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Since 2012, the United States has witnessed explosive growth in mandatory energy efficiency disclosure policies, which aim to address market failures in housing. I examine one such policy, comparing prices before and after the policy’s introduction for homes with different levels of energy efficiency features. I find increased capitalization of energy efficiency features. Effects are larger for difficult-to-observe features, suggesting the results are driven by information and not changing preferences for energy efficiency over time. This highlights the potential for disclosure policies to promote long-run energy efficiency investment by increasing the returns homeowners expect on these investments when they sell.

Literature suggests that business groups help affiliated firms overcome market failure, which is common in emerging economies, thus serving as a source of competitive advantage. This paper discusses how and when affiliated firms pay for these advantages. Specifically, we propose that affiliated firms, compared with stand-alone firms, bear unique institutional isomorphic pressures from business groups. Using information technology industry samples from the World Bank’s Enterprise Surveys, we find that affiliated firms underperform on organizational innovation more than stand-alone firms. In addition, we find that the main effect is strengthened when the business group size is large and the affiliated firm CEO’s industrial experience level is low. Moreover, the main effect is the strongest when an affiliated firm is embedded into a large business group the CEO of which has a low industrial experience level. Our findings contribute to a comprehensive understanding of the impact of business group membership.

The burgeoning integration of distributed energy resources (DER) poses new challenges for the economic and safe operation of the electricity system. The current distribution-side policy is largely based on mandatory regulations and incentives, rather than the design of a competitive market mechanism to arouse DERs to freely compete in the retail market. To address this issue, we proposed a transactive retail market mechanism to attract the active participation of profit-driven DER retailers in a deregulated way. Considering the limited competitive property of the retail market, a bi-level DSO-dominated framework is constructed to simulate the virtual game between distribution system operator (DSO) and DER retailers. Specifically, the flexible interval pricing of retailers is modeled as a series of binary revenue constraints to influence the DSO's centralized economic dispatch decisions, where the time-varying distribution locational marginal price is adopted to settle energy activities at different locations over the time horizon. Due to the uncertain power flow path during the coordinated decision-making process, we proposed a general undirected second-order cone-based AC radial power flow model and provided sufficient conditions to ensure its exactness. Also, we applied a series of approximation and relaxation techniques to transform the bi-level mixed-integer quadratic framework with highly discrete induced domains into a solvable mixed-integer semidefinite programming problem. It is demonstrated in the case study that the proposed mechanism can not only improve market efficiency but also eliminate market power and the resulting market failures.

The purpose of this research is twofold: First, it aims to clarify the public subsidy effect on Small–Medium Enterprises’ (SMEs’) R&D expenditures by contrasting total R&D investments and net R&D investments excluding the amount of public funding. The second aim is to determine whether government subsidies induce firms to nonlinearly invest their own funds in R&D. To control for potential selection bias, we estimate the policy effect through matching techniques and a dose–response function with a generalized propensity score, using panel data that link the 2015 through 2019 waves of the South Korean Survey on the Technology of SMEs. We were not able to reject the hypothesis that uses a linear effect of public subsidies on SMEs’ R&D investments, suggesting a complementary effect on total R&D expenditures and a partial crowding-out effect for the net R&D case without a specific minimum threshold or a saturation point. Further investigation of a possible heterogeneous effect based on a subsample shows a U-shaped relationship, with a minimum threshold in the manufacturing industry. Our findings imply that public financial support for SMEs in South Korea has not completely prevented market failure beyond a certain level of public intervention. Importantly, the absolute amount of direct public support for individual SMEs should be increased in order to efficiently promote R&D spending in the manufacturing sector.

In England, the Studio Schools model, focused on developing employability skills in young people, represents a disruptive attempt at educational innovation. Through a documentary analysis of foundational documents, interviews with the model’s architects and case studies of five Studio Schools, we map the tensions between theoretical conceptualisations of the model and the messy realities of implementing it. We found that the schools faced a wide range of challenges related particularly to local inter-school competition, centralised accountability measures and structural assumptions about the ‘gold educational standard’. When facing these challenges, the course of least resistance for the schools was an iterative abandonment of the distinctive aspects of the Studio Schools model and a move back towards mainstream approaches to schooling. This process of institutional homogenisation is discussed through the lens of neo-institutional theory, with the challenges schools faced and their trajectories framed in terms of coercive, mimetic and normative isomorphism. We argue that the use of isomorphism as a heuristic device provides important insight into the process of educational innovation in an educational system that combines competition and the risk of market failure with coercive accountability measures and embedded assumptions about the ‘gold standard’ schooling pathway.

This study deals with industrial policy, an issue that has been hotly debated in economic development. It argues that strategic and proactive industrial policy is a key to unlock the potential and wade through industrialization for low-income countries such as Ethiopia where market failures are pervasive. More specifically, it argues that industrial policy should be tailored to factors endowment structure. In the case of Ethiopia, as its economic structure is yet to transform substantially from agriculture to manufacturing, the current policy focus should be on labor-intensive sectors. Using the analytical framework of new structural economics supported with the primary survey data covering 80 manufacturing firms and secondary data sources, a comprehensive analysis has been conducted to explore the potentials, latecomer’s advantages, and the binding constraints of labor-intensive manufacturing industries in Ethiopia. Accordingly, it proposes five policy domains to unlock the labor-intensive manufacturing potentials of Ethiopia: Facilitating the linkage between agriculture and manufacturing industry along the value chain; fostering industrial park and cluster-based industrial development; strengthening the cooperation between government and the private sector; improving doing business environment; enhancing the industrial upgrading and diversification along with the changing endowment structure. Key words: Industrial policy, industrialization, labor-intensive manufacturing, structural transformation.

