Three Essays on the Formation and Impact of Economic Policy

Introduction In my thesis I argue that economic policy is all about economics and politics. Consequently, analysing and understanding economic policy ideally has at least two parts. The economics part, which is centered around the expected impact of a specific policy on the real economy both in terms of efficiency and equity. The insights of this part point into which direction the fine-tuning of economic policies should go. However, fine-tuning of economic policies will be most likely subject to political constraints. That is why, in the politics part, a much better understanding can be gained by taking into account how the incentives of politicians and special interest groups as well as the role played by different institutional features affect the formation of economic policies. The first part and chapter of my thesis concentrates on the efficiency-related impact of economic policies: how does corporate income taxation in general, and corporate income tax progressivity in specific, affect the creation of new firms? Reduced progressivity and flat-rate taxes are in vogue. By 2009, 22 countries are operating flat-rate income tax systems, as do 7 US states and 14 Swiss cantons (for corporate income only). Tax reform proposals in the spirit of the "flat tax" model typically aim to reduce three parameters: the average tax burden, the progressivity of the tax schedule, and the complexity of the tax code. In joint work, Marius Brülhart and I explore the implications of changes in these three parameters on entrepreneurial activity, measured by counts of firm births in a panel of Swiss municipalities. Our results show that lower average tax rates and reduced complexity of the tax code promote firm births. Controlling for these effects, reduced progressivity inhibits firm births. Our reading of these results is that tax progressivity has an insurance effect that facilitates entrepreneurial risk taking. The positive effects of lower tax levels and reduced complexity are estimated to be significantly stronger than the negative effect of reduced progressivity. To the extent that firm births reflect desirable entrepreneurial dynamism, it is not the flattening of tax schedules that is key to successful tax reforms, but the lowering of average tax burdens and the simplification of tax codes. Flatness per se is of secondary importance and even appears to be detrimental to firm births. The second part of my thesis, which corresponds to the second and third chapter, concentrates on how economic policies are formed. By the nature of the analysis, these two chapters draw on a broader literature than the first chapter. Both economists and political scientists have done extensive research on how economic policies are formed. Thereby, researchers in both disciplines have recognised the importance of special interest groups trying to influence policy-making through various channels. In general, economists base their analysis on a formal and microeconomically founded approach, while abstracting from institutional details. In contrast, political scientists' frameworks are generally richer in terms of institutional features but lack the theoretical rigour of economists' approaches. I start from the economist's point of view. However, I try to borrow as much as possible from the findings of political science to gain a better understanding of how economic policies are formed in reality. In the second chapter, I take a theoretical approach and focus on the institutional policy framework to explore how interactions between different political institutions affect the outcome of trade policy in presence of special interest groups' lobbying. Standard political economy theory treats the government as a single institutional actor which sets tariffs by trading off social welfare against contributions from special interest groups seeking industry-specific protection from imports. However, these models lack important (institutional) features of reality. That is why, in my model, I split up the government into a legislative and executive branch which can both be lobbied by special interest groups. Furthermore, the legislative has the option to delegate its trade policy authority to the executive. I allow the executive to compensate the legislative in exchange for delegation. Despite ample anecdotal evidence, bargaining over delegation of trade policy authority has not yet been formally modelled in the literature. I show that delegation has an impact on policy formation in that it leads to lower equilibrium tariffs compared to a standard model without delegation. I also show that delegation will only take place if the lobby is not strong enough to prevent it. Furthermore, the option to delegate increases the bargaining power of the legislative at the expense of the lobbies. Therefore, the findings of this model can shed a light on why the U.S. Congress often practices delegation to the executive. In the final chapter of my thesis, my coauthor, Antonio Fidalgo, and I take a narrower approach and focus on the individual politician level of policy-making to explore how connections to private firms and networks within parliament affect individual politicians' decision-making. Theories in the spirit of the model of the second chapter show how campaign contributions from lobbies to politicians can influence economic policies. There exists an abundant empirical literature that analyses ties between firms and politicians based on campaign contributions. However, the evidence on the impact of campaign contributions is mixed, at best. In our paper, we analyse an alternative channel of influence in the shape of personal connections between politicians and firms through board membership. We identify a direct effect of board membership on individual politicians' voting behaviour and an indirect leverage effect when politicians with board connections influence non-connected peers. We assess the importance of these two effects using a vote in the Swiss parliament on a government bailout of the national airline, Swissair, in 2001, which serves as a natural experiment. We find that both the direct effect of connections to firms and the indirect leverage effect had a strong and positive impact on the probability that a politician supported the government bailout.

