The recent unravelling of the Eurozone?s financial integration raised concerns about feedback loops between sovereign and banking insolvency, and provided an impetus for the European banking union. This paper provides a ?double-decker bailout? theory of the feedback loop that allows for both...

This paper analyzes how private decisions and public policies are shaped by personal and societal preferences (values), material or other explicit incentives (laws) and social sanctions or rewards (norms). It first examines how honor, stigma and social norms arise from individuals’ behaviors...

The Lisbon strategy of the year 2000 failed: the share of R&D spending in Europe remains below the 3 percent of GDP target, far behind that of the US and China. EU companies spend much less on R&D than their US peers and concentrate their innovation activities on midtech instead high-tech...