking at the role of an instrument transfer process. We adopt a political sociology approach to policy instruments to account for the impact that the introduction of a securitarian instrument, the mayoral order, had on the implementation process of a social policy. Through a genealogy of the instrument we identify a constitutive, normative and cognitive dimension. Our aim is to explain the interaction between these institutional dimensions, the re‐definition of the organizational field of the policy, and the dynamics of metropolitan politics. Following a synthesis of the policy process and the institutional arrangements where the policy is implemented, we show how the instrument transfer triggered a division within the organizational field, and the rise of institutional tensions amongst local authorities. In the conclusion, we identify the institutional dimensions of the instruments and the policy implementation scale as elements that are to interact with public‐private relationships and institutional arrangements, and that have an impact on implementation process and policy outcome.     

When risks turn to uncertainties: insights from the food markets in China and in Japan

The paper explores the relationship between risks and market organisation by means of two case studies. After defining the two concepts, it analyses how risks influence the functioning of markets, by means of the theory elaborated by Knight (1921). The Knightian focus on the role of judgments in risks analysis implies that the concept of rationality has to be enlarged beyond the rational choice theory. Similarly, markets cannot be defined anymore as simply an equilibrium between supply and demand: they are a special type of institution. Therefore, the analysis centres on how people make decisions and apprehend risks in relation to market structures. In the rest of the paper, two of the most prominent food safety crises in recent years are analysed based on this conceptual framework: the milk powder crisis in China (2008) and the sanitary crisis following the Fukushima nuclear accident (2011). It is shown that they represent two types of market risks, one generated by the food market organisation and the other one related to the definition of the product quality.     

Availability Crises in Insurance Markets: Optimal Contracts with Asymmetric Information and Capacity Constraints

Insurance markets sometimes exhibit "crises" in which prices rise dramatically and coverage is unavailable or is rationed at the new prices. A recent explanation for such crises is the "capacity constraint" model of Gron and Winter. Crises usually follow sudden and large depletions in insurers' equity or surplus. The capacity constraint model argues that frictional costs in replacing surplus, and limited liability, give rise to a kinked insurance supply function and that crises arise from discontinuous short term adjustments around the kink. While this model explains much about liability insurance crises, it still leaves unexplained their most prominent feature; that insurance is rationed or unavailable. We follow their insight in looking to equity shocks and capital market frictions to explain crises and combine this with a model of optimal risk sharing contracts under the information conditions characteristic of this market. We use implicit long term contracts with truth telling constraints to address information asymmetries and this allows us to model crises that exhibit rationing. Our model is tested in the market most dramatically affected by such crises in the 1980‘s, the general liability insurance market.     

“官场+市场”与中国增长故事

本文运用和拓展了“官场+市场”理论,重新解析中国独具特色的经济增长机制以及政府与市场的互动模式。地方官员之间围绕着辖区经济发展的官场竞争嵌入在不同辖区企业之间的市场竞争之中,而辖区企业参与的市场竞争又嵌入在官场竞争之中。作为一种分析框架,“官场+市场”的理论贡献在于揭示了政府与市场的良性互动、政企的有效合作必备的三个条件,即内部的政治激励（“把事做对”）、外部的市场约束（“防止做坏事”）和必要的信息反馈（“做对的事”）。中国“官场+市场”的增长模式在总体上提供了这三个关键条件,在最积极的意义上实现了辖区内政治企业家与民间企业家精神的结合,政治精英与经济精英的结合,中国历史悠久的官僚政治传统与西方国家市场经济传统的结合,为我们揭示中国增长之谜开辟了新的视角。     

Joined–up Food Policy? The Trials of Governance,Public Policy and the Food System

