Inflation, political instability and stockmarket volatility in interwar Germany

What determined the volatility of asset prices in Germany between thewars? This paper argues that the influence of political factors has beenoverstated. The majority of events increasing political uncertainty hadlittle or no effect on the value of German assets and the volatility ofreturns on them. Instead, it was inflation (and the fear of it) that islargely responsible for most of the variability in asset returns.

The 'new political economy': Two recent books

This paper reviews two recent books on Political Economy by Allan Drazen and Torsten Persson and Guido Tabellini. It discusses some problems of the recent Political Economy literature.

How political parties, rather than member-states, are building the European Union

Political party formation and coalition building in the European Parliament is being a driving force for making governance of the highly pluralistic European Union relatively effective and consensual. In spite of successive enlargements and the very high number of electoral partiesobtaining representation in the European Union institutions, the number of effective European Political Groups in the European Parliament has decreased from the first direct election in 1979 to the fifth in 1999. The formal analysis of national party¹s voting power in different Europeanparty configurations can explain the incentives for national parties to join large European Political Groups instead of forming smaller nationalistic groupings. Empirical evidence shows increasing cohesion of European Political Groups and an increasing role of the European Parliament in EU inter-institutional decision making. As a consequence of this evolution, intergovernmentalism is being replaced with federalizing relations. The analysis can support positive expectations regarding the governability of the European Union after further enlargements provided that new member states have party systems fitting the European PoliticalGroups.

Political representation in Switzerland : democratic or plutocratic ?

Les inégalités économiques se traduisent-elles dans des inégalités politiques à travers le processus de représentation électorale? Telle est la question centrale de cette thèse qui s'attache, par ailleurs, à investiguer les mécanismes qui tendent à produire une représentation biaisée des préférences politiques des citoyens en fonction de leur statut économique. Focalisé sur le cas de la Suisse et faisant usage des données de l'enquête postélectorale Selects de 2007, ce travail démontre que sur les rares sujets qui divisent les citoyens selon des clivages économiques - la redistribution des richesses et la sécurité sociale en particulier - les élus à l'Assemblée fédérale ont des préférences qui reflètent mieux les opinions des citoyens les plus riches. Cette sous-représentation des opinions des citoyens modestes et de ceux faisant partie du centre de la distribution des revenus peut en partie être attribuée à des différences dans les taux de participation et de connaissance politiques entre ces groupes de citoyens. La thèse met également en évidence le rôle joué par la représentation descriptive - autrement dit, la similitude en termes de statut économique entre les représentants et les représentés - dans la représentation des opinions et intérêts des citoyens. Par ailleurs, la structure du système partisan en Suisse ne reflétant pas la multidimensionnalité des préférences politiques des citoyens, les électeurs ne parviennent pas à traduire la complexité de leurs préférences politiques dans un choix de vote, ce qui, dans la configuration actuelle des forces politiques, tend à favoriser l'élection de représentants aux opinions proches de la droite sur les questions économiques. Enfin, une analyse de la représentation politique au niveau cantonal tend à soutenir la thèse selon laquelle le manque de régulation en matière de financement des partis en Suisse pourrait partiellement expliquer les inégalités dans la représentation des opinions politiques des citoyens aux revenus distincts. - Do economic inequalities translate into political inequalities through electoral representation? This is the central research question of this thesis, which also investigates the mechanisms that lead to potential economically based inequalities in the representation of citizens' policy preferences. Focusing on the case of Switzerland and making use of data provided by the post- electoral survey Selects 2007, this research demonstrates that regarding the rare policy domains in which the preferences of citizens are clearly linked to economic cleavages - redistribution and social security in particular - members of the Federal Assembly have policy preferences that best reflect the policy preferences of richer citizens. The under-representation of the opinions of relatively poor citizens and of those being the in the middle of the income distribution can be to some extent be explained by differences in political participation and political information across income groups. The thesis also puts forward the role played by descriptive representation - the similarity between representatives and represented in terms of their socioeconomic status - for the representation of citizens' preferences and interests. In addition, the structure of the party system in Switzerland does not reflect the multidimensionality of policy preferences among citizens who, as a result, have a hard time translating their complex preferences into a vote choice. Given the configuration of political actors, this tends to favour the election of representatives from the right who do not represent the preferences of their voters on economic issues. Finally, an analysis of representation at the cantonal level tends to confirm that the lack of party finance regulations in Switzerland may partially explain inequalities in the representation of citizens with different levels of income.

The case for a new accounting research agenda in Spain

In Spain both accounting practice and accounting research have been strongly influenced by accounting practices developed in the Englishspeaking world. This paper:1) Summarizes a seminal English paper, the 'Corporate Report', that identified the potential for accounting reports to serve a wide range of users.2) Identifies the ways in which English language accounting conceptual frameworks have paid lip service to a range of user needs, but in practice have excluded users other than investors and creditors.3) Argues that for Spain the ideas put forward in the Corporate Report have a particular relevance, and might usefully form the basis for a new research agenda.

