Corruption,Cooperation and Endogenous Time Discount Rates

Virtually all uses of repeated games tostudy of cooperation assume that people'stime discount rates are exogenous andfixed. Here we offer an evolutionary gameembedded in a multi-period model ofinvestment and consumption in whichindividual time discounts are determined bytheir convergence to values determined byEvolutionary Stable Strategies. Oursubstantive motivation, though, iscorruption and its relationship to economicgrowth. To understand the observedrelationship between levels of corruptionand economic indicators of social welfare,we argue that corruption is a form ofcooperation that requires closeinterpersonal monitoring. If we assume,moreover, that when people discount thefuture greatly the only sustainable formsof cooperation are those that allow forclose monitoring, then our analysis can beinterpreted as a dynamic model of therelationship between corruption andinvestment.     

Terrorism and Transportation Policy and Administration: Balancing the Model and Equations for Optimal Security

September 11 was the catalytic event that clearly demonstrated that transportation security was a virtual myth. We had obviously overinvested in efficiency-based mechanisms and procedures while the security and safety standards provided by effectiveness considerations were being increasingly ignored. This article analyzes the increasingly dangerous situation as it unfolded and provides an Emerging Entrepreneurial Management and Public Policy Model designed to provide insights towards rebalancing our transportation security and public policy considerations as we attempt to design, implement, and pay for optimal security systems to deal with the terrorism threats we face in the early twenty-first century. Rebalancing the model and the equations will require increased focus, will, and skills. It will also be a lot more expensive . . . in both the private and the public sectors.     

Economic Freedom and Taxation: Is There a Trade-off in the Locational Competition Between Countries?

This paper investigates the relationshipbetween economic freedomand taxation. We argue that an economicallyfree environment improvesthe attractiveness of a location, which, inturn, enables governmentsto levy higher business taxes. To test thishypothesis empirically, weestimate the impact of economic freedom onthe national tax policy,where the latter is measured by thecorporate tax revenue related toGNP (corporate tax ratio). We utilize adata set of 46 developed and lessdeveloped countries between 1980 and 1997and find a clear confirmationof our hypothesis. Further, a simulationanalysis reveals that the observedchange in economic freedom has equalizedthe international distributionof corporate tax ratios.     

Continuity and change: the administration of George W. Bush and US policy toward Taiwan

This paper examines recent modifications in American policy toward the Republic of China (ROC or Taiwan). It contends that, while the George W. Bush Administration may have carried out a significant readjustment of US policy, available evidence suggests that it will not endorse any major upgrades in ties with Taipei during the foreseeable future. Like previous administrations, the Bush Administration now recognizes the value of engaging the People's Republic of China (PRC). This development holds important implications for the future trajectory of America's relations with Taiwan and the PRC and for peace and stability in the Western Pacific.     

Book reviews

Journal of Chinese Political Science -     

Policy and power: A conceptual framework between the ‘old’ and ‘new’ policy idioms

During the last few decades, both policy practices and policy idioms have drastically changed. Concepts such as interactive planning, network management, stakeholder dialogue, deliberative democracy, policy discourses, governance, etc. have replaced older ones such as public administration, policy programmes, interest groups, institutions, power, and the like. Although we recognise the relevance and importance of this shift in vocabulary, we also regret related ‘losses’. We particularly regret that the concept of power has – in our view – become an ‘endangered species’ in the field of public policy analysis. We therefore will develop a framework to analyse power – being a multi-layered concept – in policy practices in this article. We will do so on the basis of the so-called policy arrangement approach, which combines elements of the old and new policy vocabularies. In addition, we draw upon different power theories in developing our argument and model. As a result, we hope to combine the best of two worlds, of the ‘old’ and the ‘new’ idioms in policy studies, and to achieve our two aims: to bring back in the concept of power in current policy analysis and to expand the policy arrangement approach from a power perspective.