Blame and punishment? The electoral politics of extreme austerity in Greece

Can governments that introduce extreme austerity measures survive elections? Contrary to economic voting expectations, the PASOK government in Greece initially appeared to cope quite well, claiming victory in regional elections in 2010 despite widespread anti-austerity protest. In this paper, we interpret this result with the help of a post-election survey, which also covered future voting intention. The explanatory power of models based on theories of economic voting and blame attribution as well as the electoral impact of the government’s representation of the crisis as an existential threat are assessed. Our analysis challenges the interpretation of the 2010 election as an indication of support for PASOK’s austerity policies and reveals weaknesses in its support base, which help contextualise its downfall in the 2012 Parliamentary elections. The paper also underlines the importance of studying the impact of crises discourses on voting choice, particularly since blame attribution receives little support in this case

Social Choice, Crypto-Initiaives, and Policymaking by Direct Democracy

The initiative process was created originally to enable citizens to enact public policy directly and in so doing to overturn the dominion of interest groups and of state and local party machines. In recent years, initiatives have been thought to serve as a check on legislative authority and to provide the people with a means to pressure the legislature into adopting more public regarding policies. Indeed, the general consensus emerging from the most recent academic research is that, at their worst, initiatives are benign, while at their best, they serve to further the interests of electoral majorities. A few scholars, however, have found reason to pause in their celebration of the initiative, finding shortcomings in its process, its outcomes, or both. In this paper we argue that initiatives will only infrequently improve the public’s welfare. We begin with a survey of the basic social choice and public choice critiques of the initiative process. We argue that, despite recent rigorous scholarly attention as to the effects of initiatives, we find little reason yet to reject the social and public choice criticisms of policy making via direct democracy. We then offer a series of anecdotes about the rise of crypto-initiatives, which are initiatives that use direct democracy as an instrument to achieve non-policy related goals. Finally, we conclude that the problems inherent in the initiative process are being magnified by the increase in crypto-initiatives and the rise of the crypto-political machines, the new 527 PACs, that sponsor them. Increasingly, the public welfare may be only an incidental consideration in the sponsorship, passage and implementation of initiatives. This in turns implies that we consider anew limiting or amending the initiative process

Venture Capital on the Downside: Preferred Stock and Corporate Control

This Article takes the occasion of the simultaneous collapse of the high technology stock market and the failure of the dot-coin startups, along with the subsequent retrenchment of the venture capital business, to examine the law and economics of downside arrangements in venture capital contracts. The subject matter implicates core concerns of legal and economic theory of the firm. Debates about the separation of ownership and control, relational investing, takeover policy, the law and economics of debt capitalization, and bankruptcy reform, all grapple with the downside problem of controlling and terminating unsuccessful managers for the benefit of outside debt and equity investors (and the related upside problem of incentivizing effective but fallible managers). The factors motivating these debates also bear on venture capital contracting. But venture capital presents a special puzzle for solution. Convertible preferred stock is the dominant financial contract in the venture capital market, at least in the United States. This contrasts with other contexts in corporate finance, where preferred stock is thought to be a financing vehicle long in decline. The only mature firms that finance with preferred, which once was ubiquitous in American capital structures, tend to be firms in regulated industries having little choice in the matter. Tax rules favoring debt finance provide the primary explanation for preferred\u27s decline. But many corporate law observers would suggest dysfunctional downside contracting as a concomitant cause. Simply, preferred performs badly on the downside, where senior security contracts supposedly are at their most effective. Preferred stockholders routinely have been victimized in distress situations by opportunistic issuers who strip them of their contract rights, transferring value to the junior equity holders who control the firm\u27s management. The cumulation of bad experiences adds impetus to a wider trend in favor of debt as the mode of senior participation

Cast-as-Intended Mechanism with Return Codes Based on PETs

We propose a method providing cast-as-intended verifiability for remote electronic voting. The method is based on plaintext equivalence tests (PETs), used to match the cast ballots against the pre-generated encrypted code tables. Our solution provides an attractive balance of security and functional properties. It is based on well-known cryptographic building blocks and relies on standard cryptographic assumptions, which allows for relatively simple security analysis. Our scheme is designed with a built-in fine-grained distributed trust mechanism based on threshold decryption. It, finally, imposes only very little additional computational burden on the voting platform, which is especially important when voters use devices of restricted computational power such as mobile phones. At the same time, the computational cost on the server side is very reasonable and scales well with the increasing ballot size

The economics of split-ticket voting in representative democracies

In U.S. elections, voters often vote for candidates from different parties for president and Congress. Voters also express dissatisfaction with the performance of Congress as a whole and satisfaction with their own representative. We develop a model of split-ticket voting in which government spending is financed by uniform taxes but the benefits from this spending are concentrated. While the model generates split-ticket voting, overall spending is too high only if the president’s powers are limited. Overall spending is too high in a parliamentary system, and our model can be used as the basis of an argument for term limits.Government spending policy