The global decline in the labour income share: is capital the answer to Germany’s current account surplus? Bruegel Policy Contribution Issue No. 12 April 2017

From the Executive Summary. This paper links the major divergences between the three largest euro-area countries in terms of unit labour costs and current accounts, to the broader debate on labour income shares. We show that Germany, like the United States and Japan, has experienced a significant decline in the share of national income that goes to labour. At the same time, labour shares in France and Italy have increased since the beginning of monetary union, breaking a trend that had persisted for several decades. The capital intensity of production has increased much more significantly in France and Italy, while in Germany the capital-to-GDP ratio has stagnated and the net public capital stock has fallen. Our data suggests that capital and labour have been complements

Total assets versus risk weighted assets: does it matter for Mrel? Bruegel Policy Contribution Issue 2016/12

Highlights • The European Union’s Bank Recovery and Resolution Directive foresees a ‘minimum requirement for own funds and eligible liabilities’ (known as MREL) that banks need to comply with in order to ensure the effectiveness of the bail-in tool. The details of how MREL should be constructed in practice are under discussion. • We look at alternative ways to compute MREL, showing how the choice of the benchmark metric (risk weighted assets, total assets or leverage exposure) can change the allocation of requirements across banks. We also review MREL in light of the global effort to ensure future resolvability of banks, highlighting some differences with, and inconsistencies in relation to, the Financial Stability Board’s total loss-absorption capacity (TLAC)

Non-Minimal Coupling to a Lorentz-Violating Background and Topological Implications

The non-minimal coupling of fermions to a background responsible for the breaking of Lorentz symmetry is introduced in Dirac's equation; the non-relativistic regime is contemplated, and the Pauli's equation is used to show how an Aharonov-Casher phase may appear as a natural consequence of the Lorentz violation, once the particle is placed in a region where there is an electric field. Different ways of implementing the Lorentz breaking are presented and, in each case, we show how to relate the Aharonov-Casher phase to the particular components of the background vector or tensor that realises the violation of Lorentz symmetry.Comment: 8 pages, added references, no figure

Quantitative Metabolomics by 1H-NMR and LC-MS/MS Confirms Altered Metabolic Pathways in Diabetes

Insulin is as a major postprandial hormone with profound effects on carbohydrate, fat, and protein metabolism. In the absence of exogenous insulin, patients with type 1 diabetes exhibit a variety of metabolic abnormalities including hyperglycemia, glycosurea, accelerated ketogenesis, and muscle wasting due to increased proteolysis. We analyzed plasma from type 1 diabetic (T1D) humans during insulin treatment (I+) and acute insulin deprivation (I-) and non-diabetic participants (ND) by 1H nuclear magnetic resonance spectroscopy and liquid chromatography-tandem mass spectrometry. The aim was to determine if this combination of analytical methods could provide information on metabolic pathways known to be altered by insulin deficiency. Multivariate statistics differentiated proton spectra from I- and I+ based on several derived plasma metabolites that were elevated during insulin deprivation (lactate, acetate, allantoin, ketones). Mass spectrometry revealed significant perturbations in levels of plasma amino acids and amino acid metabolites during insulin deprivation. Further analysis of metabolite levels measured by the two analytical techniques indicates several known metabolic pathways that are perturbed in T1D (I-) (protein synthesis and breakdown, gluconeogenesis, ketogenesis, amino acid oxidation, mitochondrial bioenergetics, and oxidative stress). This work demonstrates the promise of combining multiple analytical methods with advanced statistical methods in quantitative metabolomics research, which we have applied to the clinical situation of acute insulin deprivation in T1D to reflect the numerous metabolic pathways known to be affected by insulin deficiency

The Good Samaritan and the Marketer: public perceptions of humanitarian and international development NGOs

This article reports on a nationwide study investigating public responses to humanitarian communications. Based on focus group data with members of the UK public, the paper discusses two key models through which NGOs identities and activities are understood and judged, both positively and negatively: the Good Samaritan and the Marketer. Thematic analysis of the focus groups extracts exposes the salience of these models in people's thinking, how they speak to each other and how they inform and affect the relationship between NGOs and public. The paper discusses the themes in relation to current debates on organisations' image and trust and confidence in nonprofit organisations and humanitarian NGOs. The data show deep public disillusionment and disappointment deriving from the recognition of the Marketer model being applied to and employed within the realm of humanitarianism. This suggests that NGOs' moving away from traditional notions of charity might be counterproductive and in the long-term risky

A mean field model for movement induced changes in the beta rhythm

In electrophysiological recordings of the brain, the transition from high amplitude to low amplitude signals are most likely caused by a change in the synchrony of underlying neuronal population firing patterns. Classic examples of such modulations are the strong stimulus-related oscillatory phenomena known as the movement related beta decrease (MRBD) and post-movement beta rebound (PMBR). A sharp decrease in neural oscillatory power is observed during movement (MRBD) followed by an increase above baseline on movement cessation (PMBR). MRBD and PMBR represent important neuroscientific phenomena which have been shown to have clinical relevance. Here, we present a parsimonious model for the dynamics of synchrony within a synaptically coupled spiking network that is able to replicate a human MEG power spectrogram showing the evolution from MRBD to PMBR. Importantly, the high-dimensional spiking model has an exact mean field description in terms of four ordinary differential equations that allows considerable insight to be obtained into the cause of the experimentally observed time-lag from movement termination to the onset of PMBR (~ 0.5 s), as well as the subsequent long duration of PMBR (~ 1-10 s). Our model represents the first to predict these commonly observed and robust phenomena and represents a key step in their understanding, in health and disease

Cultural Participation, Trends in

This article focuses on trends in cultural participation. How have the extent and the way in which people consume culture changed? Research shows that participation in highbrow culture remains relatively stable, whereas the consumption of popular, commercial culture has increased since the 1970s. A number of societal developments drive these evolutions in cultural participation. Sociodemographic changes, most notably educational expansion, as well as the rise of the entertainment industry and the Internet boom, greatly affect the field of artistic production, mediation, and consumption. These changes result in the shifting, or, as some argue, the erosion of esthetic boundaries, and the rise of the cultural omnivore – someone who participates in a variety of cultural activities – as provisional endpoints

Institutional investors and corporate governance

We provide a comprehensive overview of the role of institutional investors in corporate governance with three main components. First, we establish new stylized facts documenting the evolution and importance of institutional ownership. Second, we provide a detailed characterization of key aspects of the legal and regulatory setting within which institutional investors govern portfolio firms. Third, we synthesize the evolving response of the recent theoretical and empirical academic literature in finance to the emergence of institutional investors in corporate governance. We highlight how the defining aspect of institutional investors – the fact that they are financial intermediaries – differentiates them in their governance role from standard principal blockholders. Further, not all institutional investors are identical, and we pay close attention to heterogeneity amongst institutional investors as blockholders