When the powerful drag their feet

We examine the timing of group decisions that are taken by weighted voting. Decision-making is in two stages. In the second stage, players vote on a policy restriction. In the first stage, players vote to determine the timing of the second-stage decision: “early”, before players’ types are revealed, or “late”. Players differ in both size and voting power. We show that players with greater power tend to prefer a late vote, whereas less powerful players tend to want to vote early. By contrast, large players tend to prefer an early vote and small players a late vote. We present evidence from the literatures on corporate governance, international relations, European Union governance, and oil extraction. We examine an extension in which players choose the qualified majority threshold besides the timing of the second-stage vote

Economies of Scale and Efficiency in European Banking: New Evidence

This paper investigates the cost efficiency of 1974 credit institutions across 15 European countries over the five-year period following the implementation of the Second Banking Directive in 1993. The Recursive Thick Frontier Approach is employed to estimate a Augmented Cobb-Douglas cost frontier that allows banks of different types, in different periods, and belonging to different size categories, to operate at different costs per unit of assets. As size economies are exhausted at a balance sheet total of EUR 600 million, we do not find major economic gains from economies of scale for the overall European banking industry. However, the saving bank sector may reduce average costs with roughly 6% by choosing an optimal size for its institutions. No impact of technological progress on the average costs of the full sample of X-efficient banks could be detected but managerial efficient saving banks reduced average costs with 9% during our sample period. The most important reason for inefficiencies in the European banking is managerial inability to control costs. Although in some countries such as the UK and The Netherlands cost reductions were rapidly achieved, the average level of X-inefficiency of European banks still exceeded 16% in 1997.X-efficiency; Economies of scale; European Banking; Cost Frontier; Recursive Thick Frontier Approach

The Efficiency and the Conduct of European Banks: Developments after 1992

European Central Bank; economic integration; economic performance; EMU; Euro; financial markets

Evolution of Magnetic Fields in Supernova Remnants

Supernova remnants (SNR) are now widely believed to be a source of cosmic rays (CRs) up to an energy of 1 PeV. The magnetic fields required to accelerate CRs to sufficiently high energies need to be much higher than can result from compression of the circumstellar medium (CSM) by a factor 4, as is the case in strong shocks. Non-thermal synchrotron maps of these regions indicate that indeed the magnetic field is much stronger, and for young SNRs has a dominant radial component while for old SNRs it is mainly toroidal. How these magnetic fields get enhanced, or why the field orientation is mainly radial for young remnants, is not yet fully understood. We use an adaptive mesh refinement MHD code, AMRVAC, to simulate the evolution of supernova remnants and to see if we can reproduce a mainly radial magnetic field in early stages of evolution. We follow the evolution of the SNR with three different configurations of the initial magnetic field in the CSM: an initially mainly toroidal field, a turbulent magnetic field, and a field parallel to the symmetry axis. Although for the latter two topologies a significant radial field component arises at the contact discontinuity due to the Rayleigh-Taylor instability, no radial component can be seen out to the forward shock. Ideal MHD appears not sufficient to explain observations. Possibly a higher compression ratio and additional turbulence due to dominant presence of CRs can help us to better reproduce the observations in future studies.Comment: 5 pages, 3 figures. To appear in conference proceedings of "Magnetic Fields in the Universe II" (2008), RevMexA

The Recursive Thick Frontier Approach to Estimating Efficiency

The traditional econometric techniques for frontier models, namely the Stochastic Frontier Approach (SFA), the Thick Frontier Approach (TFA) and the Distribution Free Approach (DFA) have in common that they depend on a priori assumptions that are, whether feasible or not, difficult to test. This paper introduces the Recursive Thick Frontier Approach (RTFA) to the estimation of technology parameters when panel data is available. Our approach is based on the assertion that if deviations from the frontier of X-efficient companies are completely random then one must observe for this group of firms that the probability of being located either above or below the frontier is equal to one half. This hypothesis can be tested for panel data sets but requires sorting of the full sample into a group of X-inefficient firms and a group of X-efficient (best practice) firms. The cost frontier is estimated using only the observations of the latter category.Cost/Production Function; Thick Frontier Approach; X-efficiency

