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Manchester School

Impact factor: 0.454 5-Year impact factor: 0.515 Print ISSN: 1463-6786 Online ISSN: 1467-9957 Publisher: Wiley Blackwell (Blackwell Publishing)

Subject: Economics

Most recent papers:

  • Is Your Career Determined by the Stars? Western Zodiac Signs and Labor Market Outcomes in Germany.
    Matthias Collischon, Florian Zimmermann.
    Kyklos. yesterday
    ["Kyklos, EarlyView. ", "\nABSTRACT\nAn increasing share of people believes that zodiac signs predict life outcomes, like career trajectories, even though there is no scientific basis for this claim. Using German administrative data covering more than 11 million observations from 1 million individuals, we investigate whether Zodiac signs determine labor market outcomes. Since Zodiac signs are supposed to affect personality, and personality is associated with wages, Zodiac signs might shape an individual's labor market success in a self‐fulfilling prophecy. Descriptively, we find that Capricorns (born mid‐December to mid‐January) earn, on average, slightly lower wages compared to individuals with other Zodiac signs. When applying a causal regression discontinuity design comparing only individuals born 7 days around the respective cutoffs, we find zero effects of Zodiac signs on wages, education, and managerial status. Given the considerable sample size, the zero effects are likely not caused by low statistical power but show that Zodiac signs do not determine individuals' labor market outcomes.\n"]
    April 30, 2026   doi: 10.1111/kykl.70057   open full text
  • Do Science Kardashians Get Citation Premium? Self‐Fulfilling Effects of Social Media on Scientific Impact.
    Christian Lessmann, Ali Sina Önder, Maximilian Rose.
    Kyklos. 2 days ago
    ["Kyklos, EarlyView. ", "\nABSTRACT\nWe analyze whether the visibility of scientists on social media affects the number of academic citations. We use the global COVID‐19 pandemic as a quasinatural experiment that exogenously increased public attention and the demand for expertise. Using publications on COVID‐related topics by social media stars and their coauthors prior to the outbreak of the pandemic, we find that social media stars' pre‐COVID‐era papers received about 3.7%$$ 3.7\\% $$–4.9%$$ 4.9\\% $$ more citations annually per paper after 2019. Quantitatively comparable results are obtained when we use scientists' Kardashian index (K‐index) as a benchmark for stardom, however we find no significant effects when using the intensive margin of scientists' K‐indexes. We provide a brief discussion of policy implications in light of these findings.\n"]
    April 29, 2026   doi: 10.1111/kykl.70058   open full text
  • Capitalism and Femicide: an Empirical Inquiry.
    Christian Bjørnskov, Martin Rode.
    Kyklos. 3 days ago
    ["Kyklos, EarlyView. ", "\nABSTRACT\nThis study investigates the claim that capitalism (or neoliberal reforms) is associated with higher rates of femicide, which is often identified as an outcome of the capitalist exploitation of women in parts of the feminist literature. Employing a panel of 163 countries observed between 1990 and 2023, we find no significantly positive relationship between the Economic Freedom of the World index and different measures that approximate the concept of femicide. If anything, we partially find a significantly negative effect, particularly when not conditioning on income, which likely constitutes an important long‐run transmission channel of the impact of pro‐market institutions for reducing deadly violence against women. Even for countries with a large textile exporting sector—an industry that is heavily associated with the economic exploitation of women—more economic freedom is not significantly related to comparatively higher rates of femicide.\n"]
    April 28, 2026   doi: 10.1111/kykl.70056   open full text
  • Is Individual Tax Compliance a Matter of Meritocracy? The Role of Perceived Social Mobility on Tax Morale.
    Alessandro Cascavilla.
    Kyklos. 7 days ago
    ["Kyklos, EarlyView. ", "\nABSTRACT\nThis study investigates the relationship between perceived social mobility (PSM), proxied by the belief that success depends on personal effort rather than luck, and tax morale, defined as individuals' intrinsic willingness to pay taxes. While prior research widely analyzes the determinants of tax compliance, the role of subjective perceptions of mobility remains underexplored. Employing data from the seventh wave of the World Values Survey, which covers citizens belonging to 63 countries, this paper provides empirical evidence about the relationship between PSM and individual tax preferences. Individuals who perceive society as meritocratic tend to express greater willingness to comply with fiscal duties, while subjects who attribute personal success to luck show lower tax morale. The relationship is strongest among upwardly mobile respondents and weakest among those who experienced downward mobility. These results are robust across multiple econometric strategies, including instrumental variables estimation. Beyond this baseline relationship, which has been confirmed across different world's macro‐regions, the analysis of interactions shows that the positive impact of PSM on tax morale is complemented by social trust while, conversely, PSM acts as a partial substitute for redistributive preferences. In fact, while support for redistribution is generally associated with higher tax morale, its marginal effect weakens as individuals increasingly perceive the social system as meritocratic. This evidence highlights how individual fiscal preferences can be based on citizens' perception of the society as meritocratic and that not only the actual but also the perceived social mobility may strengthen tax morale and encourage greater voluntary compliance.\n"]
    April 24, 2026   doi: 10.1111/kykl.70055   open full text
  • The Impact of TikTok on Elections: (Mis)information and Regulatory Challenges.
    Michele Giuseppe Giuranno, Mauro Sebastian Manni.
    Kyklos. April 14, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nTikTok's algorithm‐driven feed is reshaping electoral communication, yet a clear understanding of its effects is lacking. This study synthesizes and appraises evidence on how the platform's design and governance shape political (dis)information and may affect electoral dynamics. Based on a systematic review of 140 studies published between 2021 and 2025, the paper identifies several recurring patterns. The literature suggests that the platform's algorithms tend to amplify sensational content and may increase youth exposure to political messaging. National security concerns over data sovereignty have prompted platform bans, and opaque “visibility moderation” policies may hinder efforts to correct misinformation. Current research is often limited by small samples and restricted data access, which affects the generalizability of findings. We conclude that TikTok functions as a fast‐moving marketplace for political ideas in which algorithmic incentives may shape conditions relevant to electoral integrity. Therefore, transparent data access and continued cross‐disciplinary research are important for addressing these challenges.\n"]
    April 14, 2026   doi: 10.1111/kykl.70054   open full text
  • Ideology and Economist's Views on Inequality and Discrimination: Evidence From Uruguay.
    Verónica Amarante, Marisa Bucheli, Tatiana Pérez.
    Kyklos. April 10, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nThis paper investigates how the ideological profiles of Uruguayan economists relate to their opinions regarding inequality and discrimination. Based on survey data, we explore the links between three ideological dimensions—political orientation, sexist attitudes (benevolent and hostile), and pro‐market beliefs—and their opinions. We find that right‐wing political ideology, hostile sexism, and pro‐market attitudes are consistently associated with lower agreement that income distribution should be more equitable, lower recognition of gender and racial discrimination, and reduced support for redistributive and antidiscrimination policies. By contrast, benevolent sexism exhibits weaker and more inconsistent associations with economists' views. We further show that whereas diagnostic assessments mediate the relationship between ideology and policy preferences, ideological orientations continue to exert direct effects on policy views even after controlling for diagnoses. These findings reveal that disagreements among economists about inequality and discrimination reflect not only different interpretations of evidence but also distinct normative commitments shaped by ideology. Our results challenge the notion of economics as a value‐neutral discipline and highlight the need for greater reflexivity about how personal beliefs influence economic analysis and policy recommendations.\n"]
    April 10, 2026   doi: 10.1111/kykl.70052   open full text
  • CEO Succession and Corporate Investment: Evidence From China.
    Inayat Khan, Ruiyang Niu, Xiaoyue Zhao, Xue Lei, Yuping Mao, Xu Zhengquain, Imran Khan, Huma Naz, Javed Khan.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 338-356, May 2026. ", "\nABSTRACT\nThis study investigates the influence of a CEO's firstborn son on corporate investment, taking into account the contingent role of the CEO's birth after the Cultural Revolution and the number of sons. Using a unique data set of the top 500 richest individuals and their associated corporate investments on the Shanghai, Shenzhen, and Hong Kong stock exchanges between 2008 and 2020, our findings demonstrate that a CEO's firstborn son has a significant positive impact on corporate investment. Moreover, the number of sons and the CEO's birth after the Cultural Revolution have opposite moderating effects on this relationship. This finding adds new insights for corporate investment from the behavior finance perspective and guides firms' investment efficiency improvement.\n"]
    April 06, 2026   doi: 10.1111/kykl.70033   open full text
  • Can Personal Freedom Drive Economic Complexity?
    Vítor Castro.
    Kyklos. April 06, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nResearch on economic complexity has identified various factors that enable countries to achieve higher levels of productive sophistication. However, the role of personal freedom as a distinct driver has been overlooked. This paper argues that by providing the necessary environment for individuals to explore new ideas, be creative and challenge the status quo, personal freedom is essential to the development of unique and complex products. This hypothesis is tested using a panel of 139 countries over the 1998–2022 period and employing panel corrected standard error and system‐GMM estimators to account for cross‐sectional dependence, serial correlation, and potential endogeneity. Our empirical analysis provides robust evidence that personal freedom is a significant booster of economic complexity. This evidence is more prominent in developing and emerging countries and is largely driven by core civil liberties, rule of law, and property rights. The results emphasize that fostering an environment of personal liberty is a fundamental determinant of long‐run economic sophistication and development.\n"]
    April 06, 2026   doi: 10.1111/kykl.70053   open full text
  • Louis Bachelier's Théorie de la Spéculation: The Missing Piece in Walras's General Equilibrium.
