Real interest rate persistence in South Africa: evidence and implications

The real interest rate is a very important variable in the transmission of monetary policy. It features in vast majority of financial and macroeconomic models. Though the theoretical importance of the real interest rate has generated a sizable literature that examines its long-run properties, surprisingly, there does not exist any study that delves into this issue for South Africa. Given this, using quarterly data (1960:Q2-2010:Q4) for South Africa, our paper endeavors to analyze the long-run properties of the ex post real rate by using tests of unit root, cointegration, fractional integration and structural breaks. In addition, we also analyze whether monetary shocks contribute to fluctuations in the real interest rate based on test of structural breaks of the rate of inflation, as well as, Bayesian change point analysis. Based on the tests conducted, we conclude that the South African EPPR can be best viewed as a very persistent but ultimately mean-reverting process. Also, the persistence in the real interest rate can be tentatively considered as a monetary phenomenon.     

Evaluation of a Headspace Solid‐Phase Microextraction Method for the Analysis of Ignitable Liquids in Fire Debris

The chemical analysis of fire debris represents a crucial part in fire investigations to determine the cause of a fire. A headspace solid‐phase microextraction (HS‐SPME) procedure for the detection of ignitable liquids in fire debris using a fiber coated with a mixture of three different sorbent materials (Divinylbenzene/Carboxen/Polydimethylsiloxane, DVB/CAR/PDMS) is described. Gasoline and diesel fuel were spiked upon a preburnt matrix (wood charcoal), extracted and concentrated with HS‐SPME and then analyzed with gas chromatography/mass spectrometry (GC/MS). The experimental conditions—extraction temperature, incubation and exposure time—were optimized. To assess the applicability of the method, fire debris samples were prepared in the smoke density chamber (SDC) and a controlled‐atmosphere cone calorimeter. The developed methods were successfully applied to burnt particleboard and carpet samples. The results demonstrate that the procedure that has been developed here is suitable for detecting these ignitable liquids in highly burnt debris.     

Forensic psychiatric units in Italy from the 1960s to the present

This article addresses the long-standing continuities in the history of the Italian forensic psychiatric units and views them as the result of conflicting forces, interests, mentalities and strategies at the cross-road of forensic psychiatry, psychiatry, prison and health services. It focuses on the period from the 1960s to the present and deals with, among other issues, the long-term impact of the anti-asylum movements and the on-going debate on the ‘phasing out’ of the forensic psychiatric units.     

Harm and Wrongdoing in Criminalisation Theory

Contemporary theories of criminalisation address, with varying emphasis, themes concerning the harmfulness and the wrongfulness of the conduct. In his article for the present issue, Antony Duff relies chiefly on notions of wrongfulness as the basis for his proposed criminalisation doctrines; whereas in their 2011 volume on criminalisation, Andrew Simester and Andreas von Hirsch invoke both wrongfulness and harmfulness as prerequisites for prohibiting conduct. The present article assesses the comparative merits of these approaches, and argues in favour of the latter, two-element perspective. In this article, the author puts forward a number of reasons suggesting why the two-element approach (of wrongfulness and harm) is preferable. These reasons include, firstly, an inductive argument—that the kinds of wrongful conduct for which criminalisation seems a plausible response are those that include an element of harm or risk of harm. Secondly, a defining role for the state is one of resource-protection: of safeguarding the means and resources through which citizens can live good lives. Thus the concept of citizens’ living resources—and the related conception of harm—should be made a constitutive and explicit element of criminalisation theory, rather than subsuming resource-protection under a general rubric of wrongfulness. Thirdly, a two-element approach provides reciprocal limiting principles concerning the scope of criminalisation. One can, for example, employ wrongfulness requirements to limit the criminalisation of conduct that has remote harmful consequences; and, conversely, use a harmfulness requirement as means for restricting the criminalisation of wrongful acts.     

Critical Management Studies and public administration: Reinterpreting democratic governance using critical theory and poststructuralism

In this article we present the schools of thought comprising Critical Management Studies (CMS), explore their implications for public administration, and provide an alternate definition of democratic governance. We synthesize and describe the “modern stream,” inspired by the Frankfurt School, and the “postmodern stream,” associated with poststructuralist authors. Despite significant epistemological and ontological differences, these perspectives complement each other and cast new light on democratic governance. We present the respective theories of Foucault and Habermas, explore their implications for public administration, reconcile their views on power as a basis for a normative definition for so‐called good governance, and redefine the concept of “democratic governance.”     

Are Some Citizens More Equal than Others? Evidence from a Field Experiment

The equal treatment of all citizens is one of the fundamental principles of good administrative practice. Nevertheless, there are growing numbers of media and scientific reports on unequal treatment by public administrations. This article examines the unequal treatment of citizens by gender and ethnic origin by means of a survey‐based field experiment in German local government. With the help of two vignettes and randomized assignment of names, responses to fake citizen requests by local governments are analyzed for speed, quality, and service orientation. The results show very limited discrimination effects. While there is no evidence for general ethnic discrimination, a more differentiated analysis indicates patterns of ethnic discrimination conditioned by gender.     

High-frequency trading,algorithmic finance and the Flash Crash: reflections on eventalization

The Flash Crash of 6 May 2010 has an interesting status in discussions of high-frequency trading, i.e. fully automated, superfast computerized trading: it is invoked both as an important illustration of how this field of algorithmic trading operates and, more often, as an example of how fully automated trading algorithms are prone to run amok in unanticipated frenzy. In this paper, I discuss how and why the Flash Crash is being invoked as a significant event in debates about high-frequency trading and algo-financial markets. I analyse the mediatization of the event, as well as the variety of eventalizations of the Flash Crash - the different ways in which the Flash Crash is being mobilized as an illustrative event. I critically discuss the impact often associated with the Flash Crash – and on that basis, inquire into why the event nonetheless attracts so much attention. I suggest that a key reason why the Flash Crash is widely discussed is that eventalizations of 6 May 2010 evoke familiar tropes about the fear of technology and the fear of herding. Finally, and given their emphasis on herding, I argue that the Flash Crash eventalizations may contribute to discussions within economic sociology about resonance in quantitative finance.