Policy Networks,Elections, and State Subsidies1

What are the effects of electoral competition on the disbursement of state subsidies in industrialized democracies? I argue that the scope of subsidies, which ranges from economy‐wide to regional and industry‐specific subsidies, is determined by the extent of political (electoral) monopoly conditioned by economic threats from foreign competition. The mechanism through which electoral competition is linked to subsidies is the policy network. I assess this argument by examining thirteen Organization for Economic Cooperation and Development (OECD) countries in the period 1990–1993. The findings offer amendments to models of policy networks and speak to the importance of domestic institutions on factor mobility and trade policy.     

Tracing the impact of peers on households’ economic behavior

Economic Change and Restructuring - This paper investigates the impact of peer effects and characteristics on households’ multifaceted economic behavior. Using data from a Dutch...     

Tax compliance behaviour during the crisis: the case of Greek SMEs

This paper presents the results of a novel survey of 550 small and micro enterprises in Greece regarding their tax compliance behaviour and drawing some useful policy implications for a country facing one of the largest tax gaps in the developed world. We explore the determinants of such behaviour, by integrating economic and psychological perspectives on tax compliance. Results suggest that respondents perceive a strong connection between the quality of political and of tax institutions, while trust seems to play the most significant role in increasing intended compliance and in deterring strategic tax evasion. We contrast the theoretical results with the actual reported compliance behaviour of entrepreneurs and analyse how this behaviour is influenced by factors like perceived nature of power of tax authorities (legitimate versus coercive), perceived fairness of the tax system, etc. The strategy currently followed, that is toughening the profile of tax authorities is a viable short-term response to increase enforced tax compliance. The present study, however, has provided evidence on the multifaceted nature of power and trust and their relation with tax compliance, and the link between power and trust in political regulatory strategies. Current policies seem to completely miss that link.     

Asset Specificity and State Subsidies in Industrialized Countries

Why do national governments in industrialized countries subsidize many of their industries? Borrowing insights from literature on transaction cost economics and international trade, I build a model which tests the hypothesis that under threat of international competition disbursement of state subsidies varies systematically with the degree of asset (factor) specificity employed in a national economy. Asset specificity refers to the cost of moving factors (assets) from one activity to the next. I pool annual data on state subsidies in thirteen OECD countries during the period 1990–93 and regress them on two measures of asset specificity (physical and human capital) in the face of competition from abroad. Physical capital exercises a significant u-shaped effect on total and sectoral subsidies. Human capital has a weak negative effect on horizontal subsidies. The results extend the literature on asset specificity and trade in two ways. First, they provide empirical support in favor of the argument that asset specificity and subsidy protection are related. While theoretical claims concerning asset specificity abound, the literature is generally short of empirical studies. Second, asset specificity helps determine the scope of subsidies.     

Α Simple Method for the Determination of Lacosamide in Blood by GC-MS

Lacosamide is a functionalized amino acid with antiepileptic function. Therapeutic drug monitoring (TDM) in patients for lacosamide is critical as it allows clinicians to control epileptic seizures. A single liquid–liquid extraction step was applied for the extraction of lacosamide from whole blood samples which were thereafter analyzed by GC-MS. Optimum extraction conditions were selected on the basis of experiments with various solvents at different pHs, indicating ethyl acetate at pH 12 as the most efficient parameters for the extraction of lacosamide. Method exhibited linearity from 2 to 100 μg/mL with R² = 0.998. Accuracy and precision were evaluated at three concentrations and found to be within acceptable limits. LOD and LOQ were determined at 0.1 and 0.5 μg/mL, respectively. Lacosamide was found to be stable at storage conditions. The developed method was applied successfully in clinical samples and postmortem blood sample from an overdose case.     

The Macroeconomic Effects of 2017 Through 2025 Federal Fuel Economy and Greenhouse Gas Emissions Standards

In the absence of a national carbon price, the federal Corporate Average Fuel Economy standards and the related greenhouse gas emissions (GHG) standards are the primary mechanisms through which the U.S. reduces transportation GHG emissions. In 2012, these standards were set to rise for light‐duty vehicles between 2017 and 2025, eventually achieving a target of 54.5 miles per gallon in 2025. Since 2012, conditions have changed: forecasts of future gasoline prices have dropped dramatically, consumers have demanded larger vehicles, and the cost of compliance appears to be larger than previously thought. In this article, we analyze the possible macroeconomic effects of the standards with both 2012 inputs and updated inputs to reflect these new market developments. The results reveal that the short‐term effects of the federal standards will be negative, but the long‐term effects will be positive, using both 2012 and updated inputs. The transition from annual negative employment impacts to positive impacts occurs between 2023 and 2026, depending on which set of assumptions are used. Possible revisions to the standards that freeze them at 2020 levels or decrease their stringency reduce short‐term negative impacts but also reduce long‐term positive impacts. We conclude with a discussion of policy implications as they relate to the current energy and climate policy conditions.     

Market Transparency and Collusion: On the UK Agricultural Tractor Registration Exchange

We review the decision by the European Commission in the case of the UK Agricultural Registration Exchange. We propose a theoretical model, offering a basis for some of the intuitive arguments used by the Commission on the anti-competitive role of information exchange in the case of price and non price collusion. Market transparency on non price data is shown to be a collusion facilitating device which may achieve stability in otherwise unstable cartels.     

The perils of outsourcing post-conflict reconstruction: donor countries,international NGOs and private military and security companies

During the last few years, some donor countries (especially the US and the UK) have been increasingly outsourcing services in post-conflict operations to international non-governmental organisations (INGOs) and private military and security companies (PMSCs). These states have also adopted ‘integrated approaches’ to their policy interventions, contributing to the emergence of an ‘aid and security market’. The article uses ideas from both development and defence studies and re-problematises the contracting states' relationship with PMSCs and INGOs. It argues that although INGOs and PMSCs are very different types of non-state actors, there are striking similarities in outsourcing practices. Moreover, it demonstrates that the leading contracting states have poorly managed their contracts with both INGOs and PMSCs, and have not seriously reflected on the unintended consequences of their contracting practices on the recovery of war-affected countries.