Modeling Sovereign Yield Spreads: A Case Study of Russian Debt

We construct a model for pricing sovereign debt that accounts for the risks of both default and restructuring, and allows for compensation for illiquidity. Using a new and relatively efficient method, we estimate the model using Russian dollar-denominated bonds. We consider the determinants of the Russian yield spread, the yield differential across different Russian bonds, and the implications for market integration, relative liquidity, relative expected recovery rates, and implied expectations of different default scenarios.     

The Samaritan's Dilemma and the Effectiveness of Development Aid

Contributing to the alleviation of poverty in recipient countries is one of the main goals of most aid organizations. In this paper the following question is asked: could it be the case that altruistic aid organizations are counter-productive in the sense that their activities may cause the extent of poverty to increase or the relative income distribution to worsen? The answer is yes and the reason is simply that recipient governments adjust in order to qualify for aid. It is shown that if recipient governments perceive themselves as being engaged in a competition for aid and/or if the aggregate aid budget is endogenous, then the incentive problems may become particularly severe.     

Online Music Consumption in Today’s Technological Context: Putting the Influence of Ethics in Perspective

Whereas in the past ‘free’ and ‘illegal’ were nearly synonymous in the music industry, consumers nowadays face a myriad of music platforms with widely different characteristics in terms of business model (advertising supported, fee based, etc.), delivery mode (streaming, downloading, etc.), and others. The current research examines music consumption preferences in this new context. In order to break with the outmoded free-illegal versus paid-legal dichotomy, the present research studies consumer preferences for a broader range of music platform attributes, including free versus paying business models, (il)legality of use, artist revenues, downloading versus streaming, and audio quality. Based on a literature review and a qualitative study with in-depth interviews (N = 92), an online conjoint survey (N = 764) quantifies online music preferences. Results show that consumers of all ages clearly and consistently prefer legal and ethical options if available, but favor different ways of making this economically viable. Youngsters and young adults are more open to advertising, while middle-aged adults are more often willing to pay for advertising-free platforms. Thus, in real-life choices, youngsters may appear to be less ethical and law abiding, but the driving force behind this is mainly economical. Finally, a market segmentation provides deeper insights into online music consumer preferences and leads to recommendations on how to define viable legal and ethical music offerings.     

Why David sometimes defeats Goliath: The power of actors in disprivileged land-use policy networks

Since the 19th century, Danish policies regarding land use in the wider countryside have been strongly influenced by two competing policy networks. In the period 1866–1970, a strong ‘land reclamation network’ was privileged at the expense of a weak ‘nature protection network’. In contrast, during the last couple of decades, the situation has been turned on its head. Here, a strong nature protection network has been privileged at the expense of a weaker ‘land reclamation network’. In each of the above stable periods, however, a detailed case study of decision-making regarding a rejected project shows that sometimes the weaker network is able to defeat a stronger network in relation to concrete project decisions regarding the use of water bodies. Why is it that even very strong policy communities cannot expect to have all projects they support implemented? Adding the concepts of policy venue and policy image [Baumgartner, F.R., Jones, B.D., 1993. Agendas and Instability in American Politics. The University of Chicago Press, Chicago and London] to the rather static policy network approach provides an explanation—a theoretical framework which, for example, can be applied to decisions/non-decisions regarding nature restoration projects in those countries who during recent years have been trying to move beyond water body protection to restoration of water bodies to their natural state.     

Exploring resistance in collaborative forms of governance: Meaning negotiations and counter-narratives in a case from the Danish education sector

This paper addresses resistance in studies about collaborative forms of governance. Although the literature discusses collaborative challenges, issues related to resistance are largely unexplored and mostly regarded as destructive. However, we argue for understanding resistance more dynamically – as a co-constructive aspect of collaboration. Drawing on extant resistance studies, we combine concepts of meaning negotiation and counter-narrative to examine power-resistance relations in a case study of collaborative forms of governance in the Danish education sector. The findings elucidate how resistance complicates, yet also co-constructs collaboration in governance processes; discursive struggles over meanings of collaboration and a quality model invoke power-resistance relations that destabilize a dominant narrative and enable counter-narratives, which influence future collaborative processes. Hence, we suggest understanding resistance as a constitutive feature in collaborative forms of governance, rather than a destructive obstacle. This contributes with empirical and theoretical insights into the complex role of resistance in collaboration and governance processes.     

Variation Across Price Segments and Locations: A Comprehensive Quantile Regression Analysis of the Sydney Housing Market

Standard house price indices measure average movements of average houses in average locations belonging to an average price segment and hence obscure spatial and cross‐sectional variation of price appreciation rates even within a single metropolitan area. This article combines penalized quantile regression techniques with the hedonic imputation approach to reveal such kind of variation. The method is applied to house transactions from Sydney between 2001 and 2014. The analysis finds significant variation across sub‐markets over time and in particular during the boom‐and‐bust cycle peaking in 2004. Appreciation rates were highest for suburban, low‐priced and lowest for inner‐city, high‐priced houses.     

Collectivism in the labor market: Evidence from second generation immigrants in the United States

This study investigates the role of collectivism on labor market outcomes in an individualist country. We explore collectivism as an intergenerationally transmitted cultural value and analyze its explanatory power for the economic outcome of 21,000 male homogamous second generation immigrants in the US. Our collectivism proxy is derived from the country of ancestry’s historical disease environment because collectivistic values have been particularly advantageous in countries with a greater prevalence of disease-causing pathogens. Employing this new collectivism proxy that identifies collectivism more precisely than previously used cultural proxies, we find that higher scores of collectivism are associated with higher labor force participation and income earned in the US. The results on income are channeled through the number of hours worked and self-selection into jobs that require collectivistic traits. By analyzing the labor market performance of second generation immigrants, we are the first to show an occupational selection along cultural skills implying that second generation immigrants sort into occupations that demand skills on which they have a “cultural comparative advantage”.     

Research note: the other side of the stage,revealing compositional differences in Flemish amateur theatre audiences

This research note aims to address the lack of research focused on the audiences of amateur theatre and examines how audiences of artistic- (i.e. participating in festivals with high artistic requirements) and social- (i.e. not participating in those festivals with high artistic requirements) oriented amateur theatre groups differ. This is achieved by performing a quantitative study of eight amateur theatre audiences in Flanders (Belgium). Analyses of 538 standardised questionnaires derived from on-site data collection, show that the audiences of artistic amateur groups significantly differ from the audiences of social-oriented amateur theatre groups. Amateur theatre groups with an explicitly artistic orientation have a significantly younger audience that had participated in other cultural events over the previous six months. They are also often recruited by word of mouth. By contrast, social amateur theatre groups attract a significantly older audience, including those who live in the vicinity.