Niels Erik Holm Nannerup

Monopoly versus R&D-integrated duopoly

In the standard two-stage framework of R&D/product market competition, this paper provides a performance comparison between monopoly and the cartelized research joint venture, using two well-known models based on different versions of the R&D spillover process. According to the model with a wider scope of application, monopoly always leads to a higher propensity for R&D and, when R&D costs are low, to the best overall market performance. The results also allow for a comparison between the two underlying models of strategic R&D.

Asymmetric Regulation of Identical Polluters in Oligopoly Models

Studies of second-b est environmental regulation ofiden tical polluting agents have invariably ignored potentially welfare-improving asymmetric regulation by imposing equal regulatory treatment of identical firms at the outset. Yet, cost asymmetry between oligopoly firms may well give rise to private as well as social gains. A trade-off is demonstrated for the regulator, between private costs savings and additional social costs when asymmetric treatment is allowed. Asymmetry is indeed optimal for a range of plausible parameter values. Further, it is demonstrated that for a broad class of abatement cost functions, there is scope for increasing welfare while keeping both total output and total emission constant. Some motivating policy issues are discussed in light ofthe results, including international harmonization and global carbon dioxide reduction.

House prices and land regulation in the Copenhagen area

We analyse house prices from 1992 to 2011 in the metropolitan area of Copenhagen. In line with most other metropolitan areas in Europe, Copenhagen house prices showed solid increases during this period until 2007 when a downturn in prices began. The price gradient from the centre of the metropolis to the outskirts also became steeper over these years. We investigate the influence of land regulation on this development and find indications of an upward pressure on house prices from restrictive land regulation at the municipal as well as the national level.

Multitasking and Performance Measurement

In a principal-agent setting, we consider a combined problem of multitasking and performance measurement. The principal can choose to reward the agent both directly for providing effort into a specific activity, and based on the outcome delivered to the principal. Both the issue of multitasking and any private knowledge the agent might possess will lead the principal to use a performance measurement more. This applies even if the measurement is poorly correlated with the actual outcome to the principal.

Does Owner-Occupied Housing Affect Neighbourhood Crime?

Economic as well as sociological theory bring some support to the hypothesis that personal home ownership per se makes individuals more responsible to society values and hence less inclined to commit offences against property or commit other kinds of crimes. Departing from this hypothesis, the present study seeks to provide empirical evidence for a link between levels of crime and local residential ownership rates. In the framework of a linear regression model and based on Danish municipality data, we establish empirical evidence for a negative relationship between local home ownership rates and local crime rates even when controlling for a broad range of economic and demographic variables.

Small Area Variation in Homeownership

The aim of the study is two-fold. First, it adds to the existing state-of-the-art housing research by suggesting the implementation of new econometric methodology. Specifically, the study adds to earlier studies of homeownership by adding spatial impacts. It advocates simultaneous adjustment for intra-municipal correlation and heterogeneity as well as spatial spillover patterns between municipalities. It concludes that ignorance of controlling for intra-municipal correlation, heterogeneity and spatial spillover skews conclusions regarding effects of the determinants of homeownership. Furthermore, it finds that endogenous as well as exogenous spatial spillovers are essential parts of specifying demand for homeownership. Specifically, the demand for homeownership spills over and stimulates demand in neighbouring municipalities, and house prices and incomes exert positive effects on demand for homeownership in neighbouring municipalities. Second, as is clear from the above empirical conclusions, the study adds to existing empirical research and knowledge.