Moving through the political participation hierarchy: a focus on personal values

This study empirically explores the determinants of political participation. Using data from the European Social Survey, we investigate the relationship between political participation and personal values, using the Schwartz (1992) values inventory. A political participation hierarchy is theorized, and activities are categorized into four levels of participation (none, weak, medium and strong), based on the cost of participating and how unconventional the activity is. Empirical analysis points to individuals who are more open to change and more self-transcendent, being more likely to participate. Sub-sample analysis, contrasting East and West Europe, suggests that the role for personal values is more subdued in the East, with respect to moving individuals from not participating to at least voting. Furthermore, the use of a generalized ordered logit model in this study illustrates the complex nature of many of the determinants of political participation. In particular, we find that the influence of the majority of individual characteristics is not monotonic in nature, as you move up through the political participation hierarchy. These findings are important for researchers and policy-makers who may be interested in understanding determinants of and/or enhancing the level of political participation in an economy.     

Immigration,ethnic diversity and voting: The role of individual income

We exploit a unique panel dataset merging data on individual socio-economic characteristics and individual turnout in an Italian municipality to investigate the relationship between ethnic diversity in residential neighborhoods and propensity to vote. Using these data, we document for the first time a differential effect of diversity on electoral turnout depending on household equivalent income. Specifically, we show that ethnic diversity in the neighborhood reduces the political participation of the poor, while it fosters that of the more affluent. These results highlight a potential democratic deficit stemming from reduced and unequal electoral turnout in increasingly heterogeneous neighborhoods.     

Subjective well‐being and political participation: Empirical evidence from Ghana

A large, extant literature examines the effect of political factors on individual subjective well‐being. These studies have treated political factors as a cause and subjective well‐being as an effect. A sparse but growing literature now advances the argument that subjective well‐being is a cause and voting or political participation an effect. In this paper we examine whether subjective well‐being influences voting and political participation in Ghana. Using data from Wave 6 of the World Values Survey in Ghana, we find that subjective well‐being influences neither voting nor protest behavior.     

To value or not to value? That is not the question

Should we reject money when we value nature? Like most environmentalists, ecological economists are increasingly divided on this question. Synthesizing political ecology with ecological economics, we argue that this way of framing the question is limited. We propose a reformulation of the question into “when and how to value with money?” and “under what conditions?” We recommend four criteria for a sound choice: environmental improvement; distributive justice and equality; maintenance of plural value-articulating institutions; and, confronting commodification under neo-liberalism. We call for due attention to the socio-political context within which a valuation is placed and the political goals it serves. The relevance of this framework is demonstrated by applying it to three practical cases: pollution damages, water pricing and payments for ecosystem services.     

CAN INTERNATIONAL TRANSFERS BE PROBLEMATIC? HONDURAN REMITTANCES AND LABOR SUPPLY DECISIONS

Declining work force participation rates are a potentially important public policy issue for governments in countries with large capital inflows. Here we consider remittances as both a household and individual characteristic to estimate the impact of this nonwage transfer on labor supply decisions in Honduras. Although an initial view suggests moderate reductions across the working‐age population, we find evidence of increased participation through a reallocation of labor time across work categories. Our inclusion of the individual nature of remittance reception suggests less emphasis on the unified household perspective is warranted. (JEL O15, O12, J29)     

Growing up in a civil war and political participation: Evidence from Guatemala*

Guatemala experienced a 36-year-long civil war from 1960 to 1996. I use this event to understand whether growing up in an area of political violence has any impact on future political participation. I combine data from the distribution of the number of human rights violations during Guatemala's civil war with nationally representative data on political participation from the 2001 Living Standard Measurement Survey. Results suggest that exposure to conflict during youth affects political participation in adulthood. Exposure to conflict has a small negative association with formal political engagement and it has no effect on community participation. The results also indicate a negative relationship between growing up in an area of political violence and trust in the judicial system as adults.     

The causal effect of compulsory voting laws on turnout: Does skill matter?

A very important, yet unsettled, question is whether mandatory voting affects political participation. This paper exploits a natural experiment to assess the causal impact of compulsory voting on turnout and, more importantly, to test whether the impact is different across skill groups. I find that compulsory voting increases voter turnout by 18 percentage points (28%) and the increase is twice as much in the unskilled citizens than that in the skilled citizens. This study is the first to show, with rigorous empirical evidence, that compulsory voting laws are effective in reducing the skill/socioeconomic gap in political participation. Furthermore, by shaping the electorate, these laws have relevant consequences in terms of the economic policies applied.     

