thinking about need public spending on the regions mackay r r and williams j 2005 thinking about need public spending on the regions regional studies 39 815 828 the uk treasury accepts that need is the correct guide to spending on public services in different parts of the uk but the formula used to decide changes in devolved spending in scotland wales and northern ireland depends on the population it does not compensate for differences in need with devolved spending determined by need there would be consistency across 11 of the 12 uk regions london would be the sole exception the heavy cost of the capital s public services is part of the argument for a more even distribution of income wealth and employment

spatial divisions of welfare the geography of welfare benefit expenditure and of housing benefit in britain hamnett c spatial divisions of welfare the geography of welfare benefit expenditure and of housing benefit in britain regional studies this paper examines the structure of state welfare expenditure in britain it argues that the geography of state welfare expenditure and its impacts have been relatively neglected given their importance in terms of state expenditure regional distribution and spatial equality it shows that welfare spending is a key component of government expenditure and that it has a distinct regional and local geography the paper shows that there are distinct differences in the geographical incidence of different welfare benefits some of which function to redistribute income from the south to the north of britain and it focuses on the geography of housing benefit as an example of what has been termed spatial divisions of welfare hamnett c les ecarts geographiques de l aide sociale la geographie des prestations sociales et des allocations logement en grande bretagne regional

regional spending a comment on mackay mackay 2001 recently examined the regional pattern of taxation and spending in the uk concluding that for four regions london the south east scotland and northern ireland public expenditure was well above the level expected for their degree of prosperity mackay 2001 had a very approximate measure of the regional pattern of non identifiable government expenditure a major component of the latter is defence spending and a more precise allocation of this suggests that london and the south east get very preferential treatment moreover so does the south west which should be added to the list of well favoured regions this raises important issues of spatial balance and efficiency

policy debates government output and expenditure in uk regions and sub regions an analysis of the new experimental accounts data gripaios p and bishop p 2005 government output and expenditure in uk regions and sub regions an analysis of the new experimental accounts data regional studies 39 805 813 this paper examines the regional and sub regional distribution of uk state spending by analysing new data available from recently published regional government accounts the data indicate wide variations in public spending per head across regions with london being a particular beneficiary the results do not indicate any relationship between gross domestic product per head and public spending and they suggest that in total government spending is doing little to ameliorate regional inequality if the state wishes to pursue an active regional policy it hence needs to consider the regional dimension of all state functions not simply those associated with traditional regional policy

overcoming the liability of newness entrepreneurial action and the emergence of china s private solar photovoltaic firms abstract this study explores how entrepreneurs introducing a new organizational form can build legitimacy and capabilities to overcome significant liabilities of newness and how their actions and the institutional structure co evolve our multiple case study design enabled us to explicate specific actions that entrepreneurs founding china s private solar photovoltaic pv firms took as they built organizational capabilities and established their legitimacy vis a vis resource holders and global markets we identified three legitimacy based strategies they used leveraging their existing sources of legitimacy aligning their actions with established institutional rules and norms and enacting the institutional environment to change perceptions of what is legitimate we also found a stark contrast between the early and late entrants the early entrants had to build an effective organizational capability and establish their own firm s legitimacy as well as establish the legitimacy of the private chinese solar pv firm as a viable organizational form both domestically and abroad later entrants could leverage the legitimacy established by the early entrants enabling them to more easily and quickly access external resources and become competitive our findings also suggest an important role for government in promoting and supporting entrepreneurship that complements well established approaches namely through its policies and actions the government can create an environment in which experimentation and exploration is legitimate thereby making it easier for entrepreneurs new ventures and new organizational forms to access critical resources and realize their potential

a lottery within a lottery an examination of the distribution of lottery funds in england the uk national lottery has been in operation since 1994 an examination of the regional distribution of awards per head of population suggests marked spatial disparities with london doing particularly well and scotland northern ireland wales and the north east faring much better than other regions such disparities also exist at english local authority level with london and some major provincial centres doing much better than more rural authorities such inequalities may give grounds for concern given that they appear to replicate those for other types of government spending the results of an empirical model designed to explain the spatial distribution of awards suggest that in addition to a london effect levels of deprivation have a positive impact another important explanatory variable which has a positive impact on lottery funding is the qualifications of residents which might plausibly reflect the quality of lottery bids received from an area however once these factors are taken account of

