Empirical Studies on Economics of Innovation, Public Economics and Management

Inhaltsverzeichnis

1. Frontmatter

2. Accounting & Finance

   1. Islamic Bonds and Real Estate Securitizations: The Italian Perspective for Issuing a Sukuk

      Giorgio Carlo Brugnoni, Paolo Gaspare Conforti Di Lorenzo, Raffaele Didonato, Enrico Giustiniani, Lorenzo Lentini, Massimo Mariani, Claudio Palandra, Fabrizio Petrucci, Antonio Salvi, Alessandra Tami

      Abstract

      The research looks at the possible advantages of which Italian companies and public entities could benefit looking at Islamic finance as a viable alternative to conventional finance, in a context characterized by a growing presence of Islamic citizens throughout Europe and Italy and by increasing interest in investing in Italy by Islamic investors. The research investigates the possibility for an Italian entity (corporate or sovereign) to issue a sukuk with a national real-estate underlying, under the current legal, fiscal and technical framework. The aim is to concretely contribute to the awareness about the opportunities that Islamic finance could bring with it and to promote fiscal, normative and regulatory obstacles removal, in order to create a level playing field—as the United Kingdom did—that would allow Islamic finance to develop also in Italy.

   2. The Role and Impact of Performance Audit in Public Governance

      Dalia Daujotaitė, Danutė Adomavičiūtė

      Abstract

      The paper analyses the impact of an important external control tool—performance audit in the area of public governance. This survey is based on the data on performance audits of the National Audit Office of Lithuania (NAOL). It is stated that the implementation of accepted recommendations consequently led to the improvement performance. The correction allows saving funds, decreasing expenses, improving performance quality, and strengthening management, administration, and organizational processes and improving legislation, introducing financial discipline. It is the performance audit recommendations that can significantly affect the organization and the functioning of the political and administrative apparatus. There is also presented the performance audit model, which novelty stems from its ability to demonstrate the correlation links between the principal concepts of the performance audit, levels of management and external environment. The basis for the model is represented by production processes of public activities that consume resources and/or production factors in order to produce products or services. The cost effect is created through the outcomes of the three elements—economy, effectiveness, and efficiency.

   3. Business Performance Assessment in the Customs Administrations Activity and Trade Facilitation Measures

      Danutė Adomavičiūtė, Dalia Daujotaitė

      Abstract

      Nowadays customs underlines the importance of investment as a means of making a considerable contribution to economic development and the protection of society from security threats. Customs administrations are implementing trade facilitation measures and began assessing the activities of the business companies, pursuing to contract the status of the authorized economic operator. In order to capture the overall view and variations on customs’ capacities the need of the exploration of business performance appeared. Trade costs are growing in the value chain at every stage, when goods crossed state’s borders multiple times. Reviewing the empirical literature of business performance assessment issues, it can be said that emphasize different researches aspects. This paper analyses the role of customs administrations to secure and facilitate legitimate trade in international supply chain and seeks to encourage a debate to consider the fundamental elements of business performance measurement systems.

   4. The Determinants of Lending to Customers: Evidence from Italy Between 2008 and 2012

      Franco Tutino, Giorgio Carlo Brugnoni, Concetta Colasimone, Luca Riccetti

      Abstract

      Over the period between 2008 and 2012 the loans to customers trend, the quality deterioration of the loans to customers portfolios and the interest return on the lending to customers activity showed in Italy relevant heterogeneities by bank size and by juridical connotation. This paper, based on financial statements data between 2008 and 2012 from about 500 Italian banks, adopts a panel data analysis to investigate if the heterogeneities showed in the loans to customers trend, in the quality deterioration of the loans to customers portfolios and in the interest return on the lending to customers activity are effectively significant and to what extent they could be explained by the differences that could be identified in the main features of the intermediation model adopted by banks. Moreover, this paper investigates the existing relationship between the loans to customers development and the credit quality deterioration and to what extent they both contribute to affect the economic return of the lending to customers activity.

   5. Possibilities of Exotic Options Application in the Pro-ecological Investments Efficiency Assessment

      Dziawgo Ewa

      Abstract

      Environmental degradation is a global problem of modern civilisation. It is a challenge to contemporary enterprises to combine economic benefits and social responsibility with pro-environmental activities. Traditional methods of evaluation of investment projects may result in undervaluing some of the analysed pro-environmental projects. Hence, there is a need for new methods of investment project assessment which would enable active project management. The method of analysing real innovation enables valuation of flexibility embedded in a project. This is of particular importance in assessing pro-ecological projects. Some types of financial option and models of their valuation can facilitate pro-environmental management of the company value. This paper presents selected types of financial exotic-flexible options and models of their valuation. Their application can make it significantly easier to manage the pro-environmental investment projects of a company. The aim of the study is to present the possibility of transferring financial option pricing models of to the area of pro-ecological investment projects. This is of key importance in investments management.

