Local Crowding-Out in China

In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their funding constraints while leaving state-owned firms' investment unaffected. We establish this result using a purpose-built data set for Chinese local public debt. Private firms invest less in cities with more public debt, with the reduction in investment larger for firms located farther from banks in other cities or more dependent on external funding. Moreover, in cities where public debt is high, private firms' investment is more sensitive to internal cash flow.     

Unequal Contributions from Symmetric Agents in a Local Interaction Model

The main findings of the theory on the private provision of public goods under the assumptions of symmetric agents and normality are that (1) there exists a unique Nash equilibrium in which everybody contributes the same; and (2) this pattern is stable. We show that these findings no longer hold in a context characterized by local interaction. In this context, it is always possible to find preferences satisfying the assumption of normality such that the symmetric Nash equilibrium is unstable, and there exist asymmetric Nash equilibria which are locally stable.     

CARTELISING GROUPS IN DYNAMIC HYPERBOLIC OLIGOPOLY WITH ANTITRUST THRESHOLD

Empirical evidence, and theoretical results have shown that, in an industry, higher concentration index indicates higher price‐cost margin. In order to detect collusive behaviour the antitrust authorities often monitor the Herfindahl‐Hirschman Index. We consider N‐firm oligopolies where a group of firms partially cooperate with each other, and monitor the Herfindahl‐Hirschman Index as well. After suspecting that the authorities might notice the violation of antitrust regulations, they stop their cooperation. The group will not cooperate again until the Index moves back to the legal domain. This flip‐flop dynamical model is formulated, the equilibria are determined, and the asymptotic properties of the system are examined.     

Reinventing Multiculturalism: Urban Citizenship and the Negotiation of Ethnic Diversity in Amsterdam

A number of authors have recently suggested that cities are becoming increasingly important as sites for the negotiation of ethnic diversity. While multiculturalism has been declared ‘dead’ in many countries, cities are now experimenting with new ways to accommodate ethnic diversity. This article reports on research conducted in Amsterdam. In this city, a ‘minority policy’ has been replaced by a qualitatively different ‘diversity policy’. Even though the diversity policy meets many of the criticisms that have been made against multiculturalism, the new policy also generates its own forms of exclusion. It is concluded that the stress on intercultural interaction and an emphasis on high‐quality policies and projects can in practice produce results that run counter to the intentions of policymakers as well as critical theorists. Ironically, these two features of the diversity policy tend to depoliticize societal problems and frustrate political mobilization of some marginalized groups. Dernièrement, plusieurs auteurs ont suggéré que les villes prennent une importance croissante en tant que lieux de négociation de la diversité ethnique. Alors qu’on a annoncé la mort du multiculturalisme dans bien des pays, les villes connaissent désormais de nouveaux modes d’accueil de la diversité ethnique. Cet article rend compte de recherches menées à Amsterdam. Une ‘politique des minorités’ y a été remplacée par une ‘politique de la diversité’ différente sur le plan qualitatif. Même si cette nouvelle politique répond à plusieurs des critiques formulées à l’encontre du multiculturalisme, elle génère aussi ses propres formes d’exclusion. On peut déduire que l’accent sur l’interaction interculturelle ainsi qu’une priorité aux politiques et projets de qualité peuvent, en pratique, produrie des résultats qui viennent s’opposer aux intentions des décideurs eux‐mêmes et des théoriciens détracteurs. Bizarrement, ces deux caractéristiques de la politique de la diversité tendent à dépolitiser les problèmes sociétaux et à contrarier la mobilisation politique de certains groupes marginalisés.     

INTERNATIONAL EVIDENCE ON RECOVERY FROM RECESSIONS

Although negative shocks have persistent effects on output on average, this article shows that macroeconomic policies can influence the speed of recovery and mitigate the persistence of the shock. Indeed, monetary and fiscal stimulus and foreign aid can spur a rebound, with impacts that are asymmetrically stronger than in non‐recovery years. Real depreciation and the exchange rate regime also have asymmetric growth effects in a recovery year relative to other years of expansion. (JEL C23, E32, F43, O43)