    Nicole El Karoui, Antoine Parent, Pierre‐Charles Pradier.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 429-443, May 2026. ", "\nABSTRACT\nWe propose a revisited view of Louis Bachelier's contribution to economic analysis. Conventional wisdom presents Bachelier as the founding father of modern financial theory. We show that Bachelier's work is constructed to respond to a gap in the Walrasian general equilibrium, where the options market is verbosely introduced but not modeled. By providing a price formation theory for the missing options market, Bachelier presents himself as the heir apparent of the mathematical economics tradition founded by Walras. Indeed, Bachelier's methodological stance is clearly formed on the “rational method” of Walras, proceeding by mathematical demonstration from postulates that we make explicit. We show additionally how Walras and Bachelier in pre‐WW2 France reached the same audience. We propose to name this augmented general equilibrium model the Walras–Bachelier model of intertemporal general equilibrium in the presence of risk. This theory prefigures the Arrow–Debreu model, with some differences which we make clear.\n"]
    April 06, 2026   doi: 10.1111/kykl.70026   open full text
  • How Does State Fragility Drive Environmental Degradation? A Multidimensional Analysis of Governance and Socio‐Economic Vulnerabilities.
    Cristian Barra, Luca Esposito, Pasquale Marcello Falcone.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 399-428, May 2026. ", "\nABSTRACT\nThe growing crises in the environmental sector worldwide have increased the call for better comprehension of the linkage among governance, socio‐economic stability, and environmental degradation. In this respect, state fragility—a term covering governance gaps, political instability, and economic turmoil—has emerged as a vital and rather unexplored cause of environmental degradation. This study examines how state fragility drives environmental degradation by analyzing the Fragile States Index (FSI) and PM2.5 air pollution across 130 countries from 2006 to 2020. Using generalized least squares (GLS) and Lewbel (2012) heteroskedasticity‐based IV estimators, we disaggregate FSI into cohesion, economic, political, social, and external‐intervention dimensions to identify heterogeneous effects. Results show that higher overall fragility is associated with increased PM2.5 and CO2 emissions, with economic and political fragility exerting the strongest positive impacts. Social pressures and external interventions also worsen air quality, while cohesion's effect is context‐dependent—positive in baseline GLS but negative after addressing endogeneity—suggesting measurement and endogeneity issues. Controls reveal trade openness tends to raise pollution, whereas FDI and stronger institutions reduce it. Findings are more pronounced in low‐income countries, underscoring sample heterogeneity. Policy implications stress strengthening governance, mobilizing green finance, and aligning external assistance with environmental objectives to break the fragility–pollution nexus.\n"]
    April 06, 2026   doi: 10.1111/kykl.70031   open full text
  • Abstract Moral Decisions Are Unchanged After Oxytocin Administration.
    Saadullah Bashir, Yilong Wang, Michael D. Krouse, William D. Casebeer, Sheila Ahmadi, Paul J. Zak.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 444-451, May 2026. ", "\nABSTRACT\nWestern institutions are based on the impartial applications of the law. Yet, many legal decisions are replete with emotionally laden choices, including issues of life and death. In these cases, judges and juries are presumed to be able to make rational decisions by regulating their emotions. Two experiments were run to examine people's ability to make hypothetical life and death decisions as well as stages of moral development when emotional responses were manipulated pharmacologically using synthetic oxytocin administration (N = 81). The analysis showed that, relative to placebo, oxytocin did not affect abstract moral decisions of the “trolley car” type or influence moral development. These findings indicate that human beings are able to self‐regulate when assessing abstract moral dilemmas, providing support for the design and functioning of Western civilization.\n"]
    April 06, 2026   doi: 10.1111/kykl.70039   open full text
  • Bribery and Its Effect on Innovation: When Bank Finance Matters.
    Thanh Le, Thang Ngoc Bach, Mai Vu, Giang Nguyen.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 545-563, May 2026. ", "\nABSTRACT\nIn this paper, we examine the effect of bribery on innovation performance and whether bank finance serves as an effective channel of the impact. In doing so, we compute an innovation performance index for Vietnamese small and medium enterprises. We then conduct mediation analysis on the triad of bribery, bank finance and innovation performance using a large panel of almost 13,000 private manufacturing firms in Vietnam from 2007 to 2015. Empirical results indicate a positive effect of bribery on firm innovation and that firm borrowing significantly mediates this relationship. Specifically, bribery increases firm borrowing from banks, which in turn enhances innovation. We then enrich our study with a provincial level dataset that covers 63 provinces in Vietnam over the 2010–2019 period. We find that at the provincial level, bribery turns out to hinder technological improvement instead. The overall findings imply that bribery creates a negative externality that distorts the allocation of resources. While bribery may be beneficial to firms that are engaged in undertaking it, the social cost it imposes on society outweighs any private benefits it generates. The results convey important policy implications for policymakers wishing to promote a healthy innovation culture and a sustainable economic development path for society.\n"]
    April 06, 2026   doi: 10.1111/kykl.70044   open full text
  • Do Promarket Reforms Prevent Firms' Environmental Misconduct? The Role of Political Ties and Returnee Directors in Emerging Economies.
    Adnan Ali, Yang Qian, Afzaal Ali, Zeeshan Ali.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 564-584, May 2026. ", "\nABSTRACT\nDespite recognizing the importance of promarket reforms in enhancing firms' accountability and development in emerging economies like China, their critical role in deterring environmental misconduct has been largely overlooked in the existing literature. To address this gap, this study draws on institutional theory to explore the relationship between promarket reforms and the reduction of environmental misconduct, focusing on the moderating effects of political ties (PT) and returnee directors. Analyzing a sample of 721 Chinese firms, we find a significant negative relationship between promarket reforms and environmental misconduct. Moreover, PT weakens this relationship, whereas returnee directors strengthen it. These findings remain robust across various alternative measures and endogeneity tests, including propensity score matching analysis, Heckman two‐stage model, and a 2‐year lagged analysis. Overall, this study adds value to corporate strategy and environmental management literature by shedding novel insights into the role of promarket reforms in addressing environmental misconduct in emerging economies.\n"]
    April 06, 2026   doi: 10.1111/kykl.70045   open full text
  • The Dissociative Effects of Institutional Versus Personal and General Social Trust on Democracy.
    Yaron Zelekha.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 519-544, May 2026. ", "\nABSTRACT\nThis research, which covers 100 countries representing 88.5% of the world's population, reveals a nuanced relationship between trust and democracy, employing various methods such as instrumental variables, panel data fixed effects analysis, and alternative measures of democracy. Personal trust and general social trust are associated with increased democracy, a more liberal political culture, and better governance. In contrast, institutional trust is associated with reduced democracy, lower political engagement, decreased government effectiveness, and diminished concern for civil liberties. This effect is correlated with poverty, women's economic participation, and religious diversity. Underprivileged groups, like poor and women with limited economic roles, mitigate the negative association of institutional trust on democracy. Additionally, religious diversity increases the negative association of institutional trust and democracy. Despite democratic costs, constituents likely maintain higher institutional trust driven by rational interests, prompting the need for vigilant governance and checks on power. The implications challenge traditional policy prescriptions that assume governments inherently act to promote democracy, highlighting that high institutional trust can enable governments to pursue self‐interested agendas that may erode democratic norms. The findings emphasize the need for reforms focused on strengthening independent oversight bodies, empowering civil society, protecting press freedom, and fostering external constraints on executive power. Ultimately, durable democratic governance depends not on governmental goodwill but on vigilant institutions and active public participation that reshape political incentives toward transparency and accountability.\n"]
    April 06, 2026   doi: 10.1111/kykl.70046   open full text
  • Extending Cliometrics to Ancient History Using Complexity.
    Laurent Gauthier.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 585-595, May 2026. ", "\nABSTRACT\nCliometrics, concerned with the application of economic models to history, have left antiquity aside because of the perceived lack of data available for this period. We argue that cliometrics do not have to specifically focus on the economy and, associated with complexity sciences, can operate on primary historical sources. Thus, redefining cliometrics gives them access to the extensive corpora of historical material that have been digitized, in particular for ancient history, which has so far remained outside cliometrics' purview. We discuss two examples of a cliometrics and complexity approach to ancient history: inscriptions and votive acts in ancient Greece.\n"]
    April 06, 2026   doi: 10.1111/kykl.70047   open full text
  • The Survival of the Royals.
    Alberto Batinti, Joan Costa‐Font, Vasuprada Shandar.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 307-323, May 2026. ", "\nABSTRACT\nWe study the effect of royal status—a historically rooted legal privilege enjoyed by hereditary monarchs and their families—on human longevity, a proxy of individuals' health capital. We disentangle the effect of royal status that encompassed serving as heads of state from that of other royal family members and compare it to their contemporary countrymen [Correction added on 16 January 2026, after first online publication: This sentence has been updated for clarity in this version]. We have constructed and exploited a dataset containing relevant demographic data and specifically the lifespan (age at death) of European royals and their families spanning the past three centuries (1669–2022) from the sixteen European countries. The dataset includes information records of 845 high‐status nobility and alongside monarchs, which we compare to otherwise similar countrymen by adjusting for relevant confounders. We document robust evidence of a statistically significant longevity advantage, showing that monarchs live, on average, 5.2 to 7.1 years longer than both other members of the royal family and the general population of their time. However, while such longevity advantage between royals and the population has narrowed, the advantage of ruling monarchs persists over time. These effects persist despite improvements in population health, and the role of major sociopolitical transformations including the emergence of both liberal democracy and the advent of Constitutional monarchies in Europe. The latter suggests that “power status” ‐ and specifically the so‐called eustress or positive stress ‐ may be driving the longevity advantage of ruling monarchs.\n"]
    April 06, 2026   doi: 10.1111/kykl.70010   open full text
  • Government Spending and Civic Engagement: Exploring the Role of Civil Society Participation and Voting in 28 Democracies.
