Election results and opportunistic policies: A?new?test?of?the?rational political business cycle model

The literature on the rational PBC suggests that politicians systematically manipulate economic and fiscal conditions before elections to increase their chances of reelection. Most tests of this theory look for evidence of pre-election distortions in fiscal policy. We propose a new test that explores the two-way interaction between the magnitude of the opportunistic distortion and the margin of victory. The test is implemented using a large panel of Portuguese municipalities. The results show that opportunism leads to a larger win-margin for the incumbent and that incumbents behave more opportunistically when their win-margin is small. These results are consistent with the theoretical model.     

Designer Psychostimulants in Urine by Liquid Chromatography–Tandem Mass Spectrometry,

Designer psychostimulants are known by recreational drug users to produce a complex array of adrenergic and hallucinogenic effects. Many of these drugs are not targeted during routine toxicology testing and as a consequence, they are rarely reported. The purpose of this study was to develop a procedure for the detection of 15 psychostimulants in urine using liquid chromatography–tandem mass spectrometry (LC‐MS/MS), specifically 2,5‐dimethoxy‐4‐bromophenethylamine (2C‐B), 2,5‐dimethoxy‐4‐chlorophenethylamine (2C‐C), 2,5‐dimethoxy‐4‐methylphenethylamine (2C‐D), 2,5‐dimethoxy‐4‐ethylphenethylamine (2C‐E), 2,5‐dimethoxyphenethylamine (2C‐H), 2,5‐dimethoxy‐4‐iodophenethylamine (2C‐I), 2,5‐dimethoxy‐4‐ethylthiophenethylamine (2C‐T‐2), 2,5‐dimethoxy‐4‐isopropylthiophenethylamine (2C‐T‐4), 2,5‐dimethoxy‐4‐propylthiophenethylamine (2C‐T‐7), 2,5‐dimethoxy‐4‐bromoamphetamine (DOB), 2,5‐dimethoxy‐4‐chloroamphetamine (DOC), 2,5‐dimethoxy‐4‐ethylamphetamine (DOET), 2,5‐dimethoxy‐4‐iodoamphetamine (DOI), 2,5‐dimethoxy‐4‐methylamphetamine (DOM), and 4‐methylthioamphetamine (4‐MTA). Analytical recoveries using solid‐phase extraction were 64–92% and the limit of detection was 0.5 ng/mL for all drugs except 2C‐B (1 ng/mL). The assay was evaluated in terms of analytical recovery, precision, accuracy, linearity, matrix effect, and interferences. The technique allows for the simultaneous detection of 15 psychostimulants at sub‐ng/mL concentrations.     

Identifying Irregularities in Mexican Local Elections

A generalized distrust in Mexican local elections raises the question of whether electoral corruption has vanished or remains a prevalent practice in the country. To answer this question, I analyze the 2010 gubernatorial elections, exploiting a feature of the country's electoral system: within each electoral precinct, voters are assigned to polling stations according to their childhood surname. Consequently, the only difference between voters in contiguous polling stations should be their last names. Given that political preferences are seldom correlated with voters' names, I use suspicious differences in turnout levels across contiguous polling stations to identify fraudulent practices. The findings of this article indicate that nondemocratic enclaves that actively obstruct the completion of Mexico's democratic transition still remain today.     

Changes in human capital and earnings inequality: Recent evidence from Brazil 1

Abstract

This paper estimates changes in the rates of return to human capital across the earnings distribution using data from over a 10-year period for Brazil. It uses these estimates to simulate the separate impacts of changes in returns to skills and changes in the supply of skills on earnings inequality. Evidence points strongly to growing inequality in rates of return to education in Brazil. This finding suggests that recent macroeconomic and trade reforms have been of most benefit to the skilled rather than the unskilled. Supporting evidence points to an improved competitiveness in the labour market, with workers increasingly rewarded for productivity. However, although increases in returns to education are more pronounced at the top of the earnings distribution, this did not in practice led to increased inequality. This is because levels of education and other labour market-rewarded endowments have increased and offset the rate of return effect. Appropriate education policy is therefore an essential partner for macroeconomic and trade reform if a developing economy is to avoid worsening income inequality.     

New partnerships for social development: business and the third sector

One of the main issues for Latin America now that it is entering a new period of economic growth is the process of speeding up social development to catch up with economic trends. This may be seen by some as a highly profitable investment, but by most as a moral obligation. A long history of exploitation and the most recent decades of misgovernment have provoked a legacy of social injustice and disparities incompatible with the region's economic potential.

Structural adjustment policies impose a significant reduction in the size of governments which have shown an unequivocal tendency to retreat from their responsibilities regarding the social sector. Current trends of the new world order raise many concerns regarding the social perspectives of the less privileged layers of the population.

Besides the new economic opportunities, redemocratization of the region has led to a new socio-political environment in which paternalistic patterns have given way to a more participatory and mature relationship between government, civil society and business.

The so-called third sector has become of increasing importance and is growing rapidly in most countries. Business is also assuming new roles in terms of its responsibility towards social development. There is a change in culture and there are new opportunities to develop innovative forms of participation. The retreat of the State is opening up a new niche for the third sector and business to establish partnerships that can speed up social development without the risks of the heavy paternalistic and patronizing influence of governmental branches. Overall, one can observe a shift in responsibilities. Partnerships will involve the three actors, with government participating heavily in financing the operations of the third sector, while business lends its’ efficiency as well as material resources.

The business sector in Latin America is rapidly learning the social responsibility of participating in community initiatives and the benefits that such an approach can bring. Foreign companies have played an important role in bringing new values, strategies and experience of this participation. Local businessmen are adopting these values and adjusting them to their realities. The new economic and political environments have created a new sense of citizenship and there is an observable advance in the approach that business is taking in relation to the potential of its participation and of its responsibilities regarding social growth and development.

Corporate philanthropy -- or community relations, or corporate citizenship, as the local culture prefers to call it -- assumes several forms. Grantmaking is still the least frequent as companies prefer to maintain tighter control over the use of resources, either by operating their own projects in a joint effort with target communities, or by establishing partnerships with small organizations of the third sector. Stimulating volunteer work of their employees is also a form of participation.

More recently, in countries like Argentina, Brazil, Colombia and Mexico we have witnessed the emergence of associations of grantmakers and philanthropists, similar to those of the United States. Through these organizations, corporations, corporate foundations and independent foundations can share their experiences and values, coordinate their efforts and exert influence in the social and political environment.     

The Impact of the Housing Bubble on the Growth of Municipal Debt: Evidence from Spain

The aim of this paper is to analyse the impact of the recent Spanish housing boom and the subsequent burst on local public finances. Particularly, we investigate the effect of the rise and later fall in revenue from urban development on local government debt. Using a sample of the Spanish largest municipalities in the period 2003–2011, we find that debt was substituted by revenue from urban development during boom years and this substitution effect vanished after the burst of the boom. Our results also reveal that local public finances have worsened after the burst of the housing bubble since now they have larger current spending and smaller savings.     

Poderes fácticos,comunicación y gobernabilidad: un acercamiento conceptual

The category of factual powers has become a fashionable term. Beyond observable differences in the journalistic, academic or political interests of the scholarly approaches to the topic, the author considers that it is possible to affirm that this question is inextricably related to the issue of democracy, and specifically its viability and governability. This article is framed within this analytic and contextual perspective -factual powers, democracy and governability. Given that the category has not a univocal meaning, after drawing basic differences among the various interest groups, pressure groups and factual powers, it characterizes those emerging social actors capable to dispute the power of formal institutions and analyzes the particular composition of the mass media.