A note on the feasibility of a monetary area in the East Asia

After the constitution of the European Monetary Union (EMU), a new scope for monetary coordiantion is emerging in other regional areas. The standard approach to theoretically analyse the feasibility of a monetary union is the optimum currency areas (OCA) approach. Although this approach has been claimed to be non-operative, recent studies using synchronisation measures have shown a high potential applicability. This paper provides an empirical application of the OCA theory to a hypothetical East Asian monetary union centred on Japan’s currency. We find that despite the increasing synchronisation of macroeconomic determinants of a monetary area during 1980–2001, the perspective of an Asian currency union is still not economically feasible.

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Building ‘implicit partnerships’? Financial long-term care entitlements in Europe

Policy Sciences - The design of public subsidies for long-term care (LTC) programmes to support frail, elderly individuals in Europe is subject to both tight budget constraints and increasing...     

Do jurisdictions compete on taxes? A meta-regression analysis

A sizable empirical literature examines government fiscal interactions. However, the empirical evidence is very mixed. We apply meta-regression analysis to quantify the size of inter-jurisdictional fiscal interactions and to explain the heterogeneity in empirical estimates. Several robust results emerge. While there are significant country differences, tax interactions exist in all countries studied and they are strongest in terms of total tax and weakest in terms of income tax. Interactions differ according to level of government: compared to the municipal level, horizontal tax competition is stronger when the jurisdiction is a county or a nation. We show that tax competition has actually not grown over time and that econometric specifications and estimation strategies influence reported fiscal interactions.     

Vertical Competition in the Spanish National Health System (NHS)

In unitary states, competitive decentralisation structures can take place by increasing the visibility of politically accountable jurisdictions in certain policy responsibilities such as health care. Drawing from the Spanish decentralisation process we examine the mechanisms (and determinants) of vertical competition in the development of health policies in the Spanish National Health System. The Spanish example provides qualitative evidence of vertical competition that assimilates government outcomes of unitary states to that of federal structures. The Spanish experience indicates that the specific vertical competition mechanisms in place until 2002 are likely to be responsible for significant policy innovation and welfare state development.     

The Public as a Limit to Technology Transfer: The Influence of Knowledge and Beliefs in Attitudes towards Biotechnology in the UK

Transferring knowledge on new biotechnology applications in the European Union is restricted by limited public support. Explanations for this limited support lead us to examine the influence of knowledge and beliefs in shifting attitudes towards the uncertain consequences of unknown technologies. In addition, this paper looks at the role of perceptions of uncertainty as well as information channels. We denote as “knowledgeable” those attitudes that are held by informed individuals and as “rational irrational” those attitudes purely reflecting political and moral beliefs. The empirical analysis employs data from a UK sample of the 1999 Eurobarometer Survey 52.1. Results suggest that improving knowledge systematically raises individual support for clinical biotech applications such as animal cloning, while attitudes towards market-oriented biotech such as GM food remain systematically unaltered. When controlling for knowledge, significant factors within information channels were gender, perceptions of risk and, in certain applications, religiosity. Findings also support the hypothesis that knowledge driven attitudes arise from those applications where knowledge is shifted by perceived experience and thus perceived information costs are small. An erratum to this article is available at .     

Power rather than path dependency? The dynamics of institutional change under health care federalism

Proposals for government decentralization rank high on the political reform agenda of health systems worldwide. Their impact on welfare state performance and change, however, is still under theoretical scrutiny. This article examines the impact of devolution on the construction of the Spanish National Health Service (NHS) in an attempt to shed some light on this debate. Against widespread claims of path dependency, we argue that the specific nature of the devolution model developed in Spain, given the more egalitarian sociopolitical structure that resulted from democratization, fostered policy innovation and institutional change. Consolidation of an NHS system was compatible with some regional diversity and apparently prevented the rise of significant territorial inequalities. The Spanish case also suggests that policy change depends more on the distribution of social power than on institutions. It underlines the key role of financial and knowledge transfers vis-à-vis institutional reforms in effecting social change as well as the potential for state intervention in supporting the development of collective action resources by social groups.