    Anna Lo Prete, Agnese Sacchi.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 357-376, May 2026. ", "\nABSTRACT\nThis study offers causal evidence on how distinct forms of civic engagement affect government spending across 28 democracies between 2000 and 2024. Its main innovation lies in disentangling the fiscal effects of two channels of engagement—civil society participation and electoral turnout—through an original identification strategy that exploits exogenous variation in collective versus self‐interested motives. Our findings reveal that civic engagement exerts distinct effects on public spending depending on the channel through which citizens participate in democratic life. On the one hand, stronger participation in civil society associations leads to higher government spending, consistent with a publicly spirited and collective mobilisation effect. On the other hand, greater electoral participation is associated with lower public expenditure, as more collective‐interested individuals distance themselves from the traditional electoral channel, and more self‐interested individuals ask for less public spending. We explore these underlying mechanisms, propose strategies to address key identification challenges and further consider the impact of civic engagement on environmental protection and green politics dynamics.\n"]
    April 06, 2026   doi: 10.1111/kykl.70027   open full text
  • Financial Inclusion: Does Cultural Heterogeneity Matter?
    Jérémie Bertrand, El Ghassem El Ghassem.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 500-518, May 2026. ", "\nABSTRACT\nCulture plays an important role in determining the financial inclusion of individuals. However, most studies consider culture as a homogeneous element. In this study, we lift the assumption of cultural homogeneity and look at how intra‐cultural variation, i.e., the population distribution of a characteristic within a culture, affects financial inclusion. We use the World Bank's Global Findex database and show that intra‐cultural variation in individualism values reduces financial inclusion. This reduction can be explained by the fact that a high degree of heterogeneity in the individualism cultural dimension leads to an increase in the informal network within a country and a decrease in trust in banking institutions. Furthermore, we demonstrate that in individualistic countries, the effect of intra‐cultural variation outweighs that of the cultural means. This effect highlights the significance of considering cultural diversity in understanding financial inclusion. Our results are robust to several alternative specifications.\n"]
    April 06, 2026   doi: 10.1111/kykl.70042   open full text
  • Temperature and Productivity in Soccer.
    Vojtěch Mišák.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 324-337, May 2026. ", "\nABSTRACT\nThis paper examines the impact of temperature on soccer team productivity using match‐level data from 10 countries across three continents. The results show that temperature affects multiple performance metrics, often in non‐linear ways. Specifically, attacking efficiency is enhanced in warmer conditions, leading to increased goal productivity and improved shot conversion rates. Conversely, defensive performance appears to weaken in warmer conditions, with a decrease in defensive pressure and passing accuracy. Player aggression follows an inverted U‐shaped pattern in relation to temperature. The effects of temperature vary across different leagues and climate regions. The relationship between temperature and outcome measures tends to be stronger in lower leagues, while the Champions League is the least influenced overall. Teams from colder regions experience a larger decline in passing volume when playing in high temperatures, with the effect being particularly pronounced in Brazil.\n"]
    April 06, 2026   doi: 10.1111/kykl.70029   open full text
  • Ancestral Irrigation and Women's Political Empowerment.
    Roberto Ezcurra.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 377-398, May 2026. ", "\nABSTRACT\nThis paper advances the hypothesis and establishes empirically that the adoption of irrigation agriculture during the preindustrial period is a predictor of contemporary cross‐country variation in women's political empowerment. Countries whose populations historically relied on irrigation agriculture as their primary subsistence mode tend to have lower levels of women's political empowerment today, confirming the enduring impact of certain historical practices related to agriculture on contemporary gender inequality. This result remains unaltered after controlling for an extensive set of geographic, historical, and contemporary factors that may be correlated with both irrigation agriculture and women's political empowerment and is confirmed by an instrumental variable approach that exploits cross‐country variation in irrigation suitability. The analysis also reveals that the contribution of ancestral irrigation to women's political empowerment has partly operated through its impact on the process of institutional development and the individualism–collectivism cultural divide. Furthermore, evidence from the second‐generation immigrants in Europe suggests that cultural transmission is an additional channel linking ancestral irrigation with contemporary attitudes about the appropriate role of women in society.\n"]
    April 06, 2026   doi: 10.1111/kykl.70034   open full text
  • The Law is the Last to Know: Evidence That De Facto Progress Drives De Jure Women's Rights.
    Joshua D. Ammons, Daniel J. D'Amico.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 452-477, May 2026. ", "\nABSTRACT\nThis paper examines how improvements in women's formal legal rights shape economic and social outcomes across countries. Using the Gender Disparity Index from the Economic Freedom of the World dataset, we analyze cases where countries experienced substantial increases in women's legal rights sustained for at least 5 years. Contrary to expectations, our findings show that such policy changes did not yield better economic and social outcomes. To explain these results, we demonstrate that the average annual gains in de facto property rights for women were greatest before these changes were codified into law. Formal legal advances follow, rather than drive, informal changes in women's social participation and economic roles. This study emphasizes the informal dependency of institutional change and its implications for economic development and social welfare.\n"]
    April 06, 2026   doi: 10.1111/kykl.70040   open full text
  • Does Banking Diversity Matter for Credit Access? Evidence on SMES in Europe.
    Francesco Trivieri.
    Kyklos. April 06, 2026
    ["Kyklos, Volume 79, Issue 2, Page 478-499, May 2026. ", "\nABSTRACT\nThis paper investigates SMEs' access to credit from the perspective of the biodiversity argument in banking, a conceptual framework that has been largely overlooked in the literature. Using bank‐ and firm‐level data for eight European countries from 2014 to 2022, I empirically assess the role of bank diversity—measured by the Gini‐Simpson index, in analogy with ecological diversity—on the probability of SMEs being credit rationed. My results indicate that institutional heterogeneity within the banking sector mitigates credit constraints faced by SMEs while also increasing firms' propensity to apply for bank loans. These findings align with the core tenet of the biodiversity approach, which posits that a banking landscape marked by a plurality of institutional forms represents a valuable asset for financing the real economy. In light of my evidence, preserving and fostering institutional diversity within the banking sector should be regarded as a policy priority.\n"]
    April 06, 2026   doi: 10.1111/kykl.70043   open full text
  • Freedom Types and Life Satisfaction: Empirical Evidence on the Role of Individual and Civic‐Oriented Values.
    Leonardo Becchetti, Demetrio Bova, Lorenzo Semplici.
    Kyklos. March 16, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nThis paper examines the relationship between four freedom orientations—libertarian, utilitarian, civic, and communitarian—and subjective well‐being. We conceptualize liberty orientations as varying in their prioritization of individual autonomy relative to the general interest. Using nationally representative survey data, we estimate a recursive generalized structural equation model (GSEM) with instrumental variables to address potential endogeneity between liberty orientations and well‐being. Falsification tests confirm the validity of our instruments. The results indicate that civic and communitarian orientations are positively and significantly associated with higher levels of life satisfaction compared to libertarian and utilitarian orientations. The fit between freedom orientations and local institutional quality matters since living in areas with low institutional quality reduces the positive nexus between being civic or communitarian and subjective well‐being. Our findings suggest that the value‐context fit and value systems emphasizing voluntary alignment with, or prioritization of, the general interest foster higher well‐being, consistent with research strands highlighting the importance of social relationships, generativity, procedural utility, and collective purpose discussed in the paper. Our contribution is both theoretical, by refining the typology of liberty orientations, and empirical, by providing causal evidence of their effects on subjective well‐being.\n"]
    March 16, 2026   doi: 10.1111/kykl.70051   open full text
  • Why Do Prosocial People Dislike Markets in Some Countries and Like Them in Others?
    Pál Czeglédi.
    Kyklos. February 27, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nBased on the doux commerce thesis, which suggests that people in market‐oriented societies hold stronger prosocial values than those in less market‐oriented ones, one can expect prosocial and pro‐market values to be positively associated. The fact that the association holds for cross‐country observations but does not universally hold for cross‐individual observations within countries is a puzzle, the paper argues, and it explains this by assuming that market preferences are expressive. It argues that this assumption implies that the link between prosocial and pro‐market values should vary with national institutions because the latter reflect prevailing beliefs about markets. The prediction is tested by individual‐level regressions that use post‐materialism and generalised trust as indicators of prosocial values and ownership preferences as an indicator of pro‐market values from the International Values Survey. The regressions support the prediction by showing that the within‐country association between these values can be either positive or negative, depending on institutional context and political identity. The moral consequences of markets, therefore, are a key part of the argument for them.\n"]
    February 27, 2026   doi: 10.1111/kykl.70049   open full text
  • Pronoun Drop as an Instrumental Variable.
    Ryan H. Murphy.
    Kyklos. February 22, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nA growing literature in comparative economics uses linguistic structure in empirical work to explain differences in culture and economic behavior, through the theoretical mechanism of linguistic relativity (or the “Sapir–Whorf hypothesis”). This paper explores the usage of one of these variables, pronoun drop, which denotes whether or not a language makes the first‐person subject pronouns optional, and its application as an instrument for culture. It ultimately argues that, even though this application is now common, it clearly violates the independence assumption because culture can affect language just as language can affect culture. It speculates further on the implications for other linguistic variables, both as instruments and when used as explanatory variables.\n"]
    February 22, 2026   doi: 10.1111/kykl.70050   open full text
  • The Returns to Education: A Meta‐Study.
    Gregory Clark, Christian Alexander Abildgaard Nielsen.
    Kyklos. February 06, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nThere have been many studies estimating the causal effect of an additional year of education on earnings. The majority employ administrative changes in the minimum school‐leaving age as the mechanism allowing identification. Here, we survey 79 such estimates. However, remarkably, while the majority of these studies find substantial gains from education, a number of well‐grounded studies find no effect. The average return from these studies still implies substantial average gains from an extra year of education: an average of 8.2%. But the pattern of reported returns shows clear evidence of publication biases: omission of studies where the return was not statistically significantly above 0, and where the estimated return was negative. Correcting for these omitted studies, the implied average causal returns to an extra year of schooling will be only in the range 0%–3%.\n"]
    February 06, 2026   doi: 10.1111/kykl.70041   open full text
  • E‐Verify Mandates and Voting Behavior of Naturalized Citizens in the United States.
