Search

Begin New Search Topic International Relations Political Geography United States

601. Equity Prices, Household Wealth, and Consumption Growth in Foreign Industrial Countries: Wealth Effects in the 1990s

Author:
Carol C. Bertaut
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Although most recent empirical research regarding the size and significance of the impact of changes in wealth on consumption has looked for such effects in the United States, equity prices in the 1990s rose considerably in most other industrial countries as well. This paper investigates the strength of the wealth effect across countries. Using a variety of methods, I find evidence of significant wealth effects in the United Kingdom and Canada of a size comparable to that in the United States, reflecting the importance of equities in aggregate household wealth in these countries. A significant wealth effect is also evident in Japan, but because household wealth has changed little on balance in Japan in recent years, this channel has been less important in explaining Japanese consumption growth in the second half of the 1990s. Despite a rapid appreciation in equity prices and an increase in equity ownership in the major continental European countries since 1995, equities remain a less important form of household wealth in most of these countries, and the consumption response to changes in wealth remains limited. However, in some smaller European countries where equity issuance is more common, the emerging evidence suggests that wealth effects may be more important.
Topic:
International Relations, Economics, Globalization, and International Trade and Finance
Political Geography:
United States, United Kingdom, Europe, and Canada

602. Financial Centers and the Geography of Capital Flows

Author:
Francis E. Warnock and Chad Cleaver
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We examine an assumption common in empirical work on bilateral portfolio capital flows that the countries the flows are attributed to are also the countries of the security's issuer, seller, or ultimate buyer. We do this by estimating U.S. investors' holdings of debt and equities in over 40 countries and, for the same countries, foreign investors' holdings of U.S. debt and equities. A comparison of our estimates with data from benchmark surveys provides insight into U.S. data on international debt and equity transactions. We find that, contrary to the common assumption, the data do not track the location of U.S. investment or the location of investors in U.S. assets very well. Because the U.S. portfolio flow data collection system was designed to measure cross-border transactions with foreign counterparties who are often intermediaries, the majority of the flows are attributed to financial centers. By aggregating our country-level estimates, we find that U.S. data accurately portray net inflows into U.S. equities and net outflows into foreign bonds. However, the data substantially overcount net inflows into U.S. bonds and may undercount net outflows into foreign equities. We conclude with a discussion of the implications of our findings for research on capital flows.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States

603. On the Sequencing of Projects, Reputation Building, and Relationship Finance

Author:
David C. Smith, Steven Ongena, and Dominik Egli
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We study the decision an entrepreneur faces in financing multiple projects and show that relationship financing will arise endogenously in an environment where strategic defaults are likely, even when firms have access to arm's-length financing. Relationship financing allows an entrepreneur to build a private reputation for repayment that reduces the cost of financing. However, in an environment where the risk of strategic default is low, the benefits from reputation building are outweighed by holdup rents extractable by the incumbent lender. Entrepreneurs then choose to finance projects from single or multiple arm's-length lenders.
Topic:
International Relations, Economics, and International Trade and Finance
Political Geography:
United States

604. La calidad del ciudadano. Past and Present. The Nature of Citizenship in Mexico and the United States- 1776-1912

Author:
Erika Pani
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
The Wilson Center
Abstract:
Mexico's transition to democratic rule has triggered much debate about the legacies of the past under which Mexicans must labor. Mexico is seen as emerging from a monolithic, murky and only rarely interrupted authoritarian past, from the Aztec tlatoanis to the PRI. Mexican “political culture” is seen as both the underlying principle and the creature of this historical experience. Some characterize Mexicans as lacking democratic values, with no electoral culture and with their families structured along patriarchic and authoritarian lines. Ironically, this approach, which tries to explain the present by understanding the past, is blatantly unhistorical. It speaks of static, eternal core values, of an unchanging México Profundo that has supposedly lurked inside every Mexican through the ages regardless of class or regional origin. Thus, writes one scholar, “behind an image of modernity and values, lies hidden the arithmetic relationship of dominion and subordination.” The trappings of a modern society barely cover one that is deeply traditional, whose real values and practices are rooted in “the ancient Mesoamerican civilizations.”
Topic:
International Relations, Security, and Regional Cooperation
Political Geography:
United States and Mexico

