EU enlargement and satisfaction with democracy: a peculiar case of immiserizing growth

Studies on EU enlargement mostly focus on its welfare-economic and much less so on its public-choice dimension. Yet, the latter may be as important as the former when it comes to sustain integration. This paper aims at filling the gap by exploring theoretically and empirically how enlargement of multi-level systems like the EU affects satisfaction with democracy . In order to assess the effects of a widening in membership, we present a novel approach that draws on the probability of being outvoted. We find that, given the institutional arrangement, enlargement tends to depress satisfaction with democracy. Our theoretical results are backed by panel-data evidence for six European economies displaying a significant decline in satisfaction with democracy with growth in EU-membership.     

Sorting,Franchising and Real Estate Brokerage Firms

Real estate markets remain localized and reflect differences by region. With a large number of brokerage firms and a smaller number of franchisors, a testable hypothesis is whether in equilibrium fees and royalties are equal to the additional return to the franchisee. If fees are set uniformly across the country, economic rents may be earned in specific local markets. Some franchisees may earn excess profits from the franchise arrangement. Empirical results for 1,143 United States residential brokerage firms in 2001 show standardized uniform franchising costs cover any added returns to franchises in the Midwest and South. Excess returns are present for franchisees in the Northeast. The probability of being a franchisee increases with size and scale.     

Knowledge representation of rules: a note

This paper examines knowledge acquisition and representation of ‘if–then’ rules and the linkage between the two. It provides an empirical analysis of the relationship between using different knowledge representations that are logically equivalent. A priori, logically equivalent forms would be expected to result in gathering the same knowledge. However, this paper does not substantiate that conclusion. Instead, different logically equivalent representations used for knowledge elicitation can result in different orderings of the probability of events. As a result, elicitation and representation must be tightly linked. In addition, this paper finds that groups of non-professionals can generate better orderings than individual professionals and non-professionals. Copyright © 2007 John Wiley & Sons, Ltd.     

Leisure constraints and the psychological continuum model: a study among recreational mountain skiers

Studying the factors that contribute to the development of skiing loyalty holds particular interest for ski resort managers and marketers, since it has been reported that recreational skiers’ dropout rates are considerably high. This study examines how intrapersonal, interpersonal and structural constraints, influence the development of skiers’ stage-based attitudinal loyalty (Attraction, Attachment and Allegiance stages), as conceptualised by the psychological continuum model, and further tests if constraints can be used for classifying skiers into the three stages of the model (Attraction, Attachment and Allegiance). Two hundred and thirty (N = 230) recreational skiers from one ski resort in North Greece participated in the study. The results indicated that the intensity of perceived constraints decreased from the lowest (attraction) to the highest (Allegiance) stage of the model. However, the hierarchical influence of constraints was not entirely confirmed, since all three types of constraints contributed to the stage classification of recreational skiers. The theoretical and applied implications of these results are discussed.     

An examination of IPO secondary market returns

IPO stock prices increased approximately 2.3% on the first day of secondary market trading over the period 1993 through 2003. While these aftermarket returns are accentuated during 1999 and 2000, they persist after the bubble burst and even increase as a percentage of total underpricing. We explore several non-mutually exclusive hypotheses to explain our findings including price support, laddering, retail sentiment, and information asymmetry. Our results are most consistent with the view that higher secondary market returns accrue to IPOs with more information asymmetries possibly due to price and aggregate demand uncertainty.     

Employer and employee obligations and rights under the Uniformed Services Employment and Reemployment Rights Act

As more Reserve and National Guard troops are called to leave the civilian workforce and enter military service, employers must understand the legal rights those service members possess and the employers’ legal obligations that are now required under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Current data and litigation trends suggest many employers are not fully aware of their legal obligations under USERRA and the punishing legal liability they may face. USERRA applies to virtually all employers, and the law uniquely provides for both corporate and individual liability for discriminating against employees or applicants because of military service. This article provides an overview of USERRA from the perspective of employers, employees, and potential employees. Practical advice is rendered herein not only for those covered by the Act, but also for employers regarding adherence to this law while avoiding liability under USERRA.     

Optimal management of a flammable forest providing timber and carbon sequestration benefits: an Australian case study*

In deciding to keep or fell a forest stand given its age, the risk of loss of timber through wildfire is an important consideration. If trees also have value from sequestration of carbon, another effect of fire is the unplanned loss of stored carbon. Factors affecting the decision to keep or fell trees, and how much to spend on fire protection, are investigated using stochastic dynamic programming, using carbon sequestration in stands of mountain ash in Victoria as a case study. The effect of treating sawlogs as a permanent carbon sink after harvesting is explored.     

Does terrorism reduce life satisfaction?

We study the effect of terrorism on life satisfaction for a sample of 81 countries over the 1994–2009 period. We find that terrorism is robustly associated with less life satisfaction. This effect, however, translates into only modest social costs.     

Fiscal Consolidations and Economic Growth

The aim of this paper is to deepen the understanding of the macroeconomic consequences of fiscal consolidations. In particular, there is evidence in the literature of fiscal consolidation episodes producing (non‐Keynesian) expansionary effects in the short run. We replicate this result for a panel of OECD countries under exogeneity of the fiscal consolidation. However, we provide some evidence that output growth might affect the fiscal tightening process so that fiscal consolidations are not exogenous to economic growth. Once we allow for feedback effects from economic growth to fiscal adjustments, we find that expansionary effects disappear and recover the typical Keynesian effect of fiscal adjustments. This finding points to the need to take these short‐term negative implications into account in the design of fiscal consolidations.