On the origins of electoral systems and political parties. The role of elections in multi-member districts

The old, understudied electoral system composed of multi-member districts, open ballot and plurality rule is presented as the most remote scene of the origin of both political parties and new electoral systems. A survey of the uses of this set of electoral rules in different parts of the world during remote and recent periods shows its wide spread. A model of voting by this electoral system demonstrates that, while it can produce varied and pluralistic representation, it also provides incentives to form factional or partisan candidacies. Famous negative reactions to the emergence of factions and political parties during the 18th and 19th centuries are reinterpreted in this context. Many electoral rules and procedures invented since the second half of the 19th century, including the Australian ballot, single-member districts, limited and cumulative ballots, and proportional representation rules, derived from the search to reduce the effects of the originating multi-member district system in favor of a single party sweep. The general relations between political parties and electoral systems are restated to account for the foundational stage here discussed.

Assesing the political viability of labour market reform: The case of employment protection

We analyze the political support for employment protection legislation.Unlike my previous work on the same topic, this paper pays a lot ofattention to the role of obsolescence in the growth process.In voting in favour of employment protection, incumbent employeestrade off lower living standards (because employment protectionmaintains workers in less productive activities) against longer jobduration. The support for employment protection will then depend onthe value of the latter relative to the cost of the former. Wehighlight two key deeterminants of this trade-off: first, the workers'bargaining power, second, the economy's growth rate-more preciselyits rate of creative destruction.

Managing Social-Business Tensions: A Review and Research Agenda for Social Enterprise

In a world filled with poverty, environmental degradation, and moral injustice, social enterprises offer a ray of hope. These organizations seek to achieve social missions through business ventures. Yet social missions and business ventures are associated with divergent goals, values, norms, and identities. Attending to them simultaneously creates tensions, competing demands, and ethical dilemmas. Effectively understanding social enterprises therefore depends on insight into the nature and management of these tensions. While existing research recognizes tensions between social missions and business ventures, we lack any systematic analysis. Our paper addresses this issue. We first categorize the types of tensions that arise between social missions and business ventures, emphasizing their prevalence and variety. We then explore how four different organizational theories offer insight into these tensions, and we develop an agenda for future research. We end by arguing that a focus on social-business tensions not only expands insight into social enterprises, but also provides an opportunity for research on social enterprises to inform traditional organizational theories. Taken together, our analysis of tensions in social enterprises integrates and seeks to energize research on this expanding phenomenon.

Betting on Hitler: The value of political connections in Nazi Germany

This paper examines the value of connections between German industry andthe Nazi movement in early 1933. Drawing on previously unused contemporarysources about management and supervisory board composition and stock returns,we find that one out of seven firms, and a large proportion of the biggest companies,had substantive links with the National Socialist German Workers Party. Firmssupporting the Nazi movement experienced unusually high returns, outperformingunconnected ones by 5% to 8% between January and March 1933. These resultsare not driven by sectoral composition and are robust to alternative estimatorsand definitions of affiliation.

The political economy of employment protection

This paper develops a model of job creation and job destruction in agrowing economy with embodied technical progress, that we use toanalyze the political support for employment protection legislationssuch as the ones that are observed in most European countries.We analyze the possibility of Condorcet cycles due to the fact thatworkers about to become unemployed prefer both an increase and areduction in firing costs over the status quo. Despite this problem, we show the existence of local, and sometimes global majority winners.In voting in favour of employment protection, incumbent employeestrade off lower living standards (because employment protectionmaintains workers in less productive activities) against longer job duration. We show that the gains from, and consequently the politicalsupport for employment protection (as defined by maximunjob tenure) are larger, the lower the rate of creative destruction and the largerthe worker's bargaining power. Numerical simulations suggest a hump-shaped response of firing costs to these variables, as well as negative impact of exogeneous turnover on employment protection.

Increasing political returns and rural-urban migrations

This paper analyzes the different equilibria in rural-urban migrationsand political redistribution that result from the interaction betweenincreasing political returns, the distribution of land, and creditmarket imperfections. Governments that put a special weight on thewelfare of urban workers when setting agricultural prices generate apolitical externality in the urban sector, giving peasants anincentive to migrate in anticipation of policy determination. Ifcredit markets are imperfect, land ownership confers higherproductivity to peasants, who require large price changes to migrate.In this context, land inequality would lead to large migrations and tolarge policy change, while an egalitarian land distribution would leadto no migration and to a small policy change. This interaction shedslight on the contrasting experience of Latin America and East Asia atthe outset of World War II.

Internet e-ethics in confrontation with an activists' agenda: Yahoo! on trial

A prolonged confrontation between Yahoo! Inc. and French anti-racismactivists who ask for the removal of Nazi items from auction sitesas well as restricted access to neo-Nazis sites is analyzed. We presentthe case and its development up to the decision of Yahoo! Inc. to removethe items from yahoo.com following a French court s verdict against thefirm. Using a business ethics approach, we distinguish the legal,technical, philosophical and managerial issues involved in the case andtheir management by Yahoo! We conclude on the difficulty of governingrelations with society from corporate and legal affairs departments atthe headquarters level, and on the clash of two visions over theregulation of social freedom.