status inconsistency and product valuation in the california wine market this study develops a theoretical model on the role of multidimensional status and status inconsistency in market evaluation processes a product or an organization may acquire multiple status indicators in association with a multitude of market institutions we argue that when status indicators are consistently positive each exerts a greater positive effect on the valuation of a product or an organization conversely inconsistency among multiple indicators undermines the status claim we test this theoretical proposition by examining patterns of product valuation in the california premium wine market our findings show that when an individual wine s tasting score rated by critics and another more general status indicator classified appellation affiliation extra designation on the label or a winery s organizational status are consistently positive each makes a greater contribution to wine price in contrast when status indicators are inconsistent the value of the positive status indicator is reduced our study explicates the scope conditions under which market status may yield different outcomes and sheds light on the interplay among status indicators in market valuation

adaptive learning in weighted network games abstract this paper studies adaptive learning in the class of weighted network games this class of games includes applications like research and development within interlinked firms crime within social networks the economics of pollution and defense expenditures within allied nations we show that for every weighted network game the set of pure nash equilibria is non empty and generically finite pairs of players are shown to have jointly profitable deviations from interior nash equilibria if all interaction weights are either non negative or non positive then nash equilibria are pareto inefficient we show that quite general learning processes converge to a nash equilibrium of a weighted network game if every player updates with some regularity

the failure of regeneration policy in britain two main types of urban problem exist in the uk the first is problem localities in prosperous cities the second is depressed towns and cities per se in both cases and despite years of policy intervention there is little evidence that the situation is improving there are fundamental economic problems to be addressed on both the supply and demand side recent government policy directed at regions urban areas and the planning system is very much supply focused preferences will have to be altered so that peripheral regions and problem neighbourhoods become more desirable a changing balance of government spending and increased costs of motoring should be priorities

from plan to plant effects of certification on operational start up in the emergent independent power sector in this paper we study the transition from planned venture to operational start up in the emergent independent power sector planned ventures face tremendous obstacles in assembling the resources necessary to begin operations we hypothesize and show that formal certification from authorized actors increases the likelihood of making this transition moreover we find that the effects of certification are contingent on the legitimacy of the sector as a whole certifications have a stronger effect on start ups when sector legitimacy is low than when it is high this research helps us understand a rarely studied organizational transition from entrepreneurial intention to actual operations within nascent sectors it directs attention to the legitimating effects of formal certification highlights the importance of a multilevel approach to legitimacy and contributes to the growing rapprochement between entrepreneurial studies and institutional theory

regional taxing and spending the search for balance the financial settlement has been described as the key to devolution public spending above tax in scotland and wales has been criticized public spending is above tax in seven uk regions including four english regions if we treat equal citizens equally public spending will be above tax in poorer regions there is nothing extraordinary about spending above tax but there are important questions with regard to regional levels of expenditure in four regions london south east scotland and northern ireland public expenditure is well above the level expected for their degree of prosperity this article provides possible explanations

begging bowl meets baseball bat lessons for the uk from the australian fiscal model the uk has taken a historic step towards regionalized government with its creation of a scottish parliament and welsh and northern ireland assemblies however this has raised important question marks about the existing funding system the barnett formula the purpose of this article is to examine the experience offered by a mature federal fiscal system namely that of australia the australian system and in particular its fiscal system of distribution is outlined as are the effects of this system and the political manipulations of it that have taken place issues arising and important implications for uk policy makers are then discussed

young and no money never mind the material impact of social resources on new venture growth although growth is a desirable outcome for new ventures due to the many advantages of large size most new firms fail to grow largely because of their limited resources and adaptability this paper addresses the question of how new ventures grow despite their limited financial resources i explore the effect of two specific nonfinancial social resources legitimacy and status on new venture growth i propose that new firms can acquire legitimacy by mimicking the structures and ceremonial activities of established firms in their industry and can acquire status by affiliating with high status entities using a unique panel data set on a cohort of advertising agencies founded in new york and chicago between 1977 and 1985 i show that legitimacy and status have favorable impacts on new firms growth in revenues and number of employees the paper makes important contributions to social embeddedness and institutional research by examining the strategic implications of firm level social resources and to the literature on entrepreneurship in general and new venture growth in particular

regional allocation of public infrastructure investment the case of greece lambrinidis m psycharis y and rovolis a 2005 regional allocation of public infrastructure investment the case of greece regional studies 39 1231 1244 this paper develops a model on the determinants of the regional allocation of public infrastructure investment and applies it to greece for 1982 94 using panel methods of estimation the principal conclusions are that regional allocations of infrastructure investment 1 were negatively associated with regional product per capita as well as with population size and population density 2 were positively associated with the existing stock of infrastructure capital as well as with the share of agriculture in regional gross domestic product and 3 were increased across prefectures in years preceding national elections these results are related to national and european regional policy

