Contributions in Merlin

This paper argues that an unequal distribution of political power, biased to landed elites and owners of natural resources, in combination with openness to trade is a major obstacle to development of natural resource- or land-abundant economies. We develop a two-sector general equilibrium model and show that in an oligarchic society public investments conducive to industrialization - schooling for example - are typically lower in an open than in a closed economy. Moreover, we find that, under openness to trade, development is faster in a democratic system. We also endogenize the trade regime and demonstrate that in a land-abundant economy the landed elite has an interest to support openness to trade. We present historical evidence for Southern economies in the Americas that is consistent with our theoretical results: resistance of landed elites to mass education, comparative advantages in primary goods production in the 19th century globalization wave, and low primary school enrollment and literacy rates.

Under certain cost conditions the optimal insurance policy offers full coverage above a deductible, as Arrow and others have shown. However, many insurance policies currently provide coverage against several losses although the possibilities for the insured to affect the loss probabilities by several prevention activities (multiple moral hazard) are substantially different. This article shows that optimal contracts under multiple moral hazard generally call for complex reimbursement schedules. It also examines the conditions under which different types of risks can optimally be covered by a single insurance policy and argues that the case for umbrella policies under multiple moral hazard is limited in practice.

This paper argues that endogenous restructuring processes within firms towards analytical and interactive non-routine tasks (like problem-solving and organizational activities, respectively), triggered by advances in information and communication technologies (ICT) and rising supply of educated workers, are associated with an increase of wage inequality within education groups. We show that this may be accompanied by a decline or stagnation of between-group wage dispersion. The mechanisms proposed in this research are not only consistent with the evolution of the distribution of wages in advanced countries, but also with the evolution of task composition in firms and a frequently confirmed complementarity between skill-upgrading, new technologies and knowledge-based work organization.

The previous literature on the determinants of individual well-being has failed to fully account for the interdependencies in well-being at the family level. This paper develops an ordered probit model with multiple random effects that allows to identify the intra-family correlation in wellbeing. The parameters of the model can be estimated with panel data using Maximum Marginal Likelihood. The approach is illustrated in an application using data for the period 1984-1997 from the German Socio-Economic Panel in which both inter-generational and intra-marriage correlations in well-being are estimated.

This article evaluates three measures introduced by the Australian Federal Government in 1999 and 2000 that were designed to encourage private health insurance and relieve financial pressure on the public healthcare sector. These policy changes were (i) a 30% premium rebate, (ii) health insurers offering lifetime enrolment on existing terms and the future relaxation of premium regulation by permitting premiums to increase with age, and (iii) a mandate for insurers to offer complementary coverage for bridging the gap between actual hospital billings and benefits paid. These measures were first evaluated in terms of expected benefits and costs at the individual level. In terms of the first criteria, the policy changes as a whole may have been efficiency-increasing. The Australian Government mandate to launch gap policies may well have created a spillover moral hazard effect to the extent that full insurance coverage encouraged policy holders to also use more public hospital services, thus undermining the government's stated objective to relieve public hospitals from demand pressure. Without this spillover moral hazard effect, there might have been a reduction in waiting times in the public sector. Secondly, the measures were evaluated in terms of additional benchmarks of the cost to the public purse, access and equity, and dynamic efficiency. Although public policy changes were found to be largely justifiable on the first set of criteria, they do not appear to be justifiable based on the second set. Uncertainties and doubts remain about the effect of the policy changes in terms of overall cost, access and equity, and dynamic efficiency. This is a common experience in countries that have considered shifts of their healthcare systems between the private and public sectors.

We examine the relationship between the supply of skilled labor, technological change and relative wages. In accounting for the role of skilled labor in both production activities and productivity- enhancing "support" activities we derive the following results. First, an increase in the supply of skilled labor raises the employment share of non-production labor within firms, without lowering relative wages. Second, new technologies raise wage inequality only in so far as they give incentives to firms to reallocate skilled labor towards non-production activities. In contrast, skill-biased technological change of the sort usually considered in the literature does not affect wage inequality.

