The politics of mortgage credit expansion in the small coordinated market economies

Abstract

Recent contributions to the comparative political economy literature claim that liberal market economies are vulnerable to asset booms and busts because of financial deregulation, shrinking welfare states and a political ideology emphasising financial self-sufficiency. This article examines the rapid expansion of mortgage lending in three coordinated market economies (CMEs): Denmark, Sweden and the Netherlands. This expansion is puzzling given that all three countries are CMEs with generous welfare states. Yet the pattern of mortgage lending resembles the Anglo-Saxon or liberal market economies (LMEs) more than other CMEs. The article argues that mortgage bubbles in the small CMEs emerged as the unintended outcome of pairing neoliberal programmes to expand home ownership with collectivist housing institutions. This resulted in supply restrictions and rising property values which saddled households with extraordinarily high mortgage debts. In short, mortgage credit bubbles are not unique to Anglo-liberal welfare states and may have different origins.     

Speaking of Justice: A Qualitative Interview Study on Perceived Procedural Justice Among Defendants in Dutch Criminal Cases

Qualitative interviews with one hundred defendants in Dutch criminal cases examine whether perceived procedural justice is a relevant concern for defendants, and, if so, which procedural justice components they refer to. The study provides a point of epistemological departure from the quantitative studies dominating the field, as it assessed which components of procedural justice (if any) respondents put forward themselves rather than asking about predetermined procedural justice components. The large majority of respondents mentioned procedural justice issues themselves, and six components were at the core of their procedural justice perceptions: (1) information on which decisions are based, (2) interpersonal treatment, (3) due consideration, (4) neutrality, (5) voice, and (6) accuracy. Although these procedural justice components largely correspond with the literature, respondents thus mentioned some components more often, and others less often, than the literature would suggest. In particular, neutrality plays an important role in the Dutch legal context examined here.     

Designing a Choice Architecture for Regulators

The emergence of behavioral public administration has led to increasing calls for public managers and policy makers to consider predictable cognitive biases when regulating individual behaviors or market transactions. Recognizing that cognitive biases can also affect the regulators themselves, this article attempts to understand how the institutional environment in which regulators operate interacts with their cognitive biases. In other words, to what extent does the “choice architecture” that regulators face reinforce or counteract predictable cognitive biases? Just as knowledge of behavioral insights can help regulators design a choice architecture that frames individual decisions to encourage welfare-enhancing choices, it may help governments understand and design institutions to counter cognitive biases in regulators that contribute to deviations from public interest policies. From these observations, the article offers some modest suggestions for improving the regulatory choice architecture.     

The End of Wilderness: Conflict and Defeat of Wilderness in the Grand Canyon

In the early 1970s, Grand Canyon National Park intended to designate its land to “Wilderness,” including the controversial Colorado River corridor. However, by the end of the 1970s the potential for Wilderness designation was off the table, and would never seriously return for genuine consideration. Using Schattschneider's model of conflict, we explain how the organization of this conflict privileges the “causal story” of Wilderness opponents, and therefore why the canyon is not designated. It is our contention that members of Congress will not stand forward to support Wilderness designations without simultaneously providing benefits for extractive land use because (1) congressional representatives are more penalized for supporting than opposing Wilderness designations, (2) Wilderness advocacy groups do not pressure congressional delegates as firmly as opposition groups, and (3) key local congressional members are not likely to see Wilderness as a salient issue worth the risk of negative exposure. If these findings hold, the implication is that we may have reached the end of significant Wilderness designations in highly visible areas, unless critical aspects in land use conflict change.     

Race and Ethnicity: Responsible Use from Epidemiological and Public Health Perspectives

While the concepts of race and ethnicity have been abused historically, they are potentially invaluable in epidemiology and public health. Epidemiology relies upon variables that help differentiate populations by health status, thereby refining public health and health care policy, and offering insights for medical science. Race and ethnicity are powerful tools for doing this. The prerequisite for their responsible use is a society committed to reducing inequalities and inequities in health status. When this condition is met, it is irresponsible not to utilize these concepts.     

The Effect of Negotiation Practices on the Relationship between Suppliers and Customers

This article examines the effects of negotiation practices, such as coercion and contract formality, on how suppliers and customers perceived the resulting business relationship. We conducted a purchasing negotiation simulation with students in a classroom setting in which participants competed for resources in a mock supply-chain context. The participants were surveyed at key stages of the ongoing negotiation in order to measure their behaviors as a customer–supplier relationship developed. The data were used to test several hypotheses developed from the marketing and purchasing literature. The hypotheses were analyzed using structural equation modeling.
Results demonstrated that the use of coercive techniques by negotiators during negotiation had a negative effect on satisfaction. In addition, the findings showed that, as expected, negotiators entering a negotiation with a cooperative orientation would tend to avoid the use of coercive practices during negotiation. The cooperative orientation also exhibited an unexpected positive effect on the formalization of the design of the contract between the parties. This study contributes to the current knowledge base focusing on the creation of agreements between companies and will, we hope, encourage the integration of suppliers and customers in an operating context within a supply-chain setting.     

Demand Pull Technology Transfer Applied to the Field of Assistive Technology

Technology transfer has generally had little impact on the assistive technology industries serving small, highly fragmented “disability markets.” Persons with disabilities often require specialized, relatively sophisticated technology. Third-party payer reimbursement rates and the low levels of disposable income among disability populations often cap product pricing. Transferring technology to these industry segments therefore poses special challenges. In October 1998, the Rehabilitation Engineering Research Center on Technology Transfer initiated the “Demand-Pull Project on Wheeled Mobility.” Successful transfers resulting from this project demonstrate that a systematic technology transfer process can be successfully applied to industries serving specialized and underserved niche markets.