Suchergebnisse

Bankruptcy restructuring procedures are used in most legal systems to decide the fate of businesses facing financial hardship. We study how bargaining failures in such procedures impact the economic performance of participating firms in the context of Croatia, which introduced a "pre-bankruptcy settlement" (PBS) process in the wake of the Great Recession of 2007 - 2009. Local institutions left over from the communist era provide annual financial statements for both sides of more than 180,000 debtor-creditor pairs, enabling us to address selection into failed negotiations by matching a rich set of creditor and debtor characteristics. Failures to settle at the PBS stage due to idiosyncratic bargaining problems, which effectively delays entry into the standard bankruptcy procedure, leads to a lower rate of survival among debtors as well as reduced employment, revenue, and profits. We also track how bargaining failures diffuse through the network of creditors, finding a significant negative effect on small creditors, but not others. Our results highlight the impact of delay and the importance of structuring bankruptcy procedures to rapidly resolve uncertainty about firms' future prospects.

"How a new understanding of warfare can help the military fight today's conflicts more effectively.The way wars are fought has changed starkly over the past sixty years. International military campaigns used to play out between large armies at central fronts. Today's conflicts find major powers facing rebel insurgencies that deploy elusive methods, from improvised explosives to terrorist attacks. Small Wars, Big Data presents a transformative understanding of these contemporary confrontations and how they should be fought. The authors show that a revolution in the study of conflict--enabled by vast data, rich qualitative evidence, and modern methods—yields new insights into terrorism, civil wars, and foreign interventions. Modern warfare is not about struggles over territory but over people; civilians—and the information they might choose to provide—can turn the tide at critical junctures.The authors draw practical lessons from the past two decades of conflict in locations ranging from Latin America and the Middle East to Central and Southeast Asia. Building an information-centric understanding of insurgencies, the authors examine the relationships between rebels, the government, and civilians. This approach serves as a springboard for exploring other aspects of modern conflict, including the suppression of rebel activity, the role of mobile communications networks, the links between aid and violence, and why conventional military methods might provide short-term success but undermine lasting peace. Ultimately the authors show how the stronger side can almost always win the villages, but why that does not guarantee winning the war. Small Wars, Big Data provides groundbreaking perspectives for how small wars can be better strategized and favorably won to the benefit of the local population."--

Challenging conventional wisdom, previous research in South Asia and the Middle East has shown that poverty and exposure to violence are negatively correlated with support for militant organizations. Existing studies, however, provide evidence consistent with two potential mechanisms underlying these relationships: (1) the direct effects of poverty and violence on attitudes toward militant groups and (2) the psychological effects of perceptions of poverty and violence on attitudes. Isolating whether the psychological mechanism is an important one is critical for building theories of mass responses to political violence. We conducted a series of original, large-scale survey experiments in Pakistan (n=16,279) in which we randomly manipulated perceptions of both poverty and violence before measuring support for militant organizations. We find evidence that psychological perceptions do in part explain why the poor seem to be less supportive of militant political groups.

Most interpretations of prevalent counterinsurgency theory imply that increasing government services reduces rebel violence. Empirically, however, development programs and economic activity sometimes increase violence. Using new panel data on development spending in Iraq, we show that violence-reducing effects of development assistance are greater when: (i) projects are small; (ii) troop strength is high; and (iii) professional development expertise is available. These findings are consistent with an information-centric ("hearts and minds") model, which implies that violence-reduction is greatest when projects are secure, valued by community members, and services derived are conditional on government control of the territory.

Policy debates on strategies to end extremist violence frequently cite poverty as a root cause of support for the perpetrating groups. There is little evidence to support this contention, particularly in the Pakistani case. Pakistan's urban poor are more exposed to the negative externalities of militant violence and may in fact be less supportive of the groups. To test these hypotheses we conducted a 6,000-person, nationally representative survey of Pakistanis that measured affect toward four militant organizations. By applying a novel measurement strategy, we mitigate the item nonresponse and social desirability biases that plagued previous studies due to the sensitive nature of militancy. Contrary to expectations, poor Pakistanis dislike militants more than middle-class citizens. This dislike is strongest among the urban poor, particularly those in violent districts, suggesting that exposure to terrorist attacks reduces support for militants. Long-standing arguments tying support for violent organizations to income may require substantial revision. Adapted from the source document.

Most aid spending by governments seeking to rebuild social and political order is based on an opportunity-cost theory of distracting potential recruits. The logic is that gainfully employed young men are less likely to participate in political violence, implying a positive correlation between unemployment and violence in locations with active insurgencies. The authors test that prediction in Afghanistan, Iraq, and the Philippines, using survey data on unemployment and two newly available measures of insurgency: (1) attacks against government and allied forces and (2) violence that kill civilians. Contrary to the opportunity-cost theory, the data emphatically reject a positive correlation between unemployment and attacks against government and allied forces ( p < .05 percent). There is no significant relationship between unemployment and the rate of insurgent attacks that kill civilians. The authors identify several potential explanations, introducing the notion of insurgent precision to adjudicate between the possibilities that predation on one hand, and security measures and information costs on the other, account for the negative correlation between unemployment and violence in these three conflicts.