    Christian Gunadi.
    Kyklos. January 27, 2026
    ["Kyklos, EarlyView. ", "\nABSTRACT\nIn recent decades, there has been a toughening of immigration enforcement in the United States. One of the major initiatives is E‐Verify mandates, which require some or all employers to check the work eligibility of new hires. This study examines the impact of E‐Verify mandates on the voting propensity of naturalized citizens. Using a difference‐in‐differences strategy that exploits the temporal and geographical variation in the implementation of the mandates across US states, the results of the analysis indicate a temporary rise in the likelihood of a naturalized citizen reporting that they voted in the most recent November election. This finding suggests that immigration enforcement policies directed at undocumented migrants may generate political responses from other migrant groups who are not directly targeted by them.\n"]
    January 27, 2026   doi: 10.1111/kykl.70048   open full text
  • Occupational Prestige and the Gender Wage Gap.
    Kristin J. Kleinjans, Karl Fritjof Krassel, Anthony Dukes.
    Kyklos. October 03, 2017
    Occupational segregation by gender remains widespread and explains a significant part of the gender wage gap. We shed light on the reasons why occupational segregation persists despite the increases in women's education and labor force participation, and why it results in a gender wage gap. Women express a stronger relative preference than men for occupations that are valuable to society, which we argue is captured by their occupational prestige. If women prefer occupations with higher occupational prestige, they will earn lower wages because of compensating wage differentials. Using conditional logit models of occupational choice, we find statistically significant support for this hypothesis. The effect is economically significant: the gender differences in the weights placed on prestige and wages can explain up to one half of the gender wage gap resulting from occupational segregation, or about one fourth of the overall gender wage gap. Our results are strongest for individuals with low ability, which suggests that social norms may be an important factor in generating these gender differences.
    October 03, 2017   doi: 10.1111/kykl.12149   open full text
  • Self‐Preserving Leviathans Evidence from Local‐Level Data.
    Jan Kluge, Gunther Markwardt, Christian Thater.
    Kyklos. October 03, 2017
    This paper investigates the impact of the intensity of political competition on the leviathan behavior of local politicians. While we find only weak effects of strong parties on total expenditures and, thus, only weak traces of standard leviathan behavior, we find strong evidence that the spending pattern during a legislative period depends on the distribution of power in local councils. In municipalities with weak political competition, the public spending reaches a peak in election years. If parties face politically strong opponents, they do not initiate a political budget cycle. Our results indicate that local politicians act as self‐preserving leviathans.
    October 03, 2017   doi: 10.1111/kykl.12150   open full text
  • Differences in National Identity, Violence and Conflict in International Sport Tournaments: Hic Sunt Leones!
    Raul Caruso, Marco Di Domizio, David A. Savage.
    Kyklos. August 25, 2017
    This work examines the relationship between national identity and conflict during international sporting tournaments and the impact of referees as an institutional countermeasure. The empirical analysis covers the FIFA World, Confederations and Under 20's World Cups and Olympic tournaments from 1994 to 2014, resulting in 1152 individual matches. We use the issuing of cards (red and yellow) and the number of sanctions (fouls) as a conflict proxy, plus macro‐level national identity markers to determine between team variations. Our results indicate that national identity is robustly significant in the prediction of conflict, whereas the match‐specific variables seem to be of less importance. Additionally, we observe that referees are a highly successful control of on‐field aggression.
    August 25, 2017   doi: 10.1111/kykl.12147   open full text
  • Fiscal Fairness as a Political Argument.
    Bram Mahieu, Benny Geys, Bruno Heyndels.
    Kyklos. August 25, 2017
    Governments typically apply several tax instruments. The tax choice literature sees the choice among these as depending on the political costs involved. One source of such costs is (horizontal) inequity in the distribution of the tax burden. In this article, we provide the first empirical test of the question whether and to what extent such inequity affects tax choices. Using data on housing sales and tax policy in Flemish municipalities, we create an indicator for the inequity of the local property tax. The latter is levied on the property's assessed rental value, and its inequity is a by‐product of the slow reassessment procedure, leading to a situation in which properties of identical value are taxed very differently. We find clear evidence that municipalities in which property taxation is more inequitable tend to rely less on this tax as a source of municipal revenue.
    August 25, 2017   doi: 10.1111/kykl.12151   open full text
  • Do Economics Departments Improve after They Appoint a Top Scholar as Chairperson?
    Amanda H. Goodall, John M. McDowell, Larry D. Singell.
    Kyklos. August 25, 2017
    There has been almost no research into what makes an effective chairperson in a university department. This paper constructs a historical longitudinal dataset on economics departments in 58 US research universities. It documents evidence that a department's research output tends to improve substantially when the incoming department Chair is himself or herself an outstanding scholar (in particular, is highly cited). The analysis adjusts for a set of other possible influences, including the standing of the department, university resources, the previous Chair, the trend in the department's productivity, and time‐lags. Possible interpretations, and implications for future research, are discussed.
    August 25, 2017   doi: 10.1111/kykl.12148   open full text
  • The Electoral Politics and the Evolution of Complex Healthcare Systems.
    Roger D. Congleton, Alberto Batinti, Rinaldo Pietratonio.
    Kyklos. August 25, 2017
    There is no abstract available for this paper.
    August 25, 2017   doi: 10.1111/kykl.12146   open full text
  • Work for Passion or Money? Variations in Artists’ Labor Supply.
    Trine Bille, Knut Løyland, Anders Holm.
    Kyklos. July 06, 2017
    This paper assesses the relative impact of work for money or work for passion on Norwegian artists by examining artists’ labor supply. Our contribution is twofold. The first is to test the work‐preference model and the second is to investigate the impact of arts grants on artists’ labor supply. The empirical specification draws two distinctions: between arts and non‐arts income and between labor and non‐labor income. Non‐labor income is divided into three different sources: (1) spouse's income, (2) income from financial assets and social benefits, and (3) arts grants and subsidies. Our contribution adds to the literature by estimating the significance of these various income sources on the time allocated to arts work, non‐arts work, and leisure. The results provide convincing evidence for the work‐preference model, and ad hoc evidence shows that art grants have a significant positive effect on the supply of arts hours. This finding supports arts policy and shows the impact of art grants on artists’ motivation to work on their arts. The causality of wages on supply is demonstrated by estimating the effects of wage shocks (grants) on arts labor supply using fixed‐effect and difference‐in‐difference methods.
    July 06, 2017   doi: 10.1111/kykl.12141   open full text
  • Online Networks and Subjective Well‐Being.
    Fabio Sabatini, Francesco Sarracino.
    Kyklos. July 06, 2017
    We test the relationship between the use of social networking sites (SNS) and a proxy of utility, i.e. subjective well‐being (SWB), using instrumental variables. Additionally, we disentangle the indirect effects of SNS on well‐being mediated by face‐to‐face interactions and social trust using a structural equation model. Results suggest that the use of SNS hampers people's well‐being directly and indirectly, through its negative effects on social trust. However, the use of SNS also has a positive impact on well‐being because it increases the probability of face‐to‐face interactions. Yet, the net effect of the use of SNS for SWB remains negative.
    July 06, 2017   doi: 10.1111/kykl.12145   open full text
  • Fundamental Versus Granular Comparative Advantage: An Analysis Using Chess Data.
    Asier Minondo.
    Kyklos. July 06, 2017
    The Ricardian and Heckscher‐Ohlin models of international trade contend that firms do not play any role in shaping countries' export specialization. However, the evidence shows that few firms dominate exports in many countries. This paper analyzes the relative contribution of fundamental (country) and granular (individual) comparative advantage to the differences in specialization across countries in a particular activity: chess. Using data on the quality of around 146,000 chess players in 106 countries in 2015, I find that fundamental comparative advantage is the main contributor to the variation in countries' specialization in chess. However, the contribution of granular comparative advantage becomes larger when analyzing specialization in very high‐quality chess players. Despite the appearance of chess servers that allow playing online and offer tools to improve chess skills, I do not find convergence in fundamental comparative advantage over the period 2001‐2015.
    July 06, 2017   doi: 10.1111/kykl.12144   open full text
  • Majority Rules in Constitutional Referendums.
    Stephan Michel, Ignacio N. Cofone.
    Kyklos. July 06, 2017
    The paper addresses the divergence in majority rules at the moment of creating or reforming constitutions. While constitutions require, in most cases, qualified majorities in order to be approved at the constitutional assembly, they normally require only simple majorities to be ratified at the referendum. We analyze the set of conditions under which each majority rule is preferable for constitutional referendums. We argue that the simple majority requirement for referendums in constitution‐making, which is nearly universally used, lacks a clear theoretical justification. Qualified majority rules increase legitimacy and provide additional checks on the drafters. We further highlight when simple majority rules have advantages: when decision‐making costs in the referendum are high. Thereafter, we present an evaluation mechanism to identify the cases in which each majority rule should be used to increase stability and legitimacy. We then apply this evaluation mechanism to the constitution‐making processes in Poland, Bolivia and Egypt, which are three examples of diverging majority rules.
    July 06, 2017   doi: 10.1111/kykl.12143   open full text
  • Shaking Off Burdens – Debt Relief and Moral Intuitions.
    David Chavanne.
    Kyklos. July 06, 2017
    Motivated by the prevalence of debt crises and the resulting policy debates, this study uses a vignette‐based survey to examine the moral intuitions that underlie debt‐related policy preferences. After reading a hypothetical scenario involving a debtor and a lender, survey respondents rate the degree of fairness that they attach to a third party's decision to allow debt relief. The experimental design varies (1) the responsibility of lenders and debtors in terms of whether their situations stem from bad luck or poor choices, (2) the salience of a lender's profit motive and (3) whether the debtor and the lender are individuals or corporations. The results show that debt relief is more likely to be found fair in a corporate context compared to a personalized context and that the factors that drive the perceived fairness of debt relief differ across corporate and personalized contexts. With corporate debt, debtor and lender responsibility are strongly, and consistently, linked to the perceived fairness of debt relief. With personalized debt, lender responsibility is never a significant driver of the perceived fairness of debt relief, and debtor responsibility only matters if the lender's profit motive is made salient.
