Public governance of information asymmetries—The gap between reality and economic theory

There are numerous situations where governments take action due to systematic information asymmetries in society, while economics textbooks do not offer an integrated theory to justify these interventions in terms of utility. This paper starts with a taxonomy of situations where governments try to correct for information asymmetries. A distinction is made between government interventions due to information asymmetries between market partners, within political markets and between the government and citizens. It is then shown that Public Choice Theory offers only few and Public Finance Theory not enough explanations for the prevalence of such government interventions. Further explanations for government actions are given by Institutional Economics and Cultural and Behavioural Economics. The latter will probably generate the best progress towards creating better explanations.     

Child Rights Practice among the Indigenous Communities in Bangladesh

The objective of this article was to explore the practice of child rights among the indigenous communities of Bangladesh. We used a mixed method approach to collect data from four ethnic communities in the Bandarban District of the Chittagong Division in Bangladesh. We questioned children, parents, community members, local leaders, and service providers of those communities on a number of child rights issues, for example, child education, child labor, child recreation and culture, parents' guidance to children for capacity development, and access to child rights at home and in the community according to Convention on the Rights of the Child treaty. The results showed that while the community was aware of child rights, financial vulnerability and a lack of social support meant that these rights could not be upheld in practice. The paper urges improvement of social support, including income generation activities for indigenous communities.     

Reforming against all odds: Multi‐pillar pension systems in the Czech Republic and Romania

Attempts to replace pay‐as‐you‐go pension schemes with private funded systems came to a halt in Central and Eastern Europe after 2005. However, more recently, the region has witnessed two belated reformers: the Czech Republic and Romania. Both countries decided to partially privatize pensions despite the rising tide of evidence concerning the challenges associated with the policy. We argue that while part of the domestic political elite remained supportive of private funded pensions, the difficulties experienced by earlier reformers and reduced support from International Financial Institutions led to the adoption of small funded pension pillars. Such cautious attempts at privatization might become more common in the future as large reforms have proven politically unsustainable.     

A Lagrangian relaxation approach for the multiple sequence alignment problem

We present a branch-and-bound (bb) algorithm for the multiple sequence alignment problem (MSA), one of the most important problems in computational biology. The upper bound at each bb node is based on a Lagrangian relaxation of an integer linear programming formulation for MSA. Dualizing certain inequalities, the Lagrangian subproblem becomes a pairwise alignment problem, which can be solved efficiently by a dynamic programming approach. Due to a reformulation w.r.t. additionally introduced variables prior to relaxation we improve the convergence rate dramatically while at the same time being able to solve the Lagrangian problem efficiently. Our experiments show that our implementation, although preliminary, outperforms all exact algorithms for the multiple sequence alignment problem. Furthermore, the quality of the alignments is among the best computed so far.     

Attributions of Blame among Victims of Child Sexual Abuse: Findings from a Community Sample

ABSTRACT

According to the attribution theory, negative outcomes of child sexual abuse (CSA) are thought to vary depending on whether CSA victims attribute the abuse to internal or external factors, respectively, self-blame and perpetrator-blame. Therefore, the purpose of this study was to identify abuse characteristics and attitudes that influence blame attributions among CSA victims from a community sample. Data from respondents with a history of CSA (N = 1,496) have been used in predicting blame attributions; perpetrator-blame, self-blame, or both. Results from a multinomial logistic regression analysis showed that attitudes toward gender roles had a significant effect on blame: victims were more likely to blame themselves when they endorsed more conservative gender attitudes than victims with more liberal attitudes. Implications for this finding are discussed.     

Strategic versus non-strategic voting power in the EU Council of Ministers: the consultation procedure

This article evaluates the distribution of power within the Council of the European Union from the a priori perspective of constitutional design using two distinct approaches: (1) applying traditional voting power indices; (2) carrying out strategic equilibrium analysis of the EU’s consultation procedure. It clarifies why both approaches lead to different power indications, and investigates the determinants of the differences’ magnitudes. Depending on one’s assumptions about behavior of the consultation procedure’s agenda setter, the European Commission, traditional indices turn out to deliver a good approximation also of relative strategic power in the Council.     

Causes of ambiguity aversion: Known versus unknown preferences

Ambiguity aversion appears to have subtle psychological causes. Curley, Yates, and Abrams found that the fear of negative evaluation by others (FNE) increases ambiguity aversion. This paper introduces a design in which preferences can be private information of individuals, so that FNE can be avoided entirely. Thus, we can completely control for FNE and other social factors, and can determine exactly to what extent ambiguity aversion is driven by such social factors. In our experiment ambiguity aversion, while appearing as commonly found in the presence of FNE, disappears entirely if FNE is eliminated. Implications are discussed.      

Non‐linear Effects of Comparison Income in Quit Decisions: Status versus Signal!

This research note utilizes German matched employer–employee data to investigate the relationship between mobility and relative wage positions within establishments for workers without university degrees. The main innovation involves the examination of non‐linear effects, because previous literature mainly analyses mean linear effects. Our random‐effects probit estimates of mobility suggest a non‐linear U‐shaped effect with respect to relative standing. This is plausible because workers in low relative wage positions might quit because of their low status and those in high relative wage positions because of their low career advancement opportunities. Consideration of non‐linearities, thus, is a major improvement for the analysis of the effects of relative wage positions.