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  • Articles  (34)
  • Articles: DFG German National Licenses  (34)
  • Blackwell Publishing Ltd  (34)
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  • 2004  (34)
  • Sociology  (34)
  • 1
    Electronic Resource
    Electronic Resource
    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Why did peacetime government shares of total spending double in a number of Western economies between 1910 and 1938? The widely separated dates for the introduction of universal manhood suffrage and the evidence of a rise in protection during the inter-war period indicate that neither democracy nor globalization can explain this development. This paper reexamines two other explanations, namely, (1) a shift in the demand for public goods and (2) a war-induced willingness to share with one's fellow citizens. By introducing into Schelling's (1978) Multi-Person Dilemma a learning game whose payoffs change endogenously, we provide theoretical explanations for this transformation. We then test the resulting propositions with data on public spending as a share of GNP for the U.S., Canada, the U.K., Germany and Denmark, from the 1870s to the 1930s. In each case, we find no unit root but a break in trend, a result shown to favor explanation (2) over (1).
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  • 2
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: The idea of a single-owner who owns the opposing interests of a dispute has been suggested in the literature to make the Coase Theorem operational in resolving dispute. This paper points out that the idea implicitly assumes the existence of an overriding authority, e.g., the Courts, to implement the solution. When such an overriding authority does not exist, a different rationale must be employed to make the single-owner apparatus work. This insight is explored and then applied to help resolve the Taiwan Strait Conflict. Specifically, a ‘One China, Two Republics’ policy is proposed and its implications illustrated.
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  • 3
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: The empirical literature on border effects suggests that national borders substantially reduce the level of economic transactions. This paper adds another piece of evidence to the significance of border effects by applying a new data set which is completely independent of the data sets of previous studies. Our data refer to domestic and international passenger departures from German airports. The econometric results indicate that the German border reduces passenger air traffic by a factor of four to five. This magnitude is in line with the results of previous studies for trade and investment flows.
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  • 4
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: This paper examines the relationship between intra-firm wage dispersion and firm performance in large Belgian firms using a unique matched employer-employee data set. On the basis of the Winter-Ebmer and Zweimüller's (1999) methodology, we find a positive and significant relationship between intra-firm wage dispersion and profits per capita, even when controlling for individual and firm characteristics and addressing potential simultaneity problems. Results also suggest that the intensity of this relationship is stronger for blue-collar workers and within firms with a high degree of monitoring. These findings are more in line with the ‘tournament’ models than with the ‘fairness, morale and cohesiveness’ models.
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  • 5
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: This paper provides systematic evidence for both the cross-country and sector-independent validation of political-economic theories used to explain changes in national property rights arrangements. A political-economic model for privatization will be developed and then tested on progress in large-scale and small-scale privatizations in 14 Central and Eastern European transition economies between 1994 and 2000. It will be proven that divergent levels of progress in large-scale privatization can be explained to a large extent by the structural and financial constraints on political decision-makers and varying national interest group constellations. Small-scale privatization is not significantly determined by political constraints and interest group pressure. This finding supports the assumption that the relative merits of different theories to explain changes in property rights arrangements depend crucially on the specific conditions of initial property arrangements.
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  • 6
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
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  • 7
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
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  • 8
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Under reasonable assumptions about production technologies, international competition for factors of production will lead to convergence of per capita output. Is there an analogous process that leads to convergence of public sector activity? We provide a simple model that predicts convergence in government spending under certain assumptions. We show that Barro's (1990) model of endogenous growth with government spending provides one justification for the necessary assumptions and therefore supports the convergence hypothesis. We also discuss the possibility that increasing globalization has led to convergence in government spending. Our cross-country empirical investigation provides compelling evidence of convergence in per capita government consumption spending, per capita government capital spending, and per capita government education spending. These findings provide a new framework for explaining the underlying dynamic forces that determine growth of government.