    July 06, 2017   doi: 10.1111/kykl.12142   open full text
  • Early Retirement across Europe. Does Non‐Standard Employment Increase Participation of Older Workers?
    Jim Been, Olaf Vliet.
    Kyklos. April 10, 2017
    In many European countries, the labor market participation of older workers is considerably lower than the labor market participation of prime‐age workers. This study examines the variation in labor market withdrawal of older workers across 13 European countries over the period 1995‐2008. We seek to contribute to the international comparative macro literature by analyzing the effects of non‐standard employment. Accounting for a number of labor market institutions, the empirical analysis leads to the conclusion that part‐time employment—and in particular voluntary part‐time employment—is negatively related to labor market withdrawal of older men. As such, the results indicate that part‐time employment functions as ‘bridge employment’ between full‐time employment and retirement. Additionally, we find that part‐time employment at older ages does not decrease the average actual hours worked. Taken together, our results show that in countries with a high prevalence of part‐time employment among older workers, the labor supply of older workers is higher both at the extensive and the intensive margin.
    April 10, 2017   doi: 10.1111/kykl.12134   open full text
  • Is Decentralization Really Welfare Enhancing? Empirical Evidence from Survey Data (1994‐2011).
    Marta Espasa, Alejandro Esteller‐Moré, Toni Mora.
    Kyklos. April 10, 2017
    Decentralization is believed to constitute the optimal institutional arrangement for the provision of public expenditure. In contrast to centralization, it is thought to offer a better match between the provision of public services and individual preferences. We test this fundamental hypothesis propounded by the fiscal federalism literature by analyzing the process of decentralization undergone by Spain since the beginning of the 1980s. We exploit survey data in which respondents (coded according to their region of residence) are asked about their level of satisfaction with the provision of public goods. A higher degree of satisfaction is expressed when responsibility for education and health expenditure is assigned to the intermediate tier of government rather than to central government. This level of satisfaction, however, is not recorded in the case of Spain's largest regions. Likewise, the simultaneous presence of tax revenue decentralization does not guarantee further welfare gains. In the case of the administration of justice—where the nature of the responsibility assigned to some regional governments is of a merely administrative nature—decentralization does not appear to have any impact on the level of satisfaction expressed.
    April 10, 2017   doi: 10.1111/kykl.12135   open full text
  • Donations to Political Parties: Investing Corporations and Consuming Individuals?
    Alexander Fink.
    Kyklos. April 10, 2017
    What motivates donations to political parties? Two views prevail. Donors are perceived either as ideologically motivated consumers or as privilege‐seeking investors. To investigate differences in donor motivation between corporations and individuals, we analyze data from Germany. For the period from 1994 to 2014, we find that corporations act more like investors than individuals do. First, we test whether corporations or individuals are more inclined to give more to incumbent parties than to parties outside the governing coalition. Giving to incumbent parties whose representatives hold public offices may be more attractive for investing donors. Second, we test for differences between corporations and individuals in the relative increase in donations from non‐election years to election years. Investor donations may be more volatile than consumer donations. We find that only corporations donate more to incumbent parties and that corporations increase their party donations from non‐election years to election years more than individuals do. These differences in the behavior of corporate and individual donors provide some evidence for potentially undesirable exchanges between corporations as investors and parties. Further, the differences between individual and corporate donors tend to be more consistent for parties to the right on the political spectrum.
    April 10, 2017   doi: 10.1111/kykl.12136   open full text
  • Economic Freedom in the Early 21st Century: Government Ideology Still Matters.
    Kai Jäger.
    Kyklos. April 10, 2017
    Empirical studies show that government ideology has hardly influenced welfare expenditures since the 1990s, casting doubt on the general ability of national governments to design economic policies according to their programmatic appeals. This study takes a comprehensive view on policy‐making by using a modified version of the Fraser Institute's Economic Freedom of the World Index. I focus on the aspects of economic freedom that provoke party polarization and that national governments are capable of influencing. The results suggest that government ideology still matters in the early 21st century: The empirical analysis of 36 OECD or new European Union member states from 2000 to 2012 shows that left‐wing governments are associated with significantly lower economic freedom. Economic freedom continues to be the guiding principle that divides left and right in economic policy‐making because the left still promotes relatively higher levels of government spending and regulation.
    April 10, 2017   doi: 10.1111/kykl.12137   open full text
  • The Increasing Irrelevance of Trade Diversion.
    Christopher S.P. Magee.
    Kyklos. April 10, 2017
    This paper is intended as a guide for policymakers considering new regional trade agreements. The data provided here show that only about a quarter of imports are potentially subject to trade diversion from new agreements (i.e. they come from countries outside of regional trading blocs and in industries with positive most‐favored nation tariffs). Since this percentage is steadily declining with the increasing number of regional trade agreements and the falling level of tariffs, trade diversion is becoming increasingly irrelevant as a concern for new trade deals. The paper also estimates how each potential new bilateral free trade agreement would affect a country's imports and exports, as well as whether the increased imports would replace domestic production, imports from other RTA partners, or imports from non‐RTA partners. In this way, the estimates are able to shed light on which countries make the best partners for new regional trade agreements. Finally, the paper provides estimates of the trade effects for two large potential new regional agreements: the Transatlantic Trade and Investment Partnership and the Trans‐Pacific Partnership.
    April 10, 2017   doi: 10.1111/kykl.12138   open full text
  • Public Corruption in the U.S. States and Its Impact on Public Debt Pricing.
    Tima T. Moldogaziev, Cheol Liu, Martin J. Luby.
    Kyklos. April 10, 2017
    This study evaluates the levels of public corruption in the American states and their impact on the prices of public debt sold by underwriting banks to retail investors. Results suggest that the markups paid by retail investors to underwriters decrease significantly with the incidence of public corruption. The relationship remains significant even when existing anti‐corruption enforcement efforts are taken into consideration. Extant literature shows that the issuers of public debt from relatively more corrupt jurisdictions receive lower prices from underwriting banks in wholesale transactions. We develop and empirically show the mechanism through which this can occur. We offer the first evidence that the public debt market exerts disciplining pressures on the American states with greater levels of public corruption. When purchasing state‐issued public debt, retail buyers appear to demand narrower markups by factoring in public corruption. This, we argue, is an important reason why underwriting banks offer lower prices when dealing with less disciplined fiscal sovereigns.
    April 10, 2017   doi: 10.1111/kykl.12139   open full text
  • Learning from the Swiss Corporate Governance Exception.
    Massimiliano Vatiero.
    Kyklos. April 10, 2017
    The Swiss economy represents an exception to the legal origin theory (e.g., Roe, 2006). Although Switzerland is a country belonging to the civil law family, many of its public companies have diffused corporate ownership, as do those in common law countries. This paper maintains that the Swiss exception relies on the complementarity between corporate ownership and policies addressing employment protection and innovation. The Swiss case presents two lessons. First, the current corporate governance is the result of a long and composite path in which politics plays a pivotal role; second, the institutional differences and similarities across countries, which one would try to explain along with the legal origin theory, can also emerge from politics‐based accounts, such as those referring to policies on employment protection and innovation.
    April 10, 2017   doi: 10.1111/kykl.12140   open full text
  • Historical Prevalence of Infectious Diseases, Cultural Values, and the Origins of Economic Institutions.
    Boris Nikolaev, Raufhon Salahodjaev.
    Kyklos. January 21, 2017
    It is widely believed that economic institutions such as competitive markets, the banking system, and the structure of property rights are essential for economic development. But why economic institutions vary across countries and what are their deep origins is still a question that is widely debated in the developmental economics literature. In this study, we provide an empirical test for the provocative hypothesis that the prevalence of infectious diseases influenced the formation of personality traits, cultural values, and even morality at the regional level (the so called Parasite‐ Stress Theory of Values and Sociality), which then shaped economic institutions across countries. Using the prevalence of pathogens as an instrument for cultural traits such as individualism, we show in a two‐stage least squares analysis that various economic institutions, measured by different areas of the index of Economic Freedom by the Heritage Foundation, have their deep origins in the historical prevalence of infectious diseases across countries. Our causal identification strategy suggests that cultural values affect economic institutions even after controlling for a number of confounding variables, geographic controls, and for different sub‐samples of countries. We further show that the results are robust to four alternative measures of economic and political institutions.
    January 21, 2017   doi: 10.1111/kykl.12132   open full text
  • A Prey‐Predator Model of Trade Union Density and Inequality in 12 Advanced Capitalisms over Long Periods.
    Louis Chauvel, Martin Schröder.
    Kyklos. January 21, 2017
    This article shows empirically how trade union membership and income inequality are mutually related in twelve countries over more than 100 years. While past research has shown that high income inequality occurs alongside low trade union membership, we show that past income inequality actually increases trade union membership with a time lag, as trade unions recruit more members after inequality has been high. But we also show that strengthened trade unions then fight inequality, thereby destroying what helped them to recruit new members in the past. As trade union density decreases, inequality increases and eventually re‐incentivises workers to join unions again. By showing this empirically, we reconceptualise the relationship between inequality and union density as a prey and predator model, where predators eat prey – unions destroy inequality, but thereby also destroy their own basis for survival. By empirically showing that trade union density and social inequality influence each other in this way over long periods, this article contributes to a dynamic approach on how social problems and social movements interact.
    January 21, 2017   doi: 10.1111/kykl.12128   open full text
  • Do More of Those in Misery Suffer from Poverty, Unemployment or Mental Illness?