Barcoding human physical activity to assess chronic pain conditions.

BACKGROUND: Modern theories define chronic pain as a multidimensional experience - the result of complex interplay between physiological and psychological factors with significant impact on patients' physical, emotional and social functioning. The development of reliable assessment tools capable of capturing the multidimensional impact of chronic pain has challenged the medical community for decades. A number of validated tools are currently used in clinical practice however they all rely on self-reporting and are therefore inherently subjective. In this study we show that a comprehensive analysis of physical activity (PA) under real life conditions may capture behavioral aspects that may reflect physical and emotional functioning.¦METHODOLOGY: PA was monitored during five consecutive days in 60 chronic pain patients and 15 pain-free healthy subjects. To analyze the various aspects of pain-related activity behaviors we defined the concept of PA 'barcoding'. The main idea was to combine different features of PA (type, intensity, duration) to define various PA states. The temporal sequence of different states was visualized as a 'barcode' which indicated that significant information about daily activity can be contained in the amount and variety of PA states, and in the temporal structure of sequence. This information was quantified using complementary measures such as structural complexity metrics (information and sample entropy, Lempel-Ziv complexity), time spent in PA states, and two composite scores, which integrate all measures. The reliability of these measures to characterize chronic pain conditions was assessed by comparing groups of subjects with clinically different pain intensity.¦CONCLUSION: The defined measures of PA showed good discriminative features. The results suggest that significant information about pain-related functional limitations is captured by the structural complexity of PA barcodes, which decreases when the intensity of pain increases. We conclude that a comprehensive analysis of daily-life PA can provide an objective appraisal of the intensity of pain.

Split sex ratios in the social Hymenoptera: a meta-analysis

The study of sex allocation in social Hymenoptera (ants, bees, and wasps) provides an excellent opportunity for testing kin-selection theory and studying conflict resolution. A queen-worker conflict over sex allocation is expected because workers are more related to sisters than to brothers, whereas queens are equally related to daughters and sons. If workers fully control sex allocation, split sex ratio theory predicts that colonies with relatively high or low relatedness asymmetry (the relatedness of workers to females divided by the relatedness of workers to males) should specialize in females or males, respectively. We performed a meta-analysis to assess the magnitude of adaptive sex allocation biasing by workers and degree of support for split sex ratio theory in the social Hymenoptera. Overall, variation in relatedness asymmetry (due to mate number or queen replacement) and variation in queen number (which also affects relatedness asymmetry in some conditions) explained 20.9% and 5% of the variance in sex allocation among colonies, respectively. These results show that workers often bias colony sex allocation in their favor as predicted by split sex ratio theory, even if their control is incomplete and a large part of the variation among colonies has other causes. The explanatory power of split sex ratio theory was close to that of local mate competition and local resource competition in the few species of social Hymenoptera where these factors apply. Hence, three of the most successful theories explaining quantitative variation in sex allocation are based on kin selection.

Stability and change in party preferences.

This article analyses stability and volatility of party preferences using data from the Swiss Household-Panel (SHP), which, for the first time, allow studying transitions and stability of voters over several years in Switzerland. Analyses cover the years 1999- 2007 and systematically distinguish changes between party blocks and changes within party blocks. The first part looks at different patterns of change, which show relatively high volatility. The second part tests several theories on causes of such changes applying a multinomial random-effects model. Results show that party preferences stabilise with their duration and with age and that the electoral cycle, political sophistication, socio-structural predispositions, the household-context as well as party size and the number of parties each explain part of electoral volatility. Different results for withinand between party-block changes underlie the importance of that differentiation.

