Corruption and local politics: does it pay to be a crook?

During the recent years of economic boom in Spain, political corruption at the local level boomed as well. In fact, it increased from 7 publicly denounced cases from 1999-2003 to at least 180 in the last legislative period (2007-2011). In this paper, we explore this phenomenon in two related ways: how it has affected voting results and political participation, and whether the wrongdoing of local politicians has undermined the voters’ confidence in them. We constructed a socioeconomic municipality database that matched polling results and corruption cases and then estimated a voting-share equation by difference-in-difference and matching techniques. Our results confirm that the voters’ attitude towards corruption is significantly different with respect to parties on the right or the left. In fact, after an imputation in a local corruption case, abstention increases by an average 1.8 percentage points, leftparties’ voting share is reduced by approximately 2 percentage points, while right-parties’ share increases approximately 3 points. However, if the imputed candidate stands for re-election again, right-parties voting share is reduced by 4.4 points, but right-wing corruption at superior levels also increases voting share

The difficult road to a better competition policy: How do competition authorities reforms affect antitrust effectiveness?

This paper estimates the impact of reforming competition authorities on perceived antitrust effectiveness using methods of causal inference. We study how 20 countries reformed their competition authorities in depth between 1995 and 2020, and what has been the outcome of such reforms in the perceived competition policy effectiveness by the business community compared with 18 control countries in a balanced panel. As the political economy literature warned, we find that reforms paradoxically have not always improved antitrust effectiveness. Some of the reforms approved stalled or backlashed as politicians opted for a Machiavelli option: undertaking 'counter-reforms' even in the name of an apparent but deceptive progressiveness and pro-competition drive

Ciclos de reforma y contra-reforma en la política de competencia en España

Las políticas e instituciones están sometidas a ciclos de reforma y contra-reforma. Éstas pueden impulsar periodos de auge o declive en la efectividad de las políticas públicas. Estos ciclos son especialmente volátiles y amplios en los países que tienen problemas de estabilidad institucional. En España, la política de competencia ilustra estos ciclos volátiles y amplios en la efectividad de las políticas públicas como pocas otras. En los últimos 20 años (1995-2014), España ha vivido dos ciclos completos de intensos auges y declives en la efectividad de la política de competencia, con una ganancia media de efectividad del 14 por 100. El último ciclo de diez años (2005-2014) ha recogido un aumento destacable y posterior caída en la efectividad de la política de competencia, saldándose sin ganancia significativa en la misma: un inane y desgastante ciclo completo de reforma y contra-reforma. La comparación de resultados con un conjunto de 54 países del mundo muestra que esta volatilidad cíclica en la efectividad de la política de competencia en España es una anormalidad estadística. Dada la relevancia del marco institucional y el enforcement, nuestros resultados apuntan a la necesidad de estabilizar la calidad institucional en materia de competencia como garante de una mayor efectividad de la misma

Evaluating antitrust leniency programs

This article identifies and then quantifies econometrically the impact of leniency programs on the perception of the effectiveness of antitrust policies in the business community using panel data for as many as 59 countries during a 14-year span. We use the dynamics of the gradual diffusion of leniency programs across countries and over time to evaluate the impact of the program, taking care of the bias caused by self-selection into the program. We find that leniency programs increase the perception of effectiveness by an order of magnitude ranging from 10 percent to 21 percent. Leniency programs have become weapons of mass dissuasion in the hands of antitrust enforcers against the more damaging forms of explicit collusion among rival firms in the market place

Electrophoretic fingerprinting of benzodiazepine tablets in spike drinks

Over the last few years, there has been an increase in the reports of drug-facilitated crimes. The list of drugs associated with these crimes is extensive and benzodiazepines constitute one of the groups of substances more commonly used. The sedative properties, which characterize benzodiazepines, are enhanced when such drugs are combined with alcohol, being more attractive for committing these types of crimes. In this work, a capillary electrophoresis method was applied to the analysis of 63 different samples of club drinks spiked with benzodiazepine tablets. The resulting electropherograms were processed and analyzed with the chemometric multivariate techniques: principal component analysis (PCA) and soft independent modeling of class analogies (SIMCA) classification. The PCA results allowed a clear differentiation of each drug class in a 3D plot. In addition, the SIMCA classification model (5% significance level) showed that eight out of nine test samples were automatically assigned by software to their proper sample class. The conflicting sample was correctly classified in the Coomans? plot (95% confidence). This novel approach based on the comparison of electrophoretic profiles of spiked drinks by chemometric tools allows determining the benzodiazepine used for drink spiking without the use of drug standards.Moreover, it provides an opportunity for the forensic laboratories to incorporate the identification capability provided by the electrophoretic fingerprinting of benzodiazepine solutions in existing or new databases

