Reduced prizes and increased effort in contests

We study the general class of two-player public-policy contests and specify the asymmetry condition under which a more restrained government intervention that reduces the contestants’ prizes has the “perverse” effect of increasing their aggregate lobbying efforts.

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Home Ownership, Social Insurance, and the Welfare State

Home ownership has potentially significant consequences for welfare state policy. High owner-occupancy rates may function as private insurance where social spending is low (a substitution effect). Alternatively, state income redistribution policies could raise the number of home owners (an income effect). Cross-national time-series data show that social spending is negatively related to home ownership, and mediates the positive relationship between income inequality and owner-occupancy rates. This suggests that owner-occupancy acts as a form of social insurance over the life course. Future welfare state researchers should consider the issue of home ownership in analyses of inequality and the social safety net.

The inverse plurality rule—an axiomatization

Under the ‘inverse plurality rule’, voters specify only their least preferred alternative. Our first result establishes that this rule is the only scoring rule that satisfies the minimal veto condition (MV). We then prove that the inverse plurality rule is characterized by MV and the four well known conditions that characterize scoring rules; namely, Anonymity (A), Neutrality (N), Reinforcement (RE) and Continuity (CO). Our new characterization result is related to the characterizations of approval voting and of the widely used plurality rule. We finally show how the axiomatization of the inverse plurality rule can be extended to the axiomatization of elementary scoring rules (vote for t-alternatives scoring rules). We are indebted to two anonymous referees for their most useful comments.

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Paying for the Dream of Public Ownership: Case Studies on Corruption and Privatization in China

The proceeding of privatization is a tradeoff between short-term equality and long-term efficiency. Under the existing structures of enterprise management and government powers, enterprise managers are likely to conspire with government officials to decide the way of ownership transformation and share the benefits from there. The transformation of ownership will enhance the efficiency of the company. Corruption indeed presses ahead the transformation of company ownership, whereas inequality is also aggravated during the process. Case studies are provided to demonstrate the relationship between corruption and privatization in China. Corruption and inequality are what the country pays for their dream of public ownership in 1950s. Equality, efficiency and maintaining current social and political structure cannot be achieved simultaneously during enterprise restructuring.

The scoring rules in an endogenous election

Plurality rule is mostly criticized from being capable of choosing an alternative considered as worst by a strict majority. This paper considers elections in which the agenda consists of potential candidates strategically choosing whether or not to enter the election. In this context, we examine the ability of scoring rules to fulfil the Condorcet criterion. We show for the case of three potential candidates that Plurality rule is the only scoring rule that satisfies a version of the Condorcet criterion in two cases: 1) when preferences are single-peaked and, 2) when preferences are single-dipped.

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Deconstructing the Sibling Correlation: How Families Increase Inequality

Matched data for parents and siblings in Israel were used to decompose the sibling correlation in schooling and earnings into four components: (a) A “genetic” component induced by inherited ability, (b) Correlated effects induced by sharing common parents, (c) Contextual effects due to common ethnicity, and (d) An endogenous component induced by interactions between siblings. Most of the sibling correlation is due to the latter. Parents have little to do with the sibling correlation. The sibling interaction coefficients for schooling and earnings were positive, but it was considerably greater in the case of schooling. It was shown that sibling interaction increases inequality, especially in the case of schooling. However, parent–children interaction contributes little to inequality.

Does housework matter anymore? The shifting impact of housework on economic inequality

In recent years, American women’s housework time has declined while American men’s housework time has risen. We examine how these changes have affected economic inequality in the United States. Using time-diary data from the Time Use in Economic and Social Accounts, 1975–1976 (N = 1,484) and the American Time Use Survey, 2003 (N = 5,534), we value adults’ housework using two alternative methodologies and assess its influence on households’ real access to goods and services in both years. Results suggest that housework reduces economic inequality in both years. But, between 1975–1976 and 2002–2003, overall economic inequality rose largely because of the growing wage inequality and also, in part, because of growth in housework inequality. Socio-demographic change partially inhibited the overall growth in economic inequality.

Is the customer always right? Class,service and the production of distinction in Chinese department stores

This article argues that service interactions can serve as key sites for the recognition and performance of class distinctions in urban China. The author develops the concept of distinction work to describe service work in which a key part of the service interaction becomes the recognition of a customer’s class position. A contrast between working-class and luxury service environments in urban China demonstrates that distinction work becomes especially important when retailers compete over customers who themselves seek social distinction from their shopping experiences. This study links the study of service work and class while providing a better understanding of the evolving culture of inequality and emerging structure of entitlement in reform era China.

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The Structure of the Chinese Banking System and Credit Access Problems for SMEs

This paper examines the structure and the main characteristics of the Chinese banking industry. In particular, the paper analyses the problematic aspects of credit relations of small and medium enterprises (SMEs). The SMEs are facing several problems in accessing the bank loans market, dominated by the political and contractual weight of state-owned enterprises. However, some recent reforms have improved the situation, a fundamental condition for additional positive results. Nevertheless, further and more pervasive modernization efforts are needed to consolidate these results and to develop the relationships between banks and SMEs.

