‘Territorial deregulation’: local authorities at risk from technical networks

Technical networks (transport, telecommunications, energy etc.) possess paradoxical virtues. They produce ‘structuring effects’ on space, obtaining comparative advantages for the places they serve. But they are ubiquitous factors which also enable a homogenization of space. The myths of deterritorialization and dual space are refuted by empirical analyses of the interaction between networks and territories. Networks ‘format’ market areas and political territories. They create matrixes which until now were controlled by the public powers. Linked to current transformations – globalization, deregulation – the present mode of development of the technical macro‐systems brings about a telescoping of geographical scales which is having an adverse effect on the historic compromise between networks and territories. The boundaries of traditional political space have become obsolete and an economic rationale in the form of an extension of the technical networks predominates. In order to rediscover their policy‐making capacity, local authorities must pay more attention to controlling the occupation of public space as well as to the design and organization of the networks’ hubs. They should encourage the emergence of users as players in the regulation of public utilities so that debates on universal service and territorial equality may be activated. Les réseaux techniques (transport, télécommunication, énergie etc.) sont parés de vertus paradoxales. Ils produiraient des ‘effets structurants’ sur l’espace, procurant des avantages comparatifs aux lieux desservis. Mais, facteurs d’ubiquité, ils permettraient aussi une homogénéisation de l’espace. Ces mythes de la déterritorialisation et de la dualisation de l’espace sont réfutés par les analyses empiriques des interactions entre réseaux et territoires. Les réseaux ‘formatent’ des aires de marché et des territoires politiques; ils fabriquent des métriques, dont les pouvoirs publics avaient jusquà présent la maîtrise. Liées aux transformations en cours – globalisation, dérégulation – le mode de développement actuel des macro‐systèmes techniques entraîne un télescopage des échelles géographiques qui met à mal le compromis historique entre réseaux et territoires. Il y a obsolescence des frontières des espaces politiques traditionnels et prédominance de la logique économique dans l’extension des réseaux techniques. Afin de retrouver des capacités d’action, les collectivités locales doivent porter plus d’attention au contrôle de l’occupation de l’espace public ainsi qu’à la conception et à l’organisation des noeuds de réseau. Elles ont aussi à favoriser l’émergence des usagers comme acteurs de la régulation des services en réseau, afin que soient activés les débats sur le service universel et sur l’équité territoriale.     

Risk and concentration in payment and securities settlement systems

What drives the intraday patterns of settlement in payment and securities settlement systems? Using a model of the strategic interaction of participants in these systems to capture some stylized facts about the Federal Reserve's Fedwire funds and securities systems, this paper identifies three factors that influence a participant's decision on when to send transactions intraday: cost of intraday liquidity, extent of settlement risk, and system design. With these factors, the model can make predictions regarding the impact of policy on the concentration of transactions, amount of intraday overdrafts, central bank credit exposure, costs to system participants, and other risks.     

A pilot study to assess rural water supplies and sanitation conditions on the Pongolo floodplain — A social anthropological perspective

This paper, based on a pilot study, is part of an ongoing research project on rural water supplies in Southern Africa. Research of this nature aims at bridging the gap between some critical sociological approaches which ignore social practice, and biomedical research which is at times inclined to focus, for instance, on particular diseases without locating the diseases within the political economy of Southern Africa. Macro‐scale sociological explanations of poverty and the diseases associated with lack of development need to be meshed with micro‐scale research at village level in order to obtain a realistic perspective of rural life which can inform social practice. The relationship between preventative medicine and development is emphasized.     

Estimation of physical intensity models for default risk

The estimation of physical intensity processes in the context of default risk is investigated here. Using data from Moody's Corporate Bond Default Database, a term structure of default probabilities for different rating classes is constructed each year from 1970 to 2001. Two specifications used for modeling the dynamics of the (risk‐neutral) intensity process in the bond‐pricing literature are then examined empirically: the Ornstein–Uhlenbeck and square‐root cases. The results reveal that the Ornstein–Uhlenbeck case is not an adequate modeling alternative with a rejection of this specification in five out of seven credit classes and nonsignificant mean reverting behavior for all credit classes. The square‐root case obtains better results with four credit classes out of seven for which this specification cannot be rejected and significant mean reversion parameters in many cases. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 29:95–113, 2009     

Food safety and product liability

This paper focuses on the U.S. product liability system for food poisoning cases and makes six key points. First, current legal incentives to produce safer food are weak, though slightly stronger in outbreak situations and in markets where foodborne illness can be more easily traced to individual firms. Far less than 0.01% of cases are litigated and even fewer are paid compensation. Second, even if potential plaintiffs can overcome the high information and transaction costs necessary to file lawsuits, monetary compensation provides only weak incentives to pursue litigation. Firms paid compensation in 56% of the 294 cases examined in this study and the median compensation was only $2,000 before legal fees. Third, indirect incentives for firms may be important and deserve more research. For example, firms may be influenced by costly settlements and decisions against other firms in the same industry. Fourth, confidential settlements, health insurance, and product liability insurance distort legal incentives to produce safer food. Fifth, the ambiguity about whether microbial contamination is “natural” or an “adulterant” hinders the legal system from effectively dealing with food safety issues. Sixth, a brief comparison of the incentives from U.S. and English legal systems suggests that more research is needed to understand the strengths, weaknesses, and relative impact of each country's legal system on the incentives to produce safer food.     

Competing through information provision

This paper studies the symmetric equilibria of a two-buyer, two-seller model of directed search in which sellers commit to information provision. More informed buyers have better differentiated private valuations and extract higher rents from trade. When sellers cannot commit to sale mechanisms, information provision is higher under competition than under monopoly. In contrast, when sellers commit to both information provision and sale mechanisms, I identify simple conditions under which sellers post auctions and provide full information in every equilibrium, ensuring that all equilibrium outcomes are constrained efficient. Sellers capture the efficiency gains from increased information and compete only over non-distortionary rents offered to buyers.     

The Logical Framework Approach–Millennium

The Logical Framework Approach (LFA) has proved to be a valuable tool for project approval, design, and evaluation. However, a few pitfalls make it hard to use within today's project management framework and to integrate with other project management tools. This article proposes an updated version of the LFA to improve its compatibility with today's corporate culture, project management framework, and tools. We propose to call the updated tool the Logical Framework Approach–Millennium (LFA‐M). The LFA‐M is a seven‐step approach leading to the development of the Logframe‐Millennium (LF‐M), a five‐column and four‐line matrix describing major project commitments and providing an overall understanding of the project. It was successfully implemented at the Canadian Space Agency and the Canadian Nuclear Safety Commission. The LFA‐M fits well within today's project management framework and corporate culture and leads easily to other project management tools.     

Ex ante analysis of the benefits of transgenic drought tolerance research on cereal crops in low-income countries

This article develops a framework to examine the ex ante benefits of transgenic research on drought in eight low-income countries, including the benefits to producers and consumers from farm income stabilization and the potential magnitude of private sector profits from intellectual property rights (IPRs). The framework employs country-specific agroecological–drought risk zones and considers both yield increases and yield variance reductions when estimating producer and consumer benefits from research. Benefits from yield variance reductions are shown to be an important component of aggregate drought research benefits, representing 40% of total benefits across the eight countries. Further, estimated annual benefits of US$178 million to the private sector suggest that significant incentives exist for participation in transgenic drought tolerance research.