Production in incomplete markets: Expectations matter for political stability

In the present paper we study voting-based corporate control in a general equilibrium model with incomplete financial markets. Since voting takes place in a multi-dimensional setting, super-majority rules are needed to ensure existence of equilibrium. In a linear–quadratic setup we show that the endogenization of voting weights (given by portfolio holdings) can give rise to – through self-fulfilling expectations – dramatical political instability, i.e. Condorcet cycles of length two even for very high majority rules.     

“Work is my passion”: The different affective,behavioural, and cognitive consequences of harmonious and obsessive passion toward work

This study applies the dualistic model of passion (Vallerand et al., 2003) to the work setting and examines the relationships between harmonious passion (characterized by a strong but controllable desire to engage in an activity), obsessive passion (characterized by an internal pressure to carry out an activity), and optimal functioning outcomes at work. Harmonious passion associated positively with: mental health; three elements of flow (i.e., concentration, control, and autotelic experience); vitality, and affective commitment. These relationships were partly mediated by satisfaction of the basic psychological needs of autonomy, competence, and relatedness. In contrast, obsessive passion directly and negatively predicted mental health and weakly but positively predicted autotelic experience. Theoretical and applied implications are discussed. Copyright ©2010 ASAC. Published by John Wiley & Sons, Ltd.     

Quality assurance in higher education: analysis of grades for reviewing course levels

In quality assurance, degree courses in European higher education have to demonstrate the course level by means of results. These courses produce many results, among them grades, referring to teachers’ evaluations of students’ performances, and it is our proposal to use them as an effective mean to reflect the course level. Our study examines the criteria that are needed to analyze grades as significant indicators for course levels. We considered what might constitute empirical proof of valid grades and from this analysis we established that the main proof of valid grades consists of measurements of construct validity, scale reliability, intercorrelation and face validity. The analyses delivered insights into the relationship between the proof of valid grades and elements of the curriculum. In the light of these insights we developed four characteristics as reference points for curricula realizing the course level. Following these points, we draw up a procedure to create such curricula. This procedure is explored in a study with eight bachelor degree courses. The conclusion is that the procedure traces the causes of invalid grades and confirms that valid grades are significant indicators of the course level.     

Geopolitics after geopolitics: A French experience

What can be the goal for a state that is no more an empire in an environment where empire cannot be a goal anymore? In this paper, it is argued that there is a classic French geopolitical stance which has conserved a large part of its characteristics over centuries and which can be compared to the attitudes of other European states. It is precisely because this long‐lasting, consistent set of ideas and behaviours is coming apart that it is urgent to put it in the perspective of its own historical development. After some general remarks on the particular part played by France on the European geopolitical checkerboard, the fate of the ‘special relationship’ between France and Africa, as a dramatic case study of the widening gap between the traditional imperial stance and newly emerging realities, is considered. The third aspect of this reflection is an analysis of the original characteristics of the European Union in terms of international relations and the impact of this new context on the evolution of the French state.     

Measuring the Impact of Various Income Sources on the Link between Inequality and Development: Implications for the Kuznets Curve

To understand the link between inequality and development, a decomposition of the Gini index by income sources is used that emphasizes the role of three components measuring the impact of the shares of the sources, the degree to which they are unequally distributed, and their correlation with total income. Such a breakdown explains why the rising section of the Kuznets curve is mainly the consequence of the increasing share of wages while its declining section reflects the decreasing share of entrepreneurial income and the negative correlation between transfers and total income. The data sources were provided by the International Labour Office.     

Recent maritime research projects on the Lower Loire area

This paper deals with the problems of access to an estuary port, the security of navigation and services such as towage provided for shipping. The port triptych is also considered — the port itself, its foreland and hinterland — showing to what extent the port can be seen as a fundamental feature of the regional economy.     

Fiscal policy independence in a European Monetary Union

Do plans for a monetary union in Europe call for limits on the freedom of the country members of the union to use fiscal policy? In order to provide a tentative answer, we simulate the IMF model MULTIMOD, given various shocks, in the case of a European Monetary Union consisting only of France and Germany. The results clearly indicate the possible value of allowing unfettered use of fiscal policy in both countries. The reasons lie partly in differences in the initial position of the two, partly in differences in their preferences. We also examine the change in the policy significance of the current account in the monetary union. Current account imbalances clearly cease to have the same significance in a monetary union; but they do not therefore become irrelevant.     

Monetary equilibria over an infinite horizon

Summary. Money provides liquidity services through a cash-in-advance constraint. The exchange of commodities and assets extends over an infinite horizon under uncertainty and a sequentially complete asset market. Monetary policy sets the path of rates of interest and accommodates the demand for balances through open market operations or loans. A public authority, which, most pertinently, inherits a strictly positive public debt, raises revenue from taxes and seignorage, and it distributes possible budget surpluses to individuals through transfers. Competitive equilibria exist, under mild solvency conditions. But, for a fixed path of rates of interest, there is a non-trivial multiplicity of equilibrium paths of prices of commodities. Determinacy requires that, subject to no-arbitrage and in addition to rates of interest, the prices of state-contingent revenues be somehow determined.Received: 16 April 2003, Revised: 16 January 2004, JEL Classification Numbers: D50, E40, E50.We are grateful to Pietro Reichlin, Rabah Amir, Tomoyuki Nakajima, Armando Dominioni and Leo Ferraris for helpful discussions and their reading of preliminary drafts. The usual disclaimer applies. An earlier version was circulated as [4].