bluuebunny/crossref_metadata_2025 huggingface dataset:
Effluent-free papermaking: industrial experiences and latest developments in the German paper industry
Authors: Hamm U. , Schabel S.
Published: March 2007

Thanks to multiple recirculation of process water, the German paper industry has succeeded in decreasing the specific fresh water demand from an average of 50 m3/t thirty years ago to 13 m3/t today. Although the increasing closure of white water loops creates many problems, it is bound to be part of the German paper industry's ongoing development. For a few years, in the production of packaging paper, two paper mills have been running with a totally closed water system including different process water treatment plants as ‘kidneys’. This paper presents a comprehensive survey of the pros and cons of closed process water systems followed by significant examples of effluent-free production of corrugating medium and test liner. Additionally, operation experiences and economic aspects are discussed.
Ego Identity of Adolescent Children of Alcoholics
Authors: Gavriel-Fried Belle , Teichman Meir
Published: March 2007

The study examines the issue of ego identity among adolescent sons of alcoholic fathers. Forty-four adolescent sons of alcoholic fathers, age of 15–18, constituted the sample. They were drawn from public alcohol treatment center in Israel. The control group included 60 adolescents none of their parents is known as an alcoholic, sampled from integrative schools in the same neighborhood and matched by age. Ego identity was measured by Tzuriel's “Adolescent Ego Identity Scale” (AEIS). It was hypothesized that adolescent children of alcoholics will show lower scores of ego identity and of its dimensions. The hypothesis was not confirmed. To the contrary, adolescent children of alcoholics reported higher scores of “ego identity-total” and of four of the seven ego identity dimensions. One possible explanation is that children of alcoholics are maturing early in age compared to their controls. They have developed different coping strategies that facilitate creating a more “stable” ego identity compared to their peers. Another explanation is that children of alcoholics apply defense mechanisms that enhance the development of an “adaptive self.”
Coalition Formation and Models of Capitalism
Authors: Hall Michael G.
Published: March 2007

Why do different industrial democracies employ different processes in determining trade policy and different models of capitalism? Two variables account for the nature of the decision-making process for trade policy. First, the level of inter-industry factor mobility determines if class or sectoral coalitions predominate. Second, the size of policy coalitions depends on which branch of government dominates trade policy. Legislatures favor minimum winning coalitions, while executives favor maximal coalitions. These two variables condition different patterns of coalition making: partisan, pluralist, corporatist, and interventionist. I illustrate this theory analyzing the development of policymaking concerning trade in France and Sweden.
Trade Agreements and the Environment: An Industry Level Study for NAFTA
Authors: MacDermott Raymond
Published: March 2007

The aim of this paper is to explore two apparently unrelated issues – regional trade agreements and the pollution-haven hypothesis. They are linked by the belief that the elimination of trade barriers will further encourage firms already considering a move to countries with weak environmental regulations. Given the proliferation of trade agreements, as well as the movement of environmental issues to the forefront of our political process, a better understanding of the policy effects is needed. We apply a test equation loosely based on the gravity model to a data set of industry-level foreign direct investment from the Unites States to 23 partner countries from 1982 to 1999. Using pollution emissions as a proxy for environmental stringency, we find strong evidence in support of the pollution-haven hypothesis. We also find the NAFTA increase outflows of U.S. FDI. Finally, the NAFTA appears to encourage the pollution-haven effect.
Is Price and Cost Competitiveness Enough for Apparel Firms to Gain Market Share in the World after Quotas? A Review
Authors: Tewari Meenu
Published: March 2007

This paper challenges the frequently held position that price, volumes and cost-competitiveness will be enough for export success among apparel producers in supplier countries post-MFA. Based on a review of the growing literature on the changing organization of production and trade regimes in the global textiles and apparel industry, the paper argues that while cost-competitiveness is important, several additional, non-price and institutional factors are key to the competitiveness of textile and apparel producers going forward. In an environment of volatility and intensified competition where buyers increasingly demand variety, quality, and timely delivery in addition to price, competing on the basis of low wages and large volumes can lock producers at the lowest end of the value chain where price competition is the harshest and where opportunities to cultivate the skills needed to sustain competitiveness are limited. The paper illustrates this with examples from China, India and Latin America. Specifically, it makes the point that the attribution of China's remarkable export performance in textiles and apparel to its low labor costs and large production scales is, in part, a misreading of the China story. China's unit costs are low, and its production scales enormous, but they are embedded within crucial abilities, key investments by the state, and access to world class distribution networks organized by locally rooted Hong Kong, Taiwanese and South Korean companies that have helped lower the "costs" of large scales of operation (i.e., of rigidity) in the context of uncertain markets. The end of quotas, and the ongoing churning in the global division of labor can be an opportunity for apparel firms to chart an alternative growth path based on deeper skills, innovation, design and quality upgrading, in addition to low unit costs.
Antidumping Procedures and Macroeconomic Factors: A Comparison between the United States and the European Union
Authors: Sadni Jallab Mustapha , Sandretto René , Gbakou Monnet Benoît Patrick
Published: March 2007

