Research Reports and Working Papers

Nyligen publicerat

  • Kachali, Hlekiwe; Storsjö, Isabell (Hanken School of Economics Department of Marketing, HUMLOG Institute, 2017-12-20)
    Generally, policies dealing with public procurement, innovation or preparedness are worked on and crafted separately. However, looking ahead to and planning for potential crises Finland might face necessitates the consideration of procuring innovative solutions to challenging problems. Nevertheless, for public authorities, investment in preparedness is a balance between serving the current needs of the community, reducing disaster risk, and also looking ahead to what the future needs might be and being ready for those needs. Public authorities must deal with uncertainty and simultaneously take a long-term view, while using public money efficiently and effectively. In Finland, the National Emergency Supply Agency (NESA) collaborates with public and private organisations to facilitate preparedness activities. This type of association is a step to civil preparedness through policy intervention, such as through the use of innovation oriented public procurement. Preparedness is however everybody’s business; both public and private enterprise. The private sector can take on a more expansive role as part of civil preparedness through their own investments and in partnership with public authorities. This report is intended for those with an interest in the different aspects of public procurement, innovation, preparedness, supply chains and public-private partnerships, as well as scholars working in these areas. The challenges listed herein can be used to inform those who work with the public procurement process while the recommendations are useful for those who look to develop this space. Our investigation sought to bridge the divide between policy and existing practice, as well as how it can be improved. We brought together information from various entities, mainly from Finland, with an interest in this larger subject area. Contributions were made by subject matter experts, industry representatives, public administration officers, practitioners and scholars. We distilled the information gathered and brought to light the challenges and hindrances, and then looked ahead by offering recommendations.
  • Lehtonen, Jukka; Hyvönen, Henri; Heikkinen, Suvi; Jyrkinen, Marjut; Kangas, Emilia; Lähdesmäki, Merja; Niemistö, Charlotta; Suutari, Timo (Hanken School of Economics, 2017-03-31)
    WeAll-tutkimushankkeessa analysoidaan työelämän tasa-arvokysymyksiä ja pyritään selvittämään intersektionaalista näkökulmaa hyödyntäen moninaisten ihmisten asemaa työelämässä (Yhteiskunnallisesti ja taloudellisesti kestävä tulevaisuuden työelämä: Politiikat ja toimintakäytännöt, tasa-arvo ja risteävät erot Suomessa, weallfinland.fi). WeAll-tutkimuskonsortio on Suomen Akatemia Strategisen rahoitusohjelman rahoittama (2015–2020, hankenumero 292883). WeAll-hankkeen kahdeksan tutkijaa kokosi laajan media-aineiston (2555 artikkelia) kahdeksasta mediasta (Helsingin Sanomat, Turun Sanomat, Maaseudun Tulevaisuus, YLE:n verkkouutiset, Hufvudstadsbladet, Kainuun Sanomat, Ilkka, Tekniikka&Talous). Tässä raportissa kuvataan, miten aineisto kerättiin ja millaista aineisto on sekä miten sitä voi hyödyntää jatkossa laadullisissa tutkimuksissa. Aineistoa kerättiin WeAll-hankkeen näkökulmasta merkityksellisistä tasa-arvoon ja yhdenvertaisuuteen liittyvistä työelämä- ja koulutusteemoista. Näiden teemojen osalta tallennettiin tietoja artikkeleissa esiintyvistä eronteoista, jotka on mainittu yhdenvertaisuus- tai tasa-arvolainsäädännössä tai ovat muuten merkittäviä, kuten sosioekonomiset ja alueelliset erot. Lisäksi tallennettiin tietoja esimerkiksi kuvituksesta, tekstien kirjoittajien sukupuolesta, teksteissä esiintyvistä toimijoista ja juttutyypeistä. Tallennustietoja analysoimalla voi paitsi esittää alustavaa analyysia siitä, miten työelämän ja koulutuksen tasa-arvokysymyksiä käsitellään suomalaisessa mediassa, myös koota mielekkään aineiston jatkotutkimusta ajatellen. Media-aineiston alustava määrällinen analyysi osoittaa, että median työelämän ja koulutuksen tasa-arvokysymysten käsittely vaihtelee medioittain ja sisältää monia sukupuolittuneita ja muihin eroihin liittyviä piirteitä. Median työelämä- ja koulutusaiheiden osalta varsinkin sosioekonomiset erot olivat usein esillä, kun taas monia vähemmistöryhmiä käsiteltiin niissä harvoin. Vaikka tekstien kirjoittajista enemmistö oli naisia, työelämää ja koulutusta käsittelevissä jutuissa korostuivat miesten kuvat. Sen sijaan vähemmistöjen esiintyminen kuvituksessa