Efficiency studiesEfficiency effects of bank mergers in the EUDo mergers in the banking world yield advantages of scale? Contact: Jan Nelissen
The introduction of the euro has reduced insecurity and expenses involved in foreign exchange traffic, which is expected to lead to greater international competition between banks. Effective competition may be promoted by mergers and acquisitions. For the US, there is a substantial bulk of literature on causes and effects of bank mergers; for Europe, this is the case to a considerably lesser extent. This study, commissioned by the Ministry of Finance, undertook to inventory the consequences of mergers in the European context. This involved the analysis of 52 mergers and acquisitions in the EU in the 1983-1988 period, with six of these being cross-border ones. The Figure below illustrates the profit efficiency of the merging partners in terms of deviations from peer group averages, based on the bank’s type and size.
The study demonstrated that mergers allow advantages of scale to be used, even in the case of mergers between major banks (in terms of assets). Mergers have a positive effect on the cost efficiency of banks, be they major or minor banks, though the effect on major banks tends to be somewhat greater. There are indications that the less efficient bank tends to adjust to the more efficient bank. There are no indications that the advantage is greater if both or all merging partners showed a below-average performance before the merger. Minor banks also proved to improve their profit efficiency, which was not the case with the major banks. Mergers, finally, proved to lead to higher deposit rates.
Publication:
Huizinga, H.P., J.H.M. Nelissen, R. Vander Vennet (2001), Efficiency effects of bank mergers, Tinbergen Institute, TI Discussion Paper 01-088/3, 40p. Lump sum funding in educationWhat are the financial consequences for primary schools when they switch over to lump sum funding? Contact: Marike Knoef Lump sum funding means that schools are allocated a lump sum and may spend this money as they see fit. The size of the sum is based on school and teacher attributes. The introduction of lump sum funding in education was guided by CentERdata in several respects: - Various methods for distributing funds over schools were calculated for their consequences. - We advised the Ministry on potentials and pitfalls. - Schools were supported by a helpdesk service to deal with their questions on financial consequences. Lump sum funding has meanwhile been introduced in primary education. Physiotherapists efficiency studyWhich physiotherapy practices do well and which ones do not? The results of this study are not open to the general public. A health insurer used a model to categorize physiotherapy practices for their efficiency and quality as a basis for purchasing physiotherapeutic care. The model was criticized by scientific researchers, which caused the model to be compared with the outcomes of a scientific, more statistically justified model. The effectiveness of absenteeism policiesCommissioned by the Organization for Strategic Labour Market Research (OSA), we have conducted research into the relation between company characteristics and absentee rates. Our research shows that anti-absenteeism policies are effective. Companies, for instance, that introduced the regulation that sick employees must report to their immediate superiors have lower absentee rates than companies that did not introduce this regulation. The same goes for policies relating to conditions of employment and aiming to lower absentee rates. The research results clearly point at the importance of atmosphere on the shop floor and commitment to the job: a high number of hierarchy levels, high turnover of staff, reorganizations, and shift work commonly increase absentee rates. Working conditions themselves do not directly influence absentee rate volumes. Lomwel, A.G.C. van and J.H.M. Nelissen (2003), Ziekteverzuim, bedrijfskenmerken en verzuimbeleid: een analyse op basis van paneldata, OSA-publicatie A194, OSA, Tilburg. Lomwel, A.G.C. van and J.H.M. Nelissen (2003), Ziekteverzuim: verzuimbeleid helpt, Economisch Statistische Berichten , 88 (4411), 404-406.  Types of energy subsidiesIn collaboration with Tilburg University and the Erasmus University Rotterdam, we investigated which types of incentives regulations aiming to boost business investment in environmentally friendly technologies are important and how the effectiveness of these types of incentives regulations can be improved. The project involved the use of economic experiments and stated preferences method. This latter component was carried out by CentERdata. One of our conclusions was that the size of the subsidy has only a limited effect. What is of greater importance is the type of subsidy, as companies prove to prefer tax deduction (and, to a lesser extent, tax write-offs) to lump-sum subsidies. Publication: - Aalbers, R.F.T., E.C.M. van der Heijden, A.G.C. van Lomwel, J.H.M. Nelissen, J.J.M. Potters, D.P. van Soest and H.R.J. Vollebergh (2005), Naar een optimaal design voor investeringssubsidies in milieuvriendelijke technieken, Ocfeb, Rotterdam.
The future of the staff-replacement system in Primary EducationRevising the financing method Contact: Marike Knoef Over the past few years, school governors have been given greater scope for implementing their own policies. An example here is the introduction of lump sum financing mechanisms, which has also led the Education Ministry (OCW) to investigate ways of changing the financing method for staff replacement in Primary Education. Together with IVA Policy Research and Consultancy, CentERdata has looked into several financing methods. With the aid of data from the past, we investigated what would have been the consequences for school governors if the budget-neutral method of financing staff replacement had been carried out with other methods. In doing so, CentERdata also took into account the effect redistribution would have on school governors: to what degree would school governors have been better or worse off with different financing methods? CentERdata also carried out a feasibility study to investigate the possibility of developing a model that will accurately predict the annual costs of replacement and unemployment. In the autumn of 2007, IVA Policy Research and Consultancy designed a monitor aiming to investigate the consequences of school governors being risk-bearers in the matter of staff replacement. CentERdata supported the IVA in carrying out this commission. The monitor will be implemented on a six-month basis in the school years 2008-2009 and 2009-2010. The results will then be used to evaluate the acceptability of the consequences of primary-school governors being risk-bearers in the matter of staff replacement. Special-needs pupils in regular educationAffordable guidance in the future Contact: Marike Knoef and Hendri Adriaens With the aid of personal budgets, special-needs pupils can remain in regular education without having to transfer to special education. In recent years, the number of special-needs pupils with behavioural disturbances has risen sharply. In 2006, commissioned by the Education Ministry (OCW), CentERdata researched the development trends in the numbers of special-needs pupils. We calculated various scenarios and investigated ways of keeping the special-needs regulations affordable in the future. Budgetary and financing models used by the Education Ministry (OCW)Simplifying a variety of models Contact: Hendri Adriaens As the Education Ministry (OCW) had been using the same budgetary and financing models for a great many years, these had become complex and unmanageable: additions that were at first meant to be incidental and temporary, for instance, subsequently proved to be structural. The goal of this project was to simplify, restructure, and document these models. The project was carried out in 2007-2008. |