For most Americans, the value of their home represents the largest portion of their total wealth; accordingly, homeowners even in very poor areas can obtain some benefit from a home-buyout program as a means to move away from risk and begin again. Renters, however, are an overlooked population during implementation of post-disaster retreat programs that predominantly focus on homeownership. Racism is a substantial factor in homeownership disparities between black and white Americans that can be traced to the post World War II GI Bill—a law that delivered to returning veterans federally-backed home mortgage loans, loans that were largely denied to returning black soldiers. These inequities have not been overcome, leaving minority renters as some of the most vulnerable populations after a disaster. Indeed, some renters may be substantially worse off after a buy-out program is implemented in an area. Renters represent an atypical “trapped” population when it comes to relocation programs because they may be economically forced to move to even more climate vulnerable housing. This paper will explore post-implementation impact on renters of home buy-out and similar retreat programs. We will examine the factors that contribute to this cycle of failed re-location efforts for this sub-group such as the lack of retreat policies aimed at assisting low-income renters, lack or limitations of home or rental insurance, the absence of “duty to warn” obligations from landlords to inform renters of repeated flooding risks at the property, and market failure to encompass climate risks in rental pricing.

Am 24. März 2021 hat der "Sachverständigenrat zur Begutachtung der Entwicklung im Gesundheitswesen" sein Gutachten "Digitalisierung für Gesundheit - Ziele und Rahmenbedingungen eines dynamisch lernenden Gesundheitssystems" der Bundesregierung überreicht. Wesentliche Aspekte des Gutachtens werden präsentiert, wobei ökonomische Gesichtspunkte und Bezüge zur Corona-Pandemie besonders hervorgehoben werden. When it comes to digitalising healthcare, Germany lags way behind other countries. In its 2021 report, the Health System Advisory Council discusses a strategy to overcome this shortcoming, i. e. the digitalisation of the German healthcare system. The idea is to shape digitalisation in a way that healthcare provision is improved with patients' well-being in mind. Therefore, market failures in digital health markets have to be addressed as well as the chances and challenges that come with the usage of large amounts of data. Furthermore, this article highlights the potential of the electronic health record (EHR) and of the digital health app market and discusses requirements for reaching environmental and social sustainability within the context of the digitalisation of health.

The recent controversy on the intersection of competition law with the protection of privacy, following the emergence of big data and social media is a major challenge for competition authorities worldwide. Recent technological progress in data analytics may greatly facilitate the prediction of personality traits and attributes from even a few digital records of human behaviour. There are different perspectives globally as to the level of personal data protection and the role competition law may play in that context, hence the discussion of integrating such concerns in competition law enforcement may be premature for some jurisdictions. However, a market failure approach may provide common intellectual foundations for the assessment of harms associated with the exploitation of personal data, even when the specific legal system does not formally recognize a fundamental right to privacy. The paper presents a model of market failure based on a requirement provision in the acquisition of personal information from users of other products/services. We establish the economic harm from the market failure and the requirement using the traditional competition law toolbox and focusing more on situations in which the restriction on privacy may be analysed as a form of exploitation.

This article examines the economic underpinnings of the concept of corporate purpose, which has gained increasing attention from business academics, practitioners and policymakers. It argues that there are fundamental reasons for reconceptualizing the purpose of business in the future which derive from the changing nature of business and the market failures to which it gives rise. It suggests that regulation is proving increasingly inadequate at correcting market failures, and the traditional separation between economic efficiency and distribution that underpins policy formulation is untenable. Instead, the article sets out how appropriately defined notions of corporate purpose can help to promote not only better social outcomes but also enhanced functioning of firms and markets. It describes a set of principles that provide a comprehensive framework for reforming business around credible commitments to corporate purpose. The reformulation of the corporation has profound implications for the macroeconomic performance of economies as well as the microeconomics of firms and markets.

The Green Revolution, which bolstered agricultural yields and economic well-being in Asia and Latin America beginning in the 1960s, largely bypassed sub-Saharan Africa. We study the first randomized controlled trial of a government-implemented input subsidy program (ISP) in Africa intended to foment a Green Revolution. We find that this temporary subsidy for Mozambican maize farmers stimulates Green Revolution technology adoption and leads to increased maize yields. Effects of the subsidy persist in later unsubsidized years. In addition, social networks of subsidized farmers benefit from spillovers, experiencing increases in technology adoption, yields, and beliefs about the returns to the technologies. Spillovers account for the vast majority of subsidy-induced gains. ISPs alleviate informational market failures, stimulating learning about new technologies by subsidy recipients and their social networks. (JEL O13, Q12, Q16, Q18)

From a theoretical viewpoint, there can be market failures and organizational failures resulting in an underprovision of occupational health and safety. Works councils may help mitigate these failures. Using establishment data from Germany, the empirical analysis in this article confirms that the incidence of a works council is significantly associated with an increased likelihood that the establishment provides more workplace health promotion than required by law. This result also holds in regressions accounting for the possible endogeneity of works council incidence. Furthermore, analysing potentially moderating factors such as collective bargaining coverage, industry, type of ownership, multi-establishment status and product market competition, the article finds a positive association between works councils and workplace health promotion for the various types of establishments examined. Finally, this study goes beyond the mere incidence of workplace health promotion and shows that works councils are positively associated with a series of different measures of workplace health promotion.

The public–private partnership (or PPP) system is widely hailed as an effective approach to flood insurance. PPP effectiveness can be empirically demonstrated through an analytic framework based on model assessment, which we apply to Japan as an illustrative case study. We first introduce the widely-observed market failure phenomenon in the catastrophe insurance sector and how PPP systems may serve to avert this failure. We then proceed to select three candidate systems and model them respectively. Subsequently, we employ empirical data and Monte Carlo simulations to evaluate suitability for Japan’s case via three perspectives. The results identified the market-oriented system as the economically-optimal choice. It should be noted, however, that the assessment is dependent on the priorities of each party and market-negotiated results. We find this methodology to be suitable for identifying the most adequate PPP system and invite policymakers to consider its use when implementing their own systems.