oli vähäistä. Yhteiskunnasta tuttu sukupuolen mukainen jaottelu näkyi juttujen kuvituksessa sekä nais- ja miestoimittajien aihevalinnoissa. Tyypillisiä hahmoja työelämäaiheiden kuvituksessa olivat keskeiset miespoliitikot, miesjohtajat ja miestutkijat. Naiset kirjoittivat selvästi miehiä useammin esimerkiksi perheen ja työn yhteensovittamisesta sekä ”tavallisista ihmisistä”, kun miehille suhteellisen tyypillisiä aiheita olivat asevelvollisuus, etuudet ja johtajat. Forskningsprojektet WeAll analyserar jämställdhetsfrågor inom arbetslivet och strävar efter att belysa den intersektionella aspekten genom att ta fasta på många olika slags människors situation inom arbetslivet (Ett framtida socialt och ekonomiskt hållbart arbetsliv: politik och handling, jämlikhet och intersektionella skillnader i Finland, weallfinland.fi). Forskningskonsortiet WeAll är finansierat av Rådet för strategisk forskning vid Finlands Akademi (2015–2020, projektnummer 292883). Åtta forskare vid WeAll-projektet samlade en stor mängd material (2555 artiklar) från åtta olika medier (Helsingin Sanomat, Turun Sanomat, Maaseudun Tulevaisuus, YLE-nyheter på nätet, Hufvudstadsbladet, Kainuun Sanomat, Ilkka, Tekniikka&Talous). Rapporten redogör för hur materialet samlades och vad materialet består av, och hur man i fortsättningen kan dra nytta av det i kvalitativa undersökningar. Det samlade materialet rör ämnesområdet jämställdhet och likabehandling inom arbetsliv och utbildning som ur WeAll-projektets synpunkt är ett betydande temaområde. Sedan lagrades informationen från berörda artiklar avseende åtskillnader föreskrivna i lag om likabehandling och i lag om jämställdhet, eller avseende andra väsentliga åtskillnader såsom socioekonomiska och regionala skillnader. Dessutom lagrades data beträffande bildval, kön på artikelförfattarna samt personer och ämnen som förekom i texterna. Genom att analysera de samlade data kan man förutom att presentera en preliminär analys om hur jämställdhetsfrågor inom arbetsliv och utbildning behandlas i finska medier även lagra viktiga data med tanke på fortsatt forskning. Den preliminära kvantitativa analysen av mediematerialet visar att behandling av jämställdhetsfrågor inom arbetsliv och utbildning varierar beroende på media och innehåller flera inslag av könsskillnader och andra åtskillnader. Vad gäller artiklar om arbetsliv och utbildning var de socioekonomiska skillnaderna särskilt ofta framträdande men vad gäller många minoritetsgrupper berördes dessa sällan. Trots att majoriteten av artikelförfattarna var kvinnor förekom ofta bilder på män i artiklar som handlade om arbetsliv och utbildning. Däremot var bilder på minoriteter i minsta laget. I samhället så vanligt förekommande könsindelning kom fram även vid bildval i artiklar skrivna av både kvinnliga och manliga journalister. Centrala personer på artikelbilder med arbetslivet som tema var ledande manliga politiker, manliga chefer och manliga forskare. Kvinnliga journalister skrev klart oftare än manliga kollegor om hur man får familj och arbete att gå ihop samt om ”vanliga människor” när det för manliga journalister relativt typiska teman var värnplikt, förmåner och ledare. The purpose of the WeAll research project is to analyse equality at work and to identify the position of diverse people in the workplace through an intersectional lens (Social and Economic Sustainability of Future Working life: Policies, Equalities and Intersectionalities in Finland, weallfinland.fi). The project is funded by the Strategic Research Council (SRC) at the Academy of Finland (2015–2020, project number 292883). Eight members of the WeAll research team collected an extensive pool of material (2,555 articles) from eight media outlets (Helsingin Sanomat, Turun Sanomat, Maaseudun Tulevaisuus, Yle News website, Hufvudstadsbladet, Kainuun Sanomat, Ilkka, Tekniikka&Talous). This report describes the material, how it was collected, and how it can be later used in qualitative research. The collected material deals with equality and equity at work and in education in a way that is relevant from the WeAll project’s point of view. The research team combed the articles for occurrences of differentiation with regard to those mentioned in equality legislation or that are otherwise significant, such as socio-economic and regional differences. The team also collected data on, for example, the images used to illustrate the articles, the writer’s gender, the actors represented in the texts, and article types. Analysing the data provides not only a preliminary view of how equality issues related to working life and education are handled