This paper aims at extending some recent publications about the relationship between antidumping filings and macroeconomic factors by comparing the United States (US) and the European Union (EU), two major users of antidumping procedures. Results of our estimations confirm that the exchange rate exerts a similar influence in the two countries. Fluctuations in the real GDP influence antidumping filings only in the US. On the contrary, the evolution of industrial production does not play an important role in the US, while its impact is important in Europe. The reinforcement of international competition appears to significantly increase antidumping filings in the US while this relationship turns out not to be significant in Europe. Finally, some of the most important differences between the US and the EU seem to be explainable by the differences of rules and practices implemented by the regulatory authorities.
Welfare Magnets, Border Effects or Policy Regulations: What Determinants Drive Migration Flows into the EU?
Authors: Peridy Nicolas J
Published: March 2007

In recent years, there has been a lack of empirical work devoted to the explanation of migration patterns into the European Union with the exception of country specific studies. At the same time, migration theories have undergone a considerable renewal, which has led to the development of new variables for explaining migration decisions. Three of them are of particular interest in the EU case, namely welfare magnets, border effects and policy regulations. This paper aims at explaining recent migration trends into the EU. A first contribution is to provide an original eclectic theoretical model from the new developments in migration theories. Second, an empirical panel data model is developed in order to explain the emigration rate into 18 EU countries, from 67 source countries over the past 10 years. Finally, this model simultaneously tests the impact of the traditional and the new variables on migration flows into the EU. From both static and dynamic panel data estimators, the results show that the new variables are of particular significance, compared to traditional ones.
Is There an East European Housing Bubble?
Authors: Shelburne Robert C. , Palacin Jose
Published: March 2007

This study examines residential house price trends in the East European economies. The data are described and evaluated in terms of their quality and reliability; both official data from national statistical offices and that compiled by real estate companies are used. Current prices are evaluated in terms of the economic fundamentals in the region including GDP growth rates, interest rates, rental prices, alternative asset prices, and the availability of mortgages. The role of foreign currency mortgages is given special treatment given their importance in a number of countries and the vulnerabilities they introduce. For some of the markets a more detailed description of price trends by region or type of property is provided. Comparisons with western markets are made where appropriate. Generally it is concluded that price increases have been quite significant but any over appreciation is difficult to evaluate given the very positive changes in the economic fundamentals. In addition to price trends, the implications of the changing institutional structure of these mortgage markets are explained along with the implications of the housing market developments for consumer spending, fiscal and monetary policy. The possibility of a housing bubble and bust is examined along with its implications for the economy; policy options to minimize this likelihood and its consequences are also explored with due consideration of the limitations on macroeconomic policy options given the constraints imposed by euro accession in a number of the countries.
De-linking the Relationship between Trade Liberalization and Reduced Domestic Fiscal Budgets: The Experience of the Israeli Economy: 1984-2005
Authors: Pelzman Joseph , Shoham Amir
Published: March 2007

Issues concerning the consequences of trade liberalization and the resulting reduction in domestic fiscal budgets have always been the 'hot' topic in the trade policy community. This paper approaches this issue by focusing on the experience of the Israeli economy in the twenty year period (1984-2005) where Israel undertook both major tariff liberalization and a related domestic tax reform, with no reversion to border taxes. The Israeli experience highlights the initial budget revenue concerns associated with tariff liberalization, and quickly moves the issue away from border tax substitutes to domestic issues concerning enforcement. By de-linking the two issues the paper demonstrates that it is feasible to successfully tackling both external and internal tax reforms. Furthermore, it demonstrates that it is possible not to fall into the trap of looking at border taxes as a cure for internal high costs of tax revenue. The appropriate prescription for other developing or newly industrialized countries is to de-link the two tax issues, focus on the collection side of the domestic tax structure while at the same time reducing local taxes and broadening the tax base.
Emerging Countries, Regionalization, and World Trade
Authors: Lévy Brigitte
Published: March 2007