In a free market context, trade competition signifies a state of affairs where in sellers compete with each other to attract buyers with a view to maximizing their sales, profits and market share. Trade competition laws and policies are among the tools that can be used to bring about efficient workings of markets and alleviate market failures. This research sought to explore prohibition of anti-competitive trade practices in Ethiopia in general and particularly in Arbaminch town, Southern Ethiopia. The research has employed doctrinal approach and the data collected were analyzed qualitatively. Both primary and secondary sources of data were used. The findings of the research indicated that there is lack of effective enforcement of the existing law in the study area. There are also anti-competitive trade practices remained uncovered by the law. The current trade competition law of the country needs revision. There is also a need to establish law enforcement bodies and independent adjudicative organs at regional level including in the study area.

Many energy policies are implemented to subsidize the adoption of energy efficiency. However, when private benefits from energy efficiency exceed the social benefits, there is an incentive for the consumers to over-invest in energy efficiency; otherwise, there is an incentive to under-invest. This study adds to this discussion by providing an empirical estimation of the electricity savings and social benefits after energy efficiency retrofits for consumers on time-of-use (TOU) and increasing block pricing, respectively. We aim to examine how social versus private savings from a given energy efficiency measure may be different depending on different pricing plans. This study applies hourly electricity data for about 16,000 residential consumers during 2013–2017 in Arizona. We show that for the TOU consumers, the private savings from energy-efficient AC retrofits are greater than the social savings by 61%, while the increasing block rate consumers’ private savings exceed the social savings by 46%, when other market failures are not considered (e.g., principal-agent problem and imperfect information). Different rate plans impose different marginal electricity prices which influence the incentives to invest in energy efficiency as well as electricity consumption behaviors that can influence both the private and social savings from energy efficiency. The result indicates that there should be potentially different levels of policy interventions towards energy efficiency for consumers on different pricing. Additionally, we also find that energy efficiency makes the electricity demand more elastic to price changes.

Purpose Social, spatial and environmental justice are inseparable, and key for sustainable urban development. The city is the cradle of innovation and production. Also, the city is the site of riots, where protesters demand their right to access services and resources. The purpose of this paper is to answer the question: Why do plans to resolve urban ills in developing countries fail to deliver and achieve social justice? Design/methodology/approach This paper investigates weaknesses, limitations and outcomes of planning processes in a developing country. The author used two qualitative research tools: document analysis augmented with informal interviews. The author uses Egypt as a case study in an attempt to answer this question. The author reviewed two types of documents: official reports that the Egyptian authorities produced and donor agencies prepared plus both published and unpublished research. Interviewees are those who participated in elaborating and executing urban plans and policies. Findings Achieving social, spatial and environmental justice is amongst the reasons for planning metropolitan areas and their regions. Unfortunately, rarely plans accomplish social, spatial or environmental justice. Institutional setup is the reason for failed urban planning – institutional failures lead to both policy and market failures, thus complicating urban problems. Originality/value Approved plans must have the power of legislation, and planners need to reclaim their authority and autonomy, which requires regulating the profession. Planning education must be at the graduate level and available to other disciplines, such as economics, public administration, law and the like. Planners must acquire the following competencies: technical competencies for analytical actions; hermeneutic competencies for communicative actions; and critical competencies to observe professional ethics. They must emancipate themselves from their bias to enlighten and empower their constituents.

This article examines the non-issue of bank clearinghouse certificates during the Great Depression of the 1930s. Instead of a market failure, this non-issue is found to have been the result of an intervention. At the time, the issue of clearinghouse certificates to temporarily meet the need of the economy for a medium of exchange following a financial panic was a well-established practice. To make a long story short: In 1933, plans were underway by bankers to resort to this expedient. Merchants and the public at large were anxious to get their hands on the money substitute. But federal authorities said no. Instead of a short-term fix, following which the economy would return to its former ways, federal authorities had other plans. This paper examines both the specifics of the issue of emergency money during the Great Depression and the general principles involved in such issues.

The COVID-19 pandemic exposed critical weaknesses in the US food supply chain. Faced with the near-complete loss of the food service distribution channel, stories of wasted food, failing suppliers, and food shortages were common. We argue that the pandemic revealed a fundamental lack of resilience in the food supply chain that, while causing short-term welfare losses, need not have happened, and resulted from a failure of vision rather than a market failure in the traditional sense. We present a model of supply chain flexibility, grounded in real options theory, that demonstrates how firms can increase shareholder value by maintaining flexibility across supply chains. We present an example from the US fresh produce industry (onions) to demonstrate our hypothesis.

This article provides a new perspective on the value of work and recommends ways to respond to labor market failures exacerbated by the COVID-19 pandemic and by increased automation We consider the human right to work, the dangers of pursuing short-term efficiency, and the use of the U N Sustainable Development Goals as a framework for inclusive economic innovation We conclude with recommended policies to build forward and achieve inclusive development

History and origin of Public Economics Presented as the evolutionary nature of its disciplinary interest to for student curriculaum and a method of analysis for Govt. Policy doiers. The subject matter of this article has fully involved to discuss from its history and origin from classical periods to its in modern times. Further this article explained the nature and characteristics of public economics in collaboration, as a method of analysis of many dominant issues like externalities, market failure and distortions effects is to be as subject of studies in its growth.

Purpose The study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation. Design/methodology/approach PCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts. Findings The UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct. Research limitations/implications The study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts. Social implications The study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme. Originality/value The study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

The United States (US) spends more on healthcare than any other country with little evidence of better, or even comparable, outcomes. We reflect on the US and the COVID-19 pandemic and focus on cultural, economic and structural barriers that threaten both current and future responses to infectious diseases emergencies. These include the US healthcare delivery model, the defunding of public health, a scarcity of infectious diseases physicians, the market failure of vaccines and anti-infectives and the concept of American exceptionalism. Without institutionalizing the lessons learned, the US will be positioned to repeat the missteps of COVID-19 with the next pandemic.

