It’s all ‘bad’ news! Voters’ perception of macroeconomic policy competence

The purpose of the present paper is to consider how voters form perceptions about macroeconomic policy competence by focusing on the role of recent macroeconomic news: Do their perceived views of good news matter as much as bad news when they form beliefs about the incumbent government’s competence in managing the macroeconomy, in particular, with regard to their ability to control inflation and unemployment? We find that ‘bad’ news about unemployment persists when households are forming their perceived competence, whereas “good” news does not. That is, voters tend to display pessimistic bias when forming perceptions about the incumbent government’s competence.     

Dilatory or anticipatory? Voting on the Journal in the House of Representatives

In this paper, I examine a simple procedure in the United States House of Representatives, approving the Journal, and its implications for legislative business. In this paper, I examine the hypothesis that such votes are more than simply pro forma motions or dilatory tactics by the minority party. Considering the 102nd–107th Congresses, I show that votes on the Journal’s approval are just as frequently requested by the majority party as by members of the minority party. Furthermore, I find that votes recorded on days on which a vote was also recorded on the House Journal were more likely to be close and more likely to be party-line votes than those recorded on other days.     

Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries

This paper examines how government ideology has influenced deregulation of product markets in OECD countries. I analyze a dataset of non-manufacturing regulation indicators covering energy, transport and communication industries in 21 OECD countries over the 1980–2003 period and employ two different indices of government ideology. The results suggest that government ideology has had a strong influence on the deregulation process: market-oriented governments promoted the deregulation of the energy, transport and communication industries. This finding identifies remarkable differences between leftist and rightwing governments concerning the role of government in the economy and basic elements of political order.     

Strategic entry deterrence and terrorism: Theory and experimental evidence

Using a two stage rent-seeking framework, we present a simple model of strategic entry/terrorism deterrence and test the model using laboratory experiments. Our contest success function highlights the potential for strategic spillovers. The theory illustrates that, relative to a cooperative outcome, negative externalities lead to over-spending on deterrence and positive externalities lead to under-spending on deterrence. Our experimental results are broadly consistent; subjects in the negative externality treatment had higher expenditures. In contrast to theoretical predictions, participation decisions, while primarily driven by the probability of winning a contest, were influenced by a subject’s ability to participate in multiple contests.     

Eminent domain power and afterwards: Leviathan’s post-taking opportunism

This paper investigates post-taking procedures, a research area not yet fully explored. It discusses the economic implications underlying the landowner’s ‘repurchase right (RR)’ which can be invoked upon the occurrence of a so-called ‘change in use after taking.’ RR is compared with the government’s discretion regarding such changes. The lack of post-taking accountability tends to create power ripe for abuse, and RR appears to be an effective device for constraining Leviathan’s opportunism. Finally, a parsimonious estimation supports that, under the overriding-RR regime, there exists the systematic post-taking opportunism whereby ‘original public projects are changed into inappropriate projects.’     

Interest-group analysis in economic history and the history of economic thought

This article reviews Bob Tollison’s conjoined contributions to the scholarly literature in the closely related fields of economic history and history of economic thought, underscoring his integration of public choice and interest-group analysis into the historian’s purview. It identifies the overarching themes of his research and summarizes the major findings of his key publications.     

They Come over Here … 300 Years of Xenophobic Propaganda in England

England's rulers, merchants, and organized labor in the early modern period (from the 16th to the 18th centuries) were all actively using what today we would call propaganda. Each group appreciated the need to get popular opinion on its side, or at the least to convince other groups it was in the public interest to act in a particular way. This study focuses on the use of xenophobic narratives by these actors in order to further their political, economic, or cultural objectives. The targets were economic rivals including the Dutch, but most particularly ethnic and religious outgroups, including Roman Catholics, Muslims, and Jews. Although there were public relations win-wins for anyone who was able successfully to demonize foreigners, racist and xenophobic propaganda was often more pernicious than the tellers realized, in many cases extending its influence over several generations. In addition, it is clear that many narratives failed to engage with public opinion, for reasons that were not always clear to the groups responsible for them.     

Why social partnership matters: Irish policies for work – life balance

Since 1987 the Republic of Ireland has experimented with new forms of policy consultation and formulation that have been credited with turning the country into the ‘Celtic Tiger’ economy of the 1990s. One of the most important of these new forms is a series of social partnership agreements that have become increasingly broad in scope over the past decade and a half. This article illustrates how the process of social partnership pact-making is able to assist in steering a new policy direction, and investigates what makes these social partnership agreements able to be reproduced over time, by focusing on the development of policies for reconciling family and working life in Ireland. This is an important and pressing issue for many post-industrial economies, and, without claiming too much for the partnership process since problems of reconciling family and working life are far from ‘solved’ in Ireland, social partnership has helped turn this from being a marginal to a key issue in Irish politics.     