The economic development of emerging countries such as China, India, Brazil, and Russia has serious implications for the multilateral trading system, and for government policies worldwide. This paper explores globalization and regionalization processes in order to assess the effects of trade liberalization on emerging countries. Today, major economic players tend to focus on bilateral and regional agreements. Attention must be paid to how these agreements affect the multilateral trading system and the trilateral world economy. One aspect that stands out from this study is that the role of countries such as China and India, which are reshaping trade patterns, remains to be defined within the Asian regional framework. Equity issues also have an important role to play, both at a regional and at a global level. Consideration of the intersections between the regional and/or bilateral trade agreements of member countries raises interesting questions about the role of trade blocs in the future trajectory of the global economy.
Intellectual Property Rights, Globalization and Growth
Authors: Stryszowski Piotr K
Published: March 2007

This paper presents a model that combines the key features of a Schumpeterian growth model without scale effects and a North-South model of trade. All open economies converge to parallel growth paths because of costly technological transfer. The effects of intellectual property rights (IPR) regimes and trade policies on the growth rate is studied, as well as on a given country's economic performance. The requirement that trade be balanced neutralizes all potential effects of the tariff policy on the world's growth rate, and on the performance of a single country. By contrast, an improvement of a given country's IPR regime is growth neutral, but improves a country's position in the world's productivity rank. These findings are illustrated by simple empirical tests.
OPEC in the Epoch of Globalization: An Event Study of Global Oil Prices
Authors: Bina Cyrus , Vo Minh
Published: March 2007

This article confirms that OPEC is neither a cartel nor exhibits any sign of market domination, market control, or monopoly. This confirmation is also in accord with the pioneering account of the competitive differential oil rents formed across the global industry since the crises of the 1970s. The methodology utilized in this study is known as the event-study, an innovative econometric method which attempts to investigate the possible influence of OPEC decisions on output upon the global oil spot and futures prices during the period of 1983-2005. The significance of this investigation is due to the fact that the apparent ``lumpiness" of OPEC has to have no bearing on a priori acceptance of ``perfect competition" as opposed to ``imperfect competition"—a tautological hallmark of neoclassical theory utilized in the bulk of both orthodox and heterodox literature on oil. And, by implication, neither has the neoclassical parlance of rent, as ``market imperfection" and/or ``market power," any bearing on the globally competitive differential oil rents earned by the rentier states. OPEC is reflective of the competitive differential oil rents earned by its members; and, contrary to both the right and the left, and their obfuscating echo in the media, it rolls with the heavy-handed punches of global market in the present epoch. This study is rather a posteriori investigation that deals with the reality of competition in the Schumpeterian framework—a reality that, far from the fiction of textbook competition, is neither perfect nor imperfect.
Economic Effects of NAFTA on Mexico
Authors: Salvatore Dominick
Published: March 2007

The economic effects of NAFTA on Mexico have been discussed and measured mostly in terms of its effect on employment on both sides of the border and by the increase in Mexico-US trade and investments before and after NAFTA. These are the wrong ways to measure the effects of a free trade area on a member state. In this paper, I will first discuss the theoretically correct method of evaluating the economic effects of the formation of a free trade area in general and then apply this method to correctly measure the effects of NAFTA on Mexico.
WTO Enforcement Issues
Authors: Pelzman Joseph , Shoham Amir
Published: March 2007

In theory, the WTO dispute settlement system is expected, via an elaborate system of sequential legal maneuvers to ensure the implementation of the dispute settlement body (DSB) recommendations. In reality when trade issues rise above some critical threshold to a respondent, the theory behind the DSU enforcement breaks down and the well meaning legal system only leads to prolonging the dispute rather than resolving it. Since 1995, more than 300 complaints have been filed through the WTO dispute settlement system. In most cases, the parties reach a mutually satisfactory solution in accordance with the WTO Agreements through consultations without having recourse to the panel and Appellate Body review. When the consultation process fails the resulting process of Panel reports and Appellate Body reports result in a removal or modification of the violating measures. In those cases where there is no removal or modification of the violating measures, the period of non-compliance tends to be very long and leads to core questions about the true intent of the DSU. In particular, was the DSU designed to ensure a legal process for the settlement of a dispute and to recommend a remedy to the offending violation but was not designed to secure compliance.

