Productivity slowdown and misallocation in the post-recession: What prevents recovery?

This study explores the effects of the 2008 global economic crisis on the labor allocation and productivity in Luxembourg. The analysis is based on firm-level data from manufacturing and non-financial service sectors and finds a dramatic productivity slowdown after 2008. The study reveals that the cleansing effect of recession did not function effectively which would otherwise improve the efficiency in the labor allocation and counterbalance the productivity slowdown. The firm entry and job creation rates are lower in the post-crisis period, but the job destruction is not significantly altered by the crisis. The findings call attention for the strict employment protection legislation that possibly plays a role in preventing reallocation towards more efficient establishments. Relaxing the employment protection legislation simultaneously with facilitating the entry and growth of young firms is expected to promote creative destruction, improve allocative efficiency and speed up the post-crisis recovery.     

Disappointments of post-colonialism

Jean-Fran?ois Revel is a French writer and philosopher. He is the author of Without Marx or Jesus, The Totalitarian Temptation,and How Democracies Perish.     

International relations theory and Japanese pacifism: Why didn’t Tokyo go ballistic over North Korean nukes?

Seen from the perspectives of the various Western theories of international relations, Japan’s peculiar armed pacifism can appear very different. Prominent neorealists have predicted that Japan will inevitably develop nuclear weapons; prominent liberals have cited Japan as the model pacifist nation of the future. Over the last five years, it became clear to Japan that North Korea either possessed, or was on the brink of acquiring, nuclear weapons. How would the Japanese government respond to such a critical threat to its security? The case of North Korean nukes suggests that policymakers should be wary of the grim expectations of Western neorealists, at least in regard to Japan.     

Interactive Policy Development: Undermining or Sustaining Democracy?

The question can be raised whether the principal effect of interactive policy development is to shore up a (creaking) democratic system or to destabilize its very foundations. In this article, a framework is presented for assessing the democratic credentials of interactive policy development. It is based on four views on how a democracy should work: instrumental or substantial democracy and direct or indirect democracy. Critics and advocates differ in their confidence that the intended aims can ever be realized. Based on extensive case study material of interactive local policy development projects collected between 1997 and 2001, the validity of the various arguments for or against interactive policy-making is analysed. The analysis indicates that whether interactive policy development undermines or sustains democracy depends principally on the extent to which divergences in the expectations of the various groups are made explicit and unrealistic or mistaken expectations are dispelled.     

Les politiques de régulation et le modèle d'Edelman: une analyse en fonction de la santé dans l'industrie de l'amiante

Sommaire. Le centre d'intérêt de cet article réside dans les politiques de regulation. Il s'agit de mettre à contribution un modèle théorique des politiques de régulation peu utilisé, soit celui de Murray Edelman, en l'expérimentant sur une politique elle aussi négligée des chercheurs, soit l'intervention de l'Etat en matière de santé au travail. Pour des raisons essentiellement d'ordre pratique, nous concentrons notre analyse sur la régulation de l'empoussiérage dans l'industrie primaire de l'amiante au Québec. Quant au modèle d'Edelman, qui postule que les politiques de régulation sont symboliques, il est disséqué et résumé sous forme de trois propositions principales. La première explique pourquoi l'Etat entreprend d'élaborer une politique de régulation; la deuxième montre comment s'exerce cette politique de régulation; et, la troisième s'applique à dégager les conséquences réelles de cette politique de régulation sur ceux en fonction de qui elle existe. Notre examen empirique de chacune de ces propositions nous amène à conclude que seule la deuxième est vérifiée quant au fond, de façon relativement satisfaisante (cette proposition affirme que l'organisme régulateur sera dominé par ceux qu'il veut contrôler). Ainsi notre étude de cas vient supporter un courant de pensée très influent parmi les analystes des politiques de régulation. En dernier ressort, nous tentons de mettre en relief ce qui nous est apparu comme étant l'idée la plus originale du modèle des politiques de régulation d'Edelman. Abstract. This article is primarily concerned with regulatory policies. Murray Edelman's little-used theoretical model for regulatory policies is experimentally applied to the policy of state intervention in the field of industrial health, one which has also been neglected by researchers. For practical purposes, we have concentrated our analysis on dust-control regulations in Quebec's primary asbestos industry. Edelman's model, which postulates that regulatory policies are symbolic, has been broken down and summarized within three main propositions. The first explains why a government attempts to draft a regulatory policy; the second shows how such a policy is applied; the third is concerned with the actual consequences of this policy for those affected by it. Our empirical examination of each of these propositions leads us to conclude that only the second can be substantially verified in a satisfactory manner (this proposition avers that the regulatory agency will be dominated by those it wishes to control). To this extent our case study provides support for a theory which is highly influential among regulatory policy analysts. Finally, we have attempted to highlight the most original idea in Edelman's model of regulatory policies.