Intergovernmental grant rules, the "golden rule" of public finance and local expenditures

The Stability and Growth Pact and the process of fiscal consolidation in several European countries have enhanced the role of fiscal rules at sub-national level. This paper analyzes the combined effect of a rule to allocate capital and current block grants to local governments and the “golden rule” of public finance (surplus of current balance). We argue that the two fiscal rules introduce significant rigidities and distortions in local governments’ expenditures structure since these mimic the structure of revenues. This effect is particularly relevant in municipalities that are more dependent of intergovernmental grants, mainly rural. On the other hand, urban municipalities with greater tax revenues (current revenues) are constrained in their ability to make capital investments because they receive per capita capital grants below what economies of scale would suggest. An empirical analysis of Portuguese local governments shows that it is no longer the median voter, but fiscal rules, that command the broad pattern of expenditure (current versus capital) at a local level. This paper is a contribution to the literature on the perverse effects of fiscal rules.Intergovernmental block grants; Fiscal Rules; Local Government Expenditure; “Golden Rule”

Citizens’ Freedom to Choose Representatives: Ballot Structure, Proportionality and “Fragmented” Parliaments

The analysis of the political consequences of electoral laws has emphasized how individual characteristics of the electoral system (electoral formulas, district magnitude, ballot structure) affect the degree of parliament “fragmentation” and proportionality. This paper argues that the personal attributes of representatives are also an important consequence of electoral laws, and that they are in part determined by citizens’ freedom to choose representatives. We clarify this concept and develop an index of citizens’ freedom to choose members of parliament as a function of the ballot structure, district size and electoral formulae. Using data from twenty nine countries, we find that neither proportionality nor the effective number of parties is significantly affected by voters’ freedom of choice. This result has important normative implications for electoral reform.Ballot structure; Electoral index; Freedom to choose; Personal vote.

Not Cure But Heal: Music and Medicine

Despite evidence for music-specific mechanisms at the level of pitch-pattern representations, the most fascinating aspect of music is its transmodality. Recent psychological and neuroscientific evidence suggests that music is unique in the coupling of perception, cognition, action, and emotion. This potentially explains why music has been since time immemorial almost inextricably linked to healing processes and should continue to be

Intergovernmentalgrantrules, the "golden rule" of public finance and local expenditures

The Stability and Growth Pact and the process of fiscal consolidation in several European countries have enhanced the role of fiscal rules at sub-national level. This paper analyzes the combined effect of a rule to allocate capital and current block grants to local governments and the "golden rule" of public finance (surplus of current balance). We argue that the two fiscal rules introduce significant rigidities and distortions in local governments' expenditures structure since these mimic the structure of revenues. This effect is particularly relevant in municipalities that are more dependent of intergovernmental grants, mainly rural. On the other hand, urban municipalities with greater tax revenues (current revenues) are constrained in their ability to make capital investments because they receive per capita capital grants below what economies of scale would suggest. An empirical analysis of Portuguese local governments shows that it is no longer the median voter, but fiscal rules, that command the broad pattern of expenditure (current versus capital) at a local level. This paper is a contribution to the literature on the perverse effects of fiscal rules

Citizens' Freedom to Choose Representatives: Ballot Structure, Proportionality and "Fragmented" Parliaments

The analysis of the political consequences of electoral laws has emphasized how individual characteristics of the electoral system (electoral formulas, district magnitude, ballot structure) affect the degree of parliament "fragmentation" and proportionality. This paper argues that the personal attributes of representatives are also an important consequence of electoral laws, and that they are in part determined by citizens' freedom to choose representatives. We clarify this concept and develop an index of citizens' freedom to choose members of parliament as a function of the ballot structure, district size and electoral formulae. Using data from twenty nine countries, we find that neither proportionality nor the effective number of parties is significantly affected by voters' freedom of choice. This result has important normative implications for electoral reform

Citizensʼ freedom to choose representatives : ballot structure, proportionality and 'fragmented' parliaments

Analysis of the political consequences of electoral laws has emphasized how individual characteristics of the electoral system (electoral formulas, district magnitude, ballot structure) affect the degree of parliament ‘‘fragmentation’’ and proportionality. This paper argues that the personal attributes of representatives are also an important consequence of electoral laws, and that they are in part determined by citizens’ freedom to choose representatives. We clarify this concept and develop an index of citizens’ freedom to choose members of parliament as a function of the ballot structure, district magnitude and electoral formulas. Using data from 26 countries, we find that neither proportionality nor the effective number of parties is significantly affected by voters’ freedom of choice. This result has important normative implications for electoral reform.info:eu-repo/semantics/publishedVersio

Positive and negative reciprocity in the labor market

This paper reports results of an experiment designed to analyze whether reciprocal behavior survives in a more hostile environment than usually considered in the literature. In fact, positive reciprocity survives in a treatment favoring selfish behavior, although there is a decrease in the deviations from the subgame perfect Nash equilibrium. Besides positive reciprocity there is negative reciprocity in this new treatment. Additionally, this paper highlights the influence of the experimental design, namely the importance of wage cut points, on subjects' behavior.info:eu-repo/semantics/publishedVersio

Positive and negative reciprocity in the labor market

Traditional gift-exchange experiments were designed with corner equilibria so that evidence of positive reciprocity could not be disentangled from one-sided errors. Our first treatment replicates the traditional design and finds that effort is an increasing function of wage for mid-range wage offers, but this relationship is not significant for high and low offers. The second treatment has an interior equilibrium, asymmetric marginal costs of reciprocity (positive and negative) and lower efficiency gains. There is evidence of a decrease in the deviations from the subgame perfect Nash equilibrium. However, there is still significant reciprocal behavior (positive and negative).info:eu-repo/semantics/publishedVersio

Sequence Processing in Music Predicts Reading Skills in Young Readers: A Longitudinal Study

Musical abilities, both in the pitch and temporal dimension, have been shown to be positively associated with phonological awareness and reading abilities in both children and adults. There is increasing evidence that the relationship between music and language relies primarily on the temporal dimension, including both meter and rhythm. It remains unclear to what extent skill level in these temporal aspects of music may uniquely contribute to the prediction of reading outcomes. A longitudinal design was used to test a group-administered musical sequence transcription task (MSTT). This task was designed to preferentially engage sequence processing skills while controlling for fine-grained pitch discrimination and rhythm in terms of temporal grouping. Forty-five children, native speakers of Portuguese (Mage = 7.4 years), completed the MSTT and a cognitive-linguistic protocol that included visual and auditory working memory tasks, as well as phonological awareness and reading tasks in second grade. Participants then completed reading assessments in third and fifth grades. Longitudinal regression models showed that MSTT and phonological awareness had comparable power to predict reading. The MSTT showed an overall classification accuracy for identifying low-achievement readers in Grades 2, 3, and 5 that was analogous to a comprehensive model including core predictors of reading disability. In addition, MSTT was the variable with the highest loading and the most discriminatory indicator of a phonological factor. These findings carry implications for the role of temporal sequence processing in contributing to the relationship between music and language and the potential use of MSTT as a language-independent, time- and cost-effective tool for the early identification of children at risk of reading disability

Bootstrap methodology in claim reserving

In this article, we use the bootstrap technique to obtain prediction errors for different claim-reserving methods, namely, the chain ladder technique and methods based on generalized linear models. We discuss several forms of performing the bootstrap and illustrate the different solutions using the data set from Taylor and Ashe (1983), which has already been used by several authorsinfo:eu-repo/semantics/publishedVersio