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  • 9
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
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  • 10
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
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  • 11
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Using a simultaneous equations framework with a comprehensive set of publicly listed Swiss companies, our findings suggest that the size of the board of directors is an independent corporate governance mechanism. This implies that any potential relationship between board size and firm valuation is indeed causal. However, in contrast to previous studies, we do not uncover a significant relationship between board size and firm valuation, which can be interpreted as support for the hypothesis of the existence of an optimal board size. On average, firms choose the number of board members just optimally. This indicates that cross-sectional variations in board size to a large extent reflect differences in firms' underlying environment, and not mistaken choices.
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  • 12
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: This paper investigates the relationship between making additional payments to the state for student loan (via the Higher Education Contribution Scheme) and child support (via the Child Support Scheme) and compliance with tax law. Data are taken from the Community Hopes, Fears, and Actions Survey based on a random sample of 2040 individuals. Additional payments were found to pose a compliance problem for tax authorities. At the same time, this study demonstrated that perceived deterrence, moral obligation and possible trustworthiness play significant roles in reducing tax evasion. An important finding to emerge from this study is that tax evasion is more likely to accompany additional payments when personal income and belief in trust norms are low. The finding of greater tax evasion among economically marginalized groups has been demonstrated in other contexts, but the adverse effects of becoming irreconcilably socially marginalized from legal authority has tended to be both undervalued and under-theorized in the taxation compliance literature.
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  • 13
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
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  • 14
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: There is widespread belief among economists that the separation of ownership and control tends to reduce the performance of companies while competition tends to improve it. Irrespective of their theoretical appeal these assumptions have not been tested very often. Using an unbalanced panel of about 300 German wineries (compiled from four different editions of a highly respected and widely used wine guide), the paper shows that firms run by ‘managing directors’ produce higher quality and more expensive wines than otherwise identical owner-managed firms. Since firms have identical production functions and due to the intense competition in the sector under consideration it is very likely that differences in human capital explain the observed productivity differences.
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  • 15
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: From the viewpoint of Public Choice theory, the logic of electoral competition makes it difficult for rational, self-interested politicians to advance unpopular reforms. As political decision-makers have primarily the aim of re-election in mind, ‘inconvenient’ scientific policy advice often falls on deaf ears in the political arena. This implementation problem has been widely discussed in political science, economics, and related social sciences. Complementary to this qualitative dimension, the present paper uses insight from the economics of innovation to analyze the quantitative dimension of policy advice. It is assumed that additional expert opinion is only requested whenever it increases a politician's chance to become re-elected. This simple politico-economic reasoning, it will be argued, induces a systematic under-and overinvestment in policy advice, which is inefficient in terms of social welfare. After discussing the advisor's role in this framework, the paper concludes with a brief presentation of possible remedies to dilute these undesirable incentive effects. The theoretical reasoning will be illustrated by the case of Germany where problems of policy advice have become apparent in recent years.
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  • 16
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: A common finding of recent theoretical and empirical literature is that corruption has a negative effect on economic growth. In the paper, through growth regression analysis, we estimate the direct and indirect effects of corruption on economic growth. The indirect transmission channels, specifically investments, trade policy, schooling, and political stability, analysed in our study prove to be significant in explaining the deleterious effect of corruption on growth rates. We find that one standard deviation increase in the corruption index is associated with a decrease in investments of 2.46 per centage points, which in turn decreases economic growth by 0.34 per cent per year. The second, by importance, transmission channel is openness: a standard deviation increase in the corruption index is associated with a decrease of the openness index by 0.19, resulting in a decrease in economic growth by 0.30 percent per year. Jointly, the transmission channels explain 81 per cent of the effect of corruption on growth. While combating corruption is a long-term task, an understanding of the transmission channels, through which corruption affects the economy, may suggest ways to limit corruption's negative, but indirect, effects on growth.
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  • 17
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
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  • 18
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Field experiments in which bogus pairs of transactors test for discrimination by applying for employment or housing, or by trading in product markets, have been widely-published during the last decade. However, no detailed justification has been provided for the deception involved. The general lack of veracity in the market-place, the social harm inflicted by discrimination and the superior accuracy and transparency of this technique justify deceiving the subjects of experiments. Deception of testers, however, may do them harm, contravenes the ethical standards of psychologists and sociologists and is unnecessary, as alternative procedures are available to deal with ‘experimenter effects’.
