Measuring Risk: Political Risk Insurance Premiums and Domestic Political Institutions.

There is a renewed interest in political science on how political risk affects multinational corporations operating in emerging markets. Most existing studies suffer from data problems where researchers can only offer indirect evidence of the relationship between political institutions and political risk. In this paper I utilize a new data resource to explore how domestic institutions affect political risks for multinationals. Utilizing price data from political risk insurance agencies I test how domestic political institutions affect the premiums multinationals pay for coverage against 1) expropriations and contract disputes and 2) government restrictions on capital transactions. I find that constraints on politicians lead to marginally lower expropriation and transfer risks. Democracy, on the other hand, greatly reduces expropriation risk but has no impact on transfer risk.FDI, political risk, expropriation, insurance

International Institutions and Market Expectations: Stock Price Responses to the WTO Ruling on the 2002 U.S. Steel Tariffs.

Thanks to Nitsan Chorev, Robert Connolly, David Leblang, Quan Li, Andy Mertha, Layna Mosley, Bumba Mukherjee, Eric Reinhardt, Peter Rosendorff, Matthew Slaughter, Andy Sobel, participants of the 2004 Midwest Political Science Association annual meeting and the 2004 Duke Summer Institute on Globalization and Equity for comments and suggestions. Funding for data collection and interviews with WTO legal affairs staff was provided by the Weidenbaum Center on the Economy, Government, and Public Policy at Washington University and other financial support by the UCLA International Institute.World Trade Organization, Tariffs, Trade, Steel, Protectionism

Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions

In this paper we analyze whether IMF conditionality is exclusively designed in line with observable economic indicators or, alternatively, whether it is partly driven by its major shareholder, the United States. A panel data analysis of 206 letters of intent from 38 countries from 4/1997-2/2003 reveals that the number of conditions on an IMF loan depends on a borrowing country’s voting pattern in the UN general assembly. Closer US allies receive IMF loans with fewer conditions especially prior to elections. Countries not allied with the US have to accept more conditions at election time. We believe that these empirical results speak to the current debate on IMF conditionality and contribute to the broader literature on the role and functioning of international institutions in the global economy.IMF, conditionality, elections

Updated Analysis of Racial Segregation in Pulaski County Charter and Traditional Public Schools

In September of 2009, the Office for Education Policy (OEP) released a report titled “An Analysis of Charter Schools on Desegregation Efforts in Little Rock, Arkansas.” In this report, we presented data from the 2005 to 2009 schools years for students who transferred to open-enrollment charter schools in Pulaski County from the Little Rock School District (LRSD). The aim of this report was to show what impacts – if any – these transfers were having on the desegregation efforts of the LRSD. The motivation for this report was an ongoing legal debate about how charter schools impact desegregation, in which critics of charter schools argued that these schools lead to greater segregation, whereas charter proponents suggested that there was no necessary link between charters and segregation

The Value of Value-Added Measures

The concept of value-added measures of teacher or school effectiveness is prompting a great deal of discussion in K-12 Education policy circles. This debate reached a boiling point last year when the Los Angeles Times published a database of the value-added scores for all teachers in the nation\u27s second largest school district. Proponents argue value-added measures provide important information on school and teacher effectiveness. Opponents argue value-added measures are imprecise instruments which measure student background instead of teacher or school quality. The purpose of this policy brief is to provide the reader with a general understanding of the concept of a valueadded measure as well as the potential benefits and perils of more widespread use of such value-added measure

Big Changes in How Students are Tested

For the past decade, school accountability has relied on tests for which the essential format has remained unchanged. Educators are familiar with the yearly testing routine: schools are given curriculum frameworks, teachers use the frameworks to guide instruction, students take one big test at year’s end which relies heavily upon multiple-choice bubble items, and then school leaders wait anxiously to find out whether enough of their students scored at or above proficiency to meet state standards. All this will change with the adoption of Common Core standards. Testing and accountability aren’t going away. Instead, they are developing and expanding in ways that aim to address many of the present shortcomings of state testing routines. Most importantly, these new tests will be computer-based. As such, they will potentially shorten testing time, increase tests’ precision, and provide immediate feedback to students and teachers

Quality Counts 2011

On January 11, Education Week released its 15 th annual Quality Counts report. Since 1997, Education Week has been releasing yearly report cards for each state and the nation as a whole. These report cards attempt to measure educational progress and success in several areas as well as assign an overall letter grade to each state. Some of the grades assigned in the report cards measure the strength of states’ policies, while others measure educational inputs (school funding, job markets) or outputs (K-12 achievement

Act 35, New School Performance Ratings, and School Choice

Act 35 was a product of the Lakeview v Huckabee case and the related Extraordinary Legislative Session. The law § 6-15-2101 of the Arkansas code required the establishment of three school ratings: a rating of the school’s current academic performance (or status), a rating of the school’s academic improvement (see the OEP policy brief on the new improvement rating) 1 , and a rating based on the school’s fiscal practices. The first set of improvement scores were reported based on the standardized tests administered in spring of 2007 and 2008. The first ratings based on current academic performance are to be based on the 2009-2010 school year, but these ratings have not yet been released to the schools or public as of this writing. In this policy brief, we describe the guidelines shaping this new school rating

An Analysis of the Impact of Charter Schools on Desegregation Efforts in Little Rock, Arkansas

The aim of this report is to address the challenge by the Little Rock School District (LRSD) that open-enrollment charter schools in Pulaski County (PC) are impeding the efforts of the three PC school districts (Little Rock, North Little Rock (NLRSD), and Pulaski County Special (PCSSD)) to become racially integrated. A key motivation for this analysis is the ongoing debate about how expanded school choice, in this case charter schools, impacts racial segregation. Critics of charter schools argue that these schools lead to greater racial segregation, whereas proponents of charter schools suggest that there is no necessary link between racial segregation and the existence of charter schools. Indeed, some charter advocates contend that charters and parental choice can actually lead to more racial integration for students

Recognizing the Accomplishments of ADE Commissioner Ken James

This summer, Dr. Ken James announced his resignation as Education Commissioner at the Arkansas Department of Education (ADE). Dr. James’ last day was June 30, 2009 and Diana Julian stepped in as interim commissioner. Today, Governor Mike Beebe announced Tom Kimbrell as his choice for the next commissioner. As we await the official appointment of the new commissioner, the OEP felt it was appropriate to highlight Dr. James’ contributions to Arkansas education