Ecologie et liberté : libéralisme versus républicanisme

La question centrale de ce travail est celle de la relation entre finitude environnementale et liberté individuelle. Par finitude environnementale il faut entendre l'ensemble des contraintes écologiques variées qui posent des limites à l'action humaine. Celles-ci sont de deux types généraux : les limites de disponibilité des ressources naturelles et: les limites de charge des écosystèmes et des grands cycles biogéochimiques globaux (chapitre 1). La thèse défendue ici est que les conceptions libertariennes et libérales de la liberté sont en conflit avec la nécessité de prendre en compte de telles limites et qu'une approche néo-républicaine est mieux à même de répondre à ces enjeux écologiques. Les théories libertariennes, de droite comme de gauche, sont inadaptées à la prise en compte de la finitude des ressources naturelles car elles maintiennent un droit à l'appropriation illimitée de ces dernières par les individus. Ce point est en contradiction avec le caractère systémique de la rareté et avec l'absence de substitut pour certaines ressources indispensables à la poursuite d'une vie décente (chapitres 2 et 3). La théorie libérale de la neutralité, appuyée par le principe du tort (harm principle), est quant à elle inadaptée à la prise en compte des problèmes environnementaux globaux comme le changement climatique. Les mécanismes causaux menant à la création de dommages environnementaux sont en effet indirects et diffus, ce qui empêche l'assignation de responsabilités au niveau individuel. La justification de politiques environnementales contraignantes s'en trouve donc mise en péril (chapitre 4). Ces difficultés proviennent avant tout de deux traits caractéristiques de ces doctrines : leur ontologie sociale atomiste et leur conception de la liberté comme liberté de choix. Le néo-républicanisme de Philip Pettit permet de répondre à ces deux problèmes grâce à son ontologie holiste et à sa conception de la liberté comme non- domination. Cette théorie permet donc à la fois de proposer une conception de la liberté compatible avec la finitude environnementale et de justifier des politiques environnementales exigeantes, sans que le sacrifice en termes de liberté n'apparaisse trop important (chapitre 5). - The centrai issue of this work is that of the relationship between environmental finiteness and individual liberty. By environmental finiteness one should understand the set of diverse ecological constraints that limit human action. These limits are of two general kinds: on the one hand the availability of natural resources, and on the other hand the carrying capacity of ecosystems and biogeochemical cycles (chapter 1}. The thesis defended here is that libertarian and liberal conceptions of liberty conflict with the necessity to take such limits into account, and that a neo-republican approach is best suited to address environmental issues. Libertarian theories, right-wing as well as left-wing, are in particular not able to take resource scarcity into account because they argue for an unlimited right of individuals to appropriate those resources. This point is in contradiction with the systemic nature of scarcity and with the absence of substitutes for some essential resources (chapters 2 and 3). The liberal doctrine of neutrality, as associated with the harm principle, is unsuitable when addressing global environmental issues like climate change. Causal mechanisms leading to environmental harm are indirect and diffuse, which prevents the assignation of individual responsibilities. This makes the justification of coercive environmental policies difficult (chapter 4). These difficulties stem above all from two characteristic features of libertarian and liberal doctrines: their atomistic social ontology and their conception of freedom as liberty of choice. Philip Pettit's neo- republicanism on the other hand is able to address these problems thanks to its holist social ontology and its conception of liberty as non-domination. This doctrine offers a conception of liberty compatible with environmental limits and theoretical resources able to justify demanding environmental policies without sacrificing too much in terms of liberty (chapter 5).

A right to a national space of communication? : on Stateless nations, their right to a space of communication of their own

Hem establert les bases metodològiques i teòriques per investigar la pregunta “Tenen les nacions sense estat el dret de controlar el seu propi espai de comunicació?”. La investigació ajusta el concepte d’espai de comunicació a la teoria política, cercant els seus límits en els drets individuals i, des de la perspectiva del liberalisme 2, aportant la justificació del seu control en quant que plataforma que incideix en la conservació i supervivència d’una cultura nacional. El primer article i fase de la tesi és l’adaptació i definició del concepte espai de comunicació. Fins ara, la recerca ha proposat diferents models d’espai de comunicació entenent si es tracta d’una visió emfatitzant la distribució i la producció de material marcat amb els símbols de la identitat nacional de la societat emissora, o bé si emfatitza la idea d’un espai de circulació de fluxos comunicatiu ajustat a un territori tradicionalment vinculat a una identitat nacional o nació sense estat. Igualment, es distingeix la dimensió d’emissió –sortir del territori al món- i la de recepció –fluxos informatius rebuts des del món al territori, concretament, al ciutadà; el paper d’intervenció de les institucions democràtiques és diferent en una dimensió o una altra i, per tant, també són diferents els drets afectats i les teories o principis que neguen o justifiquen el control de l’espai de comunicació. També s’ha indagat en les teories sobre els efectes cognitius dels mitjans de comunicació per relacionar-los amb la construcció nacional com a cohesió simbòlica i cultural. Si bé els mitjans no poden fer canviar de pensament immediatament, sí que poden conformar a llarg termini una percepció nacional general. Una comunitat és imaginada, donada la distància física dels seus components, i la comunicació social és, juntament amb l’educació, el principal factor de construcció nacional, avui en dia.