When are Cartels more likely to be formed or broken? The role of business cycles

The literature presents mixed contributions about the economic conditions under which cartels form and collapse, and about how stable they are across firm-specific and industry-wide business cycles. The relationship between cartel life cycles and business cycles has not been sufficiently analyzed to date. In this paper, we study in depth whether collusion is pro-cyclical or counter-cyclical. We analyze the relationship between cartel startups/breakups and economic cycles using a dataset of sanctioned cartels by the European Commission that were active between 1997 and 2012, after the leniency program had already been introduced. We also double check whether this relationship has changed with respect to the pre-leniency period from 1991 to 1996. Our results show that cartels are more likely to be formed in upturns, but that cartels tend to breakup also in booms. Upturns in economic cycles appear to cause cartel turnovers: existing cartels die while new ones are set up. Collusion appears to be pro-cyclical with respect to cartel creation, while it seems to be counter-cyclical with regard to cartel demise

Cartel destabilization effect of leniency programs

This paper investigates the theoretically and empirically unsettled question of the effect of the leniency programs on cartel duration, cartel fines and the length of the investigation. The fact that leniency programs were implemented in two different jurisdictions (EU and Spain) at different moments of time, and the exogeneity of the date of introduction, allow us to identify and quantify the effect of the programs on the outcomes using difference-in-difference program evaluation techniques. We empirically show that leniency programs destabilize existing cartels in the short run as expected from theory and previous empirical papers, and then dissuade the creation of new cartels in the long run. Deterrence effects dominate empirically in the long run, although theoretically they might not dominate, and previous empirical findings were inconclusive. Fines per firm increase substantially after the introduction of the leniency policy, despite whistleblowing firms are partially or totally exempted from fines. The duration of the investigation increases with the introduction of the leniency programs. Leniency programs have sharp and clear short-run cartel destabilization and long-run cartel dissuasion effects

Managers' expectations, business cycles and cartels' life cycle

The literature presents mixed findings regarding the economic conditions under which cartels form and collapse, and regarding how stable they are across firm-specific and industry-wide business cycles. The relationship between cartel life cycles and business cycles has been insufficiently analyzed to date. In this paper, we study in depth whether collusion is pro-cyclical or counter-cyclical. We analyze the relationship between cartel start-ups/break ups and economic cycles using a dataset of sanctioned cartels by the European Commission (EC) that were active between 1997 and 2018, after the leniency program had already been introduced. We also double check whether this relationship has changed with respect to the pre-leniency period from 1991 to 1996. Our results show that cartels are more likely to be formed when the business has evolved positively in the previous months, and cartels are less likely to collapse when the business has evolved positively, and managers expect prices to decline. The EC's sanctioning activity has been an effective deterrent and has had a destabilizing effect on cartels. However we found no evidence that managers' expectations on prices affect cartel formation. All these results are an important issue for anti-cartel policy enforcement since knowing when cartels are more prone or less likely to occur would help authorities prevent their formation or their early detection

25 years of leniency programs: a turning point in cartel prosecution

This contribution reviews what we know about the effectiveness of leniency or amnesty programs in cartel prosecutions. Leniency programs have gradually been adopted by as many as 53 competition policy jurisdictions around the globe during the last 25 years. We show that the available evidence supports that the leniency programs have had a strong impact on anti-cartel policy design and effectiveness. (...

Properties of natural reinforced earth-bases composites: advantages and drawbacks with synthetic reinforcemen

The increase of awareness of the need to improve the sustainability of the construction industry and the concurrent development of "Green Technologies" has led to the raise of bio-composite materials with natural reinforcements for building applications. This process has involved the revival of the interest in the use of natural reinforced earth materials. Of these, the earthy materials with natural or synthetic reinforcements belong to a field that hasn’t been very much developed beyond traditional or emergency applications in architecture. The most determining aspect to develop products and systems based on reinforced earth based composites is the huge diversity on its physical and mechanical properties. Composites properties depend on diverse variables, among which are those concerning the type of soil and ground grain, type of reinforcement fibers (natural or synthetic), natural conditions in which were obtained, processing methods and characteristics of the possible matrices used as stabilizers. This paper aims for a comprehensive review of literature of the available natural or synthetic reinforced earth based composites. General characteristics of the mainly used reinforcement agents depending on its origin, type, composition, structure, chemical composition and mechanical properties of the studied material (animal hair, jute, sisal, coir, flax, hemp, pineapple fiber, bamboo, rice husk, oil palm, etc). Moreover, different processing methods to improve physical and chemical characteristics, together with processing systems and factors affecting the production and characteristics of these composites will be considered (moisture content, type of reinforcement, ratios, distribution, coupling agent, etc.). The present review is intended to update the overview the research of these kind products as well as to outline the main objectives and issues addressed in these current lines of research