Supreme auditing institutions: A politico-economic analysis

While the beneficial aspects of a public accounting office's activity are not disputed here, it is argued in this article that four major distortions are produced: the concern with administrative rationality overlooks costs elsewhere (Section 2); budgetary aspects are overvalued compared to other issues (Section 3); incentives-oriented behavior is suppressed (Section 4); and the evaluation is biased by concentrating on minor, instead of major, aspects of inefficiency (Section 5). Section 6 considers alternatives to public accounting offices and makes some suggestions for new institutional arrangements particularly for constitutional rules.     

Project USA: American competitiveness and what must be done to restore it

The United States today faces a loss of influence as a world power, a reduction in American independence as a policymaker, and a decline in the standard of living on which Americans have come to depend. History teaches that nations weaker and less productive than the United States can rise to become economic powerhouses and rapidly increase their standards of living. History also teaches that nations failing to recognize their fundamental problems will inevitably decline. American politicians must face what is abundantly clear: the United States is losing ground and must act quickly to reverse its course. This White Paper outlines what must be done. Information about the nation's current status must be analyzed and communicated. Incentives to improve the level of competence in government must be provided and maintained. The emphasis of government policy must be changed to reflect broad economic and technological interests as opposed to special interests. Savings must be encouraged and increased. Infrastructure must be improved Tax laws must be modified to help bring these changes about. Economic and technological issues must be elevated to the importance they require. American thinking must reflect the new realities: that the age of leadership through military power is over, that the requirements for success in the world of the 1990s and beyond require a sound and growing economy that is internationally competitive. The US can accomplish these goals only through foundation-shaking, comprehensive, fundamental changealong the lines we propose herein.This paper is the executive summary (with minor editing modifications) of a white paper that is available from Cornell University's Johnson Graduate School of Management.     

Economics and Law of Works of Art in the Single European Market

This paper is concerned with the economic analysis of the European rules on the circulation of works of art. After reviewing the relevant literature, an economic framework of the international circulation of works of art is provided (social goals, efficiency and distributive aspects, an economic rationale for a general free trade rule integrated by selective protectionism). Using this framework the European system of circulation of works of art—resulting from the combination of the Maastricht Treaty with Regulation 3911/92 and Directive 93/7—is analysed. The main results of the analysis are: 1) the general free trade principle ruling the Single European Market is strongly limited by rules protecting national artistic heritages of member states; 2) this protectionism—working towards countries both outside and inside the European Union—is applied according to the national laws of each member state, while, contrary to what the Maastricht Treaty would call for, an artistic heritage of European significance is not defined and no autonomous role is recognized in this field to European Institutions; 3) this system shows some inconsistencies with economic theory, as strict limits to trade are not provided when they should be required by the preservation of the physical or artistic integrity of works of art, while in other cases an unduly restrained trade may derive from highly protectionist national laws and export-licencing policies of member states. Enforcement provisions are also analysed and some proposals to improve the system are advanced.     

Ballot Layout Effects in the 1995 Elections of the Brussels' Government

Analysing data for the 1995 Regional Elections in Brussels weshow how the layout of the ballot affects voting behaviour asreflected by the candidates' preferential votes. We discusshow this special case of Ballot Position Effects can bereconciled with existing models of (expressive) voting.     

The Pirates' Curse: Economic Impacts of the Maritime Piracy

During the last decades, the activities of pirates have increased exponentially in Eastern Africa, with their attacks becoming considerably more violent. In addition to the intrastate and interstate conflicts, the lack of state capacity and the presence of terrorist groups, maritime piracy represents a serious and sustained threat to economic security. Indeed, from an economic point of view, pirates affect international trade through an increasing insecurity related to the prompt delivery of the goods transported. The aim of this work is to explore the main works on maritime piracy analyzed in quantitative economics.     

Social Innovation and Crisis in the Third Sector in Spain. Results,Challenges and Limitations of ‘Civic Crowdfunding’

Based on the evolution and institutional transformation of the Welfare State and its relationship with the Third Sector of Social Action, the present article describes and analyzes the aspects of the financial crisis and resources that the sector is currently suffering. In regards of these structural transformations the evolution, characteristics, limitations and opportunities offered by ‘civic crowdfunding’ in Spain between the years 2011 and 2015 as an innovative social practice for the increase of the own funding between the entities of the Third Sector of Social Action and the changes that must be experienced by the sector in order to optimize and improve its self-funding ratios through this mechanism are examined. The high index of success of financing social projects (96.5%) through this tool, and the annual growth during the analyzed period shows the potential of civic crowdfuding. On the other hand, the small size of the bankable projects (95.2% less than 10,000 euros), as well as the low total amount collected (2,665,384 euros) indicates that civic crowdfunding is still an insufficient mechanism to mitigate the severe public resource cuts suffered by the entities of the Third Sector of Social Action and also to bring these entities closer to the objective of self-financing. Finally, we formulated a series of recommendations aimed at improving the self-financing ratios of the Third Sector of Social Action, including a more efficient and cooperative use of civic crowdfunding.     

Everyone likes a winner: An empirical test of the effect of electoral closeness on turnout in a context of expressive voting

Under instrumental voting closer elections are expected to have higher turnout. Under expressive voting, however, turnout may increase with decreasing closeness when voters have a preference for winners. An empirical test using data on Belgian municipal elections supports this. We find that turnout reaches a local maximum when the largest party in the election obtains just over 52% of the seats and then falls (supporting the “instrumental” closeness-argument). There is, however, another turning point: the presence of a highly dominating party (receiving at least two-thirds of the votes) stimulates turnout despite the fact that dominance implies lower closeness.