Culturally-based beliefs and labour market institutions

This paper has two main goals. The first is to provide empirical evidence that differences in labour market institutions across countries and, specifically, in how they provide protection to workers, can be attributed to underlying differences in culturally-based prior beliefs: in particular, people’s fatalism and trust in others. The second goal is to single out the socio-economic factors associated with these beliefs and the role of education in this regard.Culture, Fatalism, Trust in Others, Labour Market Institutions, Employment Protection Legislation

Detained and at Risk: Sexual Abuse and Harassment in United States Immigration Detention

In May 2010, reports surfaced that the United States Immigration and Customs Enforcement agency (ICE) was investigating allegations that a guard at a Texas immigration detention center had sexually assaulted several female detainees. The guard, who was arrested on August 19, 2010, on suspicion of official oppression and unlawful restraint, allegedly groped women while transporting them to an airport and a bus station where they were being released.While largely covered in the media as an isolated incident, this was only the latest in a series of assaults, abuses, and episodes of harassment that have quietly emerged as a pattern across the rapidly expanding immigration detention system. Due to a shortage of publicly available data and the closed nature of the detention system, the extent to which ICE detainees are subject to sexual abuse nationwide is unclear, but the known incidents are too serious and numerous to ignore.ICE has recently proposed policy changes to address sexual abuse, and these show promise. They include prohibitions on guards searching detainees of a different gender and restrictions on when guards may transport detainees of a different gender. ICE plans to publish a revised detention standard that includes new requirements for facilities to develop medical and investigation procedures and to collect data on incidents of abuse. However, more changes are needed, as well as greater oversight and accountability."Detained and at Risk" is based on the examination of allegations of sexual assault, abuse, and harassment in ICE detention from a range of sources, including press reports, governmental and nongovernmental studies, a public hearing, court documents, and Human Rights Watch interviews. The report shows evidence of a disturbing pattern of abuse, and points to an urgent need for investigation and action to correct glaring gaps in detention policy and practice

How I Learned to Stop Worrying and Love the Crisis

We investigate the effects of economic crises on the subsequent economic performance, economic reform, democratization and institutional change. Our analysis is based on a sample of post-communist countries, most of which experienced severe economic crises during the 1990s. We find that the severity of crisis has had a positive impact on the subsequent pace of economic reform, economic growth and, with a delay, on investment and institutional change. Episode of high inflation, moreover, translate into lower subsequent inflation. Crises thus appear to serve as catalysts of reform and institutional change and lead to better long-term economic performance.crisis, transition, growth, inflation, reform, institutions

Correction of hyperglycemia after surgery for diabetic foot infection and its association with clinical outcomes

Objective: Constantly high glycemia levels might influence outcomes in the management of patients undergoing surgery for diabetic foot infections (DFI). In our center for DFI, we performed a case-control study using a multivariate Cox regression model. Patients developing a new DFI could participate in the study several times. Results: Among 1013 different DFI episodes in 586 individual adult patients (type I diabetes 148 episodes [15%], 882 [87%] with osteomyelitis; median antibiotic therapy of 21 days), professional diabetes counselling was provided by a specialized diabetes nurse in 195 episodes (19%). At admission, blood glucose levels were elevated in 110 episodes (11%). Treatments normalized glycemia on postoperative day 3 in 353 episodes (35%) and on day 7 for 321 (32%) episodes. Glycemia levels entirely normalized for 367 episodes (36%) until the end of hospitalization. Overall, treatment of DFI episodes failed in 255 of 1013 cases (25%), requiring surgical revision. By multivariate analysis, neither the provision of diabetes counseling, nor attaining normalizations of daily glycemic levels at day 3, day 7, or overall, influenced the ultimate incidence of clinical failures. Thus, the rapidity or success of achieving normoglycemia do not appear to influence the risk of treatment failure for operated DFI episodes. Keywords: Diabetic foot infections; Glycemia; Insulin therapy; Outcomes; Surger

Corporate ‘excesses’ and financial market dynamics

The recent corporate failures in the US and in Europe have considerably damaged investors’ confidence in the functioning of financial markets and the ability of the regulatory framework to safeguard their interest and prevent fraud. These episodes demonstrate that market failures exist, which can undermine the effectiveness of market discipline to ensure the appropriate allocation of capital. Specifically the paper considers four particular features of financial markets that may have given rise to market failures: (a) perverse incentives/conflict of interests, (b) destabilising trading/investment strategies, (c) lack of disclosure/transparency and (d) concentrated versus fragmented ownership structures. The paper reviews the theoretical arguments and empirical evidence related to these four possible types of market failures, illustrating these with evidence drawn from the most recent corporate scandals. The last part of the paper is devoted to the policy responses both in the US and in Europe to prevent these failures.

The Demand for Environmental Quality in Driving Transitions to Low Polluting Energy Sources

The purpose of this paper is to understand the long run demand for energy-related environmental quality, its influence on legislation and on transitions to low polluting energy sources. It starts by presenting a simple framework of the relationship between the demand for and supply of environmental quality, environmental legislation and energy. This forms the structure for presenting a series of episodes in British history where a demand for improvements in energy-related environmental quality existed. This analysis proposes that markets can drive transitions to low polluting energy sources, in specific economic conditions. However, most probably, governments will need to push them, and this cannot be expected without strong and sustained demand for environmental improvements. Yet, while demand is a prerequisite, it is not enough. It must also be spearheaded by strong, creative and sustained pressure groups (i.e., powerful lobbying and the weakening of the counter-lobby) to introduce legislation, to enforce it and to avoid it being over-turned by future governments.Energy Transitions, Historical, Environmental Quality, Air Pollution.

"Market Processes and Thwarting Systems"

This paper suggests that there are two longstanding views on business cycles and economic dynamics: One emphasizes endogenous stability plus exogenous disturbances, while the other focuses on endogenous instability plus institutional 'containing' or "thwarting" mechanisms. The latter tradition regards business cycles and economic instability as the natural and inherent consequence of self-interest-motivated behavior in complex economies with sophisticated financial institutions. In fact, it is the interaction between the system's endoge-nous dynamics and the effects of institutions and interventions which, if "apt," constrains the outcomes of capitalist market processes to acceptable outcomes. The endogenous instability view of the economy, in which institutional structures and interventions stabilize the fragile, essentially refutes Lucas: He asserts that the economy is a mechanism that transforms exogenous shocks (either random or unanticipated policy interventions) into business cycles, thus generating a growth equilibrium. Recent history has illustrated the flaws of laissez-faire theory as the postwar capitalist economies that have enjoyed consistently high levels of growth are big government interventionist economies. The challenge for the future is recognizing that market processes are deficient not only in their ability to maintain aggregate demand, but also as devices for assuring productive investment and a tolerable distribution of income.