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.     

The evolution of European legal integration

This article contributes to the development of theories on European integration by testing and exploring statistical models on the long-term development of legislative activity of the European Commission. Drawing on legal information gained from the European Union’s PreLex database and analyzing it with the help of statistical analyses, we map out growth patterns of EU law between 1976 and 2003. We construct time-series models and models based on non-linear regression. While the performance of models based on the traditional theoretical approaches, intergovernmentalism and neo-functionalism, is rather poor, the analysis suggests that nonlinear dynamic models might be an interesting avenue for future conceptualizations of the EU integration process. This article is based on a paper presented at the ECPR Standing Group on the European Union Second Pan-European Conference on EU Politics, “Implications of a Wider Europe: Politics, Institutions and Diversity”, 24–26 June 2004, Bologna, Italy. We would like to thank the seminar participants for useful comments.     

Local public management reforms in the Netherlands: fads, fashions and winds of change

Compared to other continental European countries, especially Germany and Switzerland, which have experimented with New Public Management (NPM) in local government, The Netherlands has been relatively quick in following trends stemming from Anglo-Saxon management thinking, but also relatively quick in redressing its course. The rise of the New Public Management in Dutch local government has been relatively swift and strong but also relatively superficial and non‐committal. The dominant picture that emerges is one of an administrative system that, while responsive to the latest trends, is also surprisingly stable. Management reforms, forcefully advocated in the 1980s, were decisively revised and redressed in the 1990s, with the city of Tilburg, celebrated for its 'Tilburg Model', a case in point. The Werdegang of NPM (that is, how things developed) in Dutch local government, detailed in this article, can be understood only partially as a result of changing economic and budgetary constraints. The article shows that endogenous features of the Dutch politico-administrative system – more specifically: the compact, dense and decentralized pattern of the intergovernmental network, the administrative tradition of pragmatism, dynamic conservatism and the comparatively technocratic character of local government – have also strongly influenced the reception, effect and correction of NPM in Dutch local government.     

Crime,detection rate,and the police: A macro approach

Dutch criminality and its relation to the performance of police and justice have only recently been analyzed at the macro level (e.g., at the level of municipalities or the whole country). This type of approach is a useful supplement to analyses at the micro level (that of individuals), which are more common in Dutch empirical criminological research. The main results of such a macro approach are presented in this article. We conclude that the per capita numbers of youth, divorced people, and unemployed contribute significantly to the crime rate. The police strength and solving rates are important factors as well. Analysis of the production process of the police reveals that detecting one more case of driving under the influence is far more expensive than solving one more other crime or handling one more traffic accident. The results are combined to sketch a cost-benefit approach of different strategies in allocating more resources to the police. Allocating extra resources to solving more cases of vandalism gives the best cost-benefit ratio.