To address the policy malfunctions of the recent past and present, UK food policy needs to link policy areas that in the past have been dealt with in a disparate manner, and to draw on a new ecological public health approach. This will need a shift within the dominant trade liberalization–national economic competitiveness paradigm that currently informs UK food policy, and the international levels of the EU and the WTO trade rules, and grants the large corporate players in the food system a favoured place at the policy–making tables. The contradictions of the food system have wrought crises that have engendered widespread institutional change at all levels of governance. Recent institutional reforms to UK food policy, such as the FSA and DEFRA, reflect a bounded approach to policy integration. Initiatives seeking a more integrated approach to food policy problems, such as the Social Exclusion Unit's access to shops report, and the Policy Commission on the Future of Food and Farming, can end up confined to a particular policy sector framed by particular interests—a process of "policy confinement". However, the UK can learn from the experience of Norway and Finland who have found their own routes to a more joined–up approach to public health and a sustainable food supply by, for example, introducing a national food policy council to provide integrated policy advice. Also, at the local and community levels in the UK, policy alternatives are being advanced in an ad hoc fashion by local food initiatives. More structural–level interventions at the regional and local governance levels are also needed to address the social dimensions of a sustainable food supply     

Post-crisis learning in public agencies: what do we learn from both actors and institutions?

Post-crisis learning is a challenge for public organizations, and especially for agencies which handle health and environmental risks. This article investigates how the Belgian Food Safety Agency settles mechanisms for drawing lessons from crises while ensuring day-to-day routine. The framework by Crozier and Friedberg is used as a guideline to consider both the actors and the system, both strategic games and institutional constraints. The article helps in understanding the institutional logics underpinning how the public organizations learn from societal risk and crisis. Centralization and openness appear to be guiding principles, resulting from the learning games. They also generate tensions that the actors’ games manage by defining new rules for cooperation. Both the practice (through our case study) and the theory (combining actors and institutions) broaden the lens of policy analysis for what policy-making at organizational level concerns.     

Economic reform when institutional quality is weak: The case of the Maghreb

Institutional improvement can be a very slow and uncertain process when institutional quality is weak. In the meantime, countries have launched far-reaching economic reforms whose success is predicated on a large investment response. However, the uncertainties attending institutional reform can raise perceptions of risk, thereby muting investment responses. Using new values of institutional quality for three Maghreb countries (Algeria, Morocco and Tunisia), which we derive from fuzzy-set based transformations on freedom indices, we show that moving from low institutional quality to a stage of ‘partial improvement’ may reduce income per capita, with financial and trade reforms having unintended negative effects.     

How Risk Disciplines Pre-Commitment

This paper studies the entry strategies of firms on risky markets. We focus on markets where demand is affine and cost is linear; moreover, the demand includes a normally distributed random variable. In such a model, we show that the leader’s strategy changes with the level of market risk even when firms are risk neutral. Therefore, the availability of future information for a Stackelberg follower has a feedback effect on the leader’s strategy. We also show that compared with traditional markets with no risk, the basic trade-off between flexibility and pre-commitment is only slightly changed in the qualitative game where firms are free to choose when to enter the market.

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Market Forces for the Unemployed? Training Vouchers in Germany and the USA

Vouchers are meant to increase competition and consumer choice in public service markets. Using the example of training vouchers for the unemployed in the USA and Germany, we show, however, that deficits, both on the demand and the supply side of the market, create problems with preference alignment and market formation. Information asymmetries undermine choice by the unemployed and reduce government control over the training system. Ironically, restrictions meant to compensate for these information deficits further inhibit competitive market formation. Evaluation data on training vouchers from both countries show that voucher systems do not increase choice, but weaken the partnerships public employment agencies previously had with training providers, and may lead to a shortage of high‐quality and specialized training, as well as creaming in the selection of training participants. Theoretical justification for vouchers is based on the notion of choice and consumer sovereignty. Using this framework to analyse the changed relationship between government, private training providers, and jobseekers, we challenge the efficacy of vouchers as a delivery mechanism in complex public service markets such as job training.     

Vanishing financial contagion?

While a number of crises in emerging markets generated widespread contagion in financial markets during the 1990s, more recent crises (notably, in Argentina) have been mostly contained within national borders. This has led some observers to wonder whether contagion might have become a feature of the past, with financial markets now better discriminating between emerging countries with good and bad fundamentals. Available data suggest that the main channels that contribute to transmitting financial crises across countries are – if anything – even stronger today than in the 1990s. Moreover, anticipation by international investors may help to explain the near-absence of contagion in the context of the Argentine crisis. This paper argues that a prudent working assumption is that financial contagion has not vanished.     

