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.     

关矛发展县域经济的几点思考——以潞城市为例

文章围绕山西转型跨越发展战略目标，结合潞城市县域经济发展中遇到的实际问题，依据当前面临的机遇和存在的问题。提出加快经济发展方式转变、加大农业产业化力度、培育壮大产业集群、加强企业自身建设、优化经济发展环境等有针对性的建议，以期对潞城的县域经济发展提供新的思路。     

在生态文明建设中推进欠发达地区经济转型——以淳安县的实践为例

淳安县作为浙江省的一个欠发达县,在生态文明建设方面进行了大胆的探索和尝试,走出了一条欠发达地区经济发展转型之路,同时对欠发达地区如何把生态文明建设作为平台和突破口从而实现经济发展转型产生了一些启示：要树立生态发展理念,引领经济发展转型方向;要推进＂三个创新＂,搭建经济发展转型平台;要促进＂三个协调＂,提供经济发展转型动力;要强化＂三个联动＂,形成经济发展转型合力。     

Did the Big Stick Work? An Empirical Assessment of Scale Economies and the Queensland Forced Amalgamation Program

In 2007, the Queensland Government imposed forced amalgamation with the number of local authorities falling from 157 to just 73 councils. Amalgamation was based inter alia on the assumption that increased economies of scale would generate savings. This paper empirically examines pre- and post-amalgamation (2006/07 and 2009/10) for scale economies. For the 2006/07 data, evidence of economies of scale was found for councils with populations up to 98,000, and thereafter diseconomies of scale. Eight percent of councils in 2006/07 (ten councils) – representing 64% of the state’s population – exhibited diseconomies of scale. For the 2009/10 data, the average cost curve remained almost stationary at 99,000 residents per council, but almost 25% of all councils (thirteen councils) were now found to exhibit diseconomies of scale. The compulsory merger program thus increased the proportion of Queensland residents in councils operating with diseconomies of scale to 84%.     

Municipal Mergers in New Zealand: An Empirical Analysis of the Proposed Amalgamation of Hawke’s Bay Councils

Local government policymakers across the developed world have frequently employed municipal amalgamation to improve the operation of local councils, and New Zealand is no exception. This paper empirically examines claims made in Potential Costs and Savings of Local Government Reform in Hawke’s Bay that the merger of the five local authorities in the Hawke’s Bay Region of New Zealand would generate significant cost-savings. We empirically test for the existence of scale economies in a single merged Hawke’s Bay council and find that no cost-savings can be expected. This removes a key argument for a forced Hawke’s Bay amalgamation.     

The transition from limited access orders to open access orders in the post-communist Europe

This paper attempts to explain the process of institutional transition of post-communist countries applying conceptual framework proposed by D.C. North, J. J. Wallis, and B. R. Weingast. The first part of the article is devoted to outline the theory of North, Weingast, and Wallis. The second part the theory is used to analyze transformation processes in post-communist countries. An important conclusion of this paper is that cultural, religious and historical factors have crucial impact on formation of new coalitions of elites in the transitions countries. In the countries where Western values were present the transfer of the market and democratic formal institutions was easier. Also, the process of transformation was strongly influenced by external factors, especially the prospect of integration with the European Union, which encouraged elites to take action that benefited the opening of both political and economic markets. These observations suggest that, in general, the success of transformation in transition countries did not depend on the intentional actions of ruling elites.     

Sectoral linkages at the beginning of the 21st century: The role of Polish economy in global production structures

This paper provides a first attempt in analyzing the role of Polish economy in the production structure of the global economy in the early years of the 21st century. For the purpose of this analysis, we propose a new approach in which two most important aspects of interindustry linkages in a global input-output model are examined. Contrary to previous studies focused on output-oriented key sector analyses in post-communist CEE economies, we focus on a fundamental policy target variable – income per gross output. In order to analyze the issues in question in a dynamic framework, the empirical results are based on the 2000 and 2014 global intercountry input-output tables for the 28 EU countries as well as 15 other major countries in the world.     

Structural change versus turnpike optimality: A Polish perspective

Using a modified dynamic IO model for Poland which allows taking into account actual trends observed in recently available statistical data we compare the rate of economic growth calculated for different growth paths resulting from the model. The goal of the research was to examine the distance between the actual structure of production and the structure on the turnpike and its impact on the economic growth of the economy under study. The results of the study indicate that the impact of structural change on output takes place in three general stages. The benefits of structural change do not outbalance the corresponding costs immediately, since it takes several periods until the growth rate of those paths which are closer to the von Neumann ray become larger than the corresponding growth rate of the benchmark growth path.     

Prison officers in Poland: A profession in historical perspective

This study concentrates on the changing nature of the prison officer profession in Poland as the country developed from a Stalinist satellite to a liberal democracy and member of the European Union. Drawing on a range of archival materials, the study also aims to demonstrate how a social institution is shaped by political forces. The analysis supports two theses. Firstly, because for two generations the prison system was deployed ‘against the people’, it is unsurprising that Polish citizens view prison officers in a negative light. Secondly, if prison staff wants to be recognised as professionals devoted to a decent and worthy task, they are likely need to deploy imaginative public relations.     

Justice Without Transition: Truth Commissions in the Context of Repressive Rule

While the study of transitional justice, and especially truth commissions, has gained in popularity over the past two decades, the literature is overwhelmingly focused on activities in democratizing states. This introduces a selection bias that interferes with proper analysis of causes and consequences of transitional justice on a global scale. In this paper, I discuss conditions under which new repressive elites, and even old repressive elites who survive to rule and repress in nominally new systems, may choose to launch broad investigations of the past. I argue that such a decision is based on two primary considerations, the presence of internally or externally based incentives (e.g., foreign aid) and the level of political control enjoyed by old elites in the new system. I apply this argument to post-Soviet Central Asia, including a detailed case study of Uzbekistan’s 1999 truth commission based on domestic media analysis and local elite interviews.