   6. Weather Derivatives: Another Need for India

      Nidhi Choudhary, Girish K. Nair

      Abstract

      The weather derivatives are comparatively new instruments which were launched only in 1997 for the first time in USA. The instrument since then has developed huge market in USA and Europe. This paper is an attempt to understand the working of the instrument and then conclude if the instrument is a good product for India. The need analysis of weather derivatives in India will be done as per the three sectors of the Indian Economy, namely Primary or the agriculture and allied activities sector, secondary or the manufacturing sector and tertiary or the service sector. The analysis will be done in terms of threat faced by these sectors from uncertain weather in India and how can weather derivatives help in controlling the loss in this condition. The paper is an analysis of sectoral need of weather derivatives. The paper will also discuss the major challenges which Indian economy can face while introducing weather derivatives.

3. Economics of Innovation

   1. Frontmatter

   2. Global Competitiveness of World Superpowers: Education, Talents and Innovations

      Antanas Buracas, Vytas Navickas

      Abstract

      The study below evaluates the impact of knowledge determinants on global competitiveness of the USA, Japan, China and India based on multiple criteria assessment methodology and their empirical evaluation. The indices for complex evaluations are determined mostly by the global education and innovation parameters published in the international comparisons. Their comparative assessment promotes the effective resource distribution and investment policy both in education and innovative business. It is important to discuss the reliability of criteria determining the impact of abilities, talents and productive innovations development on the economic competitiveness. The multiple criteria evaluation is focused on the education and innovation interdependencies with global output determinants as well as other criterial systems used for the education and innovation strategies and their comparative evaluations.

   3. Energy Security: Is It a Strategic Cause of Conflicts or Peace Among States/Actors in the Global Nexus?

      Pantelis Sklias, Spyros Roukanas, Floros Flouros

      Abstract

      The aim of this article is to study certain aspects related to energy security, which is of great importance globally. A number of conceptual frameworks regarding the issue of energy security are examined to understand the relationships between relevant parameters and then to investigate their implications for the national security of countries in the Eastern Mediterranean region under the broader consideration of the international political economy. Megatrends are major, transformative forces that affect the global future. They have a far-reaching impact on economies, industries, societies and individuals. Today’s world is in constant motion and goods, capital and labor are moving globally at a faster pace than ever, with overall energy-related issues becoming increasingly important for societies and states. Economic power is continuing to shift eastwards and it is thus of considerable interest to study energy security in the broader area of the Eastern Mediterranean and its effect on the national security of the countries located in the region. Research needs to examine whether energy security is a threat to the national security of such countries and/or an opportunity for them. In this study, the theory of economic nationalism is employed for the analysis as it emphasizes the primary importance of the state and national security, whereas realism is essentially a political ideology and mercantilism is an economic one.

   4. The Organizational Cyberspace: E-trainerism. The Model of Advanced ICT and Augmented Reality in Sports Enterprises

      Wojciech Cieśliński, Kazimierz Witkowski, Zbigniew Piepiora, Paweł Piepiora

      Abstract

      The aim of the study is to verify the theoretical basis of advanced ICT and Augmented Reality in the organizational development and sports clubs to improve their sports performance. The methodology of the article is based on setting the computer designed system. The study includes the preparation and implementation of a system to manage a sports club and augmented reality technologies in the improvement of sports training system remotely and in real time. After conducted analysis, the following conclusions can be drawn. The use of ICT and AR enables the implementation of mechanisms of organizational learning of sports enterprises (process of collecting, diffusing and sharing the knowledge in the organization in terms of cyber, using the model of negative feedback). An important contribution of described results of research and implementation projects is the development of knowledge concerning the area of research. It is the implementation based on the process approach and organizational learning in the field of management tasks and the tasks of sports training through applications of technologically advanced information systems that improve the organizational effectiveness of sports clubs and the effectiveness of sports training.

