Introduction to welfare economics

We show that a transfer received by a minority of the population may be sustained by majority voting, however small the minority targeted may be, when the attribution of the transfer is seen as stochastic by voters. We build a simple model wherein voters differ in income and vote over a proportional tax whose proceeds are distributed lump-sum, and each voter has a probability of receiving the transfer that depends on his income. In progressive steps, we present intuitively appealing sufficient conditions on this probability function for the social program to be supported by majority voting. We also develop intuitive conditions for the emergence of the “paradox of redistribution”, whereby more focused targeting reduces the size of the transfer program chosen by the majority. We finally apply our framework to the French social housing program and obtain that our model is consistent with a majority of French voters supporting a positive size for that program.     

Old (Molotov) cocktails in new bottles? “Price-tag” and settler violence in Israel and the West Bank

In the early morning of July 31, 2015, masked attackers threw firebombs into two Palestinian homes in the West Bank village of Duma, south of Nablus, killing three Palestinian civilians. Contrary to claims by Israeli and Palestinian politicians, this attack was neither an isolated anomaly nor just another incident of settler violence. Instead, it was the latest attack in an important but largely unknown phenomenon called “price-tag,” in which a loosely connected group of young Israelis called “hilltop youth” burn Palestinian mosques and destroy property in hundreds of attacks accompanied by threatening graffiti that references Israeli settlers, outposts, and anti-Arab slogans. Using an original dataset of price-tag incidents and interviews with key actors, we demonstrate that the perpetrators, targets, and strategies of price-tag are different than previous patterns of settler violence. Whereas previous settlers saw the Israeli state as legitimate and largely decided to cooperate with it, the hilltop youth have decided to confront it by using price-tag attacks to deter settlement withdrawals and chain-gang the state into a conflict with the Palestinians. This analysis of the strategic logic of price-tag reveals its potential to shift the political landscape within and between Israelis and Palestinians.     

The Pirates' Curse: Economic Impacts of the Maritime Piracy

During the last decades, the activities of pirates have increased exponentially in Eastern Africa, with their attacks becoming considerably more violent. In addition to the intrastate and interstate conflicts, the lack of state capacity and the presence of terrorist groups, maritime piracy represents a serious and sustained threat to economic security. Indeed, from an economic point of view, pirates affect international trade through an increasing insecurity related to the prompt delivery of the goods transported. The aim of this work is to explore the main works on maritime piracy analyzed in quantitative economics.     

Direct Democracy and Political Trust: Enhancing Trust,Initiating Distrust–or Both?

This study investigates the relationship between direct democracy and political trust. We suggest a solution to the controversy in research centering on positive versus negative effects of direct democracy by analytically differentiating between the availability of direct democratic rights and the actual use of those rights. Theoretically, greater availability of direct democratic rights may enhance political trust by increasing citizens' perception that political authorities can be controlled as well as by incentivizing political authorities to act trustworthily. In contrast, the actual use of the corresponding direct democratic instruments may initiate distrust as it signals to citizens that political authorities do not act in the public's interest. We test both hypotheses for the very first time with sub‐national data of Switzerland. The empirical results seem to support our theoretical arguments.     

For Health,Strength, and Daily Food: The Dual Impact of Remittances and Public Health Expenditure on Household Health Spending and Child Health Outcomes

Abstract

Child and infant mortality in developing countries decreased 33.5 per cent and 30.9 per cent, respectively, during 1995–2009, while remittances and public health spending more than doubled. I examine how remittances and government health spending improve these child health outcomes. Neither government health spending nor remittances causally affect household health spending. Public health spending has an insignificant negative impact on mortality. The increase in remittances causally accounts for 32 per cent and 37 per cent of the decline in child and infant mortality, respectively. Remittances reduce mortality through improved living standards from the relaxation of households’ budget constraints.     

Natural Resources,Development Strategies,and Lower Caste Empowerment in India’s Mineral Belt: Bihar and Odisha During the 1990s

Despite having equally vast endowments of natural resources and similar socioeconomic profiles, the Indian states of Bihar and Odisha pursued markedly different development strategies during India’s first decade of economic liberalization. Whereas Bihar turned away from its natural resource sector and adopted policies of social empowerment, Odisha courted private investment in extractive industries and aggressively pursued market reforms. To account for this divergence, we argue that the social composition of political power in each state directly shaped the strategies that leaders embraced towards the natural resource sector and overall development. This paper makes contributions to the writings on natural resources and the political economy of India. We show that the presence of abundant natural resources does not necessarily result in a predictable pathway of sectoral and economic policy outcomes. Instead, social factors can be a powerful determinant of how resource-rich states approach their economies.     

Northern Ireland: 20 Years After the Cease-Fires

In the closing months of 1994, the principal paramilitary organizations in Northern Ireland declared that their campaigns of violence were at an end. The cease-fires called by republican and loyalist groupings represented the most significant heralds of a complex process of conflict transformation that continues to unfold even twenty years on. In this introduction, we set out to map the key developments that have shaped the tortuous narrative of the Northern Irish ‘peace process’, thereby providing the historical backdrop for the articles that follow. While remarkable progress has been made over the two decades since the paramilitary cease-fires, the political context and future of the region remain rather more fraught than is often assumed abroad. It is perhaps best, then, to speak of the six counties in terms not of resolution but rather of ambiguity. Twenty years on from the optimism that greeted the paramilitary cease-fires, Northern Ireland retains the essential ‘inbetweenness’ of a political space that has moved from a ‘long war’ through a ‘long peace’ and into a profoundly undecided future.