Vol 8 | No 1 | SPRING 2010 ARTICLES Institutions Matter: Financial Supervision Architecture, Central Bank and Path-Dependence
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South-Eastern Europe Journal of Economics Vol 8 | No 1 SPRING 2010 Vol Journal of Economics South-Eastern Europe Vol 8 | No 1 | SPRING 2010 ARTICLES Institutions Matter: Financial Supervision Architecture, Central Bank and Path-Dependence. General Trends and the South Eastern European Countries DonATo MASCIAnDAro, MArC QuInTyn Prospects of Changes in regional Economic Structures Since Eu Accession K. MATTAS, C. CIoBAnu, D. PSAlToPouloS Economics Education: Can liberal Arts Make Economics More Appealing? SErDAr onGAn Multidimensional Poverty in Greece: A Deep, Persistent Grey? A. lyBErAKI, P. TInIoS, T. GEorGIADIS Identifying Spatial labor Markets in Greece from the 2001 Travel-to-Work Patterns ProDroMoS-IoAnnIS K. ProDroMIDIS BOOK REVIEW Wealth, Welfare and the Global Free Market A Social Audit of Capitalist Economics by Ibrahim ozer Ertuna reviewed by ThEoDorE P. lIAnoS Human Development in the Era of Globalization Essays in Honor of Keith B. Griffin edited by J.K. Boyce, St. Cullenberg, Pr. K. Pattanaik and r. Pollin reviewed by ThEoDorE P. lIAnoS FUNDING INSTITUTIONS unIVErSITy oF MACEDonIA web site: http://www.asecu.gr unIVErSITy oF IoAnnInA ISSn 1792-3115 unIVErSITy oF WESTErn MACEDonIA editorialboard Theodoros Lianos, Editor Athens University of Economics and Business, Athens, GREECE Stylianos Fountas, Associate Editor University of Macedonia, Thessaloniki, GREECE Michael Chletsos, Associate Editor University of Ioannina, Ioannina, GREECE Katerina Sarri, Associate Editor University of Western Macedonia, Kozani, GREECE advisoryboard Anders Aslund Institute for International Economics, USA Robert Fearn North Carolina State University, USA Ben Fine University of London, SOAS, UK Ulrich Koester University of Kiel, GERMANY Janos Kornai Harvard University, USA Philip Martin University of California, Davis, USA Jeffrey Sachs Columbia University, USA Amartya Sen Cambridge University, USA Kenneth Thomson University of Aberdeen, UK Richard Wolff University of Massachusetts, Amherst, USA THE OFFICIAL JOURNAL OF THE ASSOCIATION OF ECONOMIC UNIVERSITIES OF SOUTH AND EASTERN EUROPE AND THE BLACK SEA REGION Vol 8 | No 1 | SPRING 2010 FUNDING INSTITUTIONS UNIVERSITY OF MACEDONIA UNIVERSITY OF IOANNINA UNIVERSITY OF WESTERN MACEDONIA web site: http://www.asecu.gr UNIVERSITY OF MACEDONIA PRESS ISSN 1792-3115 THESSALONIKI SEEJE Editorial Office: ASECU, University of Macedonia 156 Egnatia str., 540 06 Thessaloniki, Greece tel: +30 2310 891 793, fax: +30 2310 891 748 e-mail: [email protected] web site: http://www.asecu.gr © ASECU ISSN 1792-3115 Thessaloniki, Spring 2010 university of macedoniaPRESS 156 Egnatia str., 540 06 Thessaloniki, Greece, tel: +30 2310 891 741, fax: +30 2310 891 731 e-mail: [email protected], http://www.uom.gr/uompress contents Articles Institutions Matter: Financial Supervision Architecture, Central Bank and Path-Dependence. General Trends and the South Eastern European Countries 7 Donato MASCIANDARO, MARC QUINTYN Prospects of Changes in Regional Economic Structures Since EU Accession 55 k. mattas, C. CIObANU, D. PSAltopoulOS Economics Education: Can Liberal Arts Make Economics More Appealing? 73 SERDAR ONGAN Multidimensional Poverty in Greece: A Deep, Persistent Grey? 87 A. LybERAkI, P. TINIOS, T. GEORGIADIS Identifying Spatial Labor Markets in Greece from the 2001 Travel-to-Work Patterns 111 PRODROMOS-IOANNIS k. PRODROMIDIS Book Review Wealth, Welfare and the Global Free Market A Social Audit of Capitalist Economics 129 by Ibrahim Ozer Ertuna reviewed by ThEODORE P. lIANOS Human Development in the Era of Globalization Essays in Honor of Keith B. Griffin 131 edited by J.k. boyce, St. Cullenberg, Pr. k. Pattanaik and R. Pollin reviewed by ThEODORE P. lIANOS aim and scope of ASECU was founded in 1996 as Association of South-Eastern Eu- rope Economic Universities with the general aim of promoting the interests of those economic universities in South-Eastern Europe which are public, recognized or financed by the state of origin. At the General Assembly of 2007 it was decided to enlarge ASECU and to take in the countries of eastern Europe and the black Sea re- gion and associated members from the Middle East and north-eastern Africa. ASECU was modified inAssociation of Economic Universi- ties of South and Eastern Europe and Black Sea Region and pres- ently counts forty five (45) members. Forty one (41) of them are full members from the countries Albania, Armenia, bosnia-herzegovina, bulgaria, FYROM, Greece, Montenegro, Poland, Russia, Romania, Slovakia, Serbia, Turkey and Ukraine. As associated members have been accepted four (4) Universities from lebanon and Egypt. The specific aims of the Association are: To