The impact of surplus sharing on the portfolio mix of public sector defined benefit pension plans: a public choice approach

The riskiness of state employee pension plan portfolios varies across states. We investigate whether this variation is related to how public employees and taxpayers share actuarial surpluses of pension accounts. We focus on two determinants of a plan’s asset mix: the relative influence of public employees to taxpayers; and whether a surplus-sharing contract is specified. Our theoretical model demonstrates that the effect of public employee influence on the asset mix is ambiguous. Our empirical results corroborate this complex theoretical result. In our theoretical and empirical analyses, if a surplus sharing rule is specified, plans adopt a more aggressive investment allocation.     

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Regionalisierung und Dezentralisierung in Mittel- und Südosteuropa 1997–2007

The review essay takes stock of the last decade of decentralisation and regionalisation research in Central and South Eastern Europe. Classifying the existing scholarship with regard to its focus of analysis, its explanatory programme, and methodological predilections, we suggest to distinguish three different agendas: system transformation, EU conditionality and subnational governance. We argue that scholarly interest in regionalisation and decentralisation issues from the perspective of state transformation or Europeanisation is vanishing. Instead, we witness the emergence of a subnational governance approach which is rooted in comparative politics and policy analysis. The debate about decentralisation and regionalisation in CEEC is thus in a process of “normalising” and converging with the Western European subnational political discourse.     

Individual campaign contributions and candidate ideology

Individual citizens are the largest source of contributions for congressional candidates in the United States. This paper investigates if and how fundraising from this source is related to the ideological positions of candidates. Specifically, we ask whether the amount of contributions depends on: (1) the extremity of candidate ideology; and (2) the level of candidate divergence in the same race. These results have important implications for candidate positioning strategies, as well as for evaluating the effects of recent campaign finance reforms.     

Does economic freedom cause prosperity? An IV approach

A positive, statistical and economic significant relation between growth, income level and the Economic Freedom of the World (EFW) index has been amply documented. Most analyses, however, use OLS methods which, in the presence of endogenous variables do not establish causality and produce biased and inconsistent estimates. This paper uncovers the exogenous component of EFW using IV methods and finds a robust channel from economic freedom to prosperity. The findings, including instrument validity tests, support the importance of policies and institutions for development and warrants policy advice aimed at increasing economic freedom to foster prosperity.