The intent of this paper is to show that this is indeed the case. Moreover, if one treats the WTO as a contract, then the non-compliance issue may be viewed as an `efficient breach' and the only efficient remedy is a `fine' rather than the usual practice of suspension of concessions or other obligations to the offending Member. Under our suggested enforcement rules, it may be possible for a Member to continue to breach her obligation to the WTO contract while simultaneously compensating for damages created by the offending measure. The end result will be more efficient than the current system of diplomatic maneuvering designed to pressure the Member to remove or modify the offending measure.
R&D Subsidies and Multinational Firm Ownership
Authors: Gretz Richard T. , Highfill Jannett , Scott Robert C.
Published: March 2007

Most industrialized countries subsidize private sector R&D, even under some circumstances when the firm is owned by foreigners. The present paper, using a simple theoretical analysis of a monopoly firm selling only to the U.S. market, argues that such subsidies are welfare enhancing—as long, of course—as the funding agency chooses the projects it funds wisely. The paper suggests that a subsidy rate of 50% might be warranted under some circumstances.
Strategic Implications of Uncertainty over One's Own Private Value in Auctions
Authors: Rasmusen Eric Bennett
Published: March 2007

A rational bidder in a private-value auction should be reluctant to incur the cost of perfectly estimating his value if it might not matter to the success of his bidding strategy. This can explain sniping---flurries of bids at the end of auctions---as the result of other bidders trying to avoid stimulating the victim into learning more about his value. The idea of value discovery also explains why a bidder might increase his bid ceiling in the course of an auction and why he would like to know the private values of other bidders.
A Vague Theory of Choice over Time
Authors: Manzini Paola , Mariotti Marco
Published: March 2007

We propose a novel approach to modelling time preferences, based on a cognitive shortcoming of human decision makers: the perception of future events becomes increasingly `blurred' as the events are pushed further in time. Our model explains behavioural `anomalies' such as preference reversal and cyclical choice.
Is Sustainable Development Compatible with Rawlsian Justice?
Authors: Raymond Francis E
Published: March 2007

Does economic justice stymie economic development? This paper demonstrates that sustainability is compatible with Rawlsian intertemporal justice, even when considering human capital and natural resources. The methodology employed herein extends and amends previous works that (1) do not consider human capital or renewable resources, and (2) rely upon the application of standard Lagrangian methodology to a continuum of nonlinear constraints. This approach circumvents problems associated with earlier works by internalizing constraints and demonstrating two sufficient conditions which guarantee existence of a Rawlsian maximin path.
Existence of Equilibrium for Segmented Markets Models with Interest Rate Monetary Policies
Authors: Occhino Filippo
Published: March 2007

Several studies have recently adopted the segmented markets model as a framework for monetary analysis. The characteristic assumption is that some households never participate in financial markets. This paper proves the existence of an equilibrium for segmented markets models where monetary policy is defined in terms of the short-term nominal interest rate. The model allows us to consider the important cases where monetary policy affects output, and responds to any sources of uncertainty, including output itself. The assumptions required for existence constrain the maximum value and the variability of the nominal interest rate. The period utility function is logarithmic. The proof is constructive, and shows how the model can be solved numerically. A similar proof can be used in the case that monetary policy is defined in terms of the bond supply.
Finite Memory Distributed Systems
Authors: Dorofeenko Victor , Shorish Jamsheed
Published: March 2007

A distributed system model is studied, where individual agents play repeatedly against each other and change their strategies based upon previous play. It is shown how to model this environment in terms of continuous population densities of agent types. A complication arises because the population densities of different strategies depend upon each other not only through game payoffs, but also through the strategy distributions themselves. In spite of this, it is shown that when an agent imitates the strategy of his previous opponent at a sufficiently high rate, the system of equations which governs the dynamical evolution of agent populations can be reduced to one equation for the total population. In a sense, the dynamics 'collapse' to the dynamics of the entire system taken as a whole, which describes the behavior of all types of agents. We explore the implications of this model, and present both analytical and simulation results.
Are Manufacturers Competing through or with Supermarkets? A Theoretical Investigation
Authors: Laussel Didier G
Published: March 2007

We study a model with product differentiation by manufacturers and spatial differentiation by supermarkets where the customers visit only one shop and the supermarkets carry both goods. Under fixed fee pricing by the manufacturers the intensity of interbrand competition increases with the degree of differentiation between the supermarkets. When the supermarkets are more and more spatially differentiated the struggle between manufacturers and supermarkets dominates the competition between the manufacturers and results in lower wholesale prices and manufacturers profits.
Assessing the Likelihood of Panic-Based Bank Runs
Authors: Zimper Alexander
Published: March 2007