Background Different forms of public/private mix have become a central mode of the privatization of healthcare, in both financing and provision. The present article compares the processes of these public/private amalgams in healthcare in Spain and Israel in order to better understand current developments in the privatization of healthcare. Main text While in both Spain and Israel combinations between the public and the private sectors have become the main forms of privatization, the concrete institutional forms differ. In Spain, these institutional forms maintain relatively clear boundaries between the private and the public sectors. In Israel, the main forms of public/private mix have blurred such boundaries: nonprofit health funds sell private insurance; public nonprofit health funds own private for-profit hospitals; and public hospitals sell private services. Conclusions Comparison of the processes of privatization of healthcare in Spain and Israel shows their variegated characters. It reveals the active role played by national and regional state apparatuses as initiators and supporters of healthcare reforms that have adopted different forms of public/private mix. While in Israel, until recently, these processes have been perceived as mainly technical, in Spain they have created deep political rifts within both the medical community and the public. The present article contains lessons each country can learn from the other, to be adapted in each one’s local context: The failure of the Alzira model in Spain warns us of the problems of for-profit HMOs and the Israeli private private/public mix shows the risk of eroding trust in the public system, thus reinforcing market failures and inefficient medical systems.

PurposeThis paper systematically reviewed the contributions of the recent Nigerian government agricultural policies and the impacts on the agricultural value chain system in line with the structural transformation of the sector and the Nigeria's vision 20:2020. The study also suggest strategies to upgrading various segments of the agricultural value chain and argue that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.Design/methodology/approachThe authors systematically present evidences and data from the Central Bank of Nigeria (the apex monetary authority of Nigeria) and Nigerian Bureau of Statistics (oversees and publishes statistics for Nigeria) to estimate the impact of Government agricultural policies on the value chains system.FindingsThe study discovers that the various recent government policy interventions to tackle the austere challenges in the agricultural sector are yet to yield much significant solution. Given to the dwindling performance of the sector, the Nigerian agricultural value chain is somewhat affected with systemic and services gaps which underpin the market failures (missing markets and weak markets), although the agricultural value chain has the potential of triggering economic growth in a higher scale with a trickle-down effect to other sectors of the Nigerian economy.Practical implicationsOverall, the findings indicate strategies to upgrading the production and processing segments of the agricultural value chain and argues that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.Social implicationsThe study proves that enhancing value addition in the agricultural sector is imperative to achieving triple-benefits of increasing productivity by building resilient systems that leverage on finance opportunities, deepening economic inclusive growth and achieving great milestones.Originality/valueThis study is the first attempt to focus on agricultural value chain system in line with the structural transformation and the Nigeria's vision 20:2020.

La presencia de contaminación persistente y tóxica en las aguas ha impulsado el desarrollo de nuevas tecnologías de tratamiento, como es el caso, de la fotocatálisis solar homogénea, foto-Fenton solar, que aprovecha esa fuente de energía renovable para disminuir los costes del proceso. El fallo de mercado que supone la contaminación originada por el vertido de aguas residuales industriales, se corrige con el establecimiento de tributos medioambientales. La heterogeneidad en el diseño de estos tributos afecta tanto a los parámetros de contaminación considerados como a su peso específico en el cálculo de la cuota a pagar. En este trabajo se discute la posibilidad de los cánones de saneamiento como correctores de este fallo de mercado y como incentivos para invertir en tecnologías y procesos de depuración sostenibles.

With the continuous expansion of the global dairy trade market, the quality and safety of the Chinese dairy market have a wide and far-reaching impact on the world. Based on the development of the dairy scandal in the past few years in China, this study illustrates the serious damage of melamine on human health and the negative impact on the dairy industry in China. This study shows that the lack of effective government regulations is a key reason for dairy market failure. Consumers are lacking confidence in the quality of Chinese dairy products and the government's market regulations. The Chinese dairy market will continue to rely on imported dairy products. By analyzing the typical cases of the dairy market in China, this study aims to provide a guide for dairy industries in other countries.

Governments have long standing interests in preventing market failures and enhancing innovation in strategic industries. Public policy regarding domestic technology is critical to both national security and economic prosperity. Governments often seek to enhance their global competitiveness by promoting private sector cooperative activity at the inter-organizational level. Research on network governance has illuminated the structure of boundary-spanning collaboration mainly for programs with immediate public or non-profit objectives. Far less research has examined how governments might accelerate private sector cooperation to prevent market failures or to enhance innovation. The theoretical contribution of this research is to suggest that government programs might catalyze cooperative activity by accelerating the preferential attachment mechanism inherent in social networks. We analyze the long-term effects of a government program on the strategic alliance network of 451 organizations in the high-tech semiconductor industry between 1987 and 1999, using stochastic network analysis methods for longitudinal social networks., Forthcoming in Journal of Public Administration Research and Theory, 45 pages, 2 figures, 6 tables

The authors acknowledge the financial support from the Slovenian Research Agency (research core funding No. P5-0093)., Purpose: Private R&D investment in the business sector is often subject to market failures, such as positive externalities, information asymmetries, uncertainty and risk, making it often less than socially desirable. This is the primary reason that governments promote private R&D investment. Accordingly, the main aim of this paper is to investigate the impact of public R&D policy on business R&D expenditures. Design/methodology/approach: Applying panel data regression analysis on a sample of 3,113 company-year observations, covering Slovenian companies for the period 2012-2016. Findings: The empirical results show that public support for R&D investment plays an important role in firms’ R&D expenditures. As to R&D subsidies, the empirical results reveal they are generally ineffective since they displace firms’ R&D expenditures. Yet they do become effective when used in combination with R&D tax incentives and received by companies that are growing. On the contrary, the empirical results also show that R&D tax incentives are always effective when companies have a sufficient tax base. Practical Implications: The overall findings suggest that R&D tax incentives are more effective than R&D subsidies in Slovenia. However, R&D subsidies are still attractive especially for smaller companies without a sufficient tax base. It is hence important to consider both public policy instruments as two parallel ways of supporting firms’ R&D expenditures. Originality/value: Utilising a comprehensive dataset covering Slovenian companies made by merging multiple data sources, namely R&D survey, tax, balance-sheet and incomestatement data, representing the main originality and value of the paper., peer-reviewed