4. Management & Marketing

   1. Unexpected Industries with Consumer Power

      Renata Beata Dylkiewicz, Paulina Katarzyna Dylkiewicz

      Abstract

      The contemporary business structures are shaped by various economic indicators and highly influenced by dominating industries. It can be clearly indicated that there is an evident difference between industries being more required by the customers, having more power over them, and thereby involving more capital investments and more capital gains. While certain industries satisfy the basic needs of customers and are naturally on the growth due to particular business and economic circumstances, there are other industries that can be viewed as less powerful and less needed. These are the line businesses that are often seen as those that do not serve the most sufficient needs of customer groups. Despite the fact that the products produced in those fields are not the key needed products, there is a lot of consumer power and thereby spending involved. This article aims to analyze what are the industries that are growing and gaining more of the spending from the increasing disposable incomes of consumers in Asia, as compared to European consumers.

   2. Brand Meanings in the Context of Luxury Fashion: A Projective Study in China

      Sonja Lahtinen, Pekka Tuominen

      Abstract

      The purpose of this study is to describe and analyze brand meanings in the context of luxury fashion among young Chinese women. The theoretical framework for this study is built from two streams of literature. The first part elucidates the concept of luxury and further introduces the three dimensions of luxury brands based on previous research: the functional, the experiential and the symbolic. In the second part semiotics is applied to explain the structure of brand meanings, and the model of interactive transfer among three elements—the culture, the brand and the individual—is introduced to demonstrate how these brand meanings are co-created in the marketplace. The qualitative data was generated through the projective Zaltman Metaphor Elicitation Technique (later ZMET) in China. Based on the various and heterogeneous brand meanings that respondents associated with luxury fashion brands, eight meaning orientations were formed, which organize respondents’ beliefs and emotions towards the luxury fashion brands. The interpretive repertoire of Chinese respondents extends the meanings far beyond the ones that brands have created by themselves and those that have been recognized by prior research. This shows considerable sophistication and dedication from the consumers in the interpretation and co-creation of brand meanings. The findings may assist brand managers in developing global brand strategies that are sensitive to local differences and focus on creating personally meaningful brand experiences.

   3. Environmental Decision Support Systems: A Literature Review

      Faten F. Kharbat, Jehan A. Abo Sultan

      Abstract

      A large amount of decision support systems for different management areas exist. Literature on decision systems supporting environmental management in particular is relatively limited. Given this evolving research field, the goal and purpose of this paper is to explore the scientific research in international scientific journals that focus on decision support systems for environmental management. In this paper, a brief review was conducted to recent publications in some of the respected journals and conferences. Published scientific research from 2010 to 2015 is reviewed based on the following: (i) what are the main components used in the decision support system, and (ii) how environmental support systems are integrating with other techniques and methods to optimize the needed solutions. The DSS tools and components play a great role in solving the complexity problem of the eco-system and in the environment. According to our review, researchers found that environmental problems have common characteristics. EDSS, also, has been used in different fields. A further critical analysis should be completed and gaps in the current literature are to be identified in the future to identify improvements for such systems and possible future directions.

   4. Are You Really Influencing Your Customers?: A Black-Friday Analysis

      Camelia Delcea, Elsabeta Ioanas, Ramona Paun

      Abstract

      The concept of Black Friday appeared more than 50 years ago and is known as an American holiday retail and in time it has crossed the borders of US and was been widely adopted by other countries from all over the world. For this, the present paper aims to analyze some qualitative aspects related to the consumers’ behavior and the Black Friday promotions, such as: what are the most purchased products, what are the most preferred brands, to whom are bought these products, what is the average budget, what is the allocated time, the post-sale consumer satisfaction, etc. Moreover, the paper uses a questionnaire for determining the impact that Black Friday has on the consumers’ future opinion over the different brands and how the companies’ advertisements and campaigns on online social net-works can change the consumers’ behavior in this day. In addition, the grey systems theory, a newly developed theory in the field of artificial intelligence, was used in order to shape the relationship among the considered variables which are influencing the consumers’ behavior on Black Friday.

5. Growth & Development

   1. Institutional Clusters and FDI Flows to the MENA Region

      Wasseem Mina

      Abstract

      The empirical literature on the institutions-FDI nexus has treated the influence of institutions individually despite the correlation among them. This is a conceptual shortcoming. To overcome this limitation, we cluster institutions using Principal Component Analysis (PCA). We apply PCA to ICRG institutions for 17 Middle East and North Africa countries during the period 1984–2011. Three institutional clusters have been extracted: stability and order, quality of public administration, and presence of democratic systems. Using feasible generalized least squares estimation methodology, estimates show that stability and order and the presence of a democratic system have a positive influence on FDI flows, while the quality of public administration has a surprisingly negative influence.