Teacher strategies to elicit knowledge from students in the CLIL classroom: the purpose of questions in controlled patterns of teacher-student interaction

This Master Dissertation comprises two parts: a personal reflection and an empirical study. The personal reflection reviews the process of professionalization undergone by its author throughout the Master. The empirical study tackles teacher strategies to elicit knowledge from students in the CLIL classroom and more specifically the purpose of questions in controlled patterns of teacher-student interaction. The theories of relevant authors such as Vigotsky, Mercer and Tsui are used as a framework to analyze the data presented. The analysis shows the different strategies to elicit knowledge used by the teacher and the appropriateness of her questions in the analyzed interaction

Changing Religiosity, Changing Politics? The Influence of 'Belonging' and 'Believing' on Political Attitudes in Switzerland

Starting from theories of secularization and of religious individualization, we propose a two-dimensional typology of religiosity and test its impact on political attitudes. Unlike classic conceptions of religiosity used in political studies, our typology simultaneously accounts for an individual's sense of belonging to the church (institutional dimension) and his/her personal religious beliefs (spiritual dimension). Our analysis, based on data from the World Values Survey in Switzerland (1989-2007), shows two main results. First, next to evidence of religious decline, we also find evidence of religious change with an increase in the number of people who "believe without belonging." Second, non-religious individuals and individuals who believe without belonging are significantly more permissive on issues of cultural liberalism than followers of institutionalized forms of religiosity.

Understanding the religious behaviour of Muslims in the Netherlands and the UK

The position of Muslims in Western societies is the subject of intense study and debate. However, remarkably little attention has been paid to the practice of European Muslims and how Muslim religiosity relates to conventional measures of social and economic integration. In this paper we draw on theories of secularization, assimilation, revitalization and integration to explore the correlates of attendance at religious meetings for Muslims of different backgrounds in the Netherlands and the UK. We conclude that patterns of religiosity and secularisation cannot be generalised across national contexts.

Prognostic ability of practitioners of traditional arabic medicine: comparison with Western methods through a relative patient progress scale.

The ancient Greek medical theory based on balance or imbalance of humors disappeared in the western world, but does survive elsewhere. Is this survival related to a certain degree of health care efficiency? We explored this hypothesis through a study of classical Greco-Arab medicine in Mauritania. Modern general practitioners evaluated the safety and effectiveness of classical Arabic medicine in a Mauritanian traditional clinic, with a prognosis/follow-up method allowing the following comparisons: (i) actual patient progress (clinical outcome) compared with what the traditional 'tabib' had anticipated (= prognostic ability) and (ii) patient progress compared with what could be hoped for if the patient were treated by a modern physician in the same neighborhood. The practice appeared fairly safe and, on average, clinical outcome was similar to what could be expected with modern medicine. In some cases, patient progress was better than expected. The ability to correctly predict an individual's clinical outcome did not seem to be better along modern or Greco-Arab theories. Weekly joint meetings (modern and traditional practitioners) were spontaneously organized with a modern health centre in the neighborhood. Practitioners of a different medical system can predict patient progress. For the patient, avoiding false expectations with health care and ensuring appropriate referral may be the most important. Prognosis and outcome studies such as the one presented here may help to develop institutions where patients find support in making their choices, not only among several treatment options, but also among several medical systems.