    Sarah Flèche, Richard Layard.
    Kyklos. January 21, 2017
    Studies of deprivation usually ignore mental illness. This paper uses household panel data from the USA, Australia, Britain and Germany to broaden the analysis. We ask first how many of those in the lowest levels of life‐satisfaction suffer from unemployment, poverty, physical ill health, and mental illness. The largest proportion suffers from mental illness. Multiple regression shows that mental illness is not highly correlated with poverty or unemployment, and that it contributes more to explaining the presence of misery than is explained by either poverty or unemployment. This holds both with and without fixed effects.
    January 21, 2017   doi: 10.1111/kykl.12129   open full text
  • Public Attitudes toward Fiscal Consolidation: Evidence from a Representative German Population Survey.
    Bernd Hayo, Florian Neumeier.
    Kyklos. January 21, 2017
    The poor state of public finances in many countries has led to calls for fiscal consolidation. In practice, implementing concrete consolidation measures appears to meet with public resistance, suggesting that the success of consolidation efforts strongly depends on the popularity of the chosen measures. To identify public attitudes toward fiscal consolidation and alternative consolidation measures, we conducted a survey among 2,000 German citizens. Applying ordered and multinominal logit models, we test theory‐based hypotheses about the determinants of individual attitudes toward public debt. We find that, inter alia, personal economic situation, time preferences, fiscal illusion, and trust in politicians exert a significant impact on attitudes toward fiscal consolidation and preferences for alternative consolidation measures.
    January 21, 2017   doi: 10.1111/kykl.12130   open full text
  • Greying the Budget: Ageing and Preferences over Public Policies.
    Luiz Mello, Simone Schotte, Erwin R. Tiongson, Hernan Winkler.
    Kyklos. January 21, 2017
    This paper looks at how individual attitudes towards the allocation of government spending change along the life cycle. As individuals age and re‐evaluate the benefits and costs of government programs, such as education, healthcare and old‐age pensions, they also influence the level and composition of government spending. Using the Life in Transition Survey II for 34 countries of Europe and Central Asia, we find that older individuals are less likely to support hikes in government outlays on education and more likely to support increases in spending on pensions. These results are very similar across countries, and they do not change when using alternative model specifications, estimation methods and data sources. To our knowledge, this the first paper to provide evidence of the “grey peril” effect for a large group of developed, middle‐income and low‐income economies. Our findings are consistent with a body of literature arguing that conflict across generations over the allocation of government expenditure may intensify in ageing economies.
    January 21, 2017   doi: 10.1111/kykl.12131   open full text
  • Are Left‐Wing Governments Really Pro‐Labor? An Empirical Investigation for Latin America.
    Krishna Chaitanya Vadlamannati, Artur Tamazian.
    Kyklos. January 21, 2017
    Are left‐wing governments in Latin America, as proclaimed by their leaders, really pro‐labor? It is often argued that left‐wing governments in Latin America have implemented pro‐labor policies. In this paper we put these claims to an empirical test using 37 aspects of de facto (practices) and de jure (laws) violations of labor rights. Using panel data on 26 Latin American and Caribbean countries during the period 1985–2002, we do not find any effect of left‐leaning chief executives on labor rights. While left‐leaning chief executives do legislate laws protecting labor rights, the enforcement of these laws is abysmally weak. Further evidence suggests that cohesive left‐wing governments are more likely to legislate laws protecting labor rights than diverse governments. These results are robust to alternative measures of ideology, estimation methods, and controlling for endogeneity. The policy implications suggest that irrespective of the political ideology, upholding labor rights in Latin America requires strengthening the enforcement capacity.
    January 21, 2017   doi: 10.1111/kykl.12133   open full text
  • Social Media and the Diffusion of Information: A Computational Experiment on the Emergence of Food Scares.
    Benoît Desmarchelier, Eddy S. Fang.
    Kyklos. October 25, 2016
    This paper examines how social media have modified the process through which information spreads within a population. Building on agent‐based modeling and a behavioral survey on information diffusion following a food scare in China (n = 586), we study diffusion networks in simulated populations with and without access to social media. While the use of social media does not increase the likelihood of informational cascades, our results suggest a significant change in the topology of diffusion networks. Social media facilitate the formation of feedback loops through the emergence of multiple links, which can potentially lead to instances of market and social panic.
    October 25, 2016   doi: 10.1111/kykl.12120   open full text
  • It's Politics, Stupid! Political Constraints Determined Governments' Reactions to the Great Recession.
    Fabian Gunzinger, Jan‐Egbert Sturm.
    Kyklos. October 25, 2016
    This paper quantifies the effect of political constraints, as measured by legislative control by the incumbent government, on the size of fiscal stimulus packages that have been put in place as a reaction to the Great Recession. On average, political constraints reduced the size of a country's fiscal stimulus package by between 1 and 2.7 percentage points of GDP. This finding is robust to a number of alternative dependent variables, control variables, and sample specifications and is in line with the widely held, but never tested, perception that political reality limits the de facto application of discretionary fiscal policy as reaction to economic shocks.
    October 25, 2016   doi: 10.1111/kykl.12121   open full text
  • The Effects of 9/11 on Attitudes toward Immigration and the Moderating Role of Education.
    Simone Schüller.
    Kyklos. October 25, 2016
    The 9/11 terror attacks are likely to have induced an increase in anti‐immigrant and anti‐foreigner sentiments, not only among US residents but also beyond US borders. Using unique longitudinal data from the German Socio‐Economic Panel and exploiting exogenous variation in interview timing throughout 2001, I find that the 9/11 events caused an immediate shift of around 40 percent of one within‐standard deviation to more negative attitudes toward immigration and resulted in a considerable decrease in concerns over xenophobic hostility among the German population. The quasi‐experiment 9/11 provides evidence on the relevance of non‐economic factors in attitude formation and the role of education in moderating the negative terrorism shock. Additional descriptive analysis suggests that the effects have also been persistent in the years after the attacks.
    October 25, 2016   doi: 10.1111/kykl.12122   open full text
  • Student Employment and Later Labour Market Success: No Evidence for Higher Employment Chances.
    Stijn Baert, Olivier Rotsaert, Dieter Verhaest, Eddy Omey.
    Kyklos. July 12, 2016
    We investigate the impact of student work experience on later hiring chances. To completely rule out potential endogeneity, we present a field experiment in which various forms of student work experience are randomly disclosed by more than 1000 fictitious graduates applying for jobs in Belgium. Theoretical mechanisms are investigated by estimating heterogeneous treatment effects by the relevance and timing of revealed student work experience. We find that neither form of student work experience enhances initial recruitment decisions. For a number of candidate subgroups (by education level and occupation type), even an adverse effect is found.
    July 12, 2016   doi: 10.1111/kykl.12115   open full text
  • Individual Responsibility and Economic Development: Evidence from Rainfall Data*.
    Lewis Davis.
    Kyklos. July 12, 2016
    This paper estimates the effect of individual responsibility on economic development using an instrument derived from rainfall data. I argue that a taste for collective responsibility was adaptive in preindustrial societies that were exposed to high levels of agricultural risk, and that these attitudes continue to influence contemporary social norms and economic outcomes. The link between agricultural risk and collective responsibility is formalized in a model of optimal parental socialization effort. Empirically, I find a robust negative correlation between rainfall variation, a measure of exogenous agricultural risk, and a measure of individual responsibility. Using rainfall variation as an instrument, I find that individual responsibility has a large positive effect on economic development. The relationships between rainfall variation, individual responsibility and economic development are robust to the inclusion of variables related to climate and agricultural and institutional development.
    July 12, 2016   doi: 10.1111/kykl.12116   open full text
  • Learning to Cooperate: Applying Deming's New Economics and Denzau and North's New Institutional Economics to Improve Interorganizational Systems Thinking.
    Arthur T. Denzau, Henrik P. Minassians, Ravi K. Roy.
    Kyklos. July 12, 2016
    Public administrators often go about their business blind to how their actions both affect, and are affected by, the activities and processes of agents operating outside their own organizations. In truth, no single agency or department operates in a vacuum or in isolation of other organizational entities. According to world‐renowned leadership and management expert, W. Edwards Deming, a given agency's ability to perform its duties effectively is the result of a myriad of interdependent processes and operations with other organizations. Consequently, effective leaders must develop an understanding of how the departments they oversee both influence, and are at the same time influenced by the outside agencies and organizations upon whom they mutually depend. 1) We draw jointly on W. Edwards Deming's System of Profound Knowledge (SoPK) framework and Arthur T. Denzau and Douglass C. North's (1994) New Institutional Economics (NIE)‐based work on Shared Mental Models (SMM) to explore why inter‐agency cooperation tends to be limited in ‘traditional’ organizational environments. 2) Drawing on Denzau and North's SMM, we then suggest how inter‐organizational communication and cooperation can be facilitated via two means of learning—training and experiential. 3) We then apply concepts from Denzau and North's SMM to suggest a modified model of the Nash equilibrium used in game theory. This model is then used to operationalize the learning path to Deming's approach to ‘systems thinking’ (SoPK.) 4) Finally, we provide a real‐world example to illustrate the modified model.
    July 12, 2016   doi: 10.1111/kykl.12117   open full text
  • Attenuation Bias, Recall Error and the Housing Wealth Effect.
    Yvonne McCarthy, Kieran McQuinn.
    Kyklos. July 12, 2016
    There is no abstract available for this paper.
    July 12, 2016   doi: 10.1111/kykl.12118   open full text
  • Prediction Markets, Social Media and Information Efficiency.
    Leighton Vaughan Williams, J. James Reade.
