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Credible Threat (credible + threat)

Distribution by Scientific Domains
Humanities and Social Sciences40%
Business, Economics, Finance and Accounting40%

Selected Abstracts

The EU and the Welfare State are Compatible: Finnish Social Democrats and European Integration

GOVERNMENT AND OPPOSITION, Issue 2 2010
Tapio Raunio
This article examines how the Finnish Social Democratic Party has adapted to European integration. The analysis illustrates that the Social Democrats have successfully argued to their electorate that the objectives of integration are compatible with core social democratic values. Considering that Finland was hit by a severe recession in the early 1990s, discourse about economic integration and monetary stability facilitating the economic growth that is essential for job creation and the survival of domestic welfare state policies sounded appealing to SDP voters. Determined party leadership, support from trade unions and the lack of a credible threat from the other leftist parties have also contributed to the relatively smooth adaptation to Europe. However, recent internal debates about the direction of party ideology and poor electoral performances , notably in the European Parliament elections , indicate that not all sections within the party are in favour of the current ideological choices. [source]

Pollution Abatement Investment When Environmental Regulation Is Uncertain

JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 2 2000
Y.H. Farzin
In a dynamic model of a risk-neutral competitive firm that can lower its pollution emissions per unit of output by building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under full certainty and when the timing or the size of the tax increase is uncertain. We show that a higher pollution tax encourages abatement investment if it does not exceed a certain threshold rate. However, akin to the Diamond-Mirrlees tax anomaly, it is possible that a higher pollution tax rate results in more pollution. The magnitude uncertainty discourages abatement investment, but at the time of the actual tax increase the abatement investment path may shift either upward or downward. On the other hand, when the timing is uncertain, the abatement investment path always jumps upward, thus suggesting that the effect of magnitude uncertainty on the optimal investment path may be more pronounced than that of timing uncertainty. Further, we show that the ad hoc practice of raising the discount rate to account for the uncertainty leads to underinvestment in abatement capital. We show how the size of this underinvestment bias varies with the future tax increase. Finally, we show that a credible threat to accelerate the tax increase can induce more abatement investment. [source]

Assessing risks from threats to process plants: Threat and vulnerability analysis

PROCESS SAFETY PROGRESS, Issue 4 2002
Paul Baybutt
Process security management addresses threats from terrorist and criminal acts against plants that may result in the release of hazardous materials. The risk of such threats must be assessed to determine if existing security measures and safeguards are adequate or need improvement. Risk assessment is the heart of a process security program. Process plants need straight forward and easily applied methods to assess security risks using techniques that can be employed in a variety of situations and at varying levels of detail. This paper describes an approach that accomplishes these objectives. Threat analysis is the first step. It is used to identify the sources and types of threats and their likelihood. The approach described in this paper involves the consideration of motivations and capabilities of adversaries and the rating of facility security factors to develop a threat profile. Once specific threats have been identified, process vulnerability analysis is used to identify threat scenarios, i.e., how threats could be realized. Plants and processes are divided into sectors, and each credible threat within each sector is considered. Vulnerabilities are identified by brainstorming the ways barriers can be penetrated and process containment breached. Checklists are used to guide the brainstorming, and scenario consequences are recorded. Existing security measures and safeguards are listed, and any recommendations for improvements to reduce the likelihood and severity of terrorist and criminal acts are made for consideration by management based on the nature of the threat, process vulnerabilities, possible consequences, and existing security measures and safeguards. Risk rankings are performed as part of the analyses. [source]

Power Sharing and Leadership Dynamics in Authoritarian Regimes

AMERICAN JOURNAL OF POLITICAL SCIENCE, Issue 2 2009
Milan W. Svolik
I examine a fundamental problem of politics in authoritarian regimes: the dictator and the ruling coalition must share power and govern in an environment where political influence must be backed by a credible threat of violence. I develop a model of authoritarian politics in which power sharing is complicated by this conflict of interest: by exploiting his position, the dictator may acquire more power at the expense of the ruling coalition, which may attempt to deter such opportunism by threatening to stage a coup. Two power-sharing regimes, contested and established dictatorships, may emerge as a result of strategic behavior by the dictator and the ruling coalition. This theory accounts for the large variation in the duration of dictators' tenures and the concentration of power in dictatorships over time, and it contributes to our understanding of the dynamics of power sharing and accountability in authoritarian regimes. [source]

Preemptive Spacing With Vertical Differentiation When Input Quality is of Inelastic Supply

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2000
Mark R. Frascatore
This paper examines a model of vertical differentiation in which an incumbent engages in preemptive spacing to prevent entry. Input quality is of fixed supply, and the incumbent prevents high-end entry by producing a product with all the quality available. It also commits to the production of a minimum-quality product to deter low-end entry. There is no entry in equilibrium, and the incumbent monopolist chooses to sell only its high-quality product. Commitment to the production of the minimum-quality product is used merely as a credible threat to vigorously compete should an entrant also produce a minimum-quality product. [source]