Transition modes and institutional outcomes in El Salvador and Guatemala

Institutions affect key dimensions of the political process –policy, stability, and conflict. The choice of institutions is thus consequential. I argue that transition modes affect the choice of institutions in predictable and systematic ways. The more balanced power is between the two main bargaining forces –regime elite and opposition– the likelier that the resulting institutions will be pluralistic. Contrarily, the more unbalanced power is in favour of regime elites vis a vis the opposition, the likelier that institutions will be majoritarian. The argument is tested for El Salvador and Guatemala.

Labour market frictions, social policies, and barriers to technology adoption

Barriers to technological changes have recently been shown to be a key element in explaining differences in output per worker across countries. This study examines the role that labour market features and institutions have in explaining barriers to technology adoption. I build a model that includes labour market frictions, capital market imperfections and heterogeneity in workers' skills. I found that the unemployment rate together with the welfare losses that workers experiment after displacement are key factors in explaining the existence of barriers to technology adoption. Moreover, I found that none of these factors alone is sufficient to build these barriers. The theory also suggests that welfare policies like the unemployment insurance system may enhance these kinds of barriers while policies like a severance payment system financed by an income tax seem to be more effective in eliminating them.

Barriers to innovation and public policy in Catalonia

The present paper analyses the link between firms’ decisions to innovate and the barriers that prevent them from being innovative. The aim is twofold. First, it analyses three groups of barriers to innovation: the cost of innovation projects, lack of knowledge and market conditions. Second, it presents the main steps taken by Catalan Government to promote the creation of new firms and to reduce barriers to innovation. The data set used is based on the 2004 official innovation survey of Catalonia which was taken from the Spanish CIS-4 sample. This sample includes individual information on 2,954 Catalan firms in manufacturing industries and knowledge-intensive services (KIS). The empirical analysis reveals pronounced differences regarding a firm’s propensity to innovate and its perception of barriers. Moreover, the results show that cost and knowledge barriers seem to be the most important and that there are substantial sectoral differences in the way that firms react to barriers. The results of this paper have important implications for the design of future public policy to promote entrepreneurship and innovation together.

Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South

This paper investigates whether the higher prevalence of South multinational enterprises (MNEs) in risky developing countries may be explained by the experience that they have acquired of poor institutional quality at home. We confirm the intuition provided by our analytical model by empirically showing that the positive impact of good public governance on foreign direct investment (FDI) in a given host country is moderated significantly, and even in some cases eliminated, when MNEs have been faced with poor institutional quality at home.

Financial Distress in Chinese Industry: Microeconomic, Macroeconomic and Institutional Infuences

We study the impact of both microeconomic factors and the macroeconomy on the financial distress of Chinese listed companies over a period of massive economic transition, 1995 to 2006. Based on an economic model of financial distress under the institutional setting of state protection against exit, and using our own firm-level measure of distress, we find important impacts of firm characteristics, macroeconomic instability and institutional factors on the hazard rate of financial distress. The results are robust to unobserved heterogeneity at the firm level, as well as those shared by firms in similar macroeconomic founding conditions. Comparison with related studies for other economies highlights important policy implications.

Institutional Quality and FDI to the South An Analytical Approach

We ask whether MNEs’ experience of institutional quality and political risk within their “home” business environments influences their decisions to enter a given country. We set out an explicit theoretical model that allows for the possibility that firms from South source countries may, by virtue of their experience with poor institutional quality, derive a competitive advantage over firms from North countries with respect to investing in destinations in the South. We show that the experience gained by such MNEs of poorer institutional environments may result in their being more prepared to invest in other countries with correspondingly weak institutions.

A two-sector growth model with institutional saving and investment

This paper develops a two-sector growth model in which institutional investors play a significant role. A necessary and sufficient condition is established under which these investors own the entire capital stock in the long run. The dependence of the long-run growth rate on the behaviour of such investors, and the effects of a productivity increase are analysed.

Physicians' attitudes towards prevention: importance of intervention-specific barriers and physicians' health habits.