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  • 19
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
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    Topics: Sociology , Economics
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  • 20
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: A number of proposals for a tax on the international trade with weapons have been made during the last 25 years, most recently prior to the G-8 summit in Lyon, France, in June 2003. Originally, the major objectives were both to reduce the level of trade in arms and raise money for purposes such as development and disarmament. Later proposals included the compensation of victims of the use of specific types of weapons. Various objections have been raised against the suggestions for an international arms trade tax. Major points include the difficulties of achieving sufficient levels of compliance, tax evasion through increases in domestic production and a stimulation of the illicit trade in arms. There are also fundamental objections against demeritorizing arms transfers only, and not also domestic production of arms. In order for an international arms trade tax to work, the level of transparency in the international arms trade would need to increase. A major part of the tax burden would be borne by buyers of arms, who are predominantly developing countries. However, these are currently also major beneficiaries of large-scale subsidies on arms exports. An international arms trade tax will lead, using available estimates of price elasticities, to an increase in expenditures on arms import. Transfers from a fund fed by an arms trade tax should be spent in those countries which substantially reduce their spending on arms imports. In general, an arms trade tax makes more sense as a measure for disarmament than as a measure for development.
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  • 21
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    Oxford, UK : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: This paper explores a unique new source of social valuation: a market for bodies. The internet hosts a number of large synthetic worlds which users can visit by piloting a computer-generated body, known as an avatar. Avatars can have an asset value, in that users can spend time to increase their skills; these asset values can be directly observed in online markets. Auction data for avatars from the synthetic fantasy world of EverQuest are used here to explore a number of questions involving the relative value of different body characteristics. Hedonic analysis of the auction price data suggests that the ‘level’, a game-design metric that indicates the overall functionality or power of the avatar, is by far the most important attribute of the body. Other attributes that show significant price effects include: sex and class (i.e. being a wizard rather than warrior type of character). The male-female price difference is interesting because there are actually no sex-based differences in the abilities of the avatar bodies, by design. Price differences here must be caused by some other aspect of buyer preferences, ones unrelated to power or functionality of the avatar itself.
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  • 22
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Since quite some time, economists have been aware of the fact that also the behavior of economists generates questions that need to be answered. Why, for example, do economists use an alphabetic ordering of names when they co-author an article? And what determines the success of an academic economist? Or, how does studying economics affect behavior? At the same time, economists have also noticed that the economics profession generates data that can be used to test theoretical ideas proposed by economists. In this paper, the author gives an overview of such research that takes economists and their behavior as a subject of study. He will focus on three topics: the education of economists, the publication habits of economists and the labor market of economists.
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  • 23
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Most social scientists' views of conflict and cooperation in society are shaped by very elementary, one-off, two by two symmetric simultaneous move games like prisoner's dilemma, chicken, assurance or stag hunt. We think that this diet of examples leads to biased accounts in particular of distributional conflict, and therefore suggest that asymmetry in payoffs and move structure be taken into account systematically. In this paper a new paradigm of asymmetric games to study basic distributional conflicts is introduced, illustrated numerically and discussed theoretically. The results of exploratory experiments on the empirical side of the matter are also reported.
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  • 24
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: This paper analyses a 2002 survey of the Czech and Slovak Republics, and more limited surveys of Hungary and Poland to conclude that tax evasion is lowest among those who believe that they are getting good quality government services for the taxes they pay. A 20% increase in perceived quality of government services could lead to a 13% drop in the frequency of tax evasion. The present analysis is the first of this sort to indicate that quality of government services influences the willingness to pay taxes. Governments in transition countries who suffer from weak tax collection apparatus may wish to transmit clear information on the quality of their services in order to cut down on evasion.