   2. TFP and Possibility of Convergence in OECD Countries: The 2000–2012 Period

      Aziz Kutlar, Ali Kabasakal, Ahmet Gulmez

      Abstract

      This study discusses efficiency, productivity, and the existence of convergence in 34 OECD countries between 2000 and 2012. Physical capital per worker and human capital per worker are used as inputs to determine total factor productivity while gross domestic product per worker is used as the output. Analysis of productivity by using the Malmquist Index indicates that productivity was positive but increased less than 1% at the end of the period. Panel regression estimation is used for standard deviations of convergence and to determine beta convergence. However, the convergence effect of Total Factor Productivity values could not be determined. Similar results are reported for Sigma convergence.

   3. Estimating the Value of the Honolulu Rail Transit Project: A Semiparametric Analysis of Property Values on Oahu, HI

      Peiyong Yu, Jason Levy

      Abstract

      This study assesses the impact of proximity to the Honolulu Rail Transit (HRT) on the single-family and condo values on Oahu, Hawaii. The data includes more than 32,000 single family homes and 47,000 condos between 2006 and 2015. In this paper, when semiparametric model using too large bandwidth, the results are not as rigorous as the fixed effects model with 130 controlled groups. The results indicate that after the ground-breaking event for HRT, the island-wide single family housing prices increase by 4%, but the condo values decrease by 4%; there are very slight positive distance spillover effects for single family housing market: houses located one mile closer to the HRT areas, the housing prices increase by 0.6%, however, this slight positive impact is at the costs of local housing values: for homes located within a 0.5 mile radius of the future HRT line, their values drop by 7.1%, for homes located between a 0.5 and 1 mile radius of the future HRT line, their values drop by 4.1%, and for homes located between a 1 and 2 mile radius of the future HRT line, their values drop by 2.1%. These negative local effects disappear after the 2 mile radius distance.

6. Public Economics

   1. Frontmatter

   2. Solving the Cost Crisis in Healthcare: Can Poland Learn from the Kaplan and Porter’s Model?

      Monika Raulinajtys-Grzybek, Gertruda Krystyna Świderska

      Abstract

      Recent publications by authors of Activity-Based Costing indicate that the cost analysis of the cycle of care is essential to reduce the growth in healthcare spending. Analysis of current situation in Poland reveals that the limit for the implementation of such solutions is the current organization of the Polish healthcare system. The aim of the article is to present the approach to calculating and controlling costs of health services used currently in Poland. This concept has been critically analyzed against the solution presented for the US health market. Analysis of primary and secondary sources describing organization of the Polish healthcare system has been conducted. Polish costing model is based on the Activity-Based Costing method. Contrary to the Kaplan and Porter’s proposal, the cost calculation is conducted separately in each area of healthcare, currently mainly in relation to inpatient services. The comprehensive approach to the cost calculation of the cycle of care is not present, which results from a long-lasting division into autonomous sectors in healthcare.

   3. The Efficiency of the Low Water Retention in the Area of Poland: Chosen Aspects

      Zbigniew Piepiora, Marian Kachniarz, Arkadiusz Babczuk

      Abstract

      In 1997 and 2010, two great floods occurred in the area of Poland. In the year 2015, the area of Poland was affected by extreme temperature. In the time of global warming, the low water retention should play the significant role. Thus, the aim of this article is to verify the efficiency of the low water retention in Poland. The methodology consists of two parts: data collection and data analysis. The data were collected from two databases: the EM-DAT and the BDL-GUS. After the analysis, conclusions were drawn. The hypothesis of the article was verified negatively: the efficiency of the low water retention in Poland did not better after the great flood in the year 2010. The average cost of 1 m³ capacity in the period 2003–2009 exceeded US$10 and in the period 2010–2014—US$21. In the case of man-made reservoirs, fish ponds and staging lakes, the situation is similar—the average costs increased.

