Poisoned grapes,mad cows and protectionism

This paper studies two episodes where a ban on imports was imposed to safeguard people's health. The first case is the poisoned grapes crisis involving Chile and the United States in 1989. The second is the “mad cows” dispute, which broke out in 1996, between the United Kingdom and the European Union. These case studies motivate a new definition of “protectionist measure” which is applied to argue that the European Union's ban on British beef exports was not protectionist, while the US ban on Chilean fruit possibly classifies as such a measure.     

Independent random matching

Random matching models with a continuum population are widely used in economics to study environments where agents interact in small coalitions. This paper provides foundations to such models. In particular, the paper establishes an existence result for random matchings that are universal in the sense that certain desirable properties are satisfied for any assignment of types to agents. The result applies to infinitely many types of agents, thus covering random matching models which are currently used in the literature without a foundation. Furthermore, the paper provides conditions guaranteeing uniqueness of random matching.     

The environmental and economic costs of sprawling parking lots in the United States

Urban sprawl is considered by most environmental scientists and urban planners to be a serious environmental problem. However, public perception about parking availability often forces planning offices to recommend parking lot sizes that exceed daily demands. The recent trend of increasing the size of stores, churches and even schools comes with increasing the size of parking lots that service these buildings. The objective of this paper is to analyze space allocation of parking lots in a typical midwestern county and to estimate the supply of parking spaces to potential demand. We also estimate the loss of ecosystem services represented by the area of parking lots in this county. We found that parking lots cover 5.65 km² (1 397 acres) of Tippecanoe County, Indiana which implies that 0.44% of the county area is devoted to parking lots. Our results show that there are approximately 2.2 parking spaces per registered vehicle, that parking lots make up more than 6.57% of the total urban footprint in this county, that the area of parking lots exceeded the area of parks in the city limits by a factor of three and that parking lot runoff and pollutants are significant compared to runoff and pollutants from these areas prior to their conversion to parking lots. As other authors have done before us we lament the poor use of land in urban regions of the United States, and encourage planners to think creatively about the use of land for parking.     

The lifeboat problem

We study an all-pay contest with multiple identical prizes (“lifeboat seats”). Prizes are partitioned into subsets of prizes (“lifeboats”). Players play a two-stage game. First, each player chooses an element of the partition (“a lifeboat”). Then each player competes for a prize in the subset chosen (“a seat”). We characterize and compare the subgame perfect equilibria in which all players employ pure strategies or all players play identical mixed strategies in the first stage. The partitioning of prizes can lead to coordination failure when players employ nondegenerate mixed strategies. In these equilibria some rents are sheltered and rent dissipation is reduced.     

Intertemporal Commitment Problems and Voting on Redistributive Taxation

A rich person who fears a loss of income may later favor redistributive taxation and a mix of taxes and public goods that differs from the one he now favors. If mobility is costly, and if government in each period uses majority voting to determine policy, then this person may prefer to live in a community that is permanently ruled by poor residents. Majority voting is a mechanism that can overcome intertemporal commitment problems of income insurance.     

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The export intensity of foreign affiliates in transition economiesThe importance of the organization of production1

Using a unique database containing trade and industry variables of foreign‐owned companies in the Polish manufacturing industry for the years 1993–2002, we investigate the relationship between the organizational structure of multinational enterprises (MNEs) in Poland and the export structure of their affiliates. We find that labour intensity and foreign control are the main explanatory variables for the export intensity of the affiliates. Given the overall rise in export intensity over the period of investigation, our findings suggest that export‐platform FDI has become a more important mode of organization for multinational enterprises as Poland has evolved into a relatively stable economic environment where MNEs feel comfortable basing their regional operations.