CORRUPTION: TOP DOWN OR BOTTOM UP?

This article studies the impact of corruption on an economy with a hierarchical government. In particular, we study whether centralizing corruption within the higher level of government increases or decreases the total amount of corruption. We show that when the after-tax relative profitability of the formal sector as compared to that of the informal sector is high enough, adding a layer of government increases the total amount of corruption. By contrast, for high-enough public wages and/or an efficient monitoring technology of the bureaucratic system, centralization of corruption at the top of the government hierarchy redistributes bribe income from the lower level to the upper level. In the process, total corruption is reduced and the formal sector of the economy expands.     

Les agriculteurs dans la fabrique d'une nouvelle agriculture

The model of development that has governed the modernization of farming in France is increasingly coming under attack. Given this, analysing the “work” that farming performs to “translate” the criticisms with which it must cope in formulating new definitions of roles is important in order to understand changes under way in this sector. The changes undergone by farming over the past eighty years are briefly presented and then the procedures and results of a survey, conducted during the mad cow disease among beef-farmers in Burgundy, are described. Light is thus shed on the diversity of the positions that farmers have adopted with regard to the future of their occupation. An interpretation is proposed of how the distribution (and interplay between) these positions might affect agriculture. - Special issue on Agriculture and food.     

Psychological taxing in Flemish municipalities

We analyse whether the psychological pricing in the private sector has a public sector counterpart in tax policy. Analysing the main theoretical arguments for the existence of price points, and applying them to the public sector, suggests that psychological taxing reveals itself by the use of non-0 ending tax rates. The tax rate endings of the local income taxes, which are set by 308 Flemish municipalities in the fiscal year 1998, suggests the presence of psychological taxing. Non-0 endings occur more frequently in municipalities where demand for public policy is more elastic (and where, therefore, the benefits to the politicians from setting a tax just below a tax point is higher). The pre-tax income inequality and the level of the tax rate positively affect psychological taxing. The latter effect is reinforced in those municipalities where the existing tax rate is above the average tax rate in neighbouring municipalities and below their neighbours’ minimum, although this effect has a limited effect and is offset the further below the minimum the tax is set.     

Catalogue of Group Structures for Three-level Fractional Factorial Designs

Taguchi (1959) introduced the concept of split-unit design to sort the factors into different groups depending upon the difficulties involved in changing the levels of factors. Li et al. (1991) renamed it as split-plot design. Chen et al. (1993) have given a catalogue of small designs for two- and three-level fractional factorial designs pertaining to a single type of factors. Aggarwal et al. (1997) have given a catalogue of group structure for two-level fractional factorial designs developed under the concept of split-plot design. In this paper, an algorithm has been developed for generating group structure and possible allocations for various 3^n-k fractional factorial designs.     

Job displacement effects of Canadian immigrants by country of origin and occupation

"Some previous Canadian studies have shown that considering the labor market as a whole and also pooling all immigrants as a group, immigrants do not have any job displacement effects on the Canadian born. This study presents some new evidence. It disaggregates immigrants by country of origin and by occupation groups and provides an analysis of job displacement effects of immigrants on the native-born Canadians by these dimensions. The study finds that (1) U.S. immigrants and the Canadians are substitutes [for] competing groups in the labor market and the effect is quite significant; (2) Canadians and Europeans are competing groups in certain occupations, while they have complementary skills in others; and (3) immigrants from the Third World and the Canadians are slightly competing groups in certain occupations."     

A comparison of poverty in seven European countries and regions using subjective and relative measures

This paper presents comparative results on poverty in seven countries and regions of the European Community: Belgium, The Netherlands, Luxembourg, Lorraine, Ireland, Catalonia and Greece. The data are obtained from comparable socio-economic surveys in each country. Subjective as well as relative poverty lines are used. The results indicate that the subjective poverty lines are plausible in a comparative context, although the levels of the subjective standards are rather generous. The estimated equivalence scales are much flatter than the one recommended by the OECD. The extent of poverty is much greater in the peripheral EC-countries than in the central ones. Though similar factors are found to be associated with poverty in all countries, there are also important differences in the characteristics of the poor across countries. The impact of social security transfers on poverty appears to be much smaller in the southern countries Greece and Catalonia, than in the Benelux and Lorraine.     

A Network-Based Measure of the Socio-Economic Roots of the Migration Flows

Social Indicators Research - This paper provides a unified view for defining a measure of the reasons behind migration flows whose nature is of social and economic type. To this aim, worldwide...