Public and private sector wages interactions in a general equilibrium model

It is common wisdom that public sector wages are not determined in the same way as private sector wages. At the same time, the empirical evidence available for OECD countries finds a strong positive correlation between public and private sector wages. In this paper, we develop a model that is consistent with a political economy view of the determination of public sector wages and employment, while being consistent with the said empirical evidence. Public finance constraints are crucial: In booms, governments expand employment and wages, while in downturns, lack of tax revenues forces the government to cut back the wage bill.     

Cuba's “Equity Without Growth” Dilemma and the 2011 Lineamientos

Cuba faces a development dilemma: it promotes equity and human capital while failing to deliver economic growth. For the government, the country's equity and human capital achievements are a source of pride, a sign that its priorities are right. This essay argues instead that this “equity without growth” dilemma is a sign of malaise. Theory and evidence suggest that high levels of equity and human capital should produce high levels of economic growth. Because growth is often weak or negative, some onerous barriers to development must be present. These barriers, it is argued, are restrictions on property and political rights. By comparing Cuba and China across two sectors, the bicycle industry and Internet access, this article shows how these restrictions have hindered growth. It also assesses how Cuba's latest economic reforms, the so‐called Lineamientos, will address Cuba's development dilemma. The impact may be minimal, but perhaps more lasting than previous reforms.     

A theoretical approach to market definition analysis

This work performs a theoretical approach to market definition analysis. The conditions a test must satisfy are selected in order to define the relevant market according to the jurisdictions of the United States and the European Union as most tests proposed by economists tend not to satisfy all the required conditions. I use two models of horizontal product differentiation to illustrate the nature of the tests that can be used under each jurisdiction. The main conclusion of the paper is that the empirical tests for market definition which are valid in the current legislations in the United States and the European Union must be performed using a different approach which may yield different relevant markets.     

Regimes of Cooperation in the Western Hemisphere: Power, Interests, and Intellectual Traditions

The 1994 Summit of the Americas marked a high point in hemispherism—our label for the active attempt by the nations of the Western Hemisphere to form regimes of cooperation with one another. To explain why hemispherism has not been a more powerful trend in the last 200 years, structural, interest, and cultural variables are relevant but insufficient factors. An important and often overlooked obstacle to hemispherism has beencontrarian ideas. Specifically, constellations of intellectual traditions that question the value of hemispheric cooperation have dampened both the demand for and supply of such regimes. Only when these antihemispheric intellectual traditions were in retreat—the late nineteenth century, the mid twentieth century, and the early 1990s—has hemispherism flourished. We posit three mechanisms through which intellectual traditions can decline, thus generating amodified cognitivist argument that can supplement power-based and interest-based explanations of regime formation and robustness.     

Human Rights and Tear Gas: The Question of Carter Administration Officials Opposed to the Shah

Jimmy Carter’s arrival to the White House and Washington’s new focus on human rights caused an early, although subtle, rift between the United States and the Shah’s Iran. The aim of this paper is to explore how the Bureau of Human Rights’ activist approach, under the leadership of the outspoken Patricia Derian, muddied the waters between Tehran and Washington, while using the export of riot control equipment as the spearhead of Carter’s human rights policy abroad.     

A Veteran Hotelier

Thirty five years ago,Javier Albar was askedby his father, a hotelier at Hilton Madrid: "Would you like to go to a hotelschool in Switzerland?"The boy, who had a stronginterest in art and     

Spanish legislation against trafficking in human beings: punitive excess and poor victims assistance

The article seeks to provide a perspective of human trafficking as one of the fastest growing criminal activities of the last few years in the area of organised crime and one that affects human beings’ most basic rights. In the main, the response to the problem has been its criminal prosecution, but without tackling the issues of need that underlie this conduct and which the traffickers take advantage of to abuse, assail and exploit the people they traffic. In this context, the evolution of Spanish legislation in terms of the criminalisation of this problem has made it one of the most repressive, although there is no clear evidence of its effectiveness. This punishment, which covers a wide range of criminal conducts, has not however been accompanied by any policies to support and integrate the victims of trafficking, which has led to a large number of victims being subjected to slavery who, in the majority of cases, fall under the control of the trafficking networks again.