Housing prices and wealth inequality in Western Europe

Abstract

Comparative political economy (CPE) has robustly examined the political and institutional determinants of income inequality. However, the study of wealth, which is more unequally distributed than income, has been largely understudied within CPE. Using new data from the World Income Database (WID), this article examines how economic, political and institutional dynamics shape wealth-to-income ratios within Western European and OECD countries. It is found that the political and institutional determinants that affect income inequality have no short- or long-run effects on the wealth-to-income ratio. Rather, the rise in wealth-to-income ratios is driven by rising housing prices, as well as price changes in other financial assets, not home ownership or national saving rates. The article concludes by examining how the changing dynamics of housing prices and wealth inequality will increasingly shape intergenerational – and associated class-based – political conflict in Western Europe.     

Privacy law as price control

The median Internet user is concerned about digital advertisers collecting personal information. To address these fears, the European Union passed the Privacy Directive to regulate the common business practice of information collection. This paper investigates the potential effects of this regulation, finding that the law is likely to generate several unintended consequences. Economists and legal scholars acknowledge that personal data serves as the “price” for accessing many digital platforms. I extend this logic to argue that if a regulation enables consumers to stop supplying this information, while continuing to consume the site’s content, it is equivalent to a price control. Next, I discuss unintended consequences that this price control may generate: tie-in sales, investment flight, and altered exchange characteristics. Lastly, I conclude that, just as with traditional price controls, the privacy price control may be a way for government officials to enhance their popularity with the citizenry. In short, my analysis suggests that one of the most well-researched policy interests of economics—the theory of price controls—can shed light on one of economists’ newest interests: digital privacy.     

Theorists of Agrarian Perestroika

Agrarian policy is an increasingly important concern for the success of perestroika. This article traces the careers and ideas of A. A. Nikonov, president of the Lenin Academy of Agricultural Sciences (VASKhNIL) and Gorbachev's most important academic advisor on agricultural economics, and VASKhNIL Academician V. A. Tikhonov, an outspoken advocate of radical economic reforms. Restoring incentives to the individual peasant through the lease contract (arendnyi podriad), establishing voluntary cooperatives in place of centralized bureaucratic management, and marketizing agriculture are the principal concerns of their work, and were the central issues discussed at the March 1989 CPSU Central Committee plenum on agrarian policy. Journal of Economic Literature, Classification Numbers: 027, 124.     

France's last sociologist

Abstract

The publication of Michael Grenfell's Pierre Bourdieu: Agent Provocateur provides an ideal opportunity for a career retrospective of the academic sociologist who, in recent times, has taken most seriously his role as a public intellectual, indeed, one who gradually warmed to the status of ‘universal intellectual’ with increasing postmodernist disapproval. The French context of Bourdieu's development and reception is highlighted.     

Evaluating the Truth and Reconciliation Commission of South Africa

Provides a review of Gibson’s (2004) evaluation of the Truth and Reconciliation Commission (TRC) of South Africa. Offers a background to the TRC process then reckons with Gibson’s study in terms of his procedures, the context, the issue of “race”, the truth claims of the TRC, a digression on amnesty, and finally the link between truth and reconciliation. Concludes that this study offers substantial support for the TRC process. A review of James L. Gibson (2004) Overcoming Apartheid: Can Truth Reconcile a Divided Nation? New York: Russell Sage Foundation; Cape Town: HSRC Press, pp. 467.