   4. The Management and Economics of a Life-Threatening Invasive Species in Hawaii

      Jason Levy, Peiyong Yu

      Abstract

      While many of Hawai‘i’s native terrestrial ecosystems have been heavily impacted by human activities, invasive species continue to pose one of the greatest threats to the health of Hawaii’s native forests and watersheds. Falcataria moluccana (F. moluccana) removal and reforestation with native species can enhance watershed integrity, improve habitat for native species, and generate sustainable ecosystem services and forest products. Public cost-sharing and tax incentives are valuable strategies to encourage private landowners to invest in long-term F. moluccana management and reforestation. The characteristics of real estate properties affected by the highly invasive F. moluccana are examined in depth. Key sections of the Puna zone of Hawaii Island (Big Island) are graphically displayed and statistically analyzed based on property and land characteristics. The fraction of properties affected by F. moluccana receiving a homeowner exemption, the value of buildings and land on properties affected by F. moluccana and the number of property uses in each section (PITT codes for tax purposes) are provided.

   5. The Change of Structures or Institutions? Views on the Methods for the Elimination of Territorial Division Dysfunctions

      Marian Kachniarz, Arkadiusz Babczuk, Zbigniew Piepiora

      Abstract

      The article pursues three research objectives. The first one refers to the presentation of theoretical arguments supporting units’ consolidation and the review of global ex post experiences in achieving the expected results of such reforms. The second goal consists in presenting the authors’ recommendations regarding the elimination of territorial division dysfunctions. The article draws attention to the fact that changing the rules of local authorities’ functioning can bring more effective results. Despite inexplicit results of empirical analyses, consolidation still remains the leading trend of local government reforms. It is determined by political considerations, since it is easier to carry out a consolidation reform rather than take up laborious efforts in order to create institutional changes within units.

   6. The Effect of Employment Status on Life Satisfaction in Europe

      Mehmet Fatih Aysan, Ummugulsum Aysan

      Abstract

      There has been a growing interest in the concept of happiness in economics, psychology, and sociology. The effect of employment status on life satisfaction has been of particular interest in the empirical research of economics. A substantial body of literature shows that unemployment is associated with lower levels of happiness conceptualized as life satisfaction. This paper investigates life satisfaction levels in three dimensions of life—social and demographic characteristics, social inequality, and employment—using the third wave of the European Quality of Life Survey (EQLS) conducted in 2011. Multiple regression results are consistent with that of previous literature. Even when the financial situation and other individual characteristics are held constant, unemployment reduces people’s life satisfaction. The final model shows that the impact of social exclusion, deprivation, and financial differences on life satisfaction proves to be higher than the impacts of education level, marital status, age, and employment status. Hence, welfare state policies affecting social inequalities and labor market have significant effects on life satisfaction.

   7. Promoting Green Urbanism and Disaster Resilience in the Anthropocene: From Invasive to Community in Kakaako, Oahu

      Jason Levy, Joey Valenti, Peiyong Yu

      Abstract

      As the most isolated land mass on earth, the Island of Hawaii has become heavily dependent on imports in the current era of globalization. This paper addresses major challenges facing the island chain of Hawaii including the current housing crisis and the disaster risks posed by climate change and invasive trees. This study assesses the viability of using scavenged albizia to promote green urbanism and disaster resilience in Hawaii. Kaka’ako, a commercial and retail district of Honolulu (situated along the southern shores of the island of O’ahu, Hawaii) is used as a case study. Local and practical solutions including green urbanism and technologic innovations such as Computer Numerical Control (CNC) are emphasized. This paper emphasizes local employment and University of Hawaii based technology, thereby minimizing the use of builders from outside the state. Innovative design strategies are herein proposed to overcome this dependency on imports and help the state of Hawaii to achieve long-term resilience and sustainability. Advances in ecological economics and multiple criteria decision analysis yield the following outcomes for the three decision alternatives: Status Quo/Disposal (0.14), Biofuel (0.39) and Manufacturing (0.37).

   8. Econometric Estimation of the Quality and the Efficiency of Social Services for Children Deprived of Parental Care

      Toshko Petrov, Plamena Markova

      Abstract

      The study aims at developing and testing a methodology suitable for practical application, allowing to carry out a socio-economic assessment of the quality and efficiency of the provision of social services for children deprived of parental care by means of use of a combination of econometric and sociological methods. The study’s subject is to establish a criteria system containing 185 indicators based on held series studies. The subjects of the study are several focus groups involving experts and users of services (children and families) in northeastern Bulgaria. The study methodology involves a sociological survey of various types of social services in the mentioned region, and the application of econometric methods—DEA and regression analysis. The survey has resulted in a developed methodology and performed assessment of the quality and efficiency of social services provided to the said target groups in northeastern Bulgaria. Formulated are conclusions about the comparative effectiveness of different types of social services and recommendations are outlined concerning the priorities for future social policy in the field of development of social services for children deprived of parental care.