605. U.S. Policy Toward the Former Yugoslavia

Author:
Steven E. Meyer
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
The Wilson Center
Abstract:
As long as the Cold War framed the international arena, relations between the United States and Yugoslavia were—for the most part—fairly clear and predictable. Both sides played their assigned roles well in the larger East-West drama. For the U.S., Yugoslavia—after Tito and Stalin split in 1948—was the useful, even reliable, strategically-placed, communist antagonist to the Soviet Union. Certainly, Washington complained at times about Yugoslavia's preference for nonalignment and lamented the fact that it was not part of the Western alliance. The fact that Yugoslavia was indeed a communist state that Moscow could not control, however, more than compensated for these “short comings.” As a reward, the U.S. courted Tito, provided economic aid, and paid virtually no attention to how he ran the country—even his brutal rise to power after World War II was of little consequence.
Topic:
International Relations, Foreign Policy, Cold War, and Politics
Political Geography:
United States, Europe, Washington, Soviet Union, and Yugoslavia

606. The Politics of European Enlargement: NATO, the EU and the New U.S.-European Relationship

Author:
Howard J. Wiarda
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
The Wilson Center
Abstract:
Since the fall of the Berlin Wall in 1989 and the end of the Cold War, the main issues in Eastern and Central Europe, and in U.S. and European policy toward the area, have focused on achieving peace and stability, building democracy, accomplishing economic and institutional reform, accelerating growth and modernization, and anchoring and integrating the countries of the area into Europe and its two great “clubs”: the European Union (EU) and the North Atlantic Treaty Organization (NATO). It could be said that the last three goals listed–democracy, economic and institutional reform, and European integration–were all means to the end of achieving peace and stability in this critical area, not known historically for its stable, peaceful politics, as well as to the end of securing a buffer zone on Europe's eastern frontiers that would also function as a means to hem in and limit any future Russian resurgence. What may have begun in strategic planners' eyes as a means to an end, however, has since then taken on a life of its own.
Topic:
International Relations, NATO, Cold War, and International Organization
Political Geography:
Russia, United States, Europe, and North Atlantic

607. Dissuasion as a Strategic Concept

Author:
Richard Kugler
Publication Date:
12-2002
Content Type:
Working Paper
Abstract:
Some analysts want to downplay dissuasion or set it aside entirely because of its ambiguity. But ignoring this emerging idea would be short sighted. Despite its haziness, the term goes to the heart of new-era geopolitics in several key regions, including Asia. If the United States can learn how to dissuade skillfully, its strategic effectiveness in troubled regions will improve significantly. When the idea of deterrence first appeared 50 years ago, it too was ambiguous. During the Cold War, however, it acquired a role of central importance once it was equipped with a full-fledged strategic theory. The same may hold true for dissuasion in the early 21st century—but only if it too is equipped with the full set of analyses and calculations needed to bring it to life.
Topic:
International Relations, Security, and Foreign Policy
Political Geography:
United States and Asia

608. US-Russian Lessons for South Asia

Author:
Zia Mia, R. Rajaraman, and Frank von Hippel
Publication Date:
08-2002
Content Type:
Policy Brief
Institution:
Foreign Policy In Focus
Abstract:
The current South Asian crisis seems to have ebbed, but the underlying dynamic remains. The next crisis will be even more dangerous if South Asia's nuclear confrontation develops in the same direction as the U.S.-Russian standoff, with nuclear missiles on alert, aimed at each other and ready to launch on warning. As Lee Butler, former head of the U.S. Strategic Command, has said, the U.S. and Soviet Union survived their crises, "no thanks to deterrence, but only by the grace of God." Will South Asia be so fortunate?
Topic:
International Relations
Political Geography:
Russia, United States, Europe, South Asia, and Asia

609. Transatlantic Relations in a Unipolar World

Author:
William Wohlforth
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
The state of transatlantic relations is normal - arguably in crisis, arguably not; poised for fundamental change, or for basic continuity. The usual question for conferences on transatlantic relations is whether this situation will continue. My purpose in this paper is to set forth a perspective on the future of the transatlantic relationship based on the central realist proposition that the distribution of capabilities among states is an important background influence on their behaviour. Major changes in international relations often arise from changes in the distribution of power. Important features of the Cold War resulted from the great concentration of power in the United States and the Soviet Union - a condition that came to be called "bipolarity." The Cold War ended in significant measure owing to changes in the distribution of power - namely, the decline and fall of the Soviet Union. As a result of Soviet and Russian decline, a new unipolar distribution has emerged with new consequences for international politics in general and the transatlantic relationship in particular.
Topic:
International Relations and NATO
Political Geography:
United States and Europe

610. Trans-Atlantic Relations: Challenges and Opportunities

Author:
Wolfgang Ischinger
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
International Institute at University of Wisconsin, Madison
Abstract:
I would like to share some observations about German-American relations, about Afghanistan, about Iraq and the war on terrorism, and about power and the global system. Where does Germany stand today? The recent elections in Germany have brought about a number of significant developments.
Topic:
International Relations and Security
Political Geography:
Afghanistan, United States, America, Europe, and Germany