Delfinoteràpia: un abordatge terapèutic en persones amb TEA

El present treball emmarca el concepte d'autisme des del punt de vista de diversos autors tant espanyols com de la resta del món. Així­ mateix intenta fer comprendre l'autisme des de diferents teories. Un altre punt bàsic del treball és la descricpció de diferents teràpies amb animals per abordar l'autisme, i en concret es realitza un estudi fonamental de la delfinoteràpia i els resultats a curt plaç en el delfinari Aqualand de Tenerife, arribant a conclusions per tal de poder ampliar més l'estudi en la Tesi Doctoral.

The de facto independence of regulatory agencies and its consequences for policy making and regulatory outcomes

This dissertation focuses on the practice of regulatory governance, throughout the study of the functioning of formally independent regulatory agencies (IRAs), with special attention to their de facto independence. The research goals are grounded on a "neo-positivist" (or "reconstructed positivist") position (Hawkesworth 1992; Radaelli 2000b; Sabatier 2000). This perspective starts from the ontological assumption that even if subjective perceptions are constitutive elements of political phenomena, a real world exists beyond any social construction and can, however imperfectly, become the object of scientific inquiry. Epistemologically, it follows that hypothetical-deductive theories with explanatory aims can be tested by employing a proper methodology and set of analytical techniques. It is thus possible to make scientific inferences and general conclusions to a certain extent, according to a Bayesian conception of knowledge, in order to update the prior scientific beliefs in the truth of the related hypotheses (Howson 1998), while acknowledging the fact that the conditions of truth are at least partially subjective and historically determined (Foucault 1988; Kuhn 1970). At the same time, a sceptical position is adopted towards the supposed disjunction between facts and values and the possibility of discovering abstract universal laws in social science. It has been observed that the current version of capitalism corresponds to the golden age of regulation, and that since the 1980s no government activity in OECD countries has grown faster than regulatory functions (Jacobs 1999). Following an apparent paradox, the ongoing dynamics of liberalisation, privatisation, decartelisation, internationalisation, and regional integration hardly led to the crumbling of the state, but instead promoted a wave of regulatory growth in the face of new risks and new opportunities (Vogel 1996). Accordingly, a new order of regulatory capitalism is rising, implying a new division of labour between state and society and entailing the expansion and intensification of regulation (Levi-Faur 2005). The previous order, relying on public ownership and public intervention and/or on sectoral self-regulation by private actors, is being replaced by a more formalised, expert-based, open, and independently regulated model of governance. Independent regulation agencies (IRAs), that is, formally independent administrative agencies with regulatory powers that benefit from public authority delegated from political decision makers, represent the main institutional feature of regulatory governance (Gilardi 2008). IRAs constitute a relatively new technology of regulation in western Europe, at least for certain domains, but they are increasingly widespread across countries and sectors. For instance, independent regulators have been set up for regulating very diverse issues, such as general competition, banking and finance, telecommunications, civil aviation, railway services, food safety, the pharmaceutical industry, electricity, environmental protection, and personal data privacy. Two attributes of IRAs deserve a special mention. On the one hand, they are formally separated from democratic institutions and elected politicians, thus raising normative and empirical concerns about their accountability and legitimacy. On the other hand, some hard questions about their role as political actors are still unaddressed, though, together with regulatory competencies, IRAs often accumulate executive, (quasi-)legislative, and adjudicatory functions, as well as about their performance.

Generalized descriptive set theory and classification theory

Descriptive set theory is mainly concerned with studying subsets of the space of all countable binary sequences. In this paper we study the generalization where countable is replaced by uncountable. We explore properties of generalized Baire and Cantor spaces, equivalence relations and their Borel reducibility. The study shows that the descriptive set theory looks very different in this generalized setting compared to the classical, countable case. We also draw the connection between the stability theoretic complexity of first-order theories and the descriptive set theoretic complexity of their isomorphism relations. Our results suggest that Borel reducibility on uncountable structures is a model theoretically natural way to compare the complexity of isomorphism relations.

Consistency and optimality

Assume that the problem Qo is not solvable in polynomial time. For theories T containing a sufficiently rich part of true arithmetic we characterize T U {ConT} as the minimal extension of T proving for some algorithm that it decides Qo as fast as any algorithm B with the property that T proves that B decides Qo. Here, ConT claims the consistency of T. Moreover, we characterize problems with an optimal algorithm in terms of arithmetical theories.