what does an oligopoly maximize a monopolist maximizes a well defined objective function monetary profit in a competitive industry although each individual pursues selfish objectives the market behaves as if an agent was maximizing an objective function social welfare can we say the same for an oligopoly do firms pursuing selfish objectives and behaving strategically act as if an agent was maximizing a fictitious objective function necessary and sufficient conditions for nash equilibria of static and state space games to be observationally equivalent to single optimization problems are derived nash equilibria of the game that are not maxima of the function are shown to be generically unstable copyright 1994 by blackwell publishing ltd

the positive externalities of social capital benefiting from senior brokers the importance of an actor s network to his her private benefits is well explored less well understood are the positive externalities of an actor s social capital that is whether it spills over a

risky recombinations institutional gatekeeping in the innovation process theories of innovation and technical change posit that inventions that combine knowledge across technology domains have greater impact than inventions drawn from a single domain the evidence for this claim comes mostly from research on patented inventions and ignores failed patent applications we draw on insights from research into institutional gatekeeping to theorize that to be granted patent applications that span technological domains must have higher quality than otherwise comparable narrower applications using data on failed and successful patent applications we estimate an integrated two stage model that accounts for this differential selection we find that more domain spanning patent applications are less likely to be approved and that controlling for this differential selection reduces the estimated effect of knowledge recombination on innovative impact by about one third by conceptualizing the patent approval process as a form of institutional gatekeeping this paper highlights the in

the barnett allocation mechanism formula plus influence christie a and swales j k the barnett allocation mechanism formula plus influence regional studies this paper seeks to explain why the operation of the barnett formula has failed to generate convergence in the per capita public expenditure levels in the four countries of the united kingdom using scotland as an example this paper argues that a formula plus influence allocation mechanism has been in place this offers improved flexibility greater political integration and increased information flows than would be available through either a straight bargaining or a formula process while devolution has not changed the barnett formula it has altered the environment in which it operates and that this may well destabilize an otherwise secure system christie a et swales j k la methode d affectation barnett formule plus influence regional studies cet article cherche a expliquer pourquoi l application de la formule barnett n a pas reussi la convergence des depenses publiques par tete dans les

trade protection and industry wages in india this paper examines the link between trade protection and industry wage premia in india using a unique dataset combining employment survey data with industry level data for various years between 1983 and 2000 the author finds that india s trade reforms were not distributionally neutral the impact of protection on industry wage premia was positive and statistically significant though modest in magnitude workers employed in industries with high tariffs received higher wages than apparently identical workers in low tariff industries because industries with high initial levels of protection were also those with the largest tariff reductions during this period and had the highest share of unskilled workers the positive tariff wage effect implies that the trade reforms were likely to have increased wage inequality as the relative wages of the predominantly unskilled workers in these manufacturing industries fell

media legitimation effects in the market for initial public offerings in this study we argue that media provided information affects investors impressions of newly public firms in 225 initial public offerings ipos the volume of mediaprovided information had a negative diminishing relationship with underpricing and a positive diminishing relationship with stock turnover on the first day of trading the relationship between the tenor of media provided information and underpricing increases at a nonlinear rate and decreases similarly for turnover findings provide important evidence that publicly available information not only reflects ipos legitimacy but also adds to their legitimacy and influences investor behavior in the last 20 years an increasing amount of research on markets has been conducted from a social constructionist perspective emphasizing how social structures enhance the flow of useful and credible information that market participants use to reduce the uncertainty of market exchanges e g aldrich fiol 1994 zuckerman 1999 further recent organizational research has begun to stress the influence of information intermediaries such as financial analysts and the media on mar

the regional dimension of taxes and public expenditure in ireland morgenroth e regional dimension of taxes and public expenditure in ireland regional studies in ireland as in many other countries there has been an ongoing debate on the nature degree and trends of regional imbalance however relatively little is known about the effects of policies at the regional level in ireland this paper considers two aspects of public policy namely the fiscal system and public expenditure in particular regional government accounts are constructed that identify the level of taxation subsidization and public expenditure at the regional level the analysis of these data confirms that the fiscal system does reduce relative income differences in ireland furthermore there are substantial resource transfers across regions morgenroth e les impots et les depenses publiques en irlande le point de vue regional regional studies en irlande comme dans la plupart des pays on discute du desequilibre regional de sa nature son importance et ses tendances cependant on sait tres

