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Showing papers in "Austrian Economic Quarterly in 2011"


Posted Content
TL;DR: In this article, the authors present an objective and balanced analysis of the advantages and disadvantages of privatisation of public assets in Austria, based on the theoretical foundations and the mutual relations of private and public ownership of companies.
Abstract: "Competition", "liberalisation" and "privatisation" are emotive words in Austria's economic policy debate. To contribute to a less emotional discussion on the "privatisation of public assets" WIFO provides an objective and balanced analysis, not only of the advantages and opportunities of privatisations, but also of their disadvantages and problems. The analysis is presented in three articles in WIFO's Austrian Economic Quarterly, which are based on the theoretical literature and empirical evidence. This first article of the series focuses on the theoretical foundations and the mutual relations of private and public ownership of companies. According to economic theory government interference in the form of public enterprise is only justified in a market economy, if there is market failure and the specific government intervention can actually eliminate the market failure.

4 citations


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TL;DR: In this article, Austria's export structure largely coincides with the Ukraine's and Turkey's import demand, and Austria has good foreign trade relations with the Black Sea region, but these can still be expanded considerably.
Abstract: Due to their geographical proximity, their natural resources as well as their market potential and labour pool, the countries of the Black Sea region located at the strategic crossroads of Europe, Central Asia and the Middle East are gaining increasing importance. As the economies are expanding dynamically they will constitute a substantial demand potential in the future. Because of its size Turkey in particular is an important market. Austria has good foreign trade relations with the Black Sea region. However, these can still be expanded considerably. Austrian companies' competiveness is high in the Ukraine. Austria's export structure largely coincides with the Ukraine's and Turkey's import demand.

2 citations


Posted Content
TL;DR: In this paper, the federal government targets a reduction of the general government deficit (in the Maastricht definition) below the ceiling of 3 percent of GDP as from 2012; subsequently, the deficit is to be lowered stepwise to 2.2 percent by 2014, with the public debt ratio levelling off at around 72 percent of the GDP.
Abstract: With the trough of the recession following the global financial market crisis having been passed, fiscal policy is faced with the need to return to a sustainable path. The federal government targets a reduction of the general government deficit (in the Maastricht definition) below the ceiling of 3 percent of GDP as from 2012; subsequently, the deficit is to be lowered stepwise to 2.2 percent of GDP by 2014, with the public debt ratio levelling off at around 72 percent of GDP. Underlying the consolidation path for the period from 2011 to 2014 is a government programme that assigns, from an overall federal perspective, slightly more than half of deficit reduction to expenditure restraint, and somewhat less than half to higher taxes. For the federal budget, the expected savings cumulate to € 8.1 billion, while additional revenues amount to some € 6 billion.

2 citations


Posted Content
TL;DR: Boeheim et al. as mentioned in this paper investigated the theoretical foundations and mutual relations between private and government ownership of companies and investigated which extent of government withdrawal from state-owned enterprises would be optimal from the perspective of industrial location policy.
Abstract: The existence of competitive markets is an important prerequisite for privatisation to be successful from a macroeconomic perspective. For this reason it is a vital task of the government to ensure well-functioning free-market competition or (re-)establish it by means of the corresponding regulation and competition policy. There is a pronounced public concern over companies providing services of general interest ("Daseinsvorsorge"), which may justify a permanent strategic investment of the government as a core shareholder. There is no need, either on grounds of company law or from an economic perspective, for a more far-reaching government involvement in companies to protect the public interest. This study is conceived as a series of three articles. The first article (http://www.wifo.ac.at/wwa/pubid/42850) dealt with the theoretical foundations and mutual relations between private and government ownership of companies. This second part focuses on the empirical evidence and investigates which extent of government withdrawal from state-owned enterprises would be optimal from the perspective of industrial location policy. Finally, the third article (forthcoming) will be dedicated to the practical implementation of privatisation projects and conclusions for economic policy. ● The author is thankful to Gunther Tichy for useful and constructive comments ● The data were processed and analysed with the assistance of Elisabeth Neppl-Oswald ● E-mail adresses: Michael.Boeheim@wifo.ac.at, Elisabeth.Neppl-Oswald@wifo.ac.at