The conventional paradigm about development banks is that these institutions exist to target well-identified market failures. However, market failures are not directly observable and can only be ascertained with a suitable learning process. Hence, the question is how do the policymakers know what activities should be promoted; how do they learn about the obstacles to the creation of new activities? Rather than assuming that the government has arrived at the right list of market failures and uses development banks to close some well-identified market gaps, we suggest that development banks can be in charge of identifying these market failures through their loan-screening and lending activities to guide their operations and provide critical inputs for the design of productive development policies. In fact, they can also identify government failures that stand in the way of development and call for needed public inputs. This intelligence role of development banks is similar to the role that modern theories of financial intermediation assign to banks as institutions with a comparative advantage in producing and processing information. However, while private banks focus on information on private returns, development banks would potentially produce and organize information about social returns.

Recent literature using the city and its shape as a lens through which to examine various socio-technical phenomena adds new and important perspective to conversations about real estate, efficient ...

As a controversial topic, business ethic is becoming significantly important in today’s business world. Business unethical behaviors such as fraud scandal and other accounting manipulation will bring reputation risks for organizations, which may lead to serious consequences and even severe administrative penalties. Therefore, responsible firms should have senses of good behavior and prevent themselves from committing unethical behaviors, which causing negative externalities for other organizations and people. This research paper mainly conducts research through investigation, literature review and other methods, aiming at demonstrating responsible global citizenship implications by analyzing related market failure theories based on Toshiba’s business ethic issue: earnings overstatement scandal.

The objective of this paper is to examine how the imposition of Public Service Obligations (PSO) on certain routes may affect the transportation sector, with a focus on aviation in the European Single Market. Thus, this research investigates how this form of public intervention can be useful to access adequeate transport system in remote and peripherical regions. Subsequently, this paper intends to display that the imposition of PSO on aviation routes should be considered as a unique mean of market intervention on behalf of territorial cohesion. To accomplish this, an analysis of the economic impact in terms of efficiency and sustainability in the case of the scheduled air route between Almeria and Seville in addition to other transportation alternatives such the bus or train was conducted. Additionally, this research attempts to shift the research focus away from PSO routes in order to determine the convenience of administrative concession as a way to foster the creation of specific routes, which furthermore cannot be covered by the entrepreneurship of private initiative in a free market regime. Consequently, this approach recognises that this form of public intervention is a way of correcting particular market failures, such as the lack of the adequate transportation.

Social fundamental rights can be called 'factual claims' of the nationality of individuals, which means rights that require active action by the state for the realization of rights. On the other hand, the 'normative benefit right' is the right of the state to demand the enactment of certain laws and regulations. Specifically, the factor to be considered in the analysis of the social rights aspect of the right to health is the 'publicness of healthcare service'. In order for the right to health to function effectively as a social fundamental right, it must reflect the nature of medical care that is most necessary to maintain the right to health. In the end, the right to health is related to all members of the society and has a 'normality of publicness' in the sense that it cannot exclude the benefits of some members. The health care sector, which may cause market failure due to what is termed the asymmetry of information, must be strictly observed in consideration of the essential value of health.br /.

In the event of the current COVID-19 pandemic and in preparation for future pandemics, open science can support mission-oriented research and development, as well as commercialization. Open science shares skills and resources across sectors; avoids duplication and provides the basis for rapid and effective validation due to full transparency. It is a strategy that can adjust quickly to reflect changing incentives and priorities, because it does not rely on any one actor or sector. While eschewing patents, it can ensure high-quality drugs, low pricing, and access through existing regulatory mechanisms. Open science practices and partnerships decrease transaction costs, increase diversity of actors, reduce overall costs, open new, higher-risk/higher-impact approaches to research, and provide entrepreneurs freedom to operate and freedom to innovate. We argue that it is time to re-open science, not only in its now restricted arena of fundamental research, but throughout clinical translation. Our model and attendant recommendations map onto a strategy to accelerate discovery of novel broad-spectrum anti-viral drugs and clinical trials of those drugs, from first-in-human safety-focused trials to late stage trials for efficacy. The goal is to ensure low-cost and rapid access, globally, and to ensure that Canadians do not pay a premium for drugs developed from Canadian science.

To what extent does the market exhibit moral and ethical behavior? Morality complements the positive effects of the market. The results of the market correspond only partially to our righteous ideas. In case of market failure, morality ensures that third parties are not harmed. Against this background, the social market economy is entering the market and changing the distribution results. Social morality is an important corrective factor in the market economy. If a market economy is to be an advantage for society, society must sanction immoral, damaging behavior through legal penalties or social exclusion. In addition, it must promote voluntary ethical behavior through the provision of values.

The inclusive finance community is proud to have attracted private capital over the last decade. However, most funding is used to finance loans and minimal investment is made to understand the underlying causes of market failure and to address constraints that inhibit development of markets to benefit the poor. As the primary donor consortium for inclusive finance, CGAP set out to develop new guidelines for funders to support greater inclusion for the poor. Alan Gibson was instrumental in CGAP’s decision to promote the market systems approach and continued to influence and support CGAP until his death. While many funders appear to support the approach, there has been limited progress and the current political economy of aid does not support good practice. For more funders to understand and adopt this approach we need to demonstrate and document success; use language that resonates with non-experts; and support capacity building of donor agency staff.

