The Political Economy of Decentralization: Evidence from Bank Bailouts

In this paper, we examine whether decentralized decision making results in more efficient economic outcomes. In the German savings bank sector, distress events can be resolved either by a decentralized county-level politician or by a centralized state-level association. We document that decisions taken by the politicians at the decentralized level are distorted by personal considerations. While the occurrence of distress is not related to the electoral cycle, the probability of local politicians injecting taxpayers’ money into a bank in distress is 30 percent lower in the year directly preceding an election. Using the timing of the distress event in the electoral cycle as an instrument for who bails out the distressed bank, we show that decentralized bailouts result in inferior economic outcomes. These bailed-out banks perform more poorly and provision credit less efficiently when compared with more central-ized bailouts. We also observe a significantly worse real sector performance of localities that have undergone decentralized bailouts. Overall, our results highlight the political economy of decentralization – local politicians derive private benefits from controlling the bank at the expense of citizens at large

Interleukin-6 trans signalling enhances photodynamic therapy by modulating cell cycling

Photodynamic therapy (PDT) of solid tumours causes tissue damage that elicits local and systemic inflammation with major involvement of interleukin-6 (IL-6). We have previously reported that PDT-treated cells lose responsiveness to IL-6 cytokines. Therefore, it is unclear whether PDT surviving tumour cells are subject to regulation by IL-6 and whether this regulation could contribute to tumour control by PDT. We demonstrate in epithelial tumour cells that while the action of IL-6 cytokines through their membrane receptors is attenuated, regulation by IL-6 via trans-signalling is established. Soluble interleukin-6 receptor-α (IL-6Rα) (sIL-6Rα) and IL-6 were released by leucocytes in the presence of conditioned medium from PDT-treated tumour cells. Cells that had lost their membrane receptor IL-6Rα due to PDT responded to treatment with the IL-6R–IL-6 complex (Hyper-IL-6) with activation of signal transducers and activator of transcription (STAT3) and ERK. Photodynamic therapy-treated cells, which were maintained during post-PDT recovery in presence of IL-6 or Hyper-IL-6, showed an enhanced suppression of proliferation. Cytokine-dependent inhibition of proliferation correlated with a decrease in cyclin E, CDK2 and Cdc25A, and enhancement of p27kip1 and hypophosphorylated Rb. The IL-6 trans-signalling-mediated attenuation of cell proliferation was also effective in vivo detectable by an improved Colon26 tumour cure by PDT combined with Hyper-IL-6 treatment. Prevention of IL-6 trans-signalling using soluble gp130 reduced curability. The data suggest that the post-PDT tumour milieu contains the necessary components to establish effective IL-6 trans-signalling, thus providing a means for more effective tumour control

Active Control of Acoustic Field-of-View in a Biosonar System

Echolocating bats can actively change the area scanned by their biosonar sensory system (“field of view”), and they do so according to the complexity of the environment and depending on the distance to the target

Study of the neoclassical radial electric field of the TJ-II flexible heliac

Calculations of the monoenergetic radial diffusion coefficients are presented for several configurations of the TJ-II stellarator usually explored in operation. The neoclassical radial fluxes and the ambipolar electric field for the standard configuration are then studied for three different collisionality regimes, obtaining precise results in all cases

World-system position and democracy, 1972–2008

Global levels of democracy are higher than ever before, and democratic principles are now institutionalized as a world cultural norm. Nevertheless, a number of countries continue to feature governing systems that restrict political rights. Against this backdrop, I revisit traditional claims by world-system theory regarding the impact of the core/periphery hierarchy on national political systems. In doing so, I draw attention to the uneven character of democratic growth across world-system zones. Using an updated trichotomous measure of world-system position, and drawing from Freedom House and Polity IV ratings of democracy, I construct an annual time-series dataset producing a maximum of 5445 observations across 161 countries during the 1972–2008 period. Employing a series of random-effects tobit models with year-by-covariate interaction terms, I compare democratic growth among nations in the core, semiperiphery, and periphery. The results indicate significant gaps in democracy between core and non-core nations that are not dissipating over time, and that are perhaps growing slightly larger. In a series of robustness checks, I find that using an alternative measure of world-system position, an alternative measure of democracy, and an alternative estimation strategy produce similar results. In sum, despite the global spread of democracy, world-system boundaries remain fundamental in hindering cross-national convergence.Yeshttps://us.sagepub.com/en-us/nam/manuscript-submission-guideline