Preference for Democracy in the Arab World

"We take a new look at the question of the Arab democratic exception by looking at the preference for democracy among individuals in the Arab world in a comparative context. We use the new sixth wave of the World Value Survey, which was collected between 2012 and 2013, and which included for the first time 12 Arab countries (up from only four in wave 5) and 68 non-Arab countries. We innovate empirically by measuring the preference for democracy over strong rule in a way that, we argue, is more adapted to an understanding of the Arab world than other measures used in past studies. Our statistical analysis reveals a democratic gap in the Arab region compared to global experience, which is especially marked among the more educated individuals, and to a lesser extent among the youth and the middle class. We conclude by discussing the reasons that may explain the Arab exceptionalism, and argue that it is unlikely to be related to culture alone." (author's abstract

What Does Health Reform Mean for the Healthcare Industry? Evidence from the Massachusetts Special Senate Election

The recent reform of the U.S. health care system has been described both as a boon and a death blow for the healthcare industry and for private insurers in particular. We exploit the surprise election of Republican Scott Brown to the U.S. Senate, which dealt a serious blow to the prospects for reform by depriving Democrats of their 60-vote “filibuster-proof” majority, to evaluate the market's assessment of Health Reform’s impact on the health care industry. We find that Scott Brown’s election was associated with an abnormal return of 2.2 percent for a typical dollar invested in health care stocks and an abnormal return of 6.3 percent for a typical dollar invested in managed care firms. A typical dollar invested in the pharmaceutical sector experienced abnormal returns of 2.9 percent, while investments in healthcare facilities (including hospitals) experienced abnormal losses of 3.4 percent. Analysis of firms participating in government programs show that firms involved with Medicare Advantage experienced gains while those involved with Medicaid Managed Care experienced losses due to the election.

The Elasticity of Trust: How to Promote Trust in the Arab Middle East and the United States

To trust is to risk. When we lend someone money, we make ourselves vulnerable, hoping or expecting that the borrower will reward our trust and return the money at a later stage, possibly with interest or a reciprocal favor added. This paper examines whether willingness to trust follows the same logic, that is, whether it responds to changes in the expected value of trusting, much like willingness to take risk responds to changes in the expected value of risk taking in various countries of the Arab Middle East, namely, Jordan, Saudi Arabia and the United Arab Emirates and in the United States