Endogenous Selection of Institutions and Their Exogenous Effects

Institutions shape social outcomes, yet institutions themselves are products of political choices. When institutional choices are determined by the same political and social processes that they shape, institutions are endogenously selected. Here I address the question of whether this endogenous institutional selection necessarily implies endogenous institutional effects. If it does, the use of institutional parameters as independent variables explaining policy outcomes and properties of the resulting political regimes, widespread in the literature on comparative political institutions, is hard to justify. I argue, however, that strategic choice of the rules of the game implies designers' ability to obtain their preferred institutional effects only under conditions of complete information. Under incomplete information, ex-post institutional effects do not need to be endogenous, since at the time of designing the rules the designers were not in position to control the selection of these effects. The reason why the choice of the rules does not imply the choice of their effects lies in the intervening and interactive (rather than additive) role played by the environmental parameters, including players' own characteristics, that are not revealed at the time of the institutional choice. Additionally to the model which illustrates the logic of the argument and the workings of intervening structural effects, I find supporting evidence in the processes of design of election laws in post-communist Europe, where stages of design and implementation followed each other in a very quick succession yet were characterized by substantial changes in manifested institutional preferences of the key political players.     

Political participation and entrepreneurial initial public offerings in China

This paper examines the economic consequences of political participation by entrepreneurs in China. Using unique data on political participation and initial public offerings by entrepreneurial firms, we find that firms controlled by entrepreneurs who participate in politics exhibit superior post-IPO performance. We also find that firms characterized by political participation are subject to less underpricing. Furthermore, the superior performance is concentrated among firms that operate in an environment characterized by rich rent-seeking opportunities instead of abundant business opportunities, suggesting that political participation is facilitating rent seeking rather than serving simply as a proxy for political recognition for entrepreneurship.     

Firm location,political geography and environmental information disclosure

As the subjective and objective factors that influence corporate behaviours, political region and firm location are of great importance to environmental information disclosure (EID). With spatial and political geography as a research perspective, this article makes a study by using the samples of manufacturing listed companies from 2009 to 2011. As a result, we determine that regulatory distance and political geography had negative effects on EID, while political geography weakens regulatory distance’s function. After considering an enterprise’s administrative rank, we determined that when the rank is higher, regulatory distance has negative effects on EID; when the rank is lower, the effects are the opposite. Regarding political geography, it always weakened the regulatory distance’s function. Moreover, the effects are significant only when the enterprises had low governmental regulation. The study shows the effects that firm location and political geography have made on EID. At the same time, this study also gives theoretical and empirical evidence to the necessity of raising governmental regulatory effectiveness.     

Exposure to corruption and political participation: Evidence from Italian municipalities

This paper aims to study the effects of exposure to corruption on all the aspects of political participation. Focusing on Italian municipalities in the period 1999–2014, we generate a daily and local measure of exposure to corruption, screening newspaper articles of the main Italian press agency. We concentrate on local elections and, in an event-study analysis, we find three main results. First, corruption exposure affects citizens' participation in election by reducing voter turnout. Second, corruption impacts on politicians’ participation: the number of candidates and electoral lists decreases after a scandal and candidates with political tenure are more likely to run. Finally, these changes affect local political outcomes as tenured politicians are more likely to be elected, while freshmen lose ground. These results suggest that exposure to corruption has general and negative effects on political participation, leading people to lose interest in politics.     

How does historical trauma affect political participation? Evidence from the send‐down movement in China

Taking advantage of China's send‐down movement as a natural experiment, we investigate how experiencing a political movement during adolescence affects political participation decades later. Using data from the China Family Panel Survey and the regression discontinuity design, we find that the send‐down experience significantly reduces individuals’ political participation, measured by their participation in community committee elections, time spent on community service activities and how much they care about public news. Further analysis suggests that the send‐down experience negatively affects political participation through poorer mental health and less trust in local government.     

Inequality and Participative Democracy: A Self-Reinforcing Mechanism

During the last three decades, a notable increase in economic inequality is observed, accompanied by a decline in people's engagement in politics and electoral participation. This is an unsatisfactory phenomenon as it undermines the legitimacy of democratic representation. This negative association is produced by a complex salient mechanism. This study aims at investigating this issue. Using data from a panel of 28 OECD and European countries, this paper identifies a two-way causal relationship between inequality and political participation. The results show that greater income inequality alienates and discourages people from engaging with common affairs, thus leading to lower political participation. Yet, lower electoral participation leads towards a less equitable distribution of income. Hence, this study reveals a self-reinforcing mechanism where the unequal distribution of income leads to political exclusion, which in turn leads to more inequality.     