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  • 25
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: We use a recently constructed cross-country data set on absolute poverty to examine whether there is regional and sectoral variation in the relationship between poverty and economic growth. We find that the poverty-growth linkage is strongest in East Asia and that this linkage is essentially driven by growth in the industrial sector. By contrast, industrial growth has had little positive impact on poverty reduction in any other region. These findings are consistent with the notion that East Asia's greater success in poverty reduction lies in its greater openness and market orientation, which created a pattern of labor-intensive industrial growth that led to a rapid growth in employment and poverty reduction.
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  • 26
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: This article describes and analyzes the Euro cash changeover process. The European Monetary Union, EMU, is a unique event in history, although other monetary unions were formed and existed long before. Still, this giant experiment makes it possible to study changes in the monetary environment from a unique and new position. The article tries to find factors that can help to explain the different pace of transition between the countries participating in the third stage of the EMU. Even though it was common knowledge that the national currency would lose its status as legal tender at a predetermined point in time, the speed of acceptance of the new monetary standard could not be directly controlled by the relevant authorities. Hence, the whole changeover process was formed as much by the authorities as by the public. The paper focuses on four types of factors that may help to explain the differences in the pace of transition pattern between the countries: network related reasons, technical and logistic reasons, characteristics of the financial and payment systems and psychological reasons. It is found that the initial supply of Euro bank notes (so-called frontloading), the size of the population of the country, the length of the period when the national currency and Euro bank notes were used side by side, and the number of bank branches (per capita) together can help to explain a large part of the variation in the pace of adoption of the new monetary standard across the countries. The first two of these factors support the idea that currency is a network good. Psychological factors, such as nationalism, have not been found to significantly influence the outcome.
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  • 27
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: The expansion of economics to ‘non-market topics’ has received increased attention in recent years. The economics of sports (football) is such a sub-field. This paper reports empirical evidence of team and referee performances in the FIFA World Cup 2002. The results reveal that being a hosting nation has a significant impact on the probability of winning a game. Furthermore, the strength of a team measured with the FIFA World Ranking does not play the important role presumed, which indicates that the element of uncertainty is working. The findings also indicate that the influence of a referee on the game result should not be neglected. Finally, the previous World Cup experiences seem to have the strongest impact on referees' performances during the game.
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    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
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    Topics: Sociology , Economics
    Notes: A paradox is a proposition in (alleged) contrast with common sense. All science is replete with paradoxes. Economics is not an exception. This paper is focused on two widely discussed paradoxes: the Mandeville paradox (and the associated idea of an ‘invisible hand’) and the Prisoners' Dilemma (with the allied literature on market failures). The main tenet of this paper is that they cannot be simultaneously paradoxical, because they state one the opposite of the other. If common sense contrasts with Mandeville, then it must agree with the Prisoners' Dilemma and vice versa. This is what I term the ‘paradox of paradoxes’ in economics, which is a simple consequence of the rarely noticed principle that two opposing propositions cannot be paradoxical at the same time. A tentative way out from this impasse is presented. I claim that economists would gain a better understanding of their profession if they devoted more time to the study of the intuitive or folk economics.
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    Topics: Sociology , Economics
    Notes: Transnational Corporations are often accused by non-governmental organisations of ignoring fundamental democratic rights, such as civil liberties and political rights, in the countries of their investments. This paper attempts to explore empirically the complex relationship between foreign investment and democracy in a systematic way, using different econometric techniques. In contrast to the public discussion over recent years and the view held by non-governmental organisations, the results show that enhanced democratic rights are associated with higher foreign investment in the 1990s. Interestingly, this positive link does not hold for the 1970s and 1980s, when a substantial portion of foreign investment went to countries with repressive governments.