Corporate Environmental Behaviors in Voluntary Programs: Does Timing Matter?*

Objective. Why do some firms participate in voluntary programs earlier than others? What conditions dictate whether firms participate in voluntary programs earlier rather than later? Current research on voluntary programs has not considered discrete processes in which corporate actors could have different motives and objectives in different time dimensions, that is, early versus late. Methods. We adopt a diffusion theory to disaggregate corporate voluntary participation behavior in the Environmental Protection Agency (EPA) sponsored Green Lights (GL) voluntary program. We focus on the GL participants during two periods—the early joiners in 1993–1994, and the late joiners in 1995–1996. Results. At the early diffusion stage, firms are more likely driven by the market motive that garners a “green” reputation, an important strategic asset to promote market competitiveness; at the late diffusion stage, firms are more driven by the institutional motive to improve their relationships with regulatory agencies and subsequently relieve regulatory pressures from them. Conclusion. We find that firms have different motives for GL participation at different diffusion stages. We suggest that policymakers who want to induce firms to join voluntary programs should pay more attention to program designs and implementation schemes that accommodate different corporate interests and objectives in different time orders of firms' participations in voluntary programs.     

公众对转基因作物的接受度及其影响因素:基于六城市调查数据的社会学分析

本文利用一项大规模的入户抽样调查数据,分析了中国公众对转基因作物的接受度问题。与以往基于“消费者行为研究”框架而采取“个体决策行为模型”的研究不同,本文从风险社会学的理论视角出发,试图发展一个“社会行动模型”的理论框架,以解释个体在“风险社会”中面对一项新技术时的决策行动受到哪些社会性因素的影响。结果显示,中国公众对推广种植转基因大米的接受度不高,与2002年相比有明显下降;传统的“个体决策行为模型”有一定的解释力,但其决策行为是基于有限知识基础上的“有限理性选择”,大众媒体的影响、对“专家系统”的制度性信任都是重要的影响因素。     

Risk,ambiguity, and insurance

In a series of experiments, economically sophisticated subjects, including professional actuaries, priced insurance both as consumers and as firms under conditions of ambiguity. Findings support implications of the Einhorn-Hogarth ambiguity model: (1) For low probability-of-loss events, prices of both consumers and firms indicated aversion to ambiguity; (2) As probabilities of losses increased, aversion to ambiguity decreased, with consumers exhibiting ambiguity preference for high probability-of-loss events; and (3) Firms showed greater aversion to ambiguity than consumers. The results are shown to be incompatible with traditional economic analysis of insurance markets and are discussed with respect to the effects of ambiguity on the supply and demand for insurance.University of Chicago Graduate School of BusinessUniversity of Pennsylvania The Wharton School     

Pressures on State Welfare in Post‐industrial Societies: Is More or Less Better?

Although contemporary comparative welfare state research has advanced our knowledge of how welfare states respond to exogenous and endogenous pressures, the nature and implications of these pressures themselves on post‐industrial societies remains somewhat unknown. In the research literature phenomena such as globalization, Europeanization, demographics, individualization and changing labour markets are often claimed to put considerable pressure on welfare states. We analyse which of the alleged pressures are real “crises” or “challenges” to welfare states and which pressures should only be considered as “controversies”—phenomena whose impacts are nonsignificant, ambiguous, or have not been asserted. We suggest that pressures on post‐industrial societies may not, as is commonly believed, be countered with retrenchment and restructuring of welfare states. In fact, some pressures seem to call for more rather than less welfare state.     