BACKGROUND: Several studies have explored physicians' attitudes towards prevention and barriers to the delivery of preventive health interventions. However, the relative importance of these previously identified barriers, both in general terms and in the context of a number of specific preventive interventions, has not been identified. Certain barriers may only pertain to a subset of preventive interventions. OBJECTIVES: We aimed to determine the relative importance of identified barriers to preventive interventions and to explore the association between physicians' characteristics and their attitudes towards prevention. METHODS: We conducted a cross-sectional survey of 496 of the 686 (72.3% response rate) generalist physicians from three Swiss cantons through a questionnaire asking physicians to rate the general importance of eight preventive health strategies and the relative importance of seven commonly cited barriers in relation to each specific preventive health strategy. RESULTS: The proportion of physicians rating each preventive intervention as being important varied from 76% for colorectal cancer screening to 100% for blood pressure control. Lack of time and lack of patient interest were generally considered to be important barriers by 41% and 44% of physicians, respectively, but the importance of these two barriers tended to be specifically higher for counselling-based interventions. Lack of training was most notably a barrier to counselling about alcohol and nutrition. Four characteristics of physicians predicted negative attitudes toward alcohol and smoking counselling: consumption of more than three alcoholic drinks per day [odds ratio (OR) = 8.4], sedentary lifestyle (OR = 3.4), lack of national certification (OR = 2.2) and lack of awareness of their own blood pressure (OR = 2.0). CONCLUSIONS: The relative importance of specific barriers varies across preventive interventions. This points to a need for tailored practice interventions targeting the specific barriers that impede a given preventive service. The negative influence of physicians' own health behaviours indicates a need for associated population-based interventions that reduce the prevalence of high-risk behaviours in the population as a whole.

Social mobility in 20th century, Switzerland

The study of social mobility enables us to assess the extent to which a given society is "open". Addressing this issue is particularly crucial in our democratic societies, where it is expected that the place of individuals in society should no longer be determined at birth, but rather by individual quality. The present inquiry investigates this issue in the context of Switzerland, a country characterised by specific institutional settings, notably through the close association its educational system shares with the labour market. Through a detailed empirical analysis based on robust statistical analyses carried out from a unique tailor-made dataset, I demonstrate that Swiss society has not become more open throughout the twentieth century. Although some barriers have lost some salience, Swiss society has overall remained extremely rigid. In particular, because it channels individuals into highly segmented tracks very early on, the Swiss educational system does not attenuate social background differences. Thus, Switzerland is found in a particular configuration where an individual's place in society is highly determined not only by his or her educational attainment, but also by his or her social background. In other words, Switzerland constitutes a sort of "non-meritocratic meritocracy". - L'étude de la mobilité sociale permet d'évaluer dans quelle mesure une société donnée est « ouverte ». S'intéresser à cette question est particulièrement crucial dans nos sociétés démocratiques, où il est attendu que la place des individus ne soit plus déterminée à la naissance, mais plutôt par les qualités individuelles. La présente étude examine cette question dans le cadre de la Suisse, un pays aux caractéristiques institutionnelles spécifiques, particulièrement de part le lien étroit que son système éducatif entretien avec le marché du travail. A travers une analyse empirique détaillée fondée sur des analyses statistiques robustes menées à partir d'un jeu de données unique construit sur-mesure, je démontre que la société suisse n'est pas devenue plus ouverte au cours du 20ème siècle. Même si certaines barrières ont perdu de l'importance, dans son ensemble, la société suisse est restée extrêmement rigide. En particulier, parce qu'il oriente très tôt les individus dans des filières fortement segmentées, le système éducatif suisse n'atténue pas les différences entre milieux sociaux. Ainsi, la Suisse se trouve dans une configuration particulière où, d'une part, la place d'un individu dans la société est hautement déterminée par son niveau d'étude et, d'autre part, par son origine sociale. En d'autres termes, la Suisse apparaît comme une sorte de « méritocratie non-méritocratique ».

Institutional Balance in the EU. The Prodi Administration as a Reforming Commission

The essay looks at the Prodi Commission (1999-2004) in the context of the institutional balance in the European Union. Not only did Prodi come into office at a time of unprecedented weakness of the Executive, but the Commission operates within a changing institutional equilibrium, one made more precarious by the shifting political disposition of the Member States

Institutional fragmentation and coordination initiatives in western European welfare states

As a result of recent welfare state transformations, and most notably the reorientation of welfare states towards activation, the internal fragmentation of social security systems has emerged as a key policy problem in many western European countries. The types of response that have been adopted, however, vary substantially across countries, ranging from the encouragement of inter-agency collaboration to the outright merger of agencies. The purpose of this exploratory article is twofold. First, by proposing the concept of coordination initiatives, it tries to develop a better conceptualization of the cross-national diversity in responses to the fragmentation problem. Second, starting from existing theories of welfare state development and policy change, it presents first hypotheses accounting for the variation observed in coordination initiatives.