Error minimization and deterrence in agency control

In the presented oversight model, in which a regulatory agency may collude with regulatees, a watchdog organization may scrutinize the agency’s decision-making and find evidence speaking for collusive behavior. Found evidence is of a specific, stochastic quality. Courts will overturn the administrative decision when the evidence presented in court exceeds a minimum quality standard set by the political principal. Lowering the quality standard increases the odds of finding evidence of sufficient quality and, hence, leads to increasing collusion deterrence and to a lower probability of acquitting collusive administrators (type I error), but also to a higher probability of convicting an innocent administrator (type II error). It is shown that, when welfare-maximization gives rise to an interior solution, the welfare-maximizing standard of evidence is lower than the one that merely minimizes the costs of legal errors without taking deterrence costs into account, but will imply incomplete deterrence. However, conditions can and will be identified under which both error cost minimization and complete deterrence coincide with welfare-maximization.     

Toxicologic findings in the USS Iowa disaster.

The toxicologic results from the 47 victims of the explosion on the USS Iowa are presented. Good correlation between carboxyhemoglobin saturations and cause of death was found. There were no correlations between blood cyanide concentrations and causes of death. Volatile analysis suggested postmortem ethanol production rather than antemortem ethanol ingestion. No drugs except nicotine were detected in any of the victims.     

Bremse oder Gaspedal? Eine empirische Untersuchung zur Wirkung der direkten Demokratie auf den Steuerstaat

This article analyzes the relationship between the different forms of direct democratic participation and the size of the tax state in the Swiss cantons for the period from 1983 to 2000. The analysis distinguishes between the different effects of the financial referendum and the initiative. Theoretical arguments suppose that the financial referendum curb the tax state, whereas the initiative is expected to contribute to its growth. Pooled time series analyses show that legal conditions of direct democratic participation in general and especially the legislation on financial referenda are much more important than the frequency of plebiscites for the explanation of the different sizes of the tax states in the cantons. As an additional result of the analyses, the impact of direct democracy on the tax state turns out to be much larger in the 1990s compared to the decade before.     

Effects of Insurance on Child Labour: Ex-Ante and Ex-Post Behavioural Changes

In this paper we analyse possible effects of insurance on child labour. First, we develop a theoretical model that separates effects of insurance with and without a shock taking place. We then empirically test the hypotheses derived from the model by analysing the extension of a health insurance product in urban Hyderabad in Pakistan. Consistent with the theoretical model we develop in this paper, the reduction in child labour caused by the extension is largely due to an ex-ante feeling of protection as opposed to an ex-post shock-mitigation effect.     

Town twinning and political support

Does town twinning foster citizens’ political support of the European Union? This study investigates the relation, which is maintained in politics and academics but still calls for empirical evidence. We distinguish between two levels of analysis, namely individual and context level, and differentiate in accordance with David Easton’s modes of political support specific from diffuse support. The corresponding hypotheses are tested with a unique dataset, which embraces survey findings of more than 12,000 respondents from 28 randomly selected municipalities in Germany. The main conclusions that emerge from the analysis are: First, town twinning does promote political support of the European Union on the individual level. Second, there are positive effects on specific and diffuse support. Thirdly, there is no relationship between local activity in twinning affairs and political support.     

Consolidating the new regulatory state in Germany? The new energy regime of 2005

It is the purpose of this article to describe and analyse recent developments of the new regulatory state in Germany. Due to substantial changes in the regime governing energy regulation in 2005, it is suggested that we witness a trend towards consolidation. By consolidation, the article refers primarily to cross-sectoral institutional and instrumental homogeneity, possibly caused by the transfer of regime elements from sector to sector. It is argued that both traditions of state-societal co-operation as well as sector structures (i.e., incumbent suppliers) are key factors to explain regime emergence and change also in the energy sector.