A market based evaluation of the election versus appointment of regulatory commissioners

This paper examines the elected versus appointed commissioner dichotomy from a market value perspective. Previous empirical analysis tends to concentrate on rates rather than examining the impact on shareholders' wealth. We examine life insurance industry data during the period surrounding the passage of California's Proposition 103. The primary impact of the referendum on life insurers is to change the method of commissioner selection from appointment to popular vote. We find that this change significantly reduced the value of life insurers doing business in California. This result is consistent with the recent findings of Boyes and McDowell (1989) and Smartt (1994) using alternative evaluation procedures for firms in other regulated industries. This implies that the change to a popular election of commissioners either increases the level of risk and/or decreases the expected cash flows of regulated firms.     

Anticipated Transition to Adulthood: The Effect of Educational Track,Gender, and Self-Evaluation on Finnish and Polish Adolescents' Future Orientation

In Finland and Poland, a total of 352 (192 boys and 160 girls) 17-year-old general secondary and vocational school students participated in a study investigating their anticipated transition to adulthood. In times of large sociohistorical change in both countries, Finland (economic depression) and Poland (change from socialism to market economy), we investigated to what extent those changes were reflected in the students' probability estimations (for potential goal attainment in three future life domains; education, occupation and family life), generational comparison (attaining a life different from the life of parents), future time extension (for anticipated events in those life domains), and self-evaluations (self-esteem and control over future). The results showed that girls in both countries expressed a higher level of probability for success in education than boys did. As expected, vocational school students in both countries expressed a lower probability of success in future occupation than general secondary school students did. General secondary school students from both countries expressed higher levels of self-esteem and control over future than vocational school students did. Unexpectedly, no differences between boys' and girls' probability estimations for family life were found, in either country. However, girls from both countries anticipated an earlier and more rapid transition to adulthood than boys did, thus reflecting social time tables. The results suggested that the educational track remains a significant stratifying factor in times of societal change in both countries.     

Beauty and Politics

Stars on and behind the stage fuse an ancient Chinese legend with Western opera.     

Between NATO and a hard place: defence spending debate in Germany and Czechia

Defence spending has become a primary issue in the context of NATO. The question of fair burden-sharing and development of new capabilities in reaction to the changing security environment led NATO members to aim to spend 2% of GDP on defence by 2024. While some allies have managed to reach the level quickly, others seem not to be able or willing to do so. We know little, however, how the international commitment is reflected and referred to in individual member states. This article shows how size played a role when the 2% pledge was discussed in domestic politics, even if the resulting policy may be very similar. Based on expert and political debates in Germany and Czechia, it demonstrates that external expectations and the question of status play a crucial part in the small state’s reasoning whereas it is mainly internal drivers that shape the big state’s decisions.     

The Institutional Settings for the Development of Public Services through State-Owned Enterprises in Brazil

The findings of this study make a timely contribution to the development of public services. Based on the institutional analysis and development (IAD) framework, this study analyzes under which institutional settings state-owned enterprises (SOEs) can be social and financial options for public service provision in Brazil. Applying a multi-case research design, this study’s findings show that SOEs can be a suitable option for Brazilian social and financial development when: markets are weak or noncompetitive; if few decisional players act; if political interference is minimized regarding operational decisions; and if corporate control is effective to avoid mismanagement and corruption. Brazilian SOEs are effective economic and social tools, but they need to peroxide value improve their corporate control (in the case of Petrobras) and strategic centralization decisions (in the case of Eletrobrás) .     

What Kinds of Trade Liberalization Agreements Do People in Developing Countries Want?

One of the most striking developments in the global economy in the past decades is the rapid proliferation of preferential trade agreements (PTAs), with many of them concluded among or with participation of developing countries. On the presumption that current popular debates on trade policy are not so much about whether citizens want free trade but rather what kinds of trade liberalization they want, we examine individual trade policy preferences with regard to PTAs that can vary in content along several dimensions. To that end we carried out conjoint choice experiments embedded in representative surveys in three developing countries that differ strongly in income levels, political system, and trade liberalization history: Costa Rica, Nicaragua, and Vietnam. We conceptualize trade policy preferences as preferences over the scale and scope of trade liberalization, environmental and labor standards, and labor market access (migration). Two main findings emerge. First, non-economic considerations, such as sympathy/antipathy toward particular countries and environmental and labor rights concerns influence citizens’ preferences at least as much as factors based on standard economic logic. Second, preferences over particular facets (attributes) of trade liberalization, that is PTA content, are surprisingly consistent across countries, despite strong differences in macro-economic and political context.     

Policy advice as policy work: a conceptual framework for multi-level analysis

This article argues that policy advice can be understood as a special kind of “policy work” that depends upon a diverse set of factors operating at different levels. The basic aim of the article is to disentangle this multi-level and multifaceted phenomenon into a conceptual framework that can be used for empirical analysis and theory building. In that framework, policy advice is conceptualized as a never-ending interaction among various actors in a specific institutional context, through which routines and norms are both reproduced and abolished. First, it is explained why policy advice is most fruitfully understood as a special kind of policy work, and then how it relates to other policy work activities. Second, problems with single-level approaches are discussed and the need for a multi-level approach is explained. Third, a multi-level conceptual framework is formulated and described. Fourth, some possible applications of the framework are illustrated with examples from current empirical research. The article concludes with implications for research and theory building.     

Factors Explaining Public Participation in the Central Government Budget Process

This paper attempts to examine which factors explain public participation in the budget process in an international comparative approach. In particular, we investigate which socioeconomic, institutional, and political factors promote public engagement in the central government budget process. Using a sample of 93 countries, our results indicate that Internet penetration, population diversity, governmental financial situation, and budget transparency determine opportunities for public engagement in the central government budget process. In addition, we show that not only budget transparency promotes public participation but also public participation is necessary to enhance budget transparency.