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    Topics: Sociology , Economics
    Notes: This paper explores the role of media in economic development. In particular, we seek to outline the conditions under which the media contributes to the successful adoption of policies aimed at economic progress. Our core thesis is that successful economic development requires the coordination of efforts by politicians with the interests of the populace on policies that bring about economic growth. However, the nature of the relationship between political actors in charge of reform is characterized by a conflict of interests. The role of media as a key mechanism for transforming these situations of conflict into situations of coordination between politicians and the populace is analyzed. Specifically, we consider four factors — media autonomy, legal structure, quality of the media and consumer demand — and how they impact media as a coordination-enhancing mechanism.Historical examples of the media in developing countries provide further insight into the circumstances necessary for media to be an effective coordination-enhancing mechanism. We consider the impact of a free media in cases where successful economic development has occurred — Hungary and Poland. We also consider the Ukraine as a case where media has failed to overcome the conflict characterizing the reform process, and Bulgaria as a situation where politicians and the populace have failed to coordinate around ‘good’ reforms despite having a free media. Our paper concludes with some policy recommendations regarding the achievement of a free and effective media.
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    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: William Easterly, an ex-World Bank economist and widely respected growth theorist, in recently noting that skilled individuals may elect to pursue occupations that redistribute income rather than enhance growth, referred to ‘the somewhat whimsical piece of evidence … that economies with lots of lawyers grow more slowly than economies with lots of engineers’. The remark alluded to an assertion by the Bush-Quayle camp during the 1992 Presidential campaign that too many lawyers were prejudicial to US economic growth, and sparked a heated debate that was played out in the Wall Street Journal and a number of academic journals at the time. A decade later, Easterly's rejoinder has prompted us to examine the view that occupational capture (the capture of talent by particular occupations) can contribute to economic stagnation, by revisiting the notion of lawyers as negative externalities to the growth process.
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    Kyklos 57 (2004), S. 0 
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    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: Analysis of the effects of public financing on private investment in R & D has been the object of numerous applied studies without it having been possible to arrive at a definite conclusion. In this paper the results of a meta-regression of econometric evidence on the relationship between public funding of R & D and private R & D expenditures is presented. After the creation of a data-base including all relevant studies and their results and characteristics, a meta-analysis was carried out to examine whether the characteristics of the applied analysis influence the results and explain the differences in the empirical literature on this subject.
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    Topics: Sociology , Economics
    Notes: This paper studies the effect of institutions on trade flows, using a gravity model approach. Standard gravity equations incorporate factors such as geographical proximity, language, trade policy and common history as explanatory factors for variation in bilateral trade that reflect the costs of trade across geographical and cultural distance. We extend this type of analysis by focusing on the relevance of the quality of governance and the extent of familiarity with the resulting framework of rules and norms in explaining variation in bilateral trade patterns. More specifically, we test whether institutional homogeneity and institutional quality have an independent impact on the trade volume between pairs of countries. We find that having a similar institutional framework promotes bilateral trade by 13%, on average. Furthermore, a better quality of formal institutions tends to coincide with more trade. Depending on being either importer or exporter, an increase in overall institutional quality of one standard deviation from the mean leads to an estimated increase of 30–44% in bilateral trade.
    Type of Medium: Electronic Resource
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  • 34
    Electronic Resource
    Electronic Resource
    Oxford, UK and Boston, USA : Blackwell Publishing Ltd
    Kyklos 57 (2004), S. 0 
    ISSN: 1467-6435
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Sociology , Economics
    Notes: In the context of an emerging focus on highly skilled migration throughout the OECD area, the question under which circumstances migrants can be expected to be relatively skilled is of particular importance. Borjas has analysed the relation between the income distribution and the skills of migrants. His self-selection model predicts that immigrants from countries with a higher income inequality tend to be negatively selected (i.e., less skilled than the average worker in both host and source countries). According to other models based on the human capital theory of migration, however, migrants can be expected to be relatively skilled. Empirical tests of Borjas' much-disputed negative self-selection hypothesis generally rely on immigration data, particularly to the US, and may therefore be biased due to host-country specifics such as network migration and the impact of migration policy. This paper analyses the relationship between country-specific emigration propensities and each country's score on various indices of income inequality with a rich international microdata set. The main result is that highly-skilled persons are more inclined to migrate, though a higher income inequality attenuates the positive selectivity.
    Type of Medium: Electronic Resource
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