no news is bad news sensegiving activities media attention and venture capital funding of new technology organizations a significant body of research has examined how new organizations gain legitimacy and how gaining it affects their subsequent access to resources less attention has been given to the problem of how new organizations attract collective attention although related to legitimation the problem of attracting attention is distinct as attention and evaluation are distinct cognitive processes in this study we examine the allocation of collective attention to new organizations in a system of relationships within which new organizations seek to attract attention through their sensegiving activities the information properties of their sensegiving activities affect the level of attention they receive from different types of media and media attention in turn increases their perceived value potential in the eyes of venture capital investors vcs we examine these relationships in a sample of 398 information technology start ups that have obtained different levels of venture capital funding our results show that new organizations that engage in more intense and diverse sensegiving activities attract higher levels of industry media attention and that these effects are enhanced by the human capital of their founders and leaders diverse sensegiving activities are also associated with higher levels of attention from the general media but only the attention of specialized industry media is positively associated with the level of vc funding obtained these findings extend current research on information intermediation and institutional legitimation by demonstrating that media attention early in the life of new organizations affects how they are valued by a well informed expert audience such as vcs they also contribute to entrepreneurship research on the effects of new organizations strategies on their ability to secure resources and to research on vc funding decisions

regulating american industries markets politics and the institutional determinants of fire insurance regulation1 this article assesses three approaches to state regulation capture theory interest group analyses and neoinstitutional research state level event history analyses of fire insurance rate regulation from 1906 to 1930 are used contrary to capture theory regulation was not driven simply by firms interests in market control instead consistent with interest group analyses regulation was more likely when anticompany forces farmers and small businesses could challenge big business politically further as neoinstitutional research suggests regulation was more likely when industry governance evoked legitimacy crises when courts and professions endorsed regulation and its underlying models and when states developed system wide administrative capacities institutional conditions also mediated the effects of markets and politics on regulation using these findings we develop a theory of how political and institutional conditions shape industries governance options

the regional dimension of public expenditure in england public expenditure in the uk has a location dimension with respect to the devolved arrangements for scotland wales and northern ireland there is no location dimension to the allocation of public expenditure to the regions of england nevertheless whether planned or not public expenditure impacts on the regions through the provision of services and associated employment and income generation this paper examines the methodological issues in assigning public expenditure to countries and regions and reviews existing and past patterns of public expenditure in english regions it then considers the relevance of this analysis to policy options for introducing an explicit regional dimension to the public expenditure allocation mechanism in england paradoxically english regional devolution is potentially more radical in its implications in terms of rupturing existing allocative mechanisms that lead to flows of expenditure than devolution in the territories where it can be interpreted as putting democrat

strategic complements and substitutes and potential games abstract we show that games of strategic complements or substitutes with aggregation are pseudo potential games the upshot is that they possess nash equilibria in pure strategies ne even if the strategy sets are not convex and that various dynamic processes converge to ne in particular ne exist in cournot oligopoly with indivisibilities in production our notion of aggregation is quite general and enables us to take a unified view of several disparate models

environmental jolts institutional change and the creation of entrepreneurial opportunity in the us electric power industry the relationship between institutional change and entrepreneurship is poorly understood we build the theory in this area by tracing institutional change in the us electric power industry over a 40 year period our analysis shows that environmental jolts mobilize actors to reformulate institutions resulting in increased entrepreneurial opportunity when the institutional environment is stable we find that incumbent organizational forms and embedded logics present formidable obstacles to entrepreneurial activity environmental jolts however catalyze search processes and motivate the evaluation of current institutional logics specifically in the case of the electric power industry environments of abundance and regulation resulted in homogeneity of organizational structures and strategies and few entrepreneurial opportunities environments marked by scarcity and crisis however witnessed heavy scrutiny of existing institutional arrangements that eroded their taken for grantedness and symbolic value resulting in opportunities for entrepreneurial action

using trivariate copulas to model sample selection and treatment effects simultaneous nonlinear econometric models with discrete outcomes are often difficult to implement this article considers the use of the copula approach for a model with three jointly determined outcomes it also deals with the discrete case in which outcomes include a mixture of dichotomous choices and discrete count data we apply this technique to study self selection and interdependence between health insurance and health care demand among married couples the full model consists of a dichotomous choice equation for family insurance and a separate negative binomial equation for each spouse s health care use