The emerging or at least threatening “significance test crisis” in accounting has been prompted by a chorus across multiple physical and social sciences of dissatisfaction with conventional frequentist statistical research methods and behaviors, particularly the use and abuse of p-levels. There are now hundreds of published papers and statements, echoing what has been said behind closed doors for decades, namely that much if not most empirical research is unreliable, simply wrong or at worst fabricated. The problems are a mixture of flawed statistical logic (as Bayesians have claimed for decades), “p-hacking” by way of fishing for significant results and publications, selective reporting or “the file drawer problem”, and ultimately the “agency problem” that researchers charged by funding bodies (their Universities, governments and taxpayers) with conducting disinterested “objective science” are motivated more by the personal need to publish and please other researchers. Expanding on that theme, the supply of empirical research in the “market for statistical significance” is described in terms of “market failure” and “the market for lemons”.

Paper aims The objective of this article is to explore the relationship between circular economy and entrepreneurship, to propose an agenda for future research to advance in the field and generate managerial implications. Originality The study helps to identify the research profile and enable the development of a logical structure for analyzing entrepreneurship carried out in the specific context of companies operating under the guidance of the circular economy. Research method The method is a systematic literature review, peer-reviewed and indexed in ten databases. The research protocol adopted aimed at: i) searching and searching the databases, ii) sorting and selecting the literature, iii) coding and analyzing the data. Main findings The results point to: i) predominance of causation logic in the market environment, ii) attention to the creation of relationship and value networks, iii) entrepreneurship aimed at valorization, iv) focus on innovation in production, regional development and exploitation of market failures. Implications for theory and practice The main contribution of the study is to consolidate the knowledge in the field of circular economy and entrepreneurship, still little explored. The results provide a basis for managers and decision-makers to expand their business and create new models based on the circular economy.

A well-known principle in public economics states that at least as many policy instruments as market failures are required to achieve an efficient outcome. In practice, however, regulatory power is often constrained, making implementing the first-best policy portfolio difficult or impossible. We analyze analytically and numerically how available policy instruments should be adjusted vis-à-vis the first-best to account for under-internalized secondary market failures. Consider, for example, the power sector: alongside the external costs of emissions, evidence suggests that consumers undervalue energy efficiency investments, and knowledge spillovers hamper research and development (R&D) and learning-by-doing in low-carbon technologies. By exploring the potential and limits of policy instrument substitution, we provide suggestions for adjusting policies in second-best situations. We calibrate the theoretical model to the European electricity sector and find that, compared with the first-best policy portfolio, relying on carbon dioxide (CO2) pricing alone increases the policy cost of the EU CO2 emissions target by about 30%. Uninternalized R&D spillovers contribute the most to this increase, and are the most difficult to address indirectly, even with subsidies supporting learning-by-doing. By contrast, almost 40% of the additional cost created by the absence of optimal energy efficiency subsidies can be recuperated by a second-best electricity tax.

With historical roots in the once-common practices of lodging and boarding, short-term rentals (STRs) have become in recent years a prominent feature of the global travel accommodation space. Worth roughly US$40 billion in 2010, the global value of the STR market reached US$115 billion in 2019. Despite a significant hit on business as a result of the COVID-19 pandemic, the STR market is showing strong signs of rebounding. The increased popularity and accessibility of the STR market can be largely attributed to the emergence of digital sharing economy platforms, such as Airbnb and Vrbo, which play the role of mediator in simplifying interactions and transactions between hosts and guests from around the world. As this platform-facilitated STR market has grown, home sharing has garnered increasing attention. Many have celebrated such innovation in the hospitality sector for the benefits it has delivered, among them lower prices, increased consumer choice, local economic development, community revitalisation, and a reliable income stream for property owners. However, others have been quick to decry the practice, accusing STR platforms of engaging in anti-competitive behaviour, exacerbating issues of over-tourism and a lack of affordable housing, and undermining the habitability of communities. Of notable concern among many STR skeptics is a potential shift in practice away from individual hosts renting a primary residence or space therein, and towards commercialization, whereby corporate entities are buying up what were once residential properties to list in the more lucrative STR market. The above picture of costs and benefits points to a market that is rife with tensions. Naturally, this reality has produced calls for regulation and government involvement, and in some cases, has even fuelled campaigns for all-out ban of the practice. As governments have stepped into the regulatory fold, however, they have faced significant challenges. This is because STR activity, different in composition and dynamics from that which plays out in traditional markets, pushes conventional policy boundaries, undermining in some cases the effectiveness of standard legal, regulatory, planning, and governance processes. Regulatory struggles can be attributed to three key factors. First, most conceptions of home sharing employed in the regulatory space treat the STR market as conventional and thus two-sided; that is, as encompassing interactions between those supplying the service (hosts) and those accessing it (guests). Such understandings fail to capture the involvement of additional players���digital STR platforms, most notably, but more recently professional property managers as well��� not to mention the nature, extent, and implications of their involvement. Importantly, STR platforms are more than passive facilitators of market activity, and not only influence the contours and dynamics of the market, but also actively shape the regulatory space. Second, attempts to regulate home sharing have been hampered by the widespread tendency, within both policy and academic circles, to treat the market as a monolith. Yet, an assessment of drivers of participation and dynamics among guests, hosts, and platforms makes manifest the complexity of the STR market and the diversity of activity that plays out within it. Notably, STR hosting spans a spectrum of activity, from low- or no-fee home sharing in the spirit of collaborative consumption, to renting a suite in a primary residence, to the commercial multi-hosting referenced above. Drivers of guest participation in the market are similarly diverse. Far from passive, platform involvement is shaped by the desire to create and benefit from network effects, and thus spans partnership development, bridging to distinct but related markets, and even the pursuit of socially minded or philanthropic endeavours. The above diversity suggests that one-size-fits-all approaches to management are destined to fail. Third, governments and policymakers have relied on traditional regulatory concepts and parlance, such as the notion of regulatory violation, to characterize various forms of STR market activity. However, in the case of platform-mediated home sharing, the concept of regulatory fractures���instances in which new modes of activity do not map well onto existing frameworks, thus disrupting regulatory effectiveness���is more apt. The conceptual frame of regulatory fractures enables one to uncover the tensions and complications that are produced when novel activity arises within the context of longstanding institutions and processes, and underscores the extent to which reimagined regulatory and policy approaches, tailored to the unique features of the STR market, are vital. Further, if not addressed, regulatory fractures will not only undercut the intent and effectiveness of regulation but will also curtail the potential benefits of home sharing activity. Going forward, successful management of the STR market will hinge on the ability of policymakers to confront the factors currently hindering the effectiveness of policy and regulatory approaches, namely an under-developed understanding of the STR market and its dynamics, and a continued use of tools ill-suited to novel economic activity. Fortunately, governments ready to innovate in the regulatory space and reimagine management strategies will learn that a number of less conventional approaches show promise. Among such emerging approaches is co-regulation, a tactic employed with success throughout the European Union in particular. Given their prominent role in the market, as well as their desire to influence regulation to maintain network dominance, platforms could make willing and effective partners in co-regulation, just as some other industries are entrusted with a degree of self-regulation. Though it would require the development of a robust framework to ensure effectiveness, co-regulation could help governments to overcome existing issues, such as those related to compliance and enforcement, while also enabling access to more comprehensive data, without which tailored policy and regulatory solutions are significantly hampered., The School of Public Policy Publications, Vol. 14 No. 1 (2021)