    Kyklos. July 12, 2016
    We consider the impact of breaking news on market prices. We measure activity on the micro‐blogging platform Twitter surrounding a unique, newsworthy and identifiable event and investigate subsequent movements of betting prices on the prominent betting exchange, Betfair. The event we use is the Bigotgate scandal, which occurred during the 2010 UK General Election campaign. We use recent developments in time series econometric methods to identify and quantify movements in both Twitter activity and Betfair prices, and compare the timings of the two. We find that the response of market prices appears somewhat sluggish and is indicative of market inefficiency, as Betfair prices adjust with a delay, and there is evidence for post‐news drift. This slow movement may be explained by the need for corroborating evidence via more traditional forms of media. Once important tweeters begin to tweet, including importantly breaking news Twitter feeds from traditional media sources, prices begin to move.
    July 12, 2016   doi: 10.1111/kykl.12119   open full text
  • Cultural Influence on Preferences and Attitudes for Environmental Quality.
    Yiannis Kountouris, Kyriaki Remoundou.
    Kyklos. April 22, 2016
    We investigate national culture's influence on preferences for and attitudes to environmental quality. We use the cultural diversity of immigrants in European countries to isolate the effect of culture from the confounding effect of the economic and institutional environment. Results suggest that culture is a significant determinant of migrants' individual environmental preferences and attitudes. Migrants from countries with higher levels of environmental preferences are more willing to trade off income for environmental quality when controlling for individual characteristics, country of residence, and country of origin macroeconomic and environmental conditions. Furthermore, culture significantly influences individual beliefs about limits to growth, the fragility of the balance of nature, and the likelihood of an ecological crisis. The result is robust to alternative definitions of the cultural proxy and points to the significance of accounting for cultural influences in the design of domestic and international environmental policy and the application of environmental valuation techniques.
    April 22, 2016   doi: 10.1111/kykl.12114   open full text
  • (Please Don't) Say It to My Face! The Interaction of Feedback and Distance: Experiments with Vulgar Language.
    David Blake Johnson.
    Kyklos. April 22, 2016
    I extend current understanding of non‐monetary punishments by introducing one‐way unrestricted feedback (vulgar language) from responders in laboratory and online ultimatum games. Feedback changes in the expected direction. Negative feedback is returned in the event of low offers while higher offers receive positive feedback. Additionally, the possibility of unrestricted feedback significantly increases amounts sent by proposers, but only in the lab. This effect is statistically significant and large in magnitude but is not present in the online experiments. These results illustrate that increases in social distance and/or physical proximity can weaken the effectiveness of non‐monetary punishments.
    April 22, 2016   doi: 10.1111/kykl.12113   open full text
  • Do Constitutions Matter? The Effects of Constitutional Environmental Rights Provisions on Environmental Outcomes.
    Chris Jeffords, Lanse Minkler.
    Kyklos. April 22, 2016
    We use a novel data set within an instrumental variables framework to test whether the presence and language of constitutional environmental rights influence environmental outcomes. The outcome variables include Yale's Environmental Performance Index and its components. We employ two‐stage least squares to account for reverse causality, that is, the possibility that a country which takes steps to protect the environment might also be more likely to constitutionalize environmental rights. Our first stage theory combines constitution norms, opposition costs, and generation effects. Our controls include country income, which means that our study is also related to the Environmental Kuznets Curve literature. We find that constitutions do indeed matter for positive environmental outcomes, which suggests that we should not only pay attention to the incentives confronting polluters and resource users, but also to the incentives and constraints confronting those policymakers who initiate, monitor, and enforce environmental policies.
    April 22, 2016   doi: 10.1111/kykl.12112   open full text
  • How Do Voters React to Complex Choices in a Direct Democracy? Evidence from Switzerland.
    Zohal Hessami.
    Kyklos. April 22, 2016
    Direct democracy may impose significant information demands on voters, especially when individual propositions are highly complex. Yet, it remains theoretically ambiguous how proposition complexity affects referendum outcomes. To explore this question, I use a novel dataset on 153 Swiss federal referendums that took place between 1978 and 2010. The dataset includes hand‐collected data on the number of subjects per proposition based on official pre‐referendum information booklets as a measure of complexity. My estimation results suggest that the relationship between proposition complexity and the share of yes‐votes follows an inverse U‐shape. Using micro‐data from representative post‐referendum surveys, I provide evidence for two opposing channels. More complex propositions are supported by a more diverse group of voters. On the other hand, voters find it more difficult to estimate the personal consequences of complex propositions and are therefore more likely to reject them.
    April 22, 2016   doi: 10.1111/kykl.12111   open full text
  • The Effect of Over‐Indebtedness on Health: Comparative Analyses for Europe.
    Stefan Angel.
    Kyklos. April 22, 2016
    The aim of this paper is twofold. First, it tests whether an effect of over‐indebtedness on self‐assessed health exists. Fixed‐effects panel regression models based on panel data for 25 European countries show that being in arrears increases the likelihood of reporting bad/very bad health. However, effects are weak in terms of economic significance. The second research question focuses on the effect heterogeneity of overindebtedness among different European countries. It asks whether country‐level factors moderate the effect of problematic debt on health. These macro‐variables are the accessibility of health services, debt management and debt discharge regulations, dispute resolution with banks/insurance companies, and the social stigma of being over‐indebted/in debt. Descriptive analyses showed that some aspects of the legal debt‐collection process (e.g., higher costs of debt collection) are associated with a stronger effect of over‐indebtedness on subjectively assessed poor health. There is also some evidence that easier dispute resolution with banks and insurance companies is correlated with smaller effects of over‐indebtedness on health.
    April 22, 2016   doi: 10.1111/kykl.12109   open full text
  • Corruption: Transcending Borders.
    Esteban Alemán Correa, Michael Jetter, Alejandra Montoya Agudelo.
    Kyklos. April 22, 2016
    Is corrupt behavior transmitted internationally? Using panel data for 123 countries from 1995 to 2012, our results suggest a positive and statistically meaningful relationship between neighboring countries’ corruption levels and domestic graft. This result is robust to including two‐way fixed effects, country‐specific time trends, and the standard set of control variables. The effect becomes stronger as income increases, if capital cities are located closer to each other, and if countries share a common political union, such as the European Union. We find less evidence for common language or comparable institutional backgrounds (e.g., similar degrees of democracy), but some evidence for trade relationships as potential transmission channels. These findings allow two main conclusions. First, a country with corrupt neighbors will find it difficult to get rid of corruption. Second, on a more positive note, efforts aimed at decreasing domestic corruption levels could produce positive externalities in affecting neighboring countries. This could particularly hold true within a common institutional framework, such as the European Union.
    April 22, 2016   doi: 10.1111/kykl.12108   open full text
  • China's Impact on Africa – The Role of Trade, FDI and Aid.
    Matthias Busse, Ceren Erdogan, Henning Mühlen.
    Kyklos. April 22, 2016
    This paper investigates the impact of Chinese activities in sub‐Saharan African countries with respect to the growth performance of economies in that region. Using a Solow‐type growth model and panel data for the period 1991 to 2010, we find that African economies that export natural resources have benefited from positive terms‐of‐trade effects. In addition, there is evidence for displacement effects of African firms due to competition from China. On the other hand, Chinese foreign investment and aid in Africa does not appear to have a significant impact on African growth.
    April 22, 2016   doi: 10.1111/kykl.12110   open full text
  • Do Natural Disasters Enhance Societal Trust?
    Hideki Toya, Mark Skidmore.
    Kyklos. April 10, 2014
    In this article we investigate the relationship between disasters and societal trust. A growing body research suggests that factors such as income inequality, ethnic fractionalization and religious heritage are important determinants of social capital in general and trust in particular. We present new panel data evidence of another important determinant of trust – the frequency of natural disasters. Frequent naturally occurring events such as storms require (and provide opportunity for) societies to work closely together to meet their challenges. While natural disasters can have devastating human and economic impacts, a potential spillover benefit of greater disaster exposure may be a more tightly knit society.
    April 10, 2014   doi: 10.1111/kykl.12053   open full text
  • European Identity and Support for European Integration: A Matter of Perceived Economic Benefits?
    Soetkin Verhaegen, Marc Hooghe, Ellen Quintelier.
    Kyklos. April 10, 2014
    Economic utilitarian theory assumes a relationship between economic benefits, support for European integration and European identity. While the relationship between economic benefits and support for European integration has already been empirically investigated, this is not the case for European identity. Therefore, we test the association between economic indicators and European identity, while performing the same analysis for support for European integration. Eight different objective and perceived economic parameters are tested, covering the whole spectrum of sociotropic, egocentric, objective and perceived benefits. The multilevel analyses on Eurobarometer data show that economic considerations are positively associated with support and European identity. This is especially the case for perceived benefits, indicating that earlier findings about perception of benefits in the study of support for European integration are valid for European identity as well.
    April 10, 2014   doi: 10.1111/kykl.12055   open full text
  • Conceptualising Work in Economics: Negating a Disutility.
    David A. Spencer.
    Kyklos. April 10, 2014
    This paper starts from the premise that economics has offered a one‐sided conception of work. Standard economic theory, specifically, has defined work as a means to income and consumption; it has failed to grasp the importance of work as an end in its own right. The aim of the paper is to develop an alternative conception of work that captures the formative impacts of work on the well‐being of workers. The paper firstly outlines and criticises the different definitions of the disutility of work found in economics. It then offers a critical assessment of happiness research on work. The idea that the effects of work on worker well‐being can be captured by job satisfaction data and that the importance of work can be reduced to a subjective feeling in the heads of individual workers – two key aspects of happiness research – are challenged. The final part of the paper develops novel ideas about how the economics of work should progress in the future. The section proposes a needs‐based conception of work and then uses this conception to make the case for collective intervention aimed at enhancing the quality of work life.
    April 10, 2014   doi: 10.1111/kykl.12054   open full text
  • The Effect of Political Connections on Credit Access: Does the Level of Financial Development Matter?
    Addisu A. Lashitew.
