Elements in a Theory of State-Building: An Inquiry into the Structural Preconditions for Successful State-Building in Europe

This article tests the six hypotheses on successful state-building in Western Europe formulated by Charles Tilly (Tilly 1975a, 40). The key to state-building success in European history, with success defined as continuous survival as an autonomous polity throughout the period AD 1500–1900, is found to be the variable "success in war" operationalized as the successful creation of formally institutionalized administrative institutions for the transformation of economic resources into military power, regardless of whether these institutions evolved within the framework of a representative state-building format as in The Netherlands or a bureaucratic-absolutist format as in Prussia.     

Indigenous Parties and Democracy in Latin America

In recent years, important indigenous parties have emerged for the first time in Latin American history. Although some analysts view this development with trepidation, this essay argues that the indigenous parties in Latin America are unlikely to exacerbate ethnic conflict or create the kinds of problems that have been associated with some ethnic parties in other regions. To the contrary, the emergence of major indigenous parties in Latin America may actually help deepen democracy in the region. These parties will certainly improve the representativeness of the party system in the countries where they arise. They should also increase political participation and reduce party system fragmentation and electoral volatility in indigenous areas. They may even increase the acceptance of democracy and reduce political violence in countries with large indigenous populations.     

In Search of the Government in Local Government: Coalition Agreements and Office Payoffs in Norway

The politics of European local government is often assumed to take place in a rather depoliticised and non-partisan environment. This feature is especially apparent in Norway, where local government institutions are designed to create a high degree of consensus and accommodation. No local cabinet takes office, and therefore no formal roles of a majority government and an opposition are offered. This paper tells a different story, however. Following the 1999 elections many municipalities are now experiencing partisan cooperation based on binding political agreements. In these cases the common practice of proportional distribution of the important political positions is replaced with a 'winner takes all' principle, as only the majority constellation is rewarded with office payoffs. Given that this form of cooperation is the closest analogue to any cabinet formation at the local level, it is clearly of interest to uncover under which conditions it occurs. The empirical analysis therefore uses variation in structural, socioeconomic and political characteristics to predict the local coalition behaviour. The empirical model captures some important determinants in the variation of structural characteristics, and, as expected, explicit and binding coalition agreements are found in the large and central municipalities. Socioeconomic setting is furthermore important, since municipalities with a high degree of financial autonomy and poor policy performance experience this kind of formalised cooperation more frequently. Systematic effects are also found for political characteristics, with electoral volatility, party fragmentation and functional organisation models all increasing the probability of coalition agreements.     

What discount rate should bankruptcy judges use? Estimates from Canadian reorganization data

Using data from financial reorganization plans filed by insolvent Canadian firms, we estimate the discount rate implicit in the unsecured creditors’ reorganization decision. Using (HARA) utility functions, we find the implicit monthly discount rate of creditors to be 4.9%, which corresponds to an annual discount rate of 77%. This is 7–10 times higher than discount rates used in previous empirical studies of reorganization. The discount rate estimates are robust to a range of assumptions about the degree of risk aversion and the market-to-book-value ratio of assets.     

The provenance of émigrés: the validity of measuring knowledge of places

Establishing the origin of those seeking asylum is essential but difficult as asylum seekers often cannot corroborate their origin claim with documents. The aim of the present study was to assess whether asking knowledge questions, sketch questions and impossible questions are valid methods to determine the veracity of an origin claim. Participants (N?=?105) from Tilburg (truth-tellers), Maastricht (partial liars) and Gothenburg (full liars) were asked to convince an interviewer that they originated from Tilburg. Half of them prepared and half of them did not prepare themselves for the interview. They were asked 10 knowledge questions typically asked to assess the credibility of origin claims, 4 impossible questions and 1 sketch question. Participants from Tilburg answered more questions correctly than participants from Maastricht and Gothenburg. Performance also improved with preparation. Even though the results did provide some support for the validity of assessing claims about origin by asking knowledge questions, the differences between the groups were modest, and it was impossible to correctly identify all truth-tellers and liars. Changing the output modality from verbal answering to sketching contributed to the credibility assessment of origin claims, whereas impossible questions were not discriminatory.     

The Best Pharmaceuticals for Children Act of 2002: the rise of the voluntary incentive structure and congressional refusal to require pediatric testing

On January 4, 2002, President Bush signed into law the Best Pharmaceuticals for Children Act, which is the government's most comprehensive legislation regarding pediatric research to date. The Act offers pharmaceutical companies a six-month exclusivity term in return for their agreement to conduct pediatric tests on drugs. It also provides public funding and organizes private funding to help conduct pediatric research on those drugs that pharmaceutical companies opt not to test in children. This Note reviews the history of pediatric research and traces the development of the Best Pharmaceuticals for Children Act's unique incentive and public funding structure. The Note contends that, while the Act is comprehensive and promotes important pediatric studies, its incentive structure forces consumers and taxpayers to bear the costs of testing pharmaceuticals in children instead of the manufacturers who research, develop, and market those drugs. Congress should consider mandating pediatric studies in any future enactment of the legislation.