Under what conditions may social contracts arise? Evidence from the Hanseatic League

Social contractarians commonly take social contracts to be solely hypothetical and refrain from elaborating on the factors that influence the feasibility of the formation of social contracts. In contrast, this paper aims at providing a discussion of the conditions affecting the feasibility of social contracts. I argue that the more aligned the preferences of group members for public goods are, the more the individuals share similar social norms, and the smaller the group is the more feasible a genuine social contract becomes. I provide evidence in support of my contention from the medieval Hanseatic League. At the Hanseatic Kontor in Novgorod, one of the four major trading posts of the Hanseatic League in cities outside of Germany, German merchants agreed to live under the rule of a constitution that gave rise to a political authority for the Kontor society.     

Small and Medium Enterprise Financing in Transition Economies

This paper studies the financing status of small and medium enterprises (SMEs) in transition economies. Factors causing financing obstacles are indentified and further analyzed to determine their influence over financing patterns. Bank regulatory practices relevant to SMEs’ access to bank loans and their influence over loan structures are identified. This study contributes to the existing body of knowledge by exploring the impact of specific bank regulatory practices on credit lending to SMEs in transition economies.     

Financial Globalization and Banking Crises in Emerging Markets

Bank crises in emerging economies have been a feature of the recent global crisis, and their incidence has increased in the post-Bretton Woods era. This paper investigates the impact of financial globalization on the incidence of systemic bank crises in 20 emerging markets over the years 1976–2002 using measures of de facto and de jure financial openness. An increase in foreign debt liabilities contributes to an increase in the incidence of crises, but foreign direct investment and portfolio equity liabilities have the opposite effect. A more liberal de jure capital regime lowers the incidence of banking crises, while a regime of fixed exchange rates increases their frequency. The results of the econometric analysis is consistent with the experience of East European and central Asian emerging markets, which attracted a relatively large proportion of capital flows in the form of debt in recent years and have been particularly hard hit by the global financial crisis.     

Inflation and Welfare in Latin America

This paper follows Bailey (J Polit Econ 64:93–110, 1956) and Lucas (Econometrica 68:247–274, 2000) and estimates the welfare cost of inflation for 17 Latin American economies. We use annual data, from 1955 to 2000, and recent advances in the field of applied econometrics to estimate the inflation rate elasticity of money demand and report significantly high and differential welfare cost estimates for these economies.     

Defect Detection Using Unanimous Vote Among Mahalanobis Classifiers for Each Color Component

In manufacturing industries, product inspection is automated and the use of image data is increasingly being employed for defect detection. A manufacturing company in Japan produces an item and inspects the produced products using image data. Reducing the error rate is important in product inspection because poor inspection of products might lead to the delivery of defective products to consumers (consumer’s risk) and strict inspection increases production cost (producer’s risk). To reduce the error rate, we highlighted fault points using a two-dimensional moving range filter and discriminated defect production through a unanimous vote among Mahalanobis classifiers for each color component. For results, we achieved a lower error rate than the current system. This research is an empirical study of how to use image data in defect detection.