This paper examines the competitive effects of reorganizing a network industry's vertical structure. In this industry, an upstream monopolist operates a network used as an input to produce horizontally differentiated final products that are imperfect substitutes. Three potential pitfalls of restructuring integrated network industries are analyzed: (i) double marginalization, (ii) underinvestment and (iii) vertical foreclosure. The paper studies the net effect of restructuring on retail prices and cost-reducing investment and discusses policy implications.

In software evolution analysis, many approaches analyze release history data available through versioning systems. The recent investigations of CVS data have shown that commonly committed files highlight their change couplings. However, CVS stores modifications on the basis of text but does not track structural changes, such as the insertion, removing, or modification of methods or classes. A detailed analysis whether change couplings are caused by source code couplings or by other textual modifications, such as updates in license terms, is not performed by current approaches. The focus of this paper is on adding structural change information to existing release history data. We present an approach that uses the structure compare services shipped with the Eclipse IDE to obtain the corresponding fine-grained changes between two subsequent versions of any Java class. This information supports filtering those change couplings which result from structural changes. So we can distill the causes for change couplings along releases and filter out those that are structurally relevant. The first validation of our approach with a medium-sized open source software system showed that a reasonable amount of change couplings are not caused by source code changes.

In the last decade the increasing popularity of the World Wide Web has lead to an exponential growth in the number of pages available on the Web. This huge number of Web pages makes it increasingly difficult for users to find required information. In searching the Web for specific information, one gets lost in the vast number of irrelevant search results and may miss relevant material. Current Web applications provide Web pages in HTML format representing the content in natural language only and the semantics of the content is therefore not accessible by machines. To enable machines to support the user in solving information problems, the Semantic Web proposes an extension to the existing Web that makes the semantics of the Web pages machine-processable. The semantics of the information of a Web page is formalized using RDF meta-data describing the meaning of the content. The existence of semantically annotated Web pages is therefore crucial in bringing the Semantic Web into existence. Semantic annotation addresses this problem and aims to turn human-understandable content into a machine-processable form by adding semantic markup. Many tools have been developed that support the user during the annotation process. The annotation process, however, is a separate task and is not integrated in the Web engineering process. Web engineering proposes methodologies to design, implement and maintain Web applications but these methodologies lack the generation of meta-data. In this thesis we introduce a technique to extend existing XML-based Web engineering methodologies to develop semantically annotated Web pages. The novelty of this approach is the definition of a mapping from XML Schema to ontologies, called WEESA, that can be used to automatically generate RDF meta-data from XML content documents. We further demonstrate the integration of the WEESA meta-data generator into the Apache Cocoon Web development framework to easily extend XML-based Web applications to semantically annotated Web application. Looking at the meta-data of a single Web page gives only a limited view of the of the information available in a Web application. For querying and reasoning purposes it is better to have the full meta-data model of the whole Web application as a knowledge base at hand. In this thesis we introduce the WEESA knowledge base, which is generated at server side by accumulating the meta-data from individual Web pages. The WEESA knowledge base is then offered for download and querying by software agents. Finally, the Vienna International Festival industry case study illustrates the use of WEESA within an Apache Cocoon Web application in real life. We discuss the lessons learned while implementing the case study and give guidelines for developing Semantic Web applications using WEESA.

Observing the evolution of very large software systems needs the analysis of large complex data models and visualization of condensed views on the system. For visualization software metrics have been used to compute such condensed views. However, current techniques concentrate on visualizing data of one particular release providing only insufficient support for visualizing data of several releases. In this paper we present the RelVis visualization approach that concentrates on providing integrated condensed graphical views on source code and release history data of up to n releases. Measures of metrics of source code entities and relationships are composed in Kiviat diagrams as annual rings. Diagrams highlight the good and bad times of an entity and facilitate the identification of entities and relationships with critical trends. They represent potential refactoring candidates that should be addressed first before further evolving the system. The paper provides needed background information and evaluation of the approach with a large open source software project.