Political Economy Reasons for Government Inertia: The Role of Interest Groups in the Case of Access to Medicines

The reluctant reaction of western governments to the AIDS crisis in developing countries is only one example for policy areas where we observe a lack of political action despite a public interest in policy change. The reasons for that lie in the two-stage structure of the political decision-making process: Interest groups influence both the policy choice and the subsequent decision on the level of policy implementation. The lobbies' interest in reform and the issue-specific chance for compromise determine the policy choice. The interest groups' failure to agree on political strategies creates reduced incentives to support policy implementation

The Political Economy of Privatization

International organizations promote privatization as precondition for economic development. But is there really too little privatization? This political economy model asks for the incentives of governments to privatize or restructure a state-owned firm. Different government types are compared to identify the political and institutional determinants of privatization. Under privatization, governments commit not to influence the profit-maximizing employment choice by private investors. With respect to the social optimum, both voter-oriented and egoistic governments can have inefficiently high incentives to privatize. When this is the case, outside pressure to privatize is detrimental. An improving institutional environment reduces these inefficiencies

Mapping Topics and Topic Bursts in PNAS

Scientific research is highly dynamic. New areas of science continually evolve;others gain or lose importance, merge or split. Due to the steady increase in the number of scientific publications it is hard to keep an overview of the structure and dynamic development of one's own field of science, much less all scientific domains. However, knowledge of hot topics, emergent research frontiers, or change of focus in certain areas is a critical component of resource allocation decisions in research labs, governmental institutions, and corporations. This paper demonstrates the utilization of Kleinberg's burst detection algorithm, co-word occurrence analysis, and graph layout techniques to generate maps that support the identification of major research topics and trends. The approach was applied to analyze and map the complete set of papers published in the Proceedings of the National Academy of Sciences (PNAS) in the years 1982-2001. Six domain experts examined and commented on the resulting maps in an attempt to reconstruct the evolution of major research areas covered by PNAS

The Political Economy of Corruption and the Role of Financial Institutions

In transition and developing countries, we observe rather high levels of corruption even if they have democratic political systems. This is surprising from a political economy perspective, as the majority of people generally suffers from high corruption levels. Our model is based on the fact that corrupt officials have to pay an entry fee to get lucrative positions. In a probabilistic voting model, we show that a lack of financial institutions can lead to more corruption as more voters become part of the corrupt system. Well-functioning financial institutions, in turn, can increase the political support for anti-corruption measures

Migration and the Welfare State: The Economic Power of the Non-Voter?

This paper investigates the impact of emigration on the political choice regarding the size of the welfare state. Mobility has two countervailing effects: the political participation effect and the tax base effect. With emigration, the composition of the constituency changes. This increases the political influence of the less mobile part of the population. The new political majority has to take into account that emigration reduces tax revenues and thereby affects the feasible set of redistribution policies. The interaction of the two effects has so far not been analyzed in isolation. We find that the direction of the total effect of migration depends on the initial income distribution in the economy. Our results also contribute to the empirical debate on the validity of the median-voter approach for explaining the relation between income inequality and redistribution levels

Migration and the Welfare State: The Economic Power of the Non-Voter?

This paper investigates the impact of emigration on the political choice regarding the size of the welfare state. Mobility has two countervailing effects: the political participation effect and the tax base effect. With emigration, the composition of the constituency changes. This increases the political influence of the less mobile part of the population. The new political majority has to take into account that emigration reduces tax revenues and thereby affects the feasible set of redistribution policies. The interaction of the two effects has so far not been analyzed in isolation. We find that the direction of the total effect of migration depends on the initial income distribution in the economy. Our results also contribute to the empirical debate on the validity of the median-voter approach for explaining the relation between income inequality and redistribution levels.migration; redistribution; voting

Epidemic trade

This paper studies the spread of the Black Death as a proxy for the ow of medieval trade between 1346 and 1351. The Black Death struck most areas of Europe and the wider Mediterranean. Based on a modified version of the gravity model, we estimate the speed (in kilometers per day) of transmission of the disease between the transmitting and the receiving cities. We find that the speed depends on distance, political borders, and on the political importance of a city. Furthermore, variables related to the means of transportation like rivers and the sea, religious seasons such as Lent and Advent, and geographical position are of substantial significance. These results are the first to enable us to identify and quantify key variables of medieval trade ows based on an empirical trade model. These results shed new light on many qualitative debates on the importance and causes of medieval trade. --Trade,Middle Ages,Black Death,Gravity model,Poisson regression