The extensive livestock production industries are vital to the national economy of Australia. Continuing improvements to extensively-raised livestock welfare is desirable, necessary and in some situations mandatory, if the social license for animal sourced food and fiber production is to continue sustainably. However, meeting increasingly high welfare standards is challenging. The changing climate in this millennium, has seen the occurrence of two of the most severe drought periods on record in Australia, resulting in complex welfare issues arising from unforeseen disease, trade and environmental catastrophes. The onset of the first drought coincided with an uncontrolled epidemic of ovine paratuberculosis. It ended just prior to a temporary ban on live export of tropical cattle to Indonesia that induced a major market failure and led to severe morbidity and mortality on some beef properties. The second drought period progressed in severity and culminated in the most extreme bushfires recorded, causing unprecedented levels of mortality, morbidity and suffering in farmed animals and wildlife. Temperature extremes have also caused periodic heat-associated or cold-induced hyopthermia losses, requiring increased vigilance and careful management to reduce both temperature-induced stress during transport and the high ovine peri-parturient losses traditionally observed in extensive sheep farming. Several issues remain controversial, including surgical mulesing of wool sheep to manage flystrike, and the continuing live export trade of sheep and cattle. However, in reviewing the increasingly complex welfare challenges for the extensive livestock population industries that are export trade dependent and remain vulnerable to welfare activism, it appears progress has been made. These include development of prescribed livestock welfare Standards and Guidelines and the introduction of the Exporter Supply Chain Assurance System (ESCAS) to address export concerns. Further, the sheep mulesing crisis led to improved producer welfare attitudes and practices, including pain management during aversive husbandry procedures that is now occurring globally. Finally, innovations in animal welfare surveillance and assessment, are additional encouraging signs that suggest improving change management of extensive farm animal welfare is occurring that provides lessons well-beyond Australian shores.

The regulated insurance exchanges set up in the Affordable Care Act (ACA) were designed to deliver affordable, efficient health coverage through private insurers. It is crucial to study the complex industrial organization (IO) of these exchanges in order to assess their impacts to date, during the first decade of the ACA, and in order to project their impacts going forward. We revisit the inherent market failures in health care markets that necessitate key ACA exchange regulations and investigate whether they have succeeded in their goals of expanding coverage, creating robust marketplaces, providing product variety, and generating innovation in health care delivery. We discuss empirical IO research to date and also highlight shortcomings in the existing research that can be addressed moving forward. We conclude with a discussion of IO research-based policy lessons for the ACA exchanges and, more generally, for managed competition of private insurance in health care.

The paper identifies a contradiction between data openness and economic value, possibly hiding a ‘market failure’ requiring a more active intervention from the public hand. Though the sheer quantity of data available for free usage is steadily increasing worldwide, its average quality usually stays well below the minimum threshold required for value creation. In contrast, there is now growing evidence that the use of data has enormous potential for the economy and society, including research and the progress of science. Unfortunately, useful datasets are usually locked in and when actually made accessible, suffer from the same limitations mentioned before. Maybe the time is ripe to undervalue the generalized disclosure of government data in favor of an appropriately incentivized and targeted creation of actionable bases of new IT applications. We present four cases touching upon the issues and potentials of service design, urban innovation, and data-related policies. We identify two possible ways of tackling the highlighted market failure: direct subsidies to government bodies or agencies engaged in disclosing their own datasets and keeping them clean and accessible over time or new regulations that establish more productive data ecosystems, rewarding knowledge creation rather than mere data ownership.

Despite their significant, growing contribution to global emissions, international aviation and shipping have avoided a significant climate governance response until recently. This paper outlines the urgent need for, but major barriers to, decarbonisation of these industries, including various market failures and sensitivities over restraining demand. The need and potential for international governance to address these issues is seen to vary across aviation and shipping, given different industry structures and characteristics. A range of relevant inter- and transnational governance institutions is highlighted and an assessment of their overall adequacy offered. With a 2018 commitment to significant emission reduction, maritime governance effort has progressed further, although significant implementation challenges remain. Meanwhile aviation-related commitments rely more on out-of-sector offsets. Options for enhancing governance for decarbonisation are outlined, highlighting the importance of, inter alia, coordination between the UNFCCC and sectoral bodies, mechanisms to finance R&D and incentivise investment, and openness in key decision-making fora.