Conditional on the considered equilibrium, the probability of a bank run in the demand-deposit contract models of Bryant (1980) and of Diamond and Dybvig (1983) is either one or zero. In contrast, we establish the existence of an interval - being a strict subset of the unit-interval - of possible bank run probabilities for a two-player demand-deposit contract model where players receive independent signals about their liquidity desire from a continuous type space. As our main result we demonstrate that this interval reduces to a unique probability of a panic-based bank strictly smaller than one if and only if there exist types for which not running on the bank is a dominant action. In addition to existing models of bank runs such as, e.g., Goldstein and Pauzner (2005), our approach also provides some assessment of the likelihood of a bank run if there are no types for which not running on the bank is a dominant action. As a consequence, we can investigate the comparative statics of the likelihood of bank runs with respect to a larger range of payoff parameters than considered in previous models. Furthermore, we derive a technical result by which the findings of Morris and Shin (2005) on the dominance-solvability of binary action games with strategic complements also apply to nice games in the sense of Moulin (1984) if players' best response functions are increasing.
Rational Sabotage in Cooperative Production with Heterogeneous Agents
Authors: Bevia Carmen , Corchón Luis C
Published: March 2007

We present a model of cooperative production in which rational agents might carry out sabotage activities that decrease output. We provide necessary and sufficient conditions for the existence of a Nash equilibrium without sabotage. It is shown that the absence of sabotage in equilibrium depends on the interplay between technology, relative productivity of agents and the degree of meritocracy. In particular we show that, ceteris paribus, meritocratic systems give more incentives to sabotage than egalitarian systems.
Monopoly Pricing over Time and the Timing of Investments
Authors: Tarola Ornella
Published: March 2007

We consider a monopoly producing a good whose demand grows over time. Whatever the price policy which is adopted, the monopolist invests in order to meet the resulting demand growth. She can only invest in indivisible factory units. We identify the optimal price policy, and the ensuing optimal sequence of investment time points the monopoly selects through time. We show that this sequence satisfies the constant cycle property observed under capacity expansion for an exogenous increase in demand (Manne, 1961).
On the Signalling Role of Debt Maturity
Authors: Lensink Robert , Pham Thi Thu Tra
Published: March 2007

This paper focuses on the signalling role of debt maturity. The main novelty of the paper is that it analyzes a setting in which high quality firms use collateral as a complementary device along with debt maturity to signal their superiority. Model simulations suggest a non-monotonic relationship between firm quality and debt maturity, in which high quality firms have both long-term secured debt and short-term secured or non-secured debt and low quality firms have long-term unsecured debt. We provide some empirical evidence for this result based on debt contracts of the Asia Commercial Bank.
Rat Races and Glass Ceilings
Authors: Bardsley Peter , Sherstyuk Katerina
Published: March 2007

In an ongoing organization, such as a large law partnership firm, employees are motivated not only by current rewards but also by the prospect of promotion, and the opportunity to make the rules in the future. This leads to a recursive contract design problem in an overlapping generations environment, where current agents may become future principals. The principal offers, and promotion-motivated agents accept, harsh rat race contracts with low wages and high effort levels. Hiring and promotion probabilities emerge as the preferred instrument to screen high cost workers, who face employment barriers and a glass ceiling.
A Search-Theoretic Monetary Business Cycle Model with Capital Formation
Authors: Menner Martin
Published: March 2007

Search-theory has become the main paradigm for the micro-foundation of money. But no comprehensive business cycle analysis has been undertaken yet with a search-based monetary model. This paper extends the model with divisible goods and divisible money of Shi (JET, 1998) to allow for capital formation, analyses the monetary propagation mechanism and contrasts the model's implications with US business cycle stylized facts. The propagation mechanism based on a feedback between increased search intensity and depleted inventories only survives in the presence of non-negligible capital adjustment costs. With intermediate adjustment costs the model is able to replicate fairly well the volatility and cross-correlation with output of key US time series, including sales and inventory investment.
Is a European Culture of the "Legal Process" Really Developing?
Authors: Di Paolo Gabriella
Published: March 2007

The issue of respect in criminal proceedings of fundamental procedural rights has became more and more crucial after Nine Eleven, not only in the US justice system, but also in Europe. This paper questions if it makes sense to speak about a European dimension of the due process of law concept. A multi-level approach is suggested in order to develop this inquiry. The different spheres through which the analysis is performed are the European Convention of Human Rights system, the constitutional law of EU Member States and the EU legislation.
Public versus Secret Reserve Prices in eBay Auctions: Results from a Pokémon Field Experiment
Authors: Katkar Rama , Reiley David H
Published: March 2007

Sellers in eBay auctions have the opportunity to choose both a public minimum bid amount and a secret reserve price. We ask, empirically, whether the seller is made better or worse off by setting a secret reserve above a low minimum bid, versus the option of making the reserve public by using it as the minimum bid level. In a field experiment, we auction 50 matched pairs of Pokémon cards on eBay, half with secret reserves and half with equivalently high public minimum bids. We find that secret reserve prices make us worse off as sellers, by reducing the probability of the auction resulting in a sale, deterring serious bidders from entering the auction and lowering the expected transaction price of the auction. We also present evidence that some sellers choose to use secret reserve prices for reasons other than increasing their expected auction prices.
The Impact of Driver Cell Phone Use on Accidents
Authors: Hahn Robert W. , Prieger James E
Published: March 2007

