A Global Analysis of of Imperfect Competition in the Banking Systems and the Latest Israeli Regulation Dealing with Market Failures. ACES Working Paper No. 3, 2007

The high concentration of the banking sector is a cross-border phenomenon that has high impact on local and global economies. This paper's main goal is to analyze the factors that impact concentration in the banking systems around the globe. The innovation of this paper is that we combined economic, "economic environment", and culture variables as explanatory variables for this analysis. We found among other things that regulation in the banking system is helpful in order to keep it competitive. We also found that when the society has more individual values rather than collective ones, its banking sector is less concentrated. In the second part of the paper we focused on the Israeli case, showing that although recent indicators of the Israeli banking system indicate a higher level of concentration and lower level of competition, it seems that the recent trend is moving toward less concentration and higher competition.

Explaining Euroskepticism as a function of regional representation. ACES Working Papers No. 3, August 2008

Recent scholarship has suggested that nation-states will gradually fade away in favor of regions and super-regions as the main actors within a European Union characterized by strong regional identities. At the same time, recent developments have shown that citizen support for European integration is essential for any future development of the Union. The puzzle inspiring this paper is the finding that the greatest support for the EU increasingly stems from minority nationalist regions seeking to bypass their central states to achieve their policy goals at the EU level. This paper empirically tests this suggestion, while shedding light on the relationship between the quality of representation of regional interests at the EU level and positive citizen attitudes towards the EU. In particular, it finds two explanations for cross-regional variation in the relationship between Euroskepticism and representation: (1) a cultural explanation, embodied by a difference in the nature and quality of representation between regions that are linguistically distinctive and regions that are not; and (2) an institutional explanation, embodied by a difference in the nature and quality of representation between regions from federal and non-federal member states. The paper uses an eclectic methodological approach, first utilizing multivariate regression analysis, estimating logistic and ordinal logit models that help explain variation in Euroskepticism at the regional level. The results are then complemented by the findings of in-depth elite interviews of regional representatives - more specifically the directors of a selection of the many regional information offices present in Brussels. This paper takes the study of Euroskepticism to a new level, as most previous scholarly work has focused on explanations at the individual or at the member state level. At the same time it strengthens the notion of a growing importance of a "Europe of the regions."