How liable should an exporter be?: The case of trade in hazardous goods

This paper analyzes liability issues in the context of internationally traded goods like hazardous waste. It focuses on waste disposers of a small open economy that are judgement-proof due to either wealth constraints or regulatory liability limits. In this case, the extension of liability to waste exporters distorts the factor allocation and may reduce disposal care. Hence the optimal extension is partial at most. However, extending liability increases incentives of the waste importing country to hold domestic disposers liable. Interaction through the price system and through contracts that condition payments for disposal services on the occurrence of an accident yield identical outcomes if disposers are judgement-proof.     

Negative Capital and the Wealth of Nations

The so-called global economy has generated tremendous international wealth inequality that only increases as globalization deepens. This process is capped by the failure of classical economic theory to incorporate such free market externalities as negative capital . Negative capital can be defined as situations, events, or environmental conditions that degrade or threaten to degrade the standard of living or life expectancy of great numbers of persons, including those living in wealthy nations. These problems cut across issues of sovereignty and security, economic development, and the environment. They can be monetized and have value because the rich will have to pay in order to mitigate them, whether at home or abroad. Payment can take many forms, but it will involve a politics of redistribution. Negative capital is a systemic phenomenon "in nature" without which the classical economic theory is both incomplete and notably ideological. A tamed and therefore enlightened free market, that recognizes and addresses negative capital, may be better equipped to resolve the situations created by its inherent inadequacies.     

Promises made,promises broken: a political economic perspective on German unification

The article provides an overview of the state of the East German economy after more than ten years of unification. It demonstrates that, contrary to what had been promised in 1990, the situation is far from ‘flourishing landscapes’. We argue that a number of policy mistakes, based in the desire of the then government to maintain electoral support, is responsible for this. In addition, the behaviour of West German labour market participants is held responsible for the dismal record of unemployment in East Germany. Hence, political and distributional conflicts lie at the root of the still present East German problem.     

Leadership Style, Regime Type, and Foreign Policy Crisis Behavior: A Contingent Monadic Peace?

While a substantial body of theory suggests that democracies should behave peacefully toward all states (monadically), most empirical evidence indicates they are only pacific in their relations with fellow democracies (dyadically). A new theoretical synthesis suggests that the missing link between democratic constraints and pacific monadic behavior is leaders' perceptions of, and responses to, these constraints. Research on political leadership indicates that, contrary to conventional wisdom, leaders respond in systematically different ways to domestic constraints: "constraint respecters" internalize constraints in their environments, while "constraint challengers" view such constraints as obstacles to be surmounted. An analysis of 154 foreign policy crises provides strong support for this contingent monadic thesis: democracies led by constraint respecters stand out as extraordinarily pacific in their crisis responses, while democracies led by constraint challengers and autocracies led by both types of leaders are demonstrably more aggressive.     

Electoral Mobility and Social Change in Denmark

Danish politics in the 1970s is characterized by a remarkable increase in electoral fluidity. Increasing political mobility should be seen not as a product of passing and specific events, but as a product of basic societal change. The link between political mobility and some dimensions of social change is discussed theoretically and investigated empirically. The discussion focuses on the joint effects of socioeconomic change and political-institutional change. Some reasons why these changes should lead to increased electoral mobility are stated. The empirical analysis is carried out at the level of municipalities. A positive relationship between various indicators of socio-economic change and political mobility is demonstrated. The relationship is sustained when a control for the effects of social structure is introduced.