in the Finnish media but also a meaningful pool of material for further research. A preliminary quantitative analysis of the material indicates that the way the media handles equality issues related to working life and education varies from one media outlet to another and contains several characteristics related to gender and other types of differentiation. Socio-economic differences, in particular, featured often in articles about working life and education, whereas many minority groups were rarely mentioned. Even though the majority of the writers were women, articles about working life and education were more often illustrated with images of men. Minorities, on the other hand, seldom featured in the illustrations. The gender division prevalent in the society could be seen in the way the articles were illustrated and in the topics women and men chose to write about. Persons most often used to illustrate articles about working life included prominent male politicians, leaders, and scholars. Women wrote considerably more often about, for example, work–family balance and “ordinary people” than men, while relatively typical topics for men were military service, benefits, and leadership.
  • Catani, Paul; Ahlgren, Niklas (Hanken School of Economics, 2016-06-15)
    In this paper we propose a combined Lagrange multiplier (LM) test for autoregressive conditional heteroskedastic (ARCH) errors in vector autoregressive (VAR) models by following a suggestion in Dufour et al. (2010) of replacing an exact Monte Carlo (MC) test by a bootstrap MC test when the model includes lags. The test circumvents the problem of high dimensionality in multivariate tests for ARCH in VAR models. It is computationally simple since it only requires computing univariate statistics. The bootstrap MC test is shown to be asymptotically exact. Monte Carlo simulations show that the test has good finite-sample properties. The test is robust against a non-normal error distribution, while other multivariate LM tests for ARCH suffer from size distortion. We present two financial applications of multivariate LM tests for ARCH to credit default swap (CDS) prices and Euribor interest rates. The results indicate that the errors are skewed and heavy-tailed, and that there are significant ARCH effects.
  • Gummerus, Johanna; Koskull von, Catharina (Hanken School of Economics, 2015-09-15)
  • Hearn, Jeff; Lämsä, Anna-Maija; Biese, Ingrid; Heikkinen, Suvi; Louvrier, Jonna; Niemistö, Charlotta; Kangas, Emilia; Koskinen, Paula; Jyrkinen, Marjut; Gustavsson, Malin; Hirvonen, Petri (Hanken School of Economics, 2015-06-02)
    This is the final report of the NaisUrat research and development project (1.2.2013–31.1.2015). The project’s main themes were to promote women’s careers, including increasing the number of women in top positions (recognizing the challenges and possibilities); further enhance gender equality in the workplace, with special attention to the challenges of combining work and family; and make gendered structures visible, as well as facilitating change. This report presents the development work the eight participating organizations conducted during the project, as well as the practices for furthering gender equality and women’s careers that they developed and implemented. The report also contains research results based on the research conducted during the project, along with a discussion of the challenges and possibilities of gender equality projects and initiatives in general.
  • Hearn, Jeff; Lämsä, Anna-Maija; Biese, Ingrid; Heikkinen, Suvi; Louvrier, Jonna; Niemistö, Charlotta; Kangas, Emilia; Koskinen, Paula; Jyrkinen, Marjut; Gustavsson, Malin; Hirvonen, Petri (Hanken School of Economics, 2015-01-08)
    This is the final report of the NaisUrat research and development project (1.2.2013−31.1.2015). The project’s main themes were to promote women’s careers, including increasing the number of women in top positions (recognizing the challenges and possibilities); further enhance gender equality in the workplace, with special attention to the challenges of combining work and family; and make gendered structures visible, as well as facilitating change. This report presents the development work the eight participating organizations conducted during the project, as well as the practices for furthering gender equality and women’s careers that they developed and implemented. The report also contains research results based on the research conducted during the project, along with a discussion of the challenges and possibilities of gender equality projects and initiatives in general.