iterative computation of cournot equilibrium abstract in a homogeneous coumot model with quasi concave profit functions the problem of determining an equilibrium can be posed as one of solving an equation in one real variable total sales if the response functions are monotone or firms are identical then a certain iterative process based on averaging converges to an equilibrium such iterations have the interpretation that every firm responds to the average of sales by other firms in brevious periods

the lottery contest is a best response potential game it is shown that the n player lottery contest admits a best response potential voorneveld 2000 this is true also when the contest technology reflects the possibility of a draw the result implies in particular the existence of a non trivial two player zero sum game that is best response equivalent to a game with identical payoff functions

the organizers ecology an empirical study of foreign banks in shanghai the organizing stages that predate entry into an organizational population were studied from an ecological perspective based on a detailed analysis of foreign banks in shanghai findings are presented that suggest that the likelihood of moving from the organizing phase to the operational stages is nonmonotonically dependent on the length of the waiting time we found that firms seeking to gain entry into a population are negatively affected by the presence of other organizers in close geographical proximity while the number of already established organizations has an inverted u shaped relationship with the aspirants likelihood of entering a relationship that operates more broadly after investigating the effect of the geographical location of other potential entrants as well as the effect of relative sizes and countries of origin we have drawn inferences about the strength of these competitors identities and their impact on a social actors decision to enter the population our findings are informative not only for those studying organizational founding patterns but also for those interested in the early process of identity formation

structuring a theory of moral sentiments institutional and organizational coevolution in the early thrift industry the authors investigate the coevolution of organizations and institu tions they study how institutional definitions rules and expectations unfold in tandem with the organizational structures and processes that embody those institutions the research site is the early thrift industry changes in thrifts technical environment the rise of a transient and heterogeneous population and institutional environment the rise of progressivism propelled this coevolutionary process the coevolution of thrift organizations and institutions proceeded primarily through selection adaptation was constrained by both institutional factors it was difficult to adopt a novel institutional logic and technical factors early thrifts were generally small so entry and exit were easy

disentangling the multiple effects of affiliate reputation on resource attraction in new firms past research has established that new firms can enhance their attractiveness to prospective resource providers by affiliating with more reputable firms but research on this process has yet to fully account for two critical realities underscored by recent research 1 firms need to acquire resources from different groups of resource providers and 2 reputation is multidimensional drawing on the organizational reputation literature and on information processing theory we propose that two groups of resource providers will respond differently to new firms affiliations in accordance with differences in the groups abilities to recognize and interpret reputation related signals we also propose that within a single group of resource providers distinct characteristics of the affiliate will exert different influences we test these propositions using longitudinal data from belgian firms that affiliated with venture capital vc investors consistent with our predictions we find that characteristics of a

the coevolution of industries social movements and institutions wind power in the united states this study of the u s wind energy industry extends theory on the process of industry emergence by developing and testing a coevolutionary model of the relationship between social movement organizations smos institutions and industries building on research that suggests that smos can influence institutions and the path of emerging industries we show that the growth of an industry can also influence the diversity of social movements by motivating the participation of specialist smos these new smos in turn deploy distinct knowledge capabilities goals and strategies to produce institutional changes that are necessary for the continued growth of the industry our study offers a more complete conceptualization of the influence of social movements on industry emergence and growth and it extends understanding of how smo diversity is produced

altruism in networks we provide the first analysis of altruism in networks agents are embedded in a fixed network and care about the well being of their network neighbors depending on incomes they may provide financial support to their poorer friends we study the nash equilibria of the resulting game of transfers we show that equilibria maximize a concave potential function we establish existence uniqueness of equilibrium consumption and generic uniqueness of equilibrium transfers we characterize the geometry of the network of transfers and highlight the key role played by transfer intermediaries we then study comparative statics a positive income shock to an individual benefits all for small changes in incomes agents in a component of the network of transfers act as if they were organized in an income pooling community a decrease in income inequality or expansion of the altruism network may increase consumption inequality

monetary and fiscal policy under deep habits allowing habits to be formed at the level of individual goods deep habits can radically alter the fiscal policy transmission mechanism as the counter cyclicality of mark ups this implies can result in government spending crowding in rather than crowding out private consumption in the short run we explore the robustness of this mechanism to the existence of price discrimination in the supply of goods to the public and private sectors we then describe optimal monetary and fiscal policy in our new keynesian economy subject to the additional externality of deep habits and explore the ability of simple policy rules to mimic fully optimal policy we find that the presence of deep habits at empirically estimated levels can imply large externalities that significantly affect the conduct of monetary and tax policy however despite the rise in government spending multipliers implied by deep habits government spending is barely used as a stabilisation tool under the optimal policy