Cell phone use is increasing worldwide, leading to a concern that cell phone use while driving increases accidents. Several countries, three states and Washington, D.C. have banned the use of hand-held cell phones while driving. In this paper, we develop a new approach for estimating the relationship between cell phone use while driving and accidents. Our approach is the first to allow for the direct estimation of the impact of a cell phone ban while driving. It is based on new survey data from over 7,000 individuals.This paper differs from previous research in two significant ways: first, we use a larger sample of individual-level data; and second, we test for selection effects, such as whether drivers who use cell phones are inherently less safe drivers, even when not on the phone.The paper has two key findings. First, the impact of cell phone use on accidents varies across the population. This result implies that previous estimates of the impact of cell phone use on risk for the population, based on accident-only samples, may be overstated by about one-third. Second, once we correct for endogeneity, there is no significant effect of hands-free or hand-held cell phone use on accidents.
Social Interactions and the Digital Divide: Identification and Policy Implications
Authors: Miniaci Raffaele , Parisi Maria Laura
Published: March 2007

In the light of recent policies aiming at raising the computer literacy of young generations and at reducing the digital divide, this paper analyzes to what extent the probability of an individual having computer abilities is affected by the computer skills of her household's other members, i.e. if there are significant within household peer effects. We show how peer effects can be identified when skills are measured with a continuous variable and the learning costs are increasing and convex. Our application on a sample of Italian households indicates that peer abilities within a family significantly increase the individual probability of being skilled.
Administrative Delays as Barriers to Trade
Authors: Regibeau Pierre M , Rockett Katharine E
Published: March 2007

We study a two-country model where two firms, one domestic and the other foreign, must decide when to introduce their new product into a market. The home government may apply an import tariff, an administrative delay, or both to the product of the foreign firm. An administrative delay imposes a waiting period between the time when the quality of the foreign product is determined and the time when the product can actually be sold. Our main interest is the differential effect of the tariff and the administrative delay on the timing of new product introductions and the resulting change in home, foreign and world welfare. We show that administrative delays are less efficient instruments for maximizing home welfare than tariffs. With a tariff, the home government can affect the timing of entry to ensure that the domestic firm moves first at the socially optimal date. Although an optimally chosen delay can achieve the same pattern of introduction, it does not yield any tariff revenues. As a result, if the tariff may be set optimally, administrative delays are not used in a discriminatory manner. If trade liberalization constrains the import tariff to be below its domestically optimal level, discriminatory administrative delays may become part of the optimal policy of the home country. As the optimal delay policy leads to lower levels of world welfare than the optimal tariff, trade liberalization can be welfare decreasing.
Why Tariffs, Not Subsidies? A Search for Stylized Facts
Authors: Ederington Josh , Minier Jenny
Published: March 2007

Barriers to trade are commonly viewed as a result of political systems in which politically influential groups benefit from and successfully lobby for protection. However, trade policy is a highly inefficient tool for redistributing income. Although recent theoretical research has focused on explanations of why (inefficient) trade barriers might be preferred to more direct means of redistribution, this research has been carried out with little empirical support. We address this gap in the literature with an exploratory cross-country empirical investigation of the economic factors correlated with a reliance on tariffs over subsidies. We find that the existing theoretical literature is consistent with the cross-country evidence.
Tariff Evasion and Customs Corruption: Does Pre-Shipment Inspection Help?
Authors: Anson Jose , Cadot Olivier , Olarreaga Marcelo
Published: March 2007

This paper provides a new approach to the evaluation of pre-shipment inspection (PSI) programs as ways of improving tariff-revenue collection and reducing fraud when customs administrations are corrupt. We build a model highlighting the contribution of private surveillance firms to the generation of information and describing how incentives for underinvoicing and collusive behaviour between importers and customs are affected by the introduction of PSI. It is shown theoretically that the introduction of PSI has an ambiguous effect on the level of fraud. Empirically, our econometric results suggest that the introduction of PSI services increased underinvoicing in Argentina and Indonesia, and reduced it in the Philippines.
Public Complaints and Alberta's Environmental Regulation
Authors: Eckert Heather L
Published: March 2007