  • Virén, Matti (Hanken School of Economics, 2014-11-05)
    Den här studien undersöker allmännyttiga samfund och i synnerhet privata stiftelser i Finland. Frågan är hur relationen mellan dessa organisationer och den offentliga sektorn skall organiseras. Ytterst handlar det om utformningen av beskattningsreglerna och transfereringssystemet (mera konkret offentliga understöd till stiftelserna). Som en viktig bakgrundsfaktor har vi arbetsfördelningen mellan den offentliga sektorn och den så kallade tredje sektorn; borde vi främja eller dämpa den tredje sektorns tillväxt? En oundviklig fråga är hur långt den offentliga sektorn skall gå i att stöda den icke-vinstsyftande sektorn i form av direkta stöd eller skattestöd. Den här forskningsrapporten presenterar grundläggande fakta gällande allmännyttiga samfund, speciellt med hänseende till deras ekonomi och med hänseende till den lagstiftning som är relaterad till deras ekonomi. Rapporten innehåller också en litteraturgenomgång vars syfte är att belysa hur beskattningsfrågan borde lösas i ett sådant här fall. Av uppenbara orsaker betonas internationella jämförelser och erfarenheter i genomgången. Som en röd tråd genom analysen går tanken att den offentliga sektorns roll och ansvar borde begränsas i framtiden. Detta innebär igen att den icke-vinstsyftande sektorns tillväxt måste begränsas speciellt i de fall då tillväxten är helt beroende av den offentliga sektorns stöd utan aktivt deltagande av privata medborgare och företag. En mera kritisk linje borde tillämpas i de fall då de allmännyttiga samfunden snedvrider konkurrensen inom de branscher där de opererar. Ett idealiskt arrangemang vore att de allmännyttiga samfunden kunde finansiera sin verksamhet utan direkt stöd från den offentliga sektorn. Den offentliga sektorn kunde understöda de allmännyttiga samfunden i form av skattelättnader för gåvor och donationer från den privata sektorn. I sådana fall där organisationen inte får stöd från privata medborgare (eller företag) skulle organisationen inte heller få offentliga understöd. Donationer och stöd till allmännyttiga samfund kunde vara avdragbara upp till en viss gräns i beskattningen för privata medborgare. En dylik skattelättnad vore möjlig endast om det offentliga stödet skulle minska med åtminstone samma belopp. En grundprincip i det här nya systemet är att samma regler tillämpas för alla allmännyttiga samfund. Den kontroversiella frågan gällande allmännyttiga samfund gäller beskattningen av kapitalinkomster. Även om beskattningen kan motiveras med hänvisning till fiskala skäl drar den här studien slutsatsen att de negativa effekterna av en kapitalinkomstbeskattning av allmännyttiga samfund är större än den fiskala nyttan. Därmed kan man konstatera att en beskattning av kapitalinkomsterna för dessa organisationer inte är att rekommendera under nuvarande omständigheter. I framtiden kommer Finlands ekonomi att behöva högre kapitalackumulering och den privata sektorn måste ta en större roll för att finansiera vetenskap och kultur. De privata stiftelserna spelar en nyckelroll i detta avseende.
