Cryptodemocracy and its institutional possibilities

The Review of Austrian Economics - Democracy is an economic problem of choice constrained by transaction costs and information costs. Society must choose between competing institutional frameworks...     

Can a Dictator Turn a Constitution into a Can-opener? F.A. Hayek and the Alchemy of Transitional Dictatorship in Chile

Commenting on the Pinochet regime, Friedrich Hayek famously claimed in 1981 that he would prefer a ‘liberal’ dictator to ‘democratic government lacking liberalism.’ Hayek's defense of a transitional dictatorship in Chile was not an impromptu response. In late 1960, in a little known BBC radio broadcast, Hayek suggested that a dictatorial regime may be able to facilitate a transition to stable limited democracy. While Hayek's comments about Pinochet have generated much controversy, this paper neither provides a blanket condemnation of his views (he did not advocate dictatorship as a first-best ‘state of the world’) nor tries to excuse his failure to condemn the Pinochet junta's human rights abuses, but instead provides a critical assessment of Hayek's implicit model of transitional dictatorship.     

Implementation of a large scale water quality data management system

This paper looks at the application of the Generalized Planning System (GPLAN) to a large scale water pollution problem. A discussion of the GPLAN system is presented along with a discussion of its application to the Federal Water Pollution Control Act Amendments of 1972. A discussion is then presented describing what extensions were required to make the GPLAN system more adaptable to the planning process. This included extending the network query language so that it would be “relatively complete”.     

Determinants of corporate social and environmental reporting in Hong Kong: a research note

The patterns and determinants of corporate social and environmental disclosure (CSED) in Hong Kong (HK) are examined by analysing 154 annual reports of 33 HK listed companies from 1993 to 1997. The research finds that industry difference has an impact on the amount, content theme and location of CSED. There is a positive correlation between company size and the level of CSED. Utility companies disclose more CSED than property and banking firms.     

Art of the Deal: The Merger Settlement Process at the Federal Trade Commission

This paper models the modern merger review process in which an enforcement agency, here the Federal Trade Commission (FTC), interacts with the acquiring firm to determine the outcome of antitrust regulation. Our empirical implementation of a game theoretic analysis tests whether decisions are driven by the costs and benefits of the proposed enforcement initiative as well as whether firms' responses are colored by competitive and institutional considerations. With respect to firms, the results suggest that mergers are driven by the opportunity to capture efficiencies, In contrast, the structural (anticompetitive) characteristics of mergers do not seem to impact firms' litigation decisions. Firms, however, are deterred from fighting the FTC by the potential negative impact on their reputations. In addition, “hostage effects” associated with the size of the noncontroversial portion of acquisitions held up by the FTC's competitive concerns also affect firm decisions.     

Sustainable procurement in health and social care in Northern Ireland

This article reports on a sustainable public procurement project in Northern Ireland. The authors found that limited official guidance was available, especially on equality; nevertheless staff had positive attitudes and sustainability criteria were being embedded in procurement processes. While there is a need to overcome limited knowledge on social aspects and whole life costing, sustainable procurement was found to be compatible with efficiency. Sustainable procurement, if used effectively by confident and well-qualified staff, can achieve not only sustainability goals but also those relating to efficiency and economic recovery.     

Investor Heterogeneity and the Cross-section of U.K. Investment Trust Performance

We use the upper and lower bounds derived by Ferson and Lin (2010) to examine the impact of investor heterogeneity on the performance of U.K. investment trusts relative to alternative linear factor models. We find using the upper bounds that investor heterogeneity has an important impact for nearly all investment trusts. The upper bounds are large in economic terms and significantly different from zero. We find no evidence of any trusts where all investors agree on the sign of performance beyond what we expect by chance. Using the lower bound, we find that trusts with a larger disagreement about trust performance have a weaker relation between the trust premium and past Net Asset Value (NAV) performance.     

Subsidizing research programs with “if” and “when” uncertainty in the face of severe informational constraints

We study subsidy policies for research programs when firms have private information about the likelihood of project viability, but the government cannot form a unique prior about this likelihood. When the shadow cost of public funds is zero, first‐best welfare can be attained as a (belief‐free) ex post equilibrium under both monopoly and competition, but it cannot be attained when the shadow cost is positive. However, max‐min subsidy policies exist under monopoly and competition and consist of pure matching subsidies. Under a Research and Development (R&D) consortium, the highest max‐min matching rate is lower than under competition, and R&D investment intensity is higher.