A Model of Equilibrium Institutions

Institutions that serve the interests of an elite are often cited as an important reason for poor economic performance. This paper builds a model of institutions that allocate resources and power to maximize the payoff of an elite, but where any group that exerts sufficient fighting effort can launch a rebellion that destroys the existing institutions. The rebels are then able to establish new institutions as a new elite, which will similarly face threats of rebellion. The paper analyses the economic consequences of the institutions that emerge as the equilibrium of this struggle for power. High levels of economic activity depend on protecting private property from expropriation, but the model predicts this can only be achieved if power is not as concentrated as the elite would like it to be, ex post. Power sharing endogenously enables the elite to act as a government committed to property rights, which would otherwise be time inconsistent. But sharing power entails sharing rents, so in equilibrium power is too concentrated, leading to inefficiently low investment.institutions, political economy, power struggle, property rights, time inconsistency

Complex delay dynamics on railway networks: from universal laws to realistic modelling

Railways are a key infrastructure for any modern country. The reliability and resilience of this peculiar transportation system may be challenged by different shocks such as disruptions, strikes and adverse weather conditions. These events compromise the correct functioning of the system and trigger the spreading of delays into the railway network on a daily basis. Despite their importance, a general theoretical understanding of the underlying causes of these disruptions is still lacking. In this work, we analyse the Italian and German railway networks by leveraging on the train schedules and actual delay data retrieved during the year 2015. We use {these} data to infer simple statistical laws ruling the emergence of localized delays in different areas of the network and we model the spreading of these delays throughout the network by exploiting a framework inspired by epidemic spreading models. Our model offers a fast and easy tool for the preliminary assessment of the {effectiveness of} traffic handling policies, and of the railway {network} criticalities.Comment: 32 pages (with appendix), 28 Figures (with appendix), 2 Table

Shrinking Point Bifurcations of Resonance Tongues for Piecewise-Smooth, Continuous Maps

Resonance tongues are mode-locking regions of parameter space in which stable periodic solutions occur; they commonly occur, for example, near Neimark-Sacker bifurcations. For piecewise-smooth, continuous maps these tongues typically have a distinctive lens-chain (or sausage) shape in two-parameter bifurcation diagrams. We give a symbolic description of a class of "rotational" periodic solutions that display lens-chain structures for a general $N$-dimensional map. We then unfold the codimension-two, shrinking point bifurcation, where the tongues have zero width. A number of codimension-one bifurcation curves emanate from shrinking points and we determine those that form tongue boundaries.Comment: 27 pages, 6 figure

Political specialization

This paper presents a theory of political specialization in which some countries uphold the rule of law while others consciously choose not to do so, even though they are ex ante identical. This is borne out of two key insights: for incumbents in each country, (i) the first steps to the rule of law have the greatest private cost, and (ii) steps taken by some countries in the direction of the rule of law make it less attractive for others to follow the same path. The world equilibrium features a symbiotic relationship between despotic and rule-of-law economies: by producing technology-intensive goods that require protection of property rights, rule-of-law economies raise the relative price of natural resources and increase incentives for despotism in other countries; while the choice of despotism entails a positive externality because cheap oil makes the rule of law more attractive elsewhere in the world

Simultaneous Border-Collision and Period-Doubling Bifurcations

We unfold the codimension-two simultaneous occurrence of a border-collision bifurcation and a period-doubling bifurcation for a general piecewise-smooth, continuous map. We find that, with sufficient non-degeneracy conditions, a locus of period-doubling bifurcations emanates non-tangentially from a locus of border-collision bifurcations. The corresponding period-doubled solution undergoes a border-collision bifurcation along a curve emanating from the codimension-two point and tangent to the period-doubling locus here. In the case that the map is one-dimensional local dynamics are completely classified; in particular, we give conditions that ensure chaos.Comment: 22 pages; 5 figure

Instrumental Goal Pursuit as an Individual-Difference Dimension in the Seeking of Happiness

The purpose of the present study was an attempt, by examining in more detail the use of the specific strategy of instrumental goal pursuit with the development of the Instrumental Goal Pursuit Scale (IGPS), to extend previous research on the self-selected strategies individuals employ in an attempt to seek happiness. The IGPS consists of five items characterized by happiness-enhancement strategies designed to meet personal goals (e.g., “Attempt to reach my full potential”). Although no gender difference was found, scores on the IGPS correlated significantly (p \u3c .001) with measures of life satisfaction and positive affect. Compared to those with low scores, those in the High-IGPS group maintained personal beliefs reflective of being more satisfied with their current state of happiness, feeling more optimistic about the future, and expressing greater control over their happiness, as well as a greater (p \u3c .001) frequency of use of the more constructive happiness-enhancement strategy categories of Purposeful Leisure, Social Affiliation, Mental Control, and Religious/Reflective. The overall pattern of results suggests initial support for the construct validity of the IGPS. Future research based on instrumental theories linking personality to subjective well-being should focus on individual differences in the underlying dynamics (e.g., goal construction/implementation) and practical implications (e.g., happiness interventions; goal-pursuit training) to examine more thoroughly the validity and utility of the IGPS

Fiscal Policy and National Saving in Mexico, 1980-2006

This paper uses structural vector autoregression (SVAR) models to characterize the dynamic impact of fiscal policy on national saving. SVARs have extensively been used in case of monetary policy. Data adjusted for inflation, capital flight, the value loss of debt and cyclical effects, is used rather than traditional measures. Our results suggest that fiscal policy that increases the structural surplus has a positive impact on national saving, some negative impact on private savings in shorter horizons but any significant e_ect over longer horizons, and a negative effect on the output gap.fiscal policy, national saving, private saving

Harold Jeffreys's Theory of Probability Revisited

Published exactly seventy years ago, Jeffreys's Theory of Probability (1939) has had a unique impact on the Bayesian community and is now considered to be one of the main classics in Bayesian Statistics as well as the initiator of the objective Bayes school. In particular, its advances on the derivation of noninformative priors as well as on the scaling of Bayes factors have had a lasting impact on the field. However, the book reflects the characteristics of the time, especially in terms of mathematical rigor. In this paper we point out the fundamental aspects of this reference work, especially the thorough coverage of testing problems and the construction of both estimation and testing noninformative priors based on functional divergences. Our major aim here is to help modern readers in navigating in this difficult text and in concentrating on passages that are still relevant today.Comment: This paper commented in: [arXiv:1001.2967], [arXiv:1001.2968], [arXiv:1001.2970], [arXiv:1001.2975], [arXiv:1001.2985], [arXiv:1001.3073]. Rejoinder in [arXiv:0909.1008]. Published in at http://dx.doi.org/10.1214/09-STS284 the Statistical Science (http://www.imstat.org/sts/) by the Institute of Mathematical Statistics (http://www.imstat.org