  • Galkina, Tamara; Kock, Sören (Hanken School of Economics, 2014-10-17)
    As a growing market, Russia holds great economic interest and potential opportunities for international companies, especially Finnish SMEs. Due to their geographic proximity, Russia and Finland have a long history of established business and trade relations. Finland’s major economic institutions were formed during the period when the country was under Russian rule. Also, the two countries had bilateral trade relations for approximately forty years. Nowadays, Russia is acknowledged as one of Finland’s biggest trading partners and the most important direction for internationalisation of small and medium-sized Finnish companies. Finland has a strategic geopolitical position as a gateway between East and West; hence, there is great potential for the growth of trade, investment, technology transfer and other cooperation between Russian and Finnish businesses. The present book is a result of a long collaborative research project between the Hanken School of Economics, Finland, and St. Petersburg State University, Russia. The book is a response to two calls: one from Finnish business practitioners to develop practical guidelines on how to establish and operate small businesses in Russia and the other from the academe to conduct more research on Russia as a turbulent market with high potential for small entrepreneurial firms. What makes this book different from existing guide books on how to conduct business in Russia? First, it targets a very specific audience; namely, Finnish entrepreneurs and business practitioners who plan to establish their businesses in Russia or who already have companies operating there. We believe our target audience will benefit from this narrow focus as it addresses concrete problems typical for Finnish business people in Russia. We also hope that the results of our research will be employed for teaching purposes in business schools across Finland as, nowadays, many of them offer special courses on Russian business. Second, our research team comprises scholars from both Finland and Russia, which offers a dual perspective on this phenomenon. Third, the empirical part of this research is based on qualitative case studies, not on broad statistical analyses. This approach enabled us to go deeply into specific business cases and to perceive the challenges of running businesses in Russia through the eyes of entrepreneurs and managers.
  • Ringbom, Staffan; Shy, Oz (Hanken School of Economics, 2002)
    We investigate economic and strategic incentives of service providers to engage in advance booking while allowing for a full-refund for those customers who cancel or do not show up at the time when the good or the service is provided. We show that from social welfare and industry profit point of views, the fullrefund booking strategy dominates the no-refund booking strategy. We also show that the full-refund booking strategy yields lower profit and social welfare than a market segmentation where different consumers buy tickets with different refundability options. None of the strategies are Pareto dominating any other.
  • Hyytinen, Ari; Toivanen, Otto (Hanken School of Economics, 2002-09-17)
    This paper provides evidence that capital market imperfections hold back innovation and growth, and that public policy can complement capital markets. We deliver the evidence by studying the effects of government funding on the behavior of SMEs in Finland. By adapting the methodology recently proposed by Rajan and Zingales (1998) to firm-level data, we show that government funding disproportionately helps firms from industries that are dependent on external finance. We demonstrate that the result is economically significant and robust to a variety of tests.
  • Ivaldi, Marc; Verboven, Frank (Hanken School of Economics, 2002-09-18)
    This paper starts from a recent case to study how merger analysis in Europe may potentially be improved through simulation analysis. Starting from the geographic market definition in the Merger Decision, we formulate and estimate an oligopoly model with differentiated products. The model is simulated to account for the changed multiproduct ownership structure after the merger. We show how our first two tests, a potential and an actual market power test, produce useful information, complementary to the traditional dominance principle adopted in the European Union. We also show how simulation analysis can provide useful additional information that goes beyond the traditional dominance principle. This is illustrated through two examples. First, we analyze the effects of efficiencies through cost savings. Second, we compare alternative merger sequences and emphasize the importance of evaluating the regional versus pan-European nature of a merger. These results contribute to the debate on the revision of current merger principles as they shed light on ways to improve actual practices.
  • Takalo, Tuomas; Toivanen, Otto (Hanken School of Economics, 2004-01-08)
    We study an adverse selection model where all agents are endowed with initial wealth, are nonetheless capital constrained, and choose to invest as entrepreneurs or financiers, or not to invest. We show that entrepreneurship and financial markets can arise in many cases where opening the markets to outside investors (i.e., financial market liberalization) would lead to them being eliminated. We find that without outside investors i) there exist Pareto-efficient and inefficient equilibria; ii) adverse selection has severer consequences in poorer economies; iii) increasing initial wealth may lead from a Paretoefficient to an inefficient equilibrium; iv) increasing the proportion of agents with positive NPV projects leads from an inefficient to an efficient equilibrium; v) agents with negative (positive) NPV projects only earn rents in (non)-wealth constrained economies; and vi) removing the storage technology destroys the only Pareto-efficient equilibrium in non-wealth constrained economies. Our model allows us to analyze various policies concerning financial market integration and liberalization, financial stability, the need for sophisticated financial institutions, development aid, and the promotion of entrepreneurship.