Efficiency of spatial price discovery for U.S. rice under different farm policies and economic conditions

Changes in the discovery of U.S. spatial milled rice prices due to the shift from stable economic conditions and government policy of supply control in the 1960s to the more variable economic conditions and market-oriented rice farm policy of the 1970s are investigated. Efficiency of the markets was evaluated in terms of the magnitude and speed of price adjustments over three different time periods. The efficiency of the price discovery process is of concern to policymakers because firms must receive price signals quickly and accurately in order to use their resources optimally.     

Does country-risk influence electricity production worldwide?

This paper investigates the relationship between country-risks (or conflicts) within countries and electricity production. The determinants of electricity production have been neglected in the literature that favours the relationship between energy consumption, growth and development, and despite of the major challenges on electricity supply systems. We empirically establish that weighted conflict index, as well as sub-items as anti-government demonstrations, government crises and riots negatively influence electricity production per capita, after controlling for income per capita. Country conflicts affect electricity production mostly in the long-run. Our results imply that conflicts may affect electricity production substantially and consequently the economy as a whole. Policy should emphasize the institutional framework to avoid conflicts within countries in order to secure electricity production.     

A comparison of models for strategic planning,risk analysis and risk management

Summary Risks, uncertainties in firms and their environment are increasingly dealt with strategic planning, risk analysis and risk management. The present state of strategic planning enables us to consider the greatest part of internal and environmental risks mainly qualitatively - due to the fact that the majority of planning models used are of a deterministic type.The application of CAPM in strategic planning could take risks into account explicitly and maximize the expected value of the firms' common stock. Linked to a corporate simulation model or a DSS it could generate a series of values for the expected rate of return, its standard deviations as well as other output variables important for the management. The difficulties of the use of CAPM are numerous but an attempt to optimize the value of the firm would be a big step in developing new powerful instruments for evaluating the economic consequences of alternative strategies. The problems of CAPM lead to the considerations of the application of stochastic programming in strategic planning. For special cases solution methods can be developed and applied. The implementation of the Decision Support System in strategic planning could help to find the best decision in an interactive way - as suggested in this paper for the case of strategic marketing planning. DSS renders the consideration of other factors relevant to strategic decisions possible; businesses need not be reduced to portfolio terms. The limitations of CAPM, stochastic programming and the difficulties of the implementations of DSS for strategic planning could be partially avoided through the concept of Risk Management. On this concept strategic planning represents only one instrument of Risk Management and is a powerful tool of risk identification. In this paper the other instruments have been shortly demonstrated for the cases of product reliability and risks in relation with foreign countries. The development of new instruments for special cases (e.g., siting problems, specific strategic decisions, etc.), the considerations of risk behavior in individual, group and inter-organizational or even international decision making are now the main topics in the urgent task of research in risk management.     

Balancing Efficiency and Legitimacy: Institutional Changes and Rural Health Organization in China

The aim of this article is to contribute to the understanding of the institutional arrangements within which China's rural health facilities are embedded and of the contribution of policy to the creation of these arrangements. Information collected through field observations and in‐depth interviews with the managers, staff and patients of a township health centre indicates that with the gradual evolution of markets, encouraged by state policies, health care in rural China took on more of the characteristics of a commodity. In order to adapt to this change, the health centre and its employees are adjusting their behavioural norms and reconstructing an institutional network within which daily activities of simultaneously fulfilling public health responsibilities and pursuing economic gain are legitimized. This article focuses on the interwoven relationship between politics and markets at the micro level and examines the negotiations between stakeholders in constructing new institutional arrangements. It also describes how health sector managers are creating regulations to influence the performance of their facility. The article argues that while government policies play a crucial role in shaping the direction of development, institutional arrangements strongly influence the attempts by rural health organizations to implement them. It concludes that it is critical to take institutional factors into account in analyzing China's rural health‐care reforms.     

Child poverty in Taiwan during the global financial crisis: from the perspective of new social risks

The economic conditions of families with children during the 2008 financial crisis became worse. The factors affecting child poverty in Taiwan can be explained from the perspective of new social risks. This study analyzed the poverty reduction effects of public transfers and taxes in order to evaluate the government role in the economic downturn. From the viewpoint of the protection of children's rights, new policies must be created in response to new social risks and future financial crises.