Günther G. Schulze

Does economics make citizens corrupt

In this paper, we report on an experiment on corruption which investigates various determinants of corruptibility. We found that economics students are significantly more corrupt than others, which is due to self-selection rather than indoctrination. Moreover, our results vary with gender --- male students of economics are most corrupt, male non-economists the least. Also, agents are no less corrupt if rewarded in addition to, and independently of a possible bribe. Our experiment isolates the influence of self-interest on cooperation from other influences such as risk attitude and expectations regarding the behavior of others. Keyword(s): Corruption; Experimental economics; Principal-agent; Economists versus non-economists

Environmental improvement with trade liberalization

Abstract Past studies predict that trade liberalization agreements (and NAFTA in particular) harm the environment. These studies have focused on adjustments in production and have assumed that environmental policy is exogenously given. We show why trade liberalization and improved environmental quality are mutually compatible — when environmental policy is recognized as politically endogenous. We also present empirical evidence to support the basic assumptions underlying the consistency of more liberal trade policy and an improved environment.

Public Orchestra Funding in Germany – An Empirical Investigation

In this paper, we describe the institutional framework in which heavy subsidization of German classical orchestras takes place and provide figures on the structure and the level of public support. Moreover, we derive and test various hypotheses concerning the political-economic determinants of public orchestra support. We analyze the political support-maximizing calculus of local politicians – the relevant decision-makers for orchestra subsidization in Germany. We find that public funding increases with increasing population; public debt and budget figures exert strong influences on the level of support. In addition, conservative and liberal politicians tend to support classical orchestras more than Social Democratic and Green politicians do.

La donna e mobile - or is she? Voter preferences and public support for the performing arts *

This paper investigates a referendum held in 1994 on the public support of the Zürich Opera House. The estimates demonstrate that well over 85% of the variance in the approval rates across ballot districts can be explained with a few variables characterizing the socio-economic composition of the electorate. Since these variables have been shown to influence the level of public support for the arts in representative democracies as well, our result lends support to the view that in democracies public support for the arts is coupled to the stable preferences of the electorate. This insight may, to some extent, mitigate and qualify existing fears that cultural policy is completely at the mercy of changing government ideologies and interest group influences.

International Trade in Art

This paper investigates the extent to which trade theory is applicable for explaining trade in art. Reproducible art is distinguished from unique art and it is argued that the trade in reproducible art is, at least in principle, governed by the same economic laws as trade in other differentiated products. However, trade theory needs to be amended in order to account for the addictive character of art consumption: culture specific consumption capital is built up with art consumption. Moreover, trade in unique art is mainly trade between consumers, a phenomenon largely ignored by standard trade theory. Empirical evidence on trade in art is presented and a gravity model of international trade in works of art is estimated. Finally, the paper discusses open questions for future research.

Endogenous Environmental Policy When Pollution is Transboundary

We analyze the formation of environmental policy to regulate transboundary pollution if governments are self-interested. In a common agency framework, we portray the environmental policy calculus of two political supportmaximizing governments that are in a situation of strategic interaction with respect to their environmental policies, but too small to affect world market prices. We show how governments systematically deviate from socially optimal environmental policies. Taxes may be too high if environmental interests and pollution-intensity of production are very strong; under different constellations they may be too low. Governments may actually subsidize the production of a polluting good. Politically motivated environmental policy thus may be more harmful to the environment as compared to the benevolent dictators’ solution. In other cases it may enhance environmental quality and welfare beyond what a benevolent government would achieve.

What and How Long Does It Take to Get Tenure? The Case of Economics and Business Administration in Austria, Germany and Switzerland

Abstract We draw on a new and comprehensive dataset that collects the research output of business economists employed by Austrian, German and Swiss universities. We compute research rankings of departments and identify the leading departments in selected subdisciplines. Moreover, we investigate how institutional design and individual characteristics affect research productivity and draw some conclusions for the training of junior scientists.

Corruption in Southeast Asia: a survey of recent research

This paper surveys the empirical literature on corruption in Southeast Asia with a focus on the methodological approach that the contributions take to identify the extent, determinants, and consequences of corruption and the remedies against it. We present the major topics that empirical corruption research has focused on and point out the methodological challenges that this line of research has to address. We discuss the empirical corruption studies on Southeast Asia and describe the empirical approach that they have taken.

Chapter 30 Culture in Urban and Regional Development

Abstract This chapter critically assesses, from an economic viewpoint, the role of the arts and culture in urban and regional development and growth. This includes the analysis of short run spending impacts, and longer term effects on location quality and creativity. In addition, the specific possibilities for using arts and cultural activities as a focal point in strategies for urban revitalization are discussed including the role of tourism, the non-market demand for arts and culture as an element in local willingness to support urban and regional development policies, questions of sustainability, etc. The reverse influence of regional economic development on the demand for and supply of culture in the region is analyzed and the location of arts and cultural industries is discussed highlighting the role of agglomeration of cultural industries.

International Competition and Environmental Expenditures: Empirical Evidence from Indonesian Manufacturing Plants

This paper analyzes environmental expenditures in Indonesia – a significant newly industrializing economy – reported at the plant level comprising all 23 thousand manufacturing establishments with more than 20 employees. Since compliance is barely enforced, pollution abatement expenditures are effectively voluntary in nature. This allows us to test whether foreign owned firms expend more due to a technology that adheres to stricter Western standards or whether the predominant effect is that both foreign and domestic exporting companies are more environmentally conscious due to better technology transfer or green consumerism in the Western countries. If so, this would contradict conventional wisdom that environmental expenditures reduce competitiveness and that increased levels of foreign direct investment or export-orientation in manufacturing will necessarily pre-empt firms from behaving in a ?greener? fashion.