promote cooperation between Economic Universities, Faculties, Departments; i.e., especially: a) to exchange views and information about syllabi, b) to exchange undergraduate and postgraduate stu- dents and c) to exchange teaching and research staff. To provide members with the opportunity exchange information, opinions etc. by publishing a relevant scientific journal or by co- operation in elaborating scientific studies in relation to the future development of higher education and research as well as to improve their quality in the field of economic studies and business adminis- tration. To undertake initiatives for the protection of the interests of mem- bers and their institutions, so as to be supported by international organizations and in particular by the higher education institutions of the European Union. To encourage cooperation between universities inside and outside the countries referred to in the Association. To pursue cooperation in the field of higher education with the con- solidation of close relations with other organisations having similar aims, e.g. E.U.A.; To provide opportunities for harmonising the degrees of faculties and departments of the universities participating in the Association; To promote cooperation between economic universities, faculties, departments in the field of research for the benefit of the economy, the society, peace and the cultural development of the countries re- ferred to the Association. Presidency and Board Members The following board was elected during the fourth General Assembly of ASECU, on the 2nd of March 2007, at the University of Macedonia in Thessaloniki, Greece. Yannis Tsekouras, President University of Macedonia, Thessaloniki, Greece Atanas Damyanov, Vice President University D. Tsenov, Svishtov, bulgaria Bozidar Cerović, General Secretary University of belgrade, belgrade, Serbia Dhori Kule, Member University of Tirana, Tirana, Albania Bobek Suklev, Member University St. Cyril and Methodius, Skopje, Fyrom Vesna Karadjić, Member University of Montenegro, Podgorica, Montenegro Miruna Marinescu, Member Academy of Economic Studies, bucharest, Romania South-Eastern Europe Journal of Economics 1 (2010) 7-53 InstItutIons MAtteR: FInAncIAl suPeRvIsIon ARchItectuRe, centRAl BAnk And PAth-dePendence. GeneRAl tRends And the south eAsteRn euRoPeAn countRIes Donato MASCIANDARO* Department of Economics and Paolo baffi Centre, bocconi University MARC QUINTYN IMF Institute, International Monetary Fund, Washington Abstract We propose a path-dependence approach to analyzing the evolution of the fi- nancial supervisory architecture, focusing on the institutional role of the central bank, and then apply our framework to describing the institutional settings in a selected sample of countries. the policymaker who decides to maintain or reform the supervisory architecture is influenced by the existing institutional setting in a systematic way: the more the central bank is actually involved in supervision, the less likely a more concentrated supervisory regime will emerge, and vice versa (path-dependence effect). We test the path-dependence effect describing and evaluating the evolution and the present state of the architecture of six national supervisory regimes in south eastern europe (see): Albania, Bulgaria, Greece, Romania, serbia, and turkey. the study of the see countries confirms the postu- lated role of the central bank in the institutional setting. In five cases the high in- volvement of the central bank in supervision is correlated with a multi-authority regime, while in one case a high degree of financial supervision unification is related with low central bank involvement. JEL Classification: G18, G28, E 58. Key words. Financial Supervision, Central banks, Path-Dependence, Political Economy, South Eastern Europe * Corresponding Author: Paolo baffi Centre,b occoni University, via Sarfatti 25, 20136 Milan, Italy e-mail: [email protected]. Special thanks also go to Rosaria Vega Pansini for extensive, skilful and patient research assistance while compiling the database and the country profiles. 8 D. MASCIANDARO, M. QUINTYN, South-Eastern Europe Journal of Economics 1 (2010) 7-53 1. Introduction Over the last few years the financial supervision landscape has been radically trans- formed. Many countries have made deep reforms of the architecture of financial su- pervision, and more are contemplating changes. In the last twenty years (1986-2006) 94% of the countries included in a large and heterogeneous sample of 102 nations chose to reform their financial supervisory setting (Figure 1). The restructuring wave is making the supervisory regimes less uniform than in the past (Masciandaro and Quintyn 2009). In several cases the architecture still reflects the classic structure, with separate agencies for banking, securities and insurance supervision. however, an