2 citations


Posted Content
TL;DR: The European 2020 Strategy for growth and employment in the EU establishes a new framework for member countries' economic policies Key elements are the national targets in five policy areas (employment, research and development, education, poverty, environment), the Stability and Growth Pact, the co-ordination process in the context of the European Semester with guidelines set for economic policy at the national level, the drafting of National Reform Programmes, their evaluation at the European level, and a new procedure for the surveillance of macroeconomic imbalances as mentioned in this paper.
Abstract: The "Europe 2020" Strategy for growth and employment in the EU establishes a new framework for member countries' economic policies Key elements are the national targets in five policy areas (employment, research and development, education, poverty, environment), the Stability and Growth Pact, the co-ordination process in the context of the "European Semester" with guidelines set for economic policy at the national level, the drafting of National Reform Programmes, their evaluation at the European level, and a new procedure for the surveillance of macroeconomic imbalances Against the background of a status-quo assessment of the course of Austria's economic policy followed since 1995 ("narrow focus on competitiveness"), this article explores potential options for gauging the scope for policy action at the national level Thus, measures in the area of education and innovation, employment and environmental policy could broaden the sources of Austria's economic growth and mobilise potential demand and output hitherto untapped For such policy approaches, the new European co-ordination process defines guidelines, while leaving major scope for action to individual member countries, thereby lending support to growth- and employment-enhancing reforms in Austria The EU framework is binding with regard to the environmental targets, due to the commitment to reduce greenhouse gas emissions

2 citations


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TL;DR: In this paper, the largest contribution to the stabilisation resulted from the automatic stabilisers, whose effects vary between countries, and the welfare state also exerts anti-cyclical effects via its positive effects on the expectations of private households.
Abstract: Social policy measures and the social systems markedly mitigated the effects of the severe financial and economic crisis in 2009 and 2010. The largest contribution to the stabilisation resulted from the automatic stabilisers, whose effects vary between countries. On the revenue side they are determined by the tax system's progressivity and on the expenditure side they are determined by the size of transfer payments. Discretionary social policy measures also exerted stabilising effects both in the domestic economy and in those of the European trade partners. However, their impact on production and employment has remained limited due to the wide–spread uncertainty and the high share of tax cuts in the overall volume of the measures. The welfare state also exerts anti–cyclical effects via its positive effects on the expectations of private households. Although difficult to quantify, these effects are assumed to be important.

1 citations


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TL;DR: In this paper, the authors forecast that real gross domestic product will expand by 2.2 percent per year during 2011-2015 and the unemployment rate will amount to 6.8 percent on average during 2011 to 2015.
Abstract: Real gross domestic product will expand by 2.2 percent per year during 2011-2015. The unemployment rate (according to the Public Employment Service Austria, AMS) will amount to 6.8 percent on average during 2011-2015. Due to increasing foreign and domestic labour supply labour market conditions will not ease further. Owing to measures to consolidate public finances and improveing economic activity the budget deficit is expected to fall below 2 percent of GDP by 2015. The inflation rate will rise to 2.1 percent in 2011 driven by tax increases and rising commodity prices. Over the forecast period consumer price will increase on average by 1.9 percent per year.

1 citations


Posted Content
TL;DR: The Austrian private insurance companies recently followed the business cycle profile only to a limited extent, having stagnated in the recession year 2009, premium revenues rebounded in 2010 at a rate below nominal GDP growth as mentioned in this paper.
Abstract: Premium revenues of the Austrian private insurance companies recently followed the business cycle profile only to a limited extent. Having stagnated in the recession year 2009, premium revenues rebounded in 2010 at a rate below nominal GDP growth. For 2011, the industry expects a slight deceleration of revenue growth, whereas latest surveys conducted by WIFO suggest an even weaker dynamic. Together with higher returns on investment, earnings from the technical accounts improved and operating results were raised markedly.