The Greek General Election of 2009: PASOK – The Third Generation

The policy networks model recently has become a more frequent analytical tool of EU policy analysts. In a recent article, Hussein Kassim offers a sceptical view about its applicability to the EU. Kassim fails to make explicit the key variables — or internal characteristics of policy networks ‐ which help to explain policy outcomes. However, his own analysis echoes many of the assumptions of the model: that policy networks are rife in the EU because they facilitate informal bargaining amid fluid policy processes, that networks provide order amid extreme institutional complexity and frequent change, and that the hard work involved in identifying EU policy networks is worth the effort. The policy networks model requires further testing and refinement at the EU level, but it remains the most analytically powerful approach on offer.     

Intra-industry trade and protectionism: the case of the buy national policy

This article examines the factors that lead governments to open up their public procurement markets to international competition with a particular emphasis on the effect of intra-industry trade. Contrary to the conventional notion that intra-industry trade entails less political pressure for protectionism than inter-industry trade, I argue that such notion does not prevail in the case of discriminatory public procurement. Firms in a market with a high degree of intra-industry trade are more likely to resist the removal of discrimination than would firms in a market with a high degree of inter-industry trade. Empirically, I find support for the argument both at sub-national and cross-national settings.     

Public servants in parliament: theory and evidence on its determinants in Germany

This paper addresses the personal linkages between the public service and the legislature that emerge because public servants pursue a political mandate. There are concerns that the representation of public servants in parliaments generates a conflict of interest. We present a cost-benefit calculus and analyze specific legal provisions for the German Laender to understand the selection of public servants into parliaments. We find that a legal incompatibility of a position in the public service and a political mandate decreases and a compensation for having to hold one’s office in abeyance increases the fraction of public servants in Laender parliaments.     

Private operation with public supervision: evidence of hybrid modes of governance in prisons

Received theories suggest a possible cost-quality tradeoff when private outsourcing arrangements are used in public services. Using data from Brazilian prisons, our study provides evidence that contradicts this prediction: the prisons not only run at a lower cost, but also show similar or improved performance on a range of quality indicators. The attenuation of the cost-quality dilemma in our context is due to the hybrid management, which allocates control rights to a state-appointed public supervisor. We also discuss conditions in which the public supervisor may refrain from colluding with the private agent, therefore guaranteeing an effective monitoring of service quality.     

Foundations of the Ostrom workshop: institutional analysis, polycentricity, and self-governance of the commons

This paper highlights important lessons gained from the research program of Elinor Ostrom, and demonstrates the close connection between public choice and the work on collective management of the commons for which Lin was honored by the Nobel Prize committee. Although our primary focus is on Lin’s research on self-governance and the “commons,” an overarching goal is to capture the intellectual journey of participants in the Ostrom Workshop, who continue to be guided by the inspiring examples set by Lin and Vincent Ostrom.     

Distribution of surplus in sequential bargaining with endogenous recognition

I examine a sequential bargaining situation in which agents contest the right to propose an allocation. The contest can either take place at a pre-bargaining stage, yielding “persistent recognition” to propose, or recur throughout the bargaining, yielding “transitory recognition”. Equilibrium analysis reveals that surplus is distributed more unequally under persistent recognition; social cost is higher under persistent recognition if and only if it attracts a sufficient number of “active” bargainers; and individual’s incentive to propose under transitory recognition may actually increase in the number of agents, while this incentive always diminishes under persistent recognition.     

Agenda trees and sincere voting: a response to Schwartz

Schwartz (Public Choice 136:353–377, 2008) has identified a controversy within the voting theory literature pertaining to the representation of agenda structures and the consequent definition of sincere voting. This note responds to Schwartz’s remarks by arguing that the kind of agenda tree he uses does not adequately represent some common parliamentary agendas, and that consequently his definition of sincere voting cannot always be applied.     

A positive theory of the earnings relationship of unemployment benefits

In a wage bargaining model, a stronger earnings relationship of unemployment benefits may reduce wages. Therefore, the benefit structure significantly influences profits and trade union utility, raising the question as to how the benefit structure is determined in the political process. We consider a government that chooses the earnings relationship in order to maximize its political support. Our model predicts a strong earnings relationship under right-wing governments and a weak relationship when unions are influential. Using panel data for 19 OECD countries, we find support for these theoretical predictions. Moreover, we show that the earnings relationship varies negatively with openness.     

Why candidate divergence should be expected to be just as great (or even greater) in competitive seats as in non-competitive ones

Basic Downsian theory predicts candidate convergence toward the views of the median voter in two-candidate elections. Common journalistic wisdom, moreover, leads us to expect these centripetal pressures to be strongest when elections are expected to be close. Yet, the available evidence from the US Congress disconfirms this prediction. To explain this counterintuitive result, we develop a spatial model that allows us to understand the complex interactions of political competition, partisan loyalties, and incentives for voter turnout that can lead office-seeking candidates, especially candidates in close elections, to emphasize policy appeals to their voter base rather than courting the median voter.