In recent years, different levels of government in Canada and the United States have claimed that public complaints are an important source of information for the enforcement of environmental regulations. Public complaints provide monitoring at a lower cost than inspections but are inaccurate because citizens lack the information to assess a potential environmental threat properly. Little existing literature examines the use of public complaints in enforcing environmental regulations. Using a dataset of environmental reports in the province of Alberta between January 1996 and September 2002, this paper details the use of public complaints to enforce Alberta's environmental legislation and examines the effectiveness of public complaints in different industries and for different environmental threats. I find that that the majority of public complaints are simply odour complaints, and that public complaints are investigated less often over time and very rarely lead to enforcement action.
After the Traffic Stops: Officer Characteristics and Enforcement Actions
Authors: Close Billy R , Mason Patrick L
Published: March 2007

This study examines the relationship between officer characteristics and racially biased policing. In particular, we explore the relationship between the officer's race/ethnicity and the nature and extent of excessive enforcement actions by race. We derive an efficient enforcement action theorem which suggests that if public safety is the sole concern of police agencies, then racially and ethnically biased policing will not be a persistent element of police practice. Alternatively, our political economic model suggests that police apply more severe sanctions against other-group drivers. Our results show that the race and ethnicity of officers have a significant and substantive impact on the intensity of enforcement actions by the Florida Highway Patrol against stopped drivers.
Options Contracts for Contingent Takings
Authors: Kousky Carolyn , Walsh Sam , Zeckhauser Richard
Published: March 2007

Disasters are low-probability situations with high potential losses. Shortly before and during some disasters, government use of private property may reduce losses to others that strongly outweigh the costs imposed on the property owner, implying significant net benefits. Coercive takings or attempts to contract at the time of the emergency will frequently be defeated by transactions costs. We propose a policy tool to realize the available net benefits: options contracts for contingent takings. Such contracts between the government and private parties allow the government to take property in the event of a low-probability event that would make the property much more valuable in government hands. In exchange for such use, the property owner is compensated, in part up front and in part when the option is exercised. Setting the exercise payment equal to the cost of losses promotes efficiency in both risk spreading and the incentives for exercise. Options contracts of this form will be valuable in a range of settings, from improving disaster response by guaranteeing a flow of needed supplies, to reducing potential damages by diverting floodwaters to low-value lands, or even to helping ensure the survival of some endangered species. The moral hazard and hold-out problems that may afflict such contracts can be controlled.
Feast or Famine at the Federal Luau? Understanding Net Federal Spending under Bush
Authors: Francia Peter L , Levine Renan
Published: March 2007

During the 2000 election, 30 "red" states cast their Electoral College votes for Republican George W. Bush. Many of these red states are also the largest net recipients of federal benefits. Is this a product of the fact that many red states are simply poorer than blue states, or the result of political machinations? We find that even after controlling for Republican congressional power and key socio-economic and demographic factors, red states received more federal benefits per tax dollar in 2004. In a twist of irony, we conclude that "big government" entitlement and discretionary programs have actually become important club goods for Republicans to reward support in core states. As a result, red states have increased the amount of goods they received per tax dollar under Bush.
The Validity of the 2004 "Moral Values" Question
Authors: Schuman Howard
Published: March 2007

Although the response "moral values" to a 2004 exit poll question did not point to the decisive factor in George W. Bush's victory that some commentators at first claimed, it may nevertheless have identified an important element in the election and quite possibly for the future. Various criticisms of the question are considered, and found to be wanting.
Black Politics, the GOP Southern Strategy, and the Reauthorization of the Voting Rights Act
Authors: Tate Katherine
Published: March 2007

The extension of the temporary provisions of the 1965 Voting Rights Act sailed through Congress and was signed into law by President George Bush on July 27, 2006 without any major turbulence. The absence of major politics over its renewal in 2006 is striking when compared to the partisan battles in its 1982 extension. President Bush and the Republicans had an opportunity to water down the VRA, given that Blacks appear less politically radical or extremely liberal than in the 1980s. But GOP leaders did not pursue a southern strategy by contesting the VRA. Their reluctance confirms that Black power is solid. Black members of Congress framed the issue in a way that the administration recognized that blacks and minorities would mobilize if VRA renewal was challenged in a significant way.
Signing Statements: What to Do?
Authors: Fisher Louis
Published: March 2007

The dispute over presidential signing statements surfaced first under President Ronald Reagan and most recently under President George W. Bush. Legitimate concerns accompany the use of these signing statements, but proposals put forth by the American Bar Association, other groups, and bills introduced in Congress are unimpressive in their analysis and practicality. Signing statements can be abused, and abusive, but efforts to eliminate or constrict them have little application to underlying problems.
The Legal Significance of Presidential Signing Statements
Authors: Calabresi Steven G. , Lev Daniel
Published: March 2007

