Social Costs of Mass Privatization

According to leading economic theorists, creating capitalism out of communism requires rapid privatization. In this article we empirically test the welfare implications of privatization policies in Post-Soviet countries by using cross-national panel mortality data as an indicator of social costs. We find that rapid privatization ñ whether measured by a novel measure of mass privatization program implementation or Enterprise Bank for Reconstruction and Development privatization outcome scores ñ is a critical determinant of life expectancy losses, and that when privatization policies are reversed, life expectancy improves. Using selection models, we show that endogeneity understates the social costs of rapid privatization.http://deepblue.lib.umich.edu/bitstream/2027.42/64393/1/wp890.pd

Explaining Postcommunist Economic Performance

This article critiques neoliberal transition theory from a neoclassical sociological perspective. Neoliberals argue that postcommunist economic failure is the result of inadequate adherence to neoliberal precepts. This paper argues that the neoliberal policy package of “Shock Therapy” (consisting of the radical transition to a market economy through rapid and extensive price and trade liberalization, stringent monetary and fiscal stabilization, and the implementation of a mass privatization program) creates severe supply-and-demand shocks for enterprises, inducing firm failure. This leads to a fiscal crisis for the state, and an erosion of its capacity and bureaucratic character. This in turn reacts back on the enterprise sector, since the state can no longer support the institutions necessary for the effective functioning of capitalist economies. The neoliberal theory is tested against a neoclassical sociological theory by examining the experience of 12 postcommunist countries and two reform Asian communist countries.http://deepblue.lib.umich.edu/bitstream/2027.42/39944/2/wp559.pd

Corruption manual for beginners: "Corruption techniques" in public procurement with examples from Hungary

This paper develops 30 novel quantitative indicators of grand corruption that operationalize 20 distinct techniques of corruption in the context of public procurement. Each indicator rests on a thorough qualitative understanding of rent extraction from public contracts by corrupt networks as evidenced by academic literature, interviews and media content analysis. Feasibility and usefulness of the proposed indicators are demonstrated using micro-level public procurement data from Hungary in 2009-2012. While the prime value of this broad set of indicators is the possibility of combining them into a robust composite indicator of high-level corruption, the high degree of detail also reveals that many regulatory interventions have succeeded in changing the form of corruption, but not its overall incidence

The Developmental Consequences of Foreign Direct Investment in the Transition from Socialism to Capitalism: The Performance of Foreign Owned Firms in Hungary

Abstract: This article examines the debate between Neoliberals and Modernization theorists on the one hand and dependency and world systems theorists on the other about the developmental impact of foreign direct investment in post-communist society. I test six hypotheses derived from this debate with logistic regression on a 1996 large-n random sample survey of Hungarian firms to see if foreign owned firms perform better than their private domestic counterparts. I then supplement these findings with three more logistic regression models of performance tested on a 1997 large-n, random sample survey of Hungarian firms. Foreign owned firms are found to have superior performance to domestically owned private firms on 6 of these indicators. Furthermore, while foreign owned firms create less demand for local producers than domestically owned firms, this is not at a level which is statistically significant. These findings support the neoliberal/modernizationist position that foreign investment creates high performing firms - which advocates claim are capable of driving the modernization of the entire post-communist economy.

Spectral absorption of marine stratocumulus clouds derived from in situ cloud radiation measurements

A multiwavelength scanning radiometer was used to measure the angular distribution of scattered radiation deep within a cloud layer at discrete wavelengths between 0.5 and 2.3 microns. The relative angular distribution of the intensity field at each wavelength is used to determine the similarity parameter, and hence single scattering albedo, of the cloud at that wavelength using the diffusion domain method. In addition to the spectral similarity parameter, the analysis provides a good estimate of the optical thickness of the cloud beneath the aircraft. In addition to the radiation measurements, microphysical and thermodynamic measurements were obtained from which the expected similarity parameter spectrum was calculated using accepted values of the refractive index of liquid water and the transmission function of water vapor. An analysis is presented for the results obtained for a 50 km section of clean marine stratocumulus clouds on 10 July 1987. These observations were obtained off the coast of California from the University of Washington Convair C-131A aircraft as part of the First ISCCP Regional Experiment (FIRE). A comparison of the experimentally-derived similarity parameter spectrum with that expected theoretically from the cloud droplet size distribution measured simultaneously from the aircraft is presented. The measurements and theory are in very close agreement for this case of clean maritime clouds

Cloud absorption properties as derived from airborne measurements of scattered radiation within clouds

Researchers briefly review the diffusion domain method for deriving the cloud similarity parameter and present preliminary analyses of the results thus far obtained. The presentation concentrates on the following points: (1) intercomparison of calibrated reflected intensities between the cloud absorption radiometer and the U.K. multispectral cloud radiometer; (2) quality control tests required to select those portions of an aircraft flight for which measurements are obtained within the diffusion domain; (3) case studies of the spectral similarity parameter of marine stratocumulus clouds; and comparisons of the experimentally-derived similarity parameter spectrum with that expected theoretically from the cloud droplet size distribution obtained from in situ observations

Strategic Restructuring: Making Capitaism in Post-Communist Eastern Europe

http://deepblue.lib.umich.edu/bitstream/2027.42/39577/3/wp190.pd

Anatomy of grand corruption

Although both the academic and policy communities have attached great importance to measuring corruption, most of the currently available measures are biased and too broad to test theory or guide policy. This article proposes a new composite indicator of grand corruption based on a wide range of elementary indicators. These indicators are derived from a rich qualitative evidence on public procurement corruption and a statistical analysis of a public procurement data in Hungary. The composite indicator is constructed by linking public procurement process ‘red flags’ to restrictions of market access. This method utilizes administrative data that is available in practically every developed country and avoids the pitfalls both of perception based indicators and previous ‘objective’ measures of corruption. It creates an estimation of institutionalised grand corruption that is consistent over time and across countries. The composite indicator is validated using company profitability and pol itical connections data

Laudatio for Professor Clive Emsley

It is a singular honour to be able to propose this laudatio to mark the retirement from the Open University of Professor Clive Emsley, one of the foremost exponents of criminal justice history. Via both his intellectual leadership and the generous and inclusive nature of his approach to scholarship, Clive has played a unique role in developing the field of criminal justice history research worldwide, and in encouraging and nurturing a new generation of researchers. Educated at York University..