Magnetic field amplification by cosmic rays in supernova remnants

Magnetic field amplification is needed to accelerate cosmic cays to PeV energies in supernova remants. Escaping cosmic rays trigger a return current in the plasma that drives a non-resonant hybrid instability. We run simulations in which we represent the escaping cosmic rays with the plasma return current, keeping the maximum cosmic ray energy fixed, and evaluate its effects on the upstream medium. In addition to magnetic field amplification, density perturbations arise that, when passing through the shock, further increase amplification levels downstream. As the growth rate of the instability is most rapid for the smaller scales, the resolution is a limiting factor in the amplification that can be reached with these simulations.Comment: 4 pages, 2 figures, to appear in the proceedings of the conference "370 years of Astronomy in Utrecht", eds. G. Pugliese, A. de Koter and M. Wijbur

African Farm/Family Forestry and Producer Organizations for improved livelihoods and sustainable landscape management

The paper tries to provide answers to questions on the status of farm/family forestry in Africa in terms of opportunities and challenges, their contribution to economic development and sustainable landscape management. In the paper, highlights are made on issues related to land tenure, institutional settings and other supporting policies. In addition, market access and factors that may influence the development of forest products value chains are discussed alongside the possibilities for promoting and strengthening cohesive actions amongst FFPOs in different countries and regions. Answers are provided on questions related to easiness to group formation and registration and their product base. Examples of such groups in terms of associations or federations at local, national and regional levels alongside some examples are briefly described. Information on how FFPOs are currently helping forestry farmers are provided with some examples clearly started including their future potentials and/or pitfalls. At the end of the paper, the outlook in the coming 5 to 10 years for the main opportunities and challenges awaiting farm/family forestry and related FFPOs in Africa are pinpointed

The recursive thick frontier approach to estimating efficiency

The traditional econometric techniques for frontier models, namely the Stochastic Frontier Approach (SFA), the Thick Frontier Approach (TFA) and the Distribution Free Approach (DFA) have in common that they depend on a priori assumptions that are, whether feasible or not, difficult to test. This paper introduces the Recursive Thick Frontier Approach (RTFA) to the estimation of technology parameters when panel data is available. Our approach is based on the assertion that if deviations from the frontier of X-efficient companies are completely random then one must observe for this group of firms that the probability of being located either above or below the frontier is equal to one half. This hypothesis can be tested for panel data sets but requires sorting of the full sample into a group of X-inefficient firms and a group of X-efficient (best practice) firms. The cost frontier is estimated using only the observations of the latter category

Modeling the interaction of thermonuclear supernova remnants with circumstellar structures: The case of Tycho's supernova remnant

The well-established Type Ia remnant of Tycho's supernova (SN 1572) reveals discrepant ambient medium density estimates based on either the measured dynamics or on the X-ray emission properties. This discrepancy can potentially be solved by assuming that the supernova remnant (SNR) shock initially moved through a stellar wind bubble, but is currently evolving in the uniform interstellar medium with a relatively low density. We investigate this scenario by combining hydrodynamical simulations of the wind-loss phase and the supernova remnant evolution with a coupled X-ray emission model, which includes non-equilibrium ionization. For the explosion models we use the well-known W7 deflagration model and the delayed detonation model that was previously shown to provide good fits to the X-ray emission of Tycho's SNR. Our simulations confirm that a uniform ambient density cannot simultaneously reproduce the dynamical and X-ray emission properties of Tycho. In contrast, models that considered that the remnant was evolving in a dense, but small, wind bubble reproduce reasonably well both the measured X-ray emission spectrum and the expansion parameter of Tycho's SNR. Finally, we discuss possible mass loss scenarios in the context of single- and double-degenerate models which possible could form such a small dense wind bubble.Comment: 12 pages, 7 figures, accepted for publication in MNRA

Economies of scale and efficiency in European banking: new evidence

This paper investigates the cost efficiency of 1974 credit institutions across 15 European countries over the five-year period following the implementation of the Second Banking Directive in 1993. The Recursive Thick Frontier Approach is employed to estimate a Augmented Cobb-Douglas cost frontier that allows banks of different types, in different periods, and belonging to different size categories, to operate at different costs per unit of assets. As size economies are exhausted at a balance sheet total of EUR 600 million, we do not find major economic gains from economies of scale for the overall European banking industry. However, the saving bank sector may reduce average costs with roughly 6% by choosing an optimal size for its institutions. No impact of technological progress on the average costs of the full sample of X-efficient banks could be detected but managerial efficient saving banks reduced average costs with 9% during our sample period. The most important reason for inefficiencies in the European banking is managerial inability to control costs. Although in some countries such as the UK and The Netherlands cost reductions were rapidly achieved, the average level of X-inefficiency of European banks still exceeded 16% in 1997