automatic stabilisers european union and national unity tradition seems to require that economists argue forever about the question whether in any disequilibrium situation market forces acting alone are likely to restore equilibrium now this is certainly an interesting question but as social scientists we surely must address ourselves to the broader question is the disequilibrium situation likely to be corrected at all by market or nonmarket forces or by both acting jointly it is our contention that nonmarket forces are not necessarily less automatic than market forces hirschman 1958 p 63 emphasis in the original hirschman and myrdal 1957 consistently insist that the image of a relentlessly taut economy can be a check to curiosity and a bar to true enquiry a proper search for understanding hirschman and myrdal h and m suggest must relax the assumptions which ensure fully informed price signals and reactions that are automatic elastic responsive only then can one approach an economy which is consistent with reality an economic system where bargains and contracts are made at prices which do not clear markets where resources remain unemployed underemployed unrecognised and where there are problems in encouraging adjustment to constantly changing opportuni ties in such an imperfect but realistic economy there may be a role for nonmarket forces h and m make stronger claims given particular emphasis by hirschman is the idea that non market forces emerge naturally inevitably even without conscious volition when the market fails to discover reasonable balance society will recognise will sense the gap and state policies and social institutions will emerge in an attempt to bridge it the argument applies to different forms of balance and has links to myrdal s claim

a fiscal stimulus and jobless recovery we analyze the effects of a government spending expansion in a dynamic stochastic general equilibrium model with mortensen pissarides labor market frictions deep habits in private and public consumption investment adjustment costs a constant elasticity of substitution ces production function and adjustments in employment at both intensive and extensive margins the combination of deep habits and ces technology is crucial the presence of deep habits magnifies the responses of macroeconomic variables to a fiscal stimulus while an elasticity of substitution between capital and labor in the range of available estimates allows the model to produce a scenario compatible with the observed jobless recovery

the liability of good reputation a study of product recalls in the u s automobile industry in this paper we explore opposing theoretical claims about how organizational reputation affects market reactions to product defects on the one hand good reputation could be a disadvantage because expectations about product quality are more likely to be violated by defects in highly reputed products on the other hand a good reputation could be an advantage because of strong inertial effects on reputation orderings we empirically test these competing hypotheses using data on product recalls in the u s automobile industry from 1975 to 1999 our results support for the idea that reputation can be an organizational liability in that highly reputed firms suffer more market penalty as a result of their product recalls we also propose that the reputational effects are moderated by two important factors substitutability and generalism specialism our results show that having few substitutes with an equivalent level of reputation or a focused product identity stemming from specialism buffers the negative market reactions to product recalls we conclude with a discussion on the implications of these results for institutional reputation and status theories

electoral competition with informed and uninformed voters i present a model of electoral competition in which candidates raise campaign contributions by choosing policies that benefit interest groups and then expend those contributions to influence voters who are uninformed about the policies informed voters however vote based on those policies so candidates face a trade off between choosing a policy to generate funds to attract the uninformed vote and choosing a policy to attract the informed vote electoral equilibria are characterized for two categories of policies particularistic and collective in the case of particularistic policies the equilibrium policies of the candidates are separated if the proportion of uninformed voters is sufficiently high and the degree of separation is an increasing function of that proportion the model is extended to include the public financing of elections and incumbency advantages for the case of collective policies the candidates locate at the median of the ideal points of the informed voters and contributions are zero

economics of devolution decentralization in the uk some questions and answers mcgregor p g and swales k 2005 economics of devolution decentralization in the uk some questions and answers regional studies 39 477 494 the paper explores the economic implications of the radical process of devolution decentralization and delegation of decision making and policy delivery initiated by the post 1997 uk labour government it is argued that the economies of all the presently devolved regions ultimately suffer if the barnett formula is rigorously imposed it is shown that the efficiency of devolving fiscal authority involves a balance of positive and negative elements depending on wage bargaining and migration responses it is then argued that delegation devolution of regional economic development policies while exploiting regional information advantages neglects regional economic interdependence so there are potential gains from greater cooperation coordination

fiscal policy and lending relationships this paper studies how fiscal policy affects loan market conditions in the us first it conducts a structural vector autoregression analysis showing that the bank spread responds negatively to an expansionary government spending shock while lending increases second it illustrates that these results are mimicked by a dynamic stochastic general equilibrium model where the bank spread is endogenized via the inclusion of a banking sector exploiting lending relationships third it shows that lending relationships represent a friction that generates a financial accelerator effect in the transmission of the fiscal shock