Decentralization and economic development. The case of Italy
The article, after summarizing debates on the interpretation of subsidiarity, decentralization, and multi-level governance, views the role these decisive principles play in improving efficiency in Lombardy, the largest region of regionalized Italy, and points out future directions of reform of regional governance. The region displays marked innovations in the field of public policy. It can be stated firmly that decentralization has had a positive effect on regional development there. The paper shows the success of this governance model and analyses the strength of its embeddedness in the region, identifying regional singularities of economic and social development, and noting risks that have emerged out of operational features of the public sector and other actors. Finally the authors suggest ways to reduce some problematic phenomena.
Stochastic bankruptcy games. How can a cake of uncertain dimensions be divided?
One of the most important achievements of cooperative game theory is to provide a stable solution to numerous conflicts. The solutions it presents, on the other hand, have been limited to situations in a static, deterministic environment. The paper examines how the core can be extended to a more realistic, dynamic and uncertain scenario. The bankruptcy games studied are ones where the value of the estate and of the claims are stochastic, and a Weak Sequential Core is used as the solution concept for them. The author tests the stability of a number of well known division rules in this stochastic setting and finds that most are unstable, except for the Constrained Equal Awards rule, which is the only one belonging to the Weak Sequential Core.
The relevance of “exit, voice and loyalty” theory in 21st-century economics
The article concerns the “exit, voice, and loyalty” concept, which straddles the border of political science and economics. This theoretical framework, invented by Albert O. Hirschman, has exercised a fruitful influence in the social sciences in the last few decades, through its fresh features and original approach. However, it holds a peripheral position in economics and plays an undervalued role in economic education in Hungary, even though it can be flexibly applied in analyses of such phenomena as the economic transition and the ensuing social tensions. Moreover the very turbulence of the conditions brought about by the crisis show that the political economy of decline offers a relevant perspective, so that the Hirschman trilemma is a practical analytical tool for understanding social and economic processes.
Participatory multi-criteria decision analysis – A comparison of methodologies
Measuring and comparing the sustainability of certain actions, scenarios, technologies, etc. is by definition a multidimensional problem. Decision-makers must consider environmental, economic and social aspects when choosing an alternative course of action. Such decisions can be aided by multi-criteria decision analysis (MCDA). This paper investigates seven different MCDA methodologies: MAU, the Analytic Hierarchic Process (AHP), the ELECTRE, PROMETHEE, REGIME, and NAIADE methods, and “Ideal and reference point” approaches). It is based on a series of reports in which over 30 real-world case studies focusing on participatory MCDA were reviewed. It is stressed, however, that there is no “best” choice in the list of MCDA techniques. Some methods fit certain decision problems better than others. Nonetheless, some complementary benefits of the different techniques can be exploited by combining these methodologies.