    Kyklos. April 10, 2014
    Although growing evidence indicates that political connections affect firm performance, little is known how institutional factors moderate the process. This paper investigates the effect of political connections on credit access, and the role of financial development in moderating the relationship between the two. The analysis is based on a unique dataset of manufacturing firms that covers dozens of developing and transition countries. The results show that the strength of political connections, measured by the amount of time the firm's senior managers spend with government officials, has a significant positive effect on credit access. Exploiting the cross‐country dimension of the dataset, I then show that the effect of political connections is higher in countries where the banking sector is more concentrated and has higher net interest margin. Furthermore, the effect of political connections is lower in countries that have credit information sharing mechanisms. These results suggest that a competitive banking sector improves efficiency of credit allocation by reducing politically motivated lending.
    April 10, 2014   doi: 10.1111/kykl.12051   open full text
  • Competition between Judaism and Christianity: Paul's Galatians as Entry Deterrence.
    Mario Ferrero.
    Kyklos. April 10, 2014
    This paper sets forth a theory of competition between exclusive religions as an entry deterrence game, in which the incumbent may find it profitable not to accommodate but to deter the competitor's entry by precommitting to sufficient capacity expansion in the event of entry. If entry costs are high enough, deterrence is optimal and the incumbent remains a monopolist, although the entry threat distorts its effort upward. The model is then used to explain the Jews' withdrawal from proselytism in the face of Christian competition in the first century CE. We review the historical evidence on conversion to Judaism before and after the first century and argue that the demise of Jewish proselytism was due not to the destruction of the Second Temple in 70 CE but to the apostle Paul's strategic decision, in his letter to the Galatians, that Gentiles need not convert to Judaism to become Christians.
    April 10, 2014   doi: 10.1111/kykl.12050   open full text
  • On the Performance of Monetary Policy Committees.
    Etienne Farvaque, Piotr Stanek, Stéphane Vigeant.
    Kyklos. April 10, 2014
    This paper examines the influence of the biographical experience of monetary policy committee members on their performance in managing inflation and output volatility. Our sample covers major OECD countries in the 1999 to 2010 period. Using data envelopment analysis, we study the efficiency of monetary policy committees. Then, we look at the determinants of these performances. The results in particular show that (i) in crisis times, a smaller committee is more efficient, (ii) policymakers' background influence the performance, with a positive role for committee members coming from academia, central banks and the financial sector, although the latter lost their edge during the Great Recession. It is also shown that some committees have reduced the inefficiency created by the crisis more rapidly than others.
    April 10, 2014   doi: 10.1111/kykl.12049   open full text
  • Crony Capitalism: Rent Seeking, Institutions and Ideology.
    Paul Dragos Aligica, Vlad Tarko.
    Kyklos. April 10, 2014
    This paper elaborates the notion of “crony capitalism” and advances an innovative approach to the analysis of the phenomenon in case, seen as a type of rent‐seeking society. The argument leads to a pioneering attempt to elaborate an original theory of crony capitalism as a sui generis system and with that end in view it combines three complementary perspectives: microeconomics (dealing with the basic economics of rent‐seeking), institutional or structural (dealing with the specific structures and configurations of institutions, policies and processes via which rent seeking gets materialized), and ideological (dealing with the ideas, rhetoric, beliefs, doctrines and other forms of legitimization and justification of the specific policies and institutions). The paper identifies significant functional differences between crony capitalism in high‐income and developing countries and advances a novel interpretation of the special nature of crony capitalism by focusing on the distinctive features of its ideological component.
    April 10, 2014   doi: 10.1111/kykl.12048   open full text
  • Privacy and Freedom: An Economic (Re‐)Evaluation of Privacy.
    Dominik Aaken, Andreas Ostermaier, Arnold Picot.
    Kyklos. April 10, 2014
    Departing from the mostly skeptical view of privacy encountered in economics, we re‐evaluate privacy from the perspective of economic liberalism. We argue that freedom is fundamental to economics and conceive privacy as a specific form of freedom. We then apply the principle that freedom cannot be ‘self‐defeating’ (no one is free not to be free) to privacy. This principle requires that restrictions of freedom and, by extension, privacy be revocable. We thus develop a novel concept of privacy, which leads us to evaluate privacy favorably, and apply the revocability requirement to identify unacceptable restrictions of privacy.
    April 10, 2014   doi: 10.1111/kykl.12047   open full text
  • The Effect of Immigration on Entrepreneurship.
    Yaron Zelekha.
    Kyklos. July 12, 2013
    This research focuses on the impact of immigration on entrepreneurship. I find clear evidence that immigration has a significant impact on entrepreneurship. The paper makes three important contributions to the research of both immigration and entrepreneurship. First, it proposes unique empirical evidence using a cross‐section analysis in which the country's level of immigrants has a significantly positive affect on its level of entrepreneurship. Second, it adds to the theoretical understanding of the mechanisms and environments that characterize positive immigration effects on entrepreneurship. I suggest that country‐specific characteristics – in particular urban, open, competitive and culturally diversified (including open minded for ethnic and gender diversity) – influence significantly the positive effect of immigrants on the country's level of entrepreneurship. Furthermore, these positive effects are magnified as the flow of immigrants grows. Third, it uses for the first time in the literature a cross‐section data set of 176 countries of immigrants and entrepreneurial activity.
    July 12, 2013   doi: 10.1111/kykl.12031   open full text
  • Immigration and Political Instability.
    Tesfaye A. Gebremedhin, Astghik Mavisakalyan.
    Kyklos. July 12, 2013
    Immigration may adversely affect political stability if immigrants are perceived unfavourably by host country populations. Using a large sample of countries this study confirms that a higher immigrant share of a population is associated with decrease in the level of political stability. We further demonstrate that a higher immigrant share leads to increased military spending through the channel of political stability. The negative effect of immigration on political stability appears to be stronger in countries with assimilative citizenship laws. We account for the endogeneity of immigrant share by using an instrument constructed from gravity model estimates.
    July 12, 2013   doi: 10.1111/kykl.12024   open full text
  • No Youth Left behind? The Long‐Term Impact of Displacement on Young Workers.
    Inés Hardoy, Pål Schøne.
    Kyklos. July 12, 2013
    We investigate short‐ and long‐term impacts on labour market outcomes of experiencing a displacement for young workers. The period under study is 2000–2009. The end of the observation period is characterised by a shrinking labour market, coinciding with the start of the financial crisis. The main merit of the study is the inclusion of a wide battery of dependent variables. In general we find sizeable short‐term effect on both unemployment and wage‐employment. Furthermore, the results indicate that displacement has a long‐term negative effect on wage employment. Part of this pattern seems to be masked by an increased likelihood of self‐employment. A positive effect on self‐employment is desirable from a policy perspective. Finally, among those who are employed in the final observation year, we find a small negative effect of displacement on hourly wages. This is solely explained by the foregone work experience of the displaced workers in the years after displacement.
    July 12, 2013   doi: 10.1111/kykl.12025   open full text
  • The Dictatorship of the Popes.
    Fabio Padovano, Ronald Wintrobe.
    Kyklos. July 12, 2013
    This paper takes the view that theocracies are essentially a form of dictatorship and verifies whether this interpretation is empirically supported when applied to the longest lasting example of theocracy, the temporal power of the Popes. The length of its record and the many historical shocks it had to face reveal information about the incentives and constraints that characterize it. We use this information to test some of the predictions of a theory of dictatorship about the durability of, and the source of opposition to the various regimes on data about the Papacy. The results appear to support the theory.
    July 12, 2013   doi: 10.1111/kykl.12026   open full text
  • The Impact of Multinationals on the Size of the Banking System.
    Dirk Schoenmaker, Dewi Werkhoven.
    Kyklos. July 12, 2013
    After the global financial crisis, the size of the banking sector has become a hotly debated topic. To measure the size of the banking system a country's banking assets divided by the country's gross domestic product (GDP) is commonly applied as a general yardstick. This paper shows that this yardstick does not take into account differences in financial needs. In particular, countries differ with regard to the number and size of multinational enterprises. In a cross‐country empirical study, we find a statistically significant relationship between the presence of large banks and the presence of multinationals, after controlling for the size of the country. That is why we develop an additional specific yardstick for firm specific financial needs.
    July 12, 2013   doi: 10.1111/kykl.12027   open full text
  • Green by Default.
    Cass R. Sunstein, Lucia A. Reisch.
    Kyklos. July 12, 2013
    There is no abstract available for this paper.
    July 12, 2013   doi: 10.1111/kykl.12028   open full text
  • Mind Matters.
    Slavisa Tasic.
    Kyklos. July 12, 2013
    This paper argues that two different worldviews may be identified in economics and hypothesizes about the origins of this differentiation. I argue that the differences in economic worldviews go beyond technical academic, methodological or ideological distinctions; instead, they may be related to both old conceptions of the two types of mind and some newer findings in cognitive neuroscience. In particular, I analyze the recent developments in economics from the brain lateralization point of view and argue that some salient trends in economic thought are largely compatible with the hypothesis of the increased left brain hemisphere dominance.
    July 12, 2013   doi: 10.1111/kykl.12029   open full text
  • Calling Democracies and Dictatorships: The Effect of Political Regime on International Long‐Distance Rates.
    Christian Bachelder Holkeboer, James Raymond Vreeland.
    Kyklos. July 12, 2013
    Do political regimes systematically impact the price of international long‐distance phone calls? We argue that, compared to autocracies, democratic governments have stronger incentives to regulate the provision of telephone service efficiently. In contrast, autocracies have incentives to limit communication between their citizens and the rest of the world. We thus expect the price of international long‐distance to vary with political regime. Controlling for other factors that may impact long‐distance pricing – such as level of economic development – we test this hypothesis using a cross‐section of 190 countries and find evidence of a democracy‐discount. It costs less to call democracies by about 25 percent.
    July 12, 2013   doi: 10.1111/kykl.12030   open full text