  • Laffont, Jean-Jacques; Marcus, Scott; Rey, Patrick; Tirole, Jean (Hanken School of Economics, 2002-08-08)
    The paper develops a framework for Internet backbone competition. In the absence of direct payments between websites and consumers, the access charge allocates communication costs between websites and consumers and affects the volume of traffic. The paper analyzes the impact of the access charge on competitive strategies in an unregulated retail environment. In a remarkably broad range of environments, operators set prices for their customers as if their customers' traffic were entirely off-net. The paper then compares the socially optimal access charge with the privately desirable one. Finally, when websites charge micropayments, or when websites sell goods and services, the impact of the access charge on welfare is reduced; in particular, the access charge is neutral in a range of cicumstances.
  • Shy, Oz; Stenbacka, Rune (Hanken School of Economics, 2004-10-13)
    We show that private provision of service hours will be inefficiently low from a social point of view independently of the market structure. We study how asymmetric distributions of ideal service time impact on this market failure. We establish that the time gap between any two opening and closing hours in an oligopoly equilibrium is constant and that this time gap increases if the distribution of ideal service times becomes more uniform. Finally, we establish that longest available service hours are sensitive to price changes but are invariant to changes in the market structure alone.
  • Sault, Joanne; Toivanen, Otto; Waterson, Michael (Hanken School of Economics, 2003)
    In this paper we study whether learning from rivals affects within-market location decisions between competing firms. We show it does, using detailed locational data from two leading hamburger chains in the UK. Using four different tests, we demonstrate that alternative explanations – pre-emption and product differentiation – have less bite than between firm learning.
  • Shy, Oz; Stenbacka, Rune (Hanken School of Economics, 2002-08-06)
    We analyze a retail industry where shops compete in prices and opening hours. We demonstrate that stores with longer opening hours tend to charge higher prices. Then, we calculate the symmetric equilibrium in closing hours and demonstrate a market failure with opening hours shorter than the socially optimal level. Furthermore, we characterize a condition under which labor unions would set high wages that would limit opening hours below the equilibrium level. Thus, opening hours shorter than the equilibrium level would be consistent with an outcome affected by strong labor unions.
  • Alvarez, Luis H. R.; Stenbacka, Rune (Hanken School of Economics, 2004-07-13)
    We design a compound real options model, which determines the timing of takeovers and characterizes the distribution of the associated surplus. We delineate a relationship between the imperfections in the market for corporate control and the takeover incentives. We character- ize a critical bargaining power below which the compound takeover option is never exercised. This critical threshold is a decreasing function of the expected primary takeover gain and the embedded divestment gain and an increasing function of the implementation uncertainty. With implementation uncertainty the relationship between volatility and takeover timing depends on the functional form of the pro¯t °ow.
  • Ringbom, Staffan; Shy, Oz (Hanken School of Economics, 2003-10-15)
    We analyze the incentives of service providers to utilize advance reservation systems allowing for refunds in an imperfectly competitive service industry with price competition. We investigate how the refund option affects equilibrium prices, and characterize the conditions under which the refund option is utilized. In contrast to the monopoly models where a single provider can capture a higher share of consumer surplus by utilizing the refundability option, competition reduces this surplus. Thus under price competition the nonrefundable booking strategy maximizes industry profit.
  • Gehrig, Thomas; Stenbacka, Rune (Hanken School of Economics, 2002-07-01)
    We analyse the institution of information sharing in a model of repeated banking competition. In the presence of switching costs we find that information sharing renders poaching more profitable in future rounds of competition, since the poaching activities can be targeted to creditworthy borrowers. Thus borrower poaching may occur even when it would not be profitable without information sharing. At the same time information sharing reduces relationship benefits, and competition for initial market shares is weakened. Overall we find that information sharing enhances equilibrium profits weakly in general and strictly in the presence of switching cost.
  • Koskela, Erkki; Stenbacka, Rune (Hanken School of Economics, 2004-03-04)
    This paper studies the effect of credit market imperfections, measured by the relative bargaining power of banks, on the agency costs of debt finance. The threshold of obtaining loan finance is shown to be independent of the relative bargaining power of the financier. However, lower relative bargaining power of banks leads to lower lending rates and investment return distributions with lower, but less risky returns. Thus, our analysis does not support the view, presented in a large existing literature, that there would be a trade-off between reduced credit market imperfections and higher agency costs of debt finance.

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