The politics of mortgage credit expansion in the small coordinated market economies

Abstract

Recent contributions to the comparative political economy literature claim that liberal market economies are vulnerable to asset booms and busts because of financial deregulation, shrinking welfare states and a political ideology emphasising financial self-sufficiency. This article examines the rapid expansion of mortgage lending in three coordinated market economies (CMEs): Denmark, Sweden and the Netherlands. This expansion is puzzling given that all three countries are CMEs with generous welfare states. Yet the pattern of mortgage lending resembles the Anglo-Saxon or liberal market economies (LMEs) more than other CMEs. The article argues that mortgage bubbles in the small CMEs emerged as the unintended outcome of pairing neoliberal programmes to expand home ownership with collectivist housing institutions. This resulted in supply restrictions and rising property values which saddled households with extraordinarily high mortgage debts. In short, mortgage credit bubbles are not unique to Anglo-liberal welfare states and may have different origins.     

Directors’ duties under the 2019 Companies Act of Ghana

The scope of directors’ duties forms perhaps the most important part of corporate governance. This paper considers the trajectory of the regulation of directors’ duties under Ghanaian company law from the Companies Act, 1963 (Act 179) to the Companies Act, 2019 (Act 992). Using the 2017 to 2019 financial institutions’ insolvencies in Ghana as a backdrop, it considers whether the scope, formulation and structure of directors’ duties within the new legislation is capable of promoting corporately-beneficial director behaviour. It also discusses whether the framework is apt to deal with similar lapses in corporate governance marked by reckless and opportunistic director behaviour. It discovers that Act 992 places a greater reliance on specific rules while retaining the largely principles-based regulatory technique adopted for regulating director conduct under Act 179. The overall tenor of the framework of directors’ duties under the new Act points to a firmer legislative view of the serious consequences of reckless director conduct. The paper concludes that the language of the framework regulating director conduct is capable of promoting corporately beneficially director behaviour and is also apt to deal with the kind of lapses in corporate governance which led to mass financial sector insolvencies in Ghana.     

Bringing the Falklands/Malvinas Home: Young People's Everyday Engagements with Geopolitics in Domestic Space

This paper draws on recent research examining feminist and everyday geopolitics to focus on the relatively neglected domestic sphere as a space where geopolitical events like the Falklands/Malvinas war are learnt, (re)produced, remembered and contested by young people. It presents qualitative data drawn from interviews with young people from Argentina (Río Gallegos) and the Falkland Islands (Stanley), locations with intimate connections to the 1982 war. It argues that research in domestic environments that engages the familial relations, objects and practices that embody geopolitical pasts can help make sense of how young people (are able to) express geopolitical agency.     

Red Tape,Rule Burden,and Legitimate Performance Trade-Offs: Results from a Vignette Experiment

Abstract

Goals in the public sector are complex and managers can face situations in which pursuing one legitimate goal necessitates performance trade-offs in other areas. This study tests how knowledge of legitimate performance trade-offs shapes the perception of red tape. Using a vignette experimental design and a sample of university students, between group t-tests and regression analyses suggest that, when evaluating increased rule burden, individuals that are provided with information about how objectively burdensome rules serve alternative values such as equity and effectiveness associate them with lower levels of red tape. A series of Monte Carlo simulations suggest that this effect is substantial.     

Speaking of Justice: A Qualitative Interview Study on Perceived Procedural Justice Among Defendants in Dutch Criminal Cases

Qualitative interviews with one hundred defendants in Dutch criminal cases examine whether perceived procedural justice is a relevant concern for defendants, and, if so, which procedural justice components they refer to. The study provides a point of epistemological departure from the quantitative studies dominating the field, as it assessed which components of procedural justice (if any) respondents put forward themselves rather than asking about predetermined procedural justice components. The large majority of respondents mentioned procedural justice issues themselves, and six components were at the core of their procedural justice perceptions: (1) information on which decisions are based, (2) interpersonal treatment, (3) due consideration, (4) neutrality, (5) voice, and (6) accuracy. Although these procedural justice components largely correspond with the literature, respondents thus mentioned some components more often, and others less often, than the literature would suggest. In particular, neutrality plays an important role in the Dutch legal context examined here.     

Designing a Choice Architecture for Regulators

The emergence of behavioral public administration has led to increasing calls for public managers and policy makers to consider predictable cognitive biases when regulating individual behaviors or market transactions. Recognizing that cognitive biases can also affect the regulators themselves, this article attempts to understand how the institutional environment in which regulators operate interacts with their cognitive biases. In other words, to what extent does the “choice architecture” that regulators face reinforce or counteract predictable cognitive biases? Just as knowledge of behavioral insights can help regulators design a choice architecture that frames individual decisions to encourage welfare-enhancing choices, it may help governments understand and design institutions to counter cognitive biases in regulators that contribute to deviations from public interest policies. From these observations, the article offers some modest suggestions for improving the regulatory choice architecture.     

Defense Industries and Global Dependency

The global defense industrial sector is a remarkably accurate indicator of the distribution of power in the post-Cold War international system. However, the defense industrial sector as a policy tool has received relatively little scrutiny, even though it not only reflects the international order, but also provides the United States with the ability to influence the foreign policy behavior of other states. The defense industrial sector is a powerful, if undervalued, diplomatic tool in the United States’ political arsenal.