The Determinants of Personal Income Tax Progressivity Around the Globe

This paper utilizes a novel database collected by the authors to document features of the progressivity of personal income tax systems across 209 countries for the years 1980-2009. We measure progressivity in several ways. First, we associate it with the increase in effective average (marginal) tax rates between a wage of zero and ten times the average wage in a country. Second, we consider the curvature of the tax schedule expressed as the difference between the effective average (marginal) tax schedule from a wage of zero to ten times the average wage and a linear average tax schedule and, alternatively, the diference between the effective average (marginal) tax schedule from the minimum positive taxable income, to ten times the average wage as opposed to a linear average tax schedule. Moreover, the paper assesses patterns regarding the conditional correlation of country-specifc tax progressivity measures with a host of economic and political country-specific characteristics and find the labor supply elasticity and the income replacement rates for the unemployed to be key determinants of progressivity around the globe, in line with economic theory.

Heterogeneous Beliefs and the Demand for D&O Insurance by Listed Companies

This paper introduces a new rationale for the existence of “Directors’ and Officers’” (D&O) insurance. We use a model with volatile stock markets where shareholders design compensation schemes that incentivize managers to stimulate short-term increases in stock prices that do not maximize long run stock market value. We show that D&O insurance provides a convenient instrument for the initial shareholders of a company to take advantage of differences in beliefs between insiders and outsiders in capital markets. The empirical results support the idea that both the insurance coverage and the premium are higher in the presence of new shareholders and volatile markets. The results prove robust in various empirical model specifications.

Leitlinien für die Umsetzung der Forschungsevaluation an den Hochschulen

Die Konzeption der ergebnisorientierten Steuerung hat seit Ende der 1990er Jahre sukzessive Ein-gang ins Hochschul- und Forschungswesen gefunden. Sie ist heute in der schweizerischen Rechtsordnung breit verankert. Die Reformen stärken die Handlungsfähigkeit der Hochschulen als institutionelle Akteure, erhöhen die Ergebnisverantwortung und Rechenschaftspflicht der Hochschulleitungen und reduzieren die politische Einflussnahme in akademische Belange - beispielsweise im Bereich der Berufungsverfahren. Unabdingbare Voraussetzung dieser Konzeption ist die Sichtbarmachung der wissenschaftlichen Leistungen.

Social Inequality in Political Participation: The Dark Sides of Individualisation

Has the participatory gap between social groups widened over the past decades? And if so, how can it be explained? Based on a re-analysis of 94 electoral surveys in eight Western European countries between 1956 and 2009, this article shows that the difference in national election turnout between the half of the population with the lowest level of education and the half with the highest has increased. It shows that individualisation – the decline of social integration and social control – is a major cause of this trend. In their electoral choices, citizens with fewer resources – in terms of education – rely more heavily on cues and social control of the social groups to which they belong. Once the ties to these groups loosen, these cues and mobilising norms are no longer as strong as they once were, resulting in an increasing abstention of the lower classes on Election Day. In contrast, citizens with abundant resources rely much less on cues and social control, and the process of individualisation impacts on their participatory behaviour to a much lesser extent. The article demonstrates this effect based on a re-analysis of five cumulative waves of the European Social Survey.

Shared Rule in Federal Political Systems: Conceptual Lessons from Subnational Switzerland

This article reconceptualizes shared rule and uses novel data to measure it, thus addressing two shortcomings of federal literature. First, while most studies focus on self-rule, one question that is largely neglected is how lower-level governments can influence politics at a higher level in the absence of “second” chambers. The answer is through shared rule. A second shortcoming is that even when addressing this question, scholars concentrate on constitutional-administrative aspects of vertical intergovernmentalism, neglecting more informal, “political” dynamics. Comparing the twenty-six Swiss cantons allows drawing two lessons for federal studies: That shared rule is multifaceted and complex, and that to study informal territorial actors as well as direct political processes is indispensable to understand how power is actually distributed in federal political systems.