Background Cryptococcal meningitis (CM) is estimated to cause 181 000 deaths annually, with the majority occurring in Sub-Saharan Africa. Flucytosine is recommended by the World Health Organization as part of the treatment for CM. Widespread use of flucytosine could reduce mortality in hospital by as much as 40% compared to the standard of care, yet due to market failure, quality-assured flucytosine remains unregistered and largely inaccessible throughout Africa. Methods The recently established South African flucytosine clinical access programme is an attempt to address the market failure that led to a lack of public sector access to flucytosine for CM, by making the medicine freely available to tertiary hospitals in South Africa. Results Between November 2018 and September 2019, 327 CM patients received flucytosine through this programme, with efforts to support sustainable national scale-up presently ongoing. We describe why this programme was needed, its catalytic potential, what is still required to ensure widespread access to flucytosine, and observations from this experience that may have wider relevance. Conclusions The South African flucytosine access programme illustrates how access programmes may be one part of the solution to addressing the vicious cycle of perceived low demand, limiting manufacturer interest in specific product markets.

Purpose The purpose of this study is to reveal the similarities and differences between the manufacturing and service industries in their prioritization of technologies and public research and development (R&D) roles, along with the complementation of properties of technology and public R&D role in the context of Fourth Industrial Revolution. Design/methodology/approach Two rounds of Delphi surveys were designed to meet the purpose of this study, which used rigorous triangulation techniques. The Delphi method was combined with the brainstorming method in the first-round Delphi survey, while the second-round Delphi survey focused on experts’ judgments. Finally, language network analysis was performed on the properties of technology and public R&D roles to complement the data analyses regarding prioritization. Findings This study identifies different prioritizations of five similar key technologies in each industry, so that it can note different technological impacts to the two industries in the Fourth Industrial Revolution. Smart factory technology is the first priority in the manufacturing industry, whereas artificial intelligence is the first priority in the service industry. The properties of the three common technologies: artificial intelligence, big data and Internet of things in both industries are summarized in hyper-intelligence on hyper-connectivity. Moreover, it is found that different technological priorities in the service and manufacturing industries require different approaches to public R&D roles, while public R&D roles cover market failure, system failure and government failure. The highest priority public R&D role for the service industry is the emphasis of non-R&D roles. Public R&D role to solve dy-functions, focus basic technologies and support challenging areas of R&D is prioritized at the highest for the manufacturing industry. Originality/value This study of the different prioritizations of technologies in the manufacturing and service industries offers practical lessons for executive officers, managers and policy-makers. They, by noting the different technological impacts in the manufacturing and service industries, can prepare for current actions and establish the priority of technology for R&D influencing the future paths of their industries in the context of the Fourth Industrial Revolution. While managers in the service industry should pay greater attention to the technological content of hyper-intelligence and hyper-connectivity, managers in the manufacturing industry should consider smart factory and robot technology.

We show that kidney exchange markets suffer from market failures whose remedy could increase transplants by 30 to 63 percent. First, we document that the market is fragmented and inefficient; most transplants are arranged by hospitals instead of national platforms. Second, we propose a model to show two sources of inefficiency: hospitals only partly internalize their patients’ benefits from exchange, and current platforms suboptimally reward hospitals for submitting patients and donors. Third, we calibrate a production function and show that individual hospitals operate below efficient scale. Eliminating this inefficiency requires either a mandate or a combination of new mechanisms and reimbursement reforms. (JEL D24, D47, I11)

The article presents results of a quantitative and qualitative survey based on opinions of small innovative companies’ directors aimed at impact assessment of the programs implemented by the Fund for Assistance to Innovations – the largest state organization in Russia that supports R&D at small innovative enterprises. The majority of respondents have expressed positive opinion regarding the Fund’s evolution both in terms of widening variety of program and internal processes that the Fund uses for monitoring and evaluation of projects. At the same time, respondents often criticized bureaucratic procedures adopted by the Fund. The authors conclude that activity of the Fund for Assistance has produced socio-economic effects that are at least as strong as those obtained in the course of implementation of foreign programs-analogous (in USA and Western Europe) and even outperforms them by a number of cases. In particular, the support provided by the Fund in 1990–2000s produced substantial socio-political effect by preventing emigration of entrepreneurs. In later years, the Fund started to focus on wider involvement of youth in innovative business. In fact, to some extent the Fund substitutes the underdeveloped commercial (venture and business-angel) funding of high-risk innovations in modern Russia. At the same time, the Fund supports, according to approximate estimates, only about 5% of the domestic high-tech companies and thus is not able to solve radically the main systemic problem hampering the development of small innovative business – deficit of customers of innovative products. As a result, even in the presence of highly efficient state management as it is at the Fund for Assistance, there is an overlay of «state failures» (strong bureaucracy) on «market failures» (weak venture funding).

Microfinance has become a popular and fashionable word in financial and development circles. In practice, the term was often used more narrowly to refer to loans and other services from providers that identify themselves as microfinance institution. Indeed, the concept of microfinance was not new in Ghana. Microfinance plays a very crucial role in the area ofaddressing the market failures with regard to the provision of financial services to the low-income customers who until recently were receiving little or no help from the conventional financial service providers. This study examines the impact of microfinance on the operations of small- and medium-scale industries in Ghana – focusing on Tafo area of Ashanti region. The study uses sampling size of 91 clients. Data were collected through questionnaire. The findings reveal that most of the microfinance clients take loans to expand their personal businesses. The study recommends an effective monitoring system to be put in place to correct the poor collection mechanism that is currently facing the firms. Keywords: Microfinance, small- and medium-sized enterprises, Tafo district

We present a theory in which deficiencies in risk management arise from a coordination failure. Firms choose privately optimal risk management regimes to be competitive in a market with shortlived trading opportunities but in aggregate can find themselves in a constrained inefficient “race to the bottom,” with their best responses to time pressure exhibiting strategic complementarities reminiscent of bank runs. Comparative statics based on global games suggest that greater market access or faster search (or trading) technologies may improve certain aspects of liquidity but at the same time generate excessive trading that undermines the allocative function of markets. We identify two sources of market failure operating through opportunity costs and agency rents, and discuss approaches to regulating risk management as a governance problem or as a public goods problem. ∗McGill University, Desautels Faculty of Management. E-mail: matthieu.bouvard@mcgill.ca †New York University, Stern School of Business, ECGI, and SIEPR. E-mail: slee@stern.nyu.edu.