Intraregional Migration,Direct Action Land Reform,and New Land Settlements in the Brazilian Amazon

This article analyses migration histories of residents in rural settlements of the Brazilian Amazon that resulted from direct action land reform (DALR), which involves organised land occupations. Our analysis evaluates two hypotheses. The ‘urban migration’ expectation asserts that urban experience is important for DALR participation, which links rural and urban areas via migration for land occupations. The ‘DALR efficacy’ hypothesis argues that migration and DALR are complementary livelihood strategies, such that participation in DALR obviates the need for further migration. Our findings support both hypotheses and bear implications for regional development and environmental change in the Amazon.     

Now You See It, Now You Don't: The Mysterious Case of the Vanishing Split Bond Rating in States

Bond ratings on state-issued debt provide a signal to credit markets that help them charge an appropriate interest rate, based on the risk of payment default. Though actual default may occur only in extreme circumstances, observed differences in ratings and interest costs across states and time demonstrate that a sound economy, strong financials, and stable policies matter. When data on the factors that presumably affect ratings is public and easily accessible, making sense of differences of opinion between bond rating agencies is difficult. We suggest that such differences—observed as so-called split bond ratings—are often ephemeral. Utilizing a simulation method to uncover the latent credit risk presented by each state, we show that split ratings on state bonds are often due to the fact that presumed category overlap between rating agencies is absent when evaluated on a common latent scale. Most observed state bond rating splits from 1997 through 2006 can be explained by this category mismatch. Our approach has broad implications for pricing state debt, as well as pricing rated debt in other capital market sectors.     

Economic Conditions and State and Local Education Revenue

This article uses information on state and local education spending from 1989–1990 through 2005–2006 to examine the impact of economic conditions on the pattern of real revenue per student. We find that typical economic and other observable education demand determinants are significant in explaining the pattern of real revenue per student before and after the 2001 recession. We also find that there is no economically significant change in how governments responded to economic conditions after the 2001 recession. Finally, our results provide strong evidence that local governments attempted to offset state declines in revenues by increases in local revenues.     

Making Europe Work

Because they have failed to address the fundamental economic imbalances within Europe obscured by the single currency, each effort by European leaders so far to resolve the euro crisis has only deepened it. Without a decisive move toward fiscal and political union, accompanied by policies that push productivity and competitiveness toward convergence while closing the democratic deficit, the Eurozone will disintegrate. To discuss the way forward, the Nicolas Berggruen Institute's Council on the Future of Europe met in Rome on May 28 with Italian Prime Minister Mario Monti. In this section we publish the contributions from that meeting by the former European leaders, scholars and Nobel laureates who are members of the Council.     

Can You Talk between the Lines？

EVERY Chinese is proud of their country＇s 5,000 years of cultural his tory. However, if people from the Western world were to interpret this culture in the wrong way, it would be quite difficult to communicate. Bearing in mind the cultural differences, many expats will have encountered conversational awkwardness with Chinese employees or colleagues.