F. A. Hayek: The Liberal as Communitarian

At the heart of Friedrich A. Hayek's social philosophy is a regard for the socially-constituted nature of man: the individual is not taken to be asocial or pre-social, but rather it is recognized that society defines the individual. The neglect of this aspect of Hayek's work by both liberal and communitarian, as well as libertarian, writers within political philosophy has led to his position being misrepresented, for Hayek's brand of liberalism is more akin to one variant of modern communitarianism than it is to the libertarian strain of liberal thought.     

Childcare and Welfare Mix in France

Abstract: ‘Proximity services’ have been the subject of frequent debate for more than a decade in French speaking countries. They can be defined as services which meet individual or collective needs and which are ‘local’ in either spatial or relational terms. Based on the situation in France, this paper aims to describe the many options available in the field of ‘proximity services’ and examine the support offered by the public authorities for the existing practices, considering that this support is representative of the evolutive relations between State, market and civil society. The limited success of the free market puts the question of a renewal of public intervention, which would accommodate all options available in this area, without being confined to a marketization of this field of activity. For this matter, the political embeddedness of associations and cooperatives is decisive for the future.     

Public ownership of banks and economic growth

In an influential article, La Porta et al. (2002) argue that public ownership of banks is associated with lower GDP growth. We show that this relationship does not hold for all countries, but depends on a country's initial conditions, in particular its financial development and political institutions. Public ownership is harmful only if a country has low financial development and low institutional quality. The negative impact of public ownership on growth fades quickly as the financial and political system develops. In highly developed countries, we find no or even positive effects. Policy conclusions for individual countries are likely to be misleading if such heterogeneity is ignored.     

Will Gradualism Work When Shock Therapy Doesn’t?

When shock therapy is politically infeasible, will gradualism work? This paper takes up this question by: (i) building a political economy model in which it makes sense; (ii) stating the relevant political economy constraint rigorously; and (iii) analyzing the question in the context of a neoclassical model of adjustment, based on Mussa (1978). The paper answers the question in the affirmative, thus contributing to the scientific and policy literature on the economic analysis of policy reform.     

Incentives to self-employment decision in Sweden

The objective of this paper is to empirically examine the determinants of the self‐employment decision, with a particular focus on gender differences and occupational choice by using register‐based individual panel data for the period 2003 to 2006. Individuals choose to move into self‐employment out of three possible initial statuses: paid employment, combiner or inactivity. These groups are of specific interest for the Swedish political agenda. The question that we specifically pose is how a set of socio‐economic factors separately induce men and women in these three statuses to enter self‐employment.     

OPTIONS TO THE REALM: A COST NEUTRAL PROPOSAL TO IMPROVE POLITICAL INCENTIVES

In this article, we draw on the literature on political property rights, political accountability, and strategic management and entrepreneurship to propose a cost neutral reform aimed at promoting long‐run economic prosperity. We propose replacing politicians' defined benefit pensions with a financial contract that is tied to economic performance. In particular, we propose a contract that pays out a lump sum to a politician 30 years after their election if real gross domestic product per capita is above some preset benchmark. Furthermore, we show that the contract can be priced such that it is cost neutral in terms of present value with a defined‐benefit pension. We argue that this contract provides a net benefit to society. (JEL D70, D72)     

Inequality and happiness: are Europeans and Americans different?

We study the effect of the level of inequality in society on individual well-being using a total of 123,668 answers to a survey question about “happiness”. We find that individuals have a lower tendency to report themselves happy when inequality is high, even after controlling for individual income, a large set of personal characteristics, and year and country (or, in the case of the US, state) dummies. The effect, however, is more precisely defined statistically in Europe than in the US. In addition, we find striking differences across groups. In Europe, the poor and those on the left of the political spectrum are unhappy about inequality; whereas in the US the happiness of the poor and of those on the left is uncorrelated with inequality. Interestingly, in the US, the rich are bothered by inequality. Comparing across continents, we find that left-wingers in Europe are more hurt by inequality than left-wingers in the US. And the poor in Europe are more concerned with inequality than the poor in America, an effect that is large in terms of size but is only significant at the 10% level. We argue that these findings are consistent with the perception (not necessarily the reality) that Americans have been living in a mobile society, where individual effort can move people up and down the income ladder, while Europeans believe that they live in less mobile societies.