Financial and world economic crisis: What did economists contribute?

In this paper we deal with two questions, (1) what are the origins of the current financial crisis, and (2) what did economists contribute, or why did economists fail to provide a convincing answer for the origins of the crisis, and possible solutions to overcome it? The economics profession apparently was unaware of the looming worldwide financial and economic crisis, and significantly underestimated its global dimensions and consequences. A first and preliminary analysis is undertaken to explore reasons for these failures. We conclude by pointing to some consequences for economics as well as for economic policy.     

The influence of direct democracy on the shadow economy

We analyze, both theoretically and empirically, the influence of direct democratic institutions on the size and development of shadow economies. Our model suggests that, as the extent of direct democracy increases, implemented fiscal policies more nearly reflect the preferences of citizens and so reduce their incentives to operate in the informal sector. This theory implies a negative relationship between the extent of direct democracy and the size of the country’s shadow economy. We also theorize that direct democracy has a greater effect in reducing the informal sector when the former is at low or intermediate values and when the electoral system is characterized by a larger district magnitude. An empirical investigation of a sample of 57 democracies confirms our model’s predictions.     

制定一部德意志统一民法典之必要性

在不久前发表的一篇评论文章(<海德堡年鉴>1814年卷,第1-32页)中,本人曾就制定德意志统一民法典之必要性附带发表了一些拙见.这让一些值得尊敬的人士敦促我专文对这一重要问题予以更细致的阐述.     

China Investment Corporation’s Forays into Europe and the United States: explaining the different receptions

This study analyses the changing investment climates for China’s sovereign wealth fund, the China Investment Corporation (CIC), in the US, the UK and France. It assesses legislative flexibilities, public opinions and macroeconomic conditions in the three polities in order to ascertain whether the investment review process of each is susceptible to politicization, and if such susceptibility has changed in line with macroeconomic variations. The study finds that the US investment review process is susceptible to politicization and that such politicization has likely taken place following the recovery from the global financial crisis, resulting in a worsened investment climate for Chinese investors, including CIC. The investment review processes in the UK and France have not been susceptible to politicization. Moreover, negative macroeconomic conditions for each of the two countries following the eruption of the Eurozone crisis have resulted in an improved investment climate for CIC, although brought about by the proactive stance of governments and companies rather than by any de-politicization.     

Verspätet gewährte Akteneinsicht als Grundrechtsverletzung

Die Verpflichtung, dem Verfahrenshilfeverteidiger unverzüglich Kopien des Aktes von Amts wegen zuzustellen, obliegt im Ermittlungsverfahren der StA. Ist die StA zun?chst s?umig und hat sie dann das Vers?umte nachgeholt, so obliegt es dem OLG, nach M?glichkeit Abhilfe gegen Folgen der S?umnis zu schaffen, um ein Fortwirken der Verz?gerung hintanzuhalten. Durch die – im Fall des § 7 Abs 2 GRBG mit der Feststellung einer Grundrechtsverletzung von Gesetzes wegen verbundene – Anordnung umgehend erneuter Haftprüfung wird die Entscheidung einer kassatorischen Erledigung so weit wie m?glich angen?hert, um das Bemühen der Gerichte, einen Ausgleich für die festgestellte Grundrechtsverletzung zu finden, zu unterstreichen und das Fortwirken der Grundrechtsverletzung zu unterbinden.     

Tax rates and tax evasion: an empirical analysis of the long-run aspects in Italy

We use official time series of the Italian evaded VAT base (Ministry of Finance) for the period 1980:1–2006:4 to investigate empirically the long-run characteristics of tax evasion and the relationship with the tax burden. Three hitherto unexplored issues are addressed. First, using different measures of aggregate economic activity as reference variables in estimating the average tax burden, we examine the size and dynamics of the overburden traceable back to tax evasion. Second, exploiting cointegration techniques, we quantify the elasticity between tax evasion and the average tax rate in Italy. We then comment on the complex dynamic interaction between the tax burden and tax evasion to ascertain whether in the Italian experience there is evidence for any “vicious circle” between them.     

A Stiglerian View on Banking Supervision

According to Stigler’s capture theoryregulation often follows the preferences of producers.Therefore, the interests of the financial industry might be amajor driving force for the ongoing supervisory reform debate.This paper identifies possible interests of the regulatedindustries: Either they might favour strict supervision tocreate barriers for entry. Or they might use their politicalinfluence to press for a lax and low-cost supervisory system.Our empirical results indicate that the private interest viewon banking regulation is indeed relevant and that the data ismore compatible with a “preference for laxity” than with a‘‘barriers to entry’’ view.     

Correctional Treatment Programmes for Young Offenders in Europe: A Survey of Routine Practice

This article presents the results of an international survey of European correctional treatment programmes for young offenders. Questionnaires gathering data on programmes’ design, implementation, structure, and evaluation were collected from 112 programme administrators in 25 European Union countries. Results demonstrated that although there was a commitment to young offender rehabilitation in almost every country, programmes adopted many different approaches and were implemented with varying levels of adherence to evidence-based principles of ‘best practice.’ The majority of programmes adopted a cognitive-behavioural approach, and clinical discretion was prioritised over systematised, empirically validated assessment instruments. Most programmes were administered by centralised government agencies; however, process and outcome evaluation was rare. These findings suggest a strong need for improved systematic evaluation in most European countries.