The Grey Zone

The ‘grey zone’ is a term coined by the Italian Holocaust survivor Primo Levi in his essay collection The Drowned and the Saved (1989; originally published in Italian in 1986), the last book he completed before his death. In ‘The Grey Zone’, the second chapter and the longest essay in the book, Levi acknowledges the human need to divide the social field into ‘us’ and ‘them’, two clearly distinct and identifiable groups, but points out that such binary thinking is inadequate in the face of the..

The African Union, constitutionalism and power-sharing

Over the past decade, the African Union (AU) had put in place an important normative framework to promote constitutional rule and, in particular, orderly constitutional transfers of power in its member states. Through its Peace and Security Council (PSC), the AU has actively opposed, including through the use of sanctions, unconstitutional changes of government. As a key element of its policy, the PSC systematically advocates a return to constitutional order as a remedy for unconstitutional changes of government. Free and fair elections are an important element in the PSC policy of legitimating a new constitutional and political order. However, while opposing unconstitutional means of obtaining or transferring power, the AU has been generally supportive of the use of power-sharing agreements as an instrument of negotiated conflict settlement. Most power-sharing agreements are not in accordance with the prevailing constitutional order and, as part of a larger peace agreement, often contain new constitutional blueprints. This dual policy of, on the one hand, opposing certain types of unconstitutional changes of government, in particular military coups, and, on the other, advocating power-sharing agreements in the absence of a regulatory framework or normative guidance on such agreements poses an obvious challenge for the consistency of AU policy. Insofar as the AU wishes to nurture a culture of constitutionalism in its member states, it might benefit from developing policy guidelines about how to enhance the legitimacy of a new constitutional order - and of the political regime exercising political authority – be it in the aftermath of a coup or as a result of power-sharing.

Pooling multiple imputations when the sample happens to be the population

Current pooling rules for multiply imputed data assume infinite populations. In some situations this assumption is not feasible as every unit in the population has been observed, potentially leading to over-covered population estimates. We simplify the existing pooling rules for situations where the sampling variance is not of interest. We compare these rules to the conventional pooling rules and demonstrate their use in a situation where there is no sampling variance. Using the standard pooling rules in situations where sampling variance should not be considered, leads to overestimation of the variance of the estimates of interest, especially when the amount of missingness is not very large. As a result, populations estimates are over-covered, which may lead to a loss of statistical power. We conclude that the theory of multiple imputation can be extended to the situation where the sample happens to be the population. The simplified pooling rules can be easily implemented to obtain valid inference in cases where we have observed essentially all units and in simulation studies addressing the missingness mechanism only.Comment: 6 pages, 1 figure, 1 tabl

Automobile fuel efficiency policies with international innovation spillovers.

In this paper, we explore automobile fuel efficiency policies in the presence of two externalities i) a global environmental problem and ii) international innovation spillovers. Using a simple model with two regions, we show that both a fuel tax and a tax on vehicles based on their fuel economy rating are needed to decentralize the first best. We also show that if policies are not coordinated between regions, the resulting gas taxes will be set too low and each region will use the tax on fuel rating, to reduce the damage caused by foreign drivers. If standards are used instead of taxes, we find that spillovers may alleviate free-riding. Under some conditions, a strict standard in one region may favour the adoption of a strict standard in the other one.Environmental policy; Automobile; Fuel efficiency standard; Gasoline tax; Innovation spillovers;

Should diesel cars in Europe be discouraged?

This paper examines the rationale for the different tax treatment of gasoline and diesel cars currently observed in Europe. First, we analyse possible justifications for a different tax treatment: pure tax revenue considerations, externality considerations and constraints on the tax instruments used for cars and trucks. Next, an applied general equilibrium model is used to assess the welfare effects of revenue neutral changes in the vehicle and fuel taxes on diesel and gasoline cars. The model integrates the effects on tax revenue, environmental externalities, road congestion, accidents and income distribution.

Reforming transport pricing: an economist's perspective on equity, efficiency and acceptability

This paper applies the traditional definition of equity and efficiency in economics to transport pricing. It is shown how this framework can also be used to define acceptability. The problems and potential of this approach are illustrated by examining the effects for Belgium of replacing current transport pricing by marginal social cost pricing. The welfare effects on different income groups of this pricing reform are shown for different income groups using a computable general equilibrium model. We demonstrate how the efficiency, equity and acceptability of the reform depend not only on the change in transport prices but also on the way the extra tax revenues are used. We compare the effects of the use of net tax revenues for higher social transfers and for lower labour taxes.transport economics; externalities; externality tax; equity; efficiency; political acceptability

Can we use transport accounts for pricing policy and distributional analysis?

The paper analyses several possible concepts for transport accounts. First, it considers business type of transport accounts. It is shown that in general these are not a good guide for transport policy. Next, the paper examines the potential of social transport accounts and sees to what extent they can be used to analyse the efficiency and equity effects of transport policy. It is argued that one should be careful in interpreting the social transport accounts, since they do not contain all information necessary for a social cost-benefit analysis of transport policy. For a complete evaluation a set of more extended accounts, the so-called welfare accounts, should be used for all relevant markets, not only the transport markets. Examining the equity effects requires a disaggregation of the welfare accounts' contents according to income group.

Coordinating choice in partial cooperative equilibrium

In this paper we consider symmetric aggregative games and investigate partial cooperation between a portion of the players that sign a cooperative agreement and the rest of the players. Existence results of partial cooperative equilibria are obtained when the players who do not sign the agreement play a Nash equilibrium game having multiple solutions. Some applications in the supermodular case are discussed.Noncooperative games, cooperation, aggregative games, supermodular games.