The politics of mortgage credit expansion in the small coordinated market economies

Abstract

Recent contributions to the comparative political economy literature claim that liberal market economies are vulnerable to asset booms and busts because of financial deregulation, shrinking welfare states and a political ideology emphasising financial self-sufficiency. This article examines the rapid expansion of mortgage lending in three coordinated market economies (CMEs): Denmark, Sweden and the Netherlands. This expansion is puzzling given that all three countries are CMEs with generous welfare states. Yet the pattern of mortgage lending resembles the Anglo-Saxon or liberal market economies (LMEs) more than other CMEs. The article argues that mortgage bubbles in the small CMEs emerged as the unintended outcome of pairing neoliberal programmes to expand home ownership with collectivist housing institutions. This resulted in supply restrictions and rising property values which saddled households with extraordinarily high mortgage debts. In short, mortgage credit bubbles are not unique to Anglo-liberal welfare states and may have different origins.     

Representational Altruism: The Wary Cooperator as Authoritative Decision Maker

What drives policymakers to put the interests of others above their own? If human nature is inherently selfish, it makes sense to institutionalize incentives that counter decision makers' temptations to use their positions to benefit themselves over others. A growing literature rooted in evolutionary theories of human behavior, however, suggests that humans, under certain circumstances, have inherent predispositions towards “representational altruism,” i.e., to make an authoritative decision to benefit another at one's own expense. Drawing on Hibbing and Alford's conception of the wary cooperator, a theoretical case is made for such behavioral expectations, which are confirmed in a series of original laboratory experiments.     

Flipping burgers or flipping pages? Student employment and academic attainment in post-Soviet Latvia

Latvian higher education has undergone a dramatic transition since 1991. This study employs a survey of nearly 1000 social science students studying in 13 different institutions in Latvia to consider the impact of the increase in the number of students who are working while studying. Evidence indicates employment has a strong and significant negative impact on school performance, and the negative impact increases as weekly hours worked increase. This manifests itself through reduced class attendance and reduced time spent in independent study. Finally, we find that the probability of student employment is most significantly affected by the availability of financial aid, gender, ethnicity, and age.     

Bargaining for justice: A means to resolve competing justice claims

In many types of social situations, individuals defend their claims to a portion of the rewards by arguing that they are just. Although a great deal of research demonstrates that individuals differ in their distribution preferences and thus their beliefs about what is fair, the literature curiously omits consideration of the consequences of these differences, especially the conflict they may engender. This paper first reviews the few attempts to address such justice conflict. The limitations of these approaches suggest concerns to be addressed in an alternative framework. The paper presents a theoretical discussion of this alternative that integrates assumptions about distribution preferences, justice beliefs, conditions fostering the emergence of justice conflict, and elements of negotiation processes as a basic framework for predictions about the bargaining strategies individuals may employ to resolve competing justice claims.