Public perceptions and bond markets during the Great War: the case of a neutral country

Neutrality during World War I was not assured but depended on the ability of a neutral state to adjust to the major belligerent powers’ interests. How did Switzerland manage to adhere to its neutrality policy under those circumstances? This paper analyzes contemporary perceptions of neutrality by means of a structural break analysis. According to historiography Switzerland was endangered from within rather than by foreign actions. The analysis based on a newly assembled database supports this assessment in parts. In the bondholders’ view, Switzerland’s neutrality was most threatened by the events leading up to the general strike in November 1918.

     

Political Conflict over Time

We study a model of electoral competition in which politicians must decide whether to initiate the provision of some public good and, afterward, how much of the public good to supply. The model illuminates how a project's implementation affects elections and, conversely, how electoral considerations influence decisions about implementation. Under well-defined conditions, politicians will either implement projects that they do not like or delay projects that, absent electoral concerns, they would support. The model further reveals how the perceived benefits of holding office can impede the production of public goods about which there is broad consensus. And depending on facts about the program's structure and the electoral landscape, a policy's implementation can either mitigate or exacerbate political conflict.     

Vladimir the great,Grand Prince of Muscovy: Resurrecting the Russian service state

This article draws on the ideas of continuity theory in order to examine Russia's attempted transition and locate it in the longer duration of Russian history. The argument here begins by outlining the main features of the institutional matrix that evolved in old Muscovy, and proceeds to show how those early choices became path dependent. It presents the imperial ‘age of reform' as a project that introduced far reaching formal changes, but failed to achieve a transformation of supporting norms, and it views the Soviet order as a reversal of those formal changes, resulting in a full return to the Muscovite matrix. The Yel'tsin era is held up as yet another ‘time of troubles', to be followed, under Vladimir Putin, by a resurrection of the traditional Russian ‘service state'.     

On the Design of Efficient Priority Rules for Secured Creditors: Empirical Evidence from A Change in Law

This article assesses the effect of a reduction in secured creditor priority on distributions and administrative costs in liquidating bankruptcy cases by reporting the first empirical study of the effect of a priority change. Priority reform had redistributive effects in liquidating bankruptcy. As expected, average payments to general unsecured creditors were significantly higher after the reform than before the reform and payments to secured creditors decreased. Reform did not increase the size of the pie to be distributed in bankruptcy. Nor did it increase the direct costs of bankruptcy.JEL Classification: K00, K20, G33     

Secured debt and the likelihood of reorganization

Theory suggests that secured creditors may increasingly oppose a debtor’s reorganization as the value of their collateral approaches the amount of their claims. If reorganization occurs and the value of the firm appreciates, the secured creditor receives only part of the gain. But if the firm’s value depreciates, the secured creditor bears all of the cost. Secured claimants, thus, often have more to lose than to gain in reorganizations. This study of Finnish reorganizations filed in districts that account for most of the country’s reorganizations finds that creditor groups most likely to be well-secured are most likely to oppose reorganization. We also find a negative correlation between how well-secured banks and other institutional lenders are and the likelihood of a confirmed reorganization plan. Limiting the priority of secured debt might stimulate reorganizations.     

Avant-garde or Supplement? Advisory Bodies of Transnational Associations as Alternatives to the League's Minority Protection System, 1919–1939

This exegesis focuses on the work of minority committees of transnational associations in the interwar period. Most of their members considered the League system to be inefficient and supported the establishment of non-state alternatives, which included private investigations on the spot, publicity for specific problems of minorities, and attempts to reconcile representatives of ethnic minorities with those of the majority. Members of non-involved states were pre-destined especially to act as neutral moderators. Only those in close contact with League officials avoided being misused by political forces that did not seek reconciliation but border revision. They learnt that the League rules looked inadequate from the outside but turned out to be useful in coming to applicable solutions once they started their own alternative methods. Their publications and investigative journeys turned out to deepen the problems, whilst their reconciliation work became an appreciated supplement of the League system.     

Steuerung jenseits von Hierarchie

The paper sheds new light on recent debates about governance and approaches contemporary problems of governing from the perspective of contemporary theories of power. The concept of “soft governing” is developed in order to capture horizontal mechanisms of power intentionally used to govern beyond formalised hierarchies characteristic of processes of governance. The paper describes in particular the horizontal forms of governing through discursive practices, argumentation and symbols and the ways in which they interact. The example of campaigns against female genital mutilation is introduced in order to illustrate possible forms of governing beyond hierarchy.     

Gerechtigkeit zwischen den Generationen

The concept of intergenerational justice has become ever more prevalent in discussions about welfare reform in Germany. For this reason, we analyse problems of justice between generations using the terminology of philosophical theories of justice. We argue that transfers by the welfare state and transfers by the family must be distinguished in the analysis of material and immaterial transfers between generations. As our empirical results show, problems of justice between generations arise mainly in the case of welfare state transfers. Subsequently, we describe the paradigms of intergenerational justice informing the public debate. Data from surveys over the past fifteen years show to what extend these (public) paradigms are shared by individuals in the German population.