Minimal monotonic extensions of scoring rules

Noting the existence of social choice problems over which no scoring rule is Maskin monotonic, we characterize minimal monotonic extensions of scoring rules. We show that the minimal monotonic extension of any scoring rule has a lower and upper bound, which can be expressed in terms of alternatives with scores exceeding a certain critical score. In fact, the minimal monotonic extension of a scoring rule coincides with its lower bound if and only if the scoring rule satisfies a certain weak monotonicity condition (such as the Borda and antiplurality rule). On the other hand, the minimal monotonic extension of a scoring rule approaches its upper bound as its degree of violating weak monotonicity increases, an extreme case of which is the plurality rule with a minimal monotonic extension reaching its upper bound.

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On the influence of extreme parties in electoral competition with policy-motivated candidates

We study and compare equilibrium platforms in models of unidimensional electoral competition with two and four policy motivated parties. We first analyze the plurality game, where the party getting the most votes is elected and implements its proposed platform. Restrictions on the set of credible announcements are needed to get existence of equilibria. Comparing equilibria with two and four parties, we obtain that moderate parties react to the introduction of extreme parties by proposing the same or more extreme equilibrium platforms. We then study the proportional system, where the policy implemented is a weighted sum of the proposals, with the voting shares as weights. Here, the existence of extreme parties leads moderate ones to choose more centrist platforms. We finally test the robustness of our results with respect to, first, the enlargement of the strategy space to entry decisions and, second, to asymmetric distributions of voters' blisspoints.

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Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

Chinese Contract Law and the Economic Reform

China’s previous contract laws had many contradictions and failed to meet the needs of China’s developing market economy. Although some problems still need to be dealt with, the unified contract law is more advanced, systematic and plays an important role in fostering and encouraging transactions.

Nonprofit Isomorphism: An Australia–United States Comparison

This paper examines the organizational structures of nonprofit organizations in Australia and the United States. Using random samples of nonprofits drawn from the two organizational populations, the analysis compares the extent of structural resemblance or isomorphism in each. It detects similar levels of isomorphism for several structural characteristics. The paper interprets this finding as reflecting expectations for nonprofit organizations that stretch worldwide.

Export, Import and Economic Growth: The Case of Transition Economies

This study analyses the relationships between export, import and economic growth for the 13 transition economies. Empirical results show that there is a unidirectional causality from economic growth to export. Empirical findings show that the growth-led export hypothesis is valid in those countries and growth is rather shaped by increase in import demand.

Shame,the Affective Side of Secrets: Commentary on Barth’s Hidden Eating Disorders

This paper expands on the ideas presented by Barth’s article on hidden eating disorders. The topic of eating disorders continues to be an important focus of clinical work. Applying constructs related to the experience of shame, I explore the way that feelings of shame may impact an exploration of eating disorders by the patient and clinician.

The Monster Within: Countertransference Reflections on a Gay Adolescent’s Struggle with Sexual Identity

This paper concerns the author’s countertransference reflections on her work with a gay adolescent who identifies with powerfully destructive internal objects, including Hitler and the Monster. The author describes her countertransference inquiry through which she experiences her own potential destructiveness in order to help accommodate her adolescent patient’s rejected and disowned self states.

What is child care? Lessons from time-use surveys of major English-speaking countries

This paper examines the definition and measurement of time devoted to child care in the diary-based surveys administered by the United States, Canada, Australia, and Great Britain. Detailed analysis of the relationship between measures of care activity and supervisory care in the American Time Use Survey (ATUS) illustrate the larger conceptual issues at stake.

Sexual Orientation and Labor Market Discrimination

We develop empirical estimates of the return to sexual orientation in the labor market and utilize the 2004 Current Population Survey to determine if lesbians and gay men are treated differently from their heterosexual counterparts. We find strong evidence consistent with the hypothesis of discriminatory treatment against gay men, and this evidence differs substantially by occupation. On the other hand, we find no evidence of discrimination against lesbians. These findings are consistent with priors based on economic theory of the standard taste for discrimination and statistical discrimination models. The results for both men and women are consistent across wage and total compensation regressions.

Efficient nonanthropocentric nature protection

This paper analyzes nature protection by a social planner under different ‘utilitarian’ social welfare functions. For that purpose we construct an integrated model of the economy and the ecosystem with explicit consideration of nonhuman species and with competition between human and nonhuman species for land and prey biomass. We characterize and compare the efficient allocations when social welfare is anthropocentric (only consumers have positive welfare weights), when social welfare is biocentric (only nonhuman species have positive welfare weights) and when social welfare is nonanthropocentric (all species have positive welfare weights). Not surprisingly, biocentric social welfare calls for suspending all economic activities. It is more important, however, that both anthropocentrism and nonanthropocentrism make the case for nature protection through different channels, though. Our analysis suggests that one may dispense with the concept of nonanthropocentric social welfare provided that in the anthropocentric framework the consumers' intrinsic valuation of nature is properly accounted for.

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