Presidents have issued signing statements when signing bills into law since the first half of the Nineteenth Century but recently this practice has come under attack. In this short essay, we argue that presidential signing statements ought to be given legal weight for three reasons. First, they are part of a federal statute's legislative history because the president's concurrence is ordinarily necessary, along with the House and Senate's, for a bill to become law. Second, presidential signing statements are deserving of Chevron deference because of the President's constitutionally specified expertise as the chief executor of federal law. And, finally, presidential signing statements are a vital mechanism by which the President as the nation's unitary head of the executive branch can control exercises of the executive power by his millions of subordinates. For all three of these reasons, presidential signing statements are legally binding on subordinate executive branch personnel and they also ought to be given legal weight by federal and state courts.
Wall vs. Wave?
Authors: Connelly William F.
Published: March 2007

How did a wave of anti-Republican sentiment breach the wall of structural advantages available to the majority party? In 2006, as in 1994, we learned that structural advantages are not impregnable, there is no permanent minority, and all politics is local, except when it is national. Like House Democrats in 1994, House Republicans in 2006 could not govern the country, could not govern Congress, and could not govern themselves. In particular, in both elections the majority parties beat themselves due to their failure to control the mischiefs of faction within their own ranks. In managing such factions, each party faces a constitutional quandary: government or opposition, compromise or confrontation, policy or politics.
Assessing Howard Dean's Fifty State Strategy and the 2006 Midterm Elections
Authors: Kamarck Elaine C
Published: March 2007

Throughout the 2006 midterm elections, the press wrote about the conflict over campaign strategy between Howard Dean, Chairman of the Democratic National Committee, and his counterparts in Congress, Chuck Schumer and Rahm Emmanuel, the heads of the Senate and House campaigns, respectively. Schumer and Emmanuel, as well as other Beltway strategists, disagreed with Dean's "fifty state strategy" to build the party across the nation, arguing that DNC funds should focus on the races targeted by the congressional parties. This essay explains, in part, why Dean's popularity suffers in Washington  even after decisive Democratic victories  and why he continues to have support outside the Beltway. It also provides preliminary evidence that Dean's fifty-state strategy paid off in terms of increasing the Democratic vote share beyond the bounce of a national tide favoring Democrats.
Midterm Elections, Partisan Context, and Political Leadership: The 2006 Elections and Party Alignment
Authors: Ceaser James W. , DiSalvo Daniel
Published: March 2007

This essay is an effort to delineate an important factor shaping the context of congressional and presidential leadershipthe results of midterm electionsand to investigate the responses of leaders in the dramatic situation of the loss of majorities by the president's party in both houses of Congress.
The New Democratic Majority in Congress: Preferences, Structure, and Bargaining
Authors: Evans C. Lawrence , Turner Joshua A.
Published: March 2007

This paper begins by exploring the impact of the 2006 midterm elections on the distribution of policy preferences within the U.S. House and Senate during the 110th Congress. We then consider the consequences of the new political configuration in Washington for the distribution of power between party leaders and the committee systems in both chambers, the patterns of bargaining that will occur between congressional Democrats and the Bush White House, and the likely contents of legislative outcomes during 2007-08.
Market Power and European Competition in the Swedish Food Industry
Authors: Wilhelmsson Fredrik
Published: March 2007

This paper investigates the existence of market power in the Swedish food and beverage industry and how market power has been affected by European competition (the Single Market and Swedish EU membership). The study makes use of a census of some 500 firms for the period 19902002. The results show that firms in the Swedish food and beverage industry do enjoy some market power, the degree of which varies significantly across the sectors of the food and beverage industry. Increased foreign competition has contributed to reducing market power in sectors that were protected by tariff and non-tariff barriers to trade prior to Swedish EU membership.
Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK
Authors: Kontoleon Andreas , Yabe Mitsuyasu
Published: March 2007

This paper undertakes a detailed market segmentation analysis of the demand for GM derived animal foods in the UK with the aim of illustrating how this analysis can provide distinct information that can assists in evaluating the welfare impacts of proposed changes to the EU's GM labelling policy. The specific modelling approach employed was the latent segment (LS) model which allows for the simultaneous determination and explanation of both segment membership and product choice. Based on psychometric and demographic variables as well as choice data, the LS model was able to identify three distinct and behaviourally consistent consumer segments. Further, the LS model was found to outperform alternative econometric approaches for accounting for preference heterogeneity. Finally, our analysis shows how it can yield distinct information over the segmented nature of the food market that can uniquely assist both European policy makers in designing GM labelling regimes and public awareness campaigns as well as the agricultural and food industry in developing pricing, marketing and new product development strategies.