Public choice and public policy: The vulnerability of economic advice to the interpretation of politicians

The confidence with which politicians defend their policies is in marked contrast to the qualifications which academic researchers attach to their results. The difference is indicative of a failure of the political market, whereby politicians have an incentive to select policies for electoral and ideological reasons and to minimise any uncertainty associated with policy effectiveness. In this scenario dissension between economists is of value if it alerts individuals to the sensitivity of policy answers to the framework in which they are derived. Moreover, with government failure, public choice analysts are faced with the problem of how best to amend policy advice in order to allow for potential distortion at the hands of politicians.The authors are Senior Lecturers in Economics and Members of the Centre for Fiscal Studies, University of Bath. They wish to acknowledge the very helpful comments of Professors Gordon Tullock, Harry Collins and an anonymous referee. Any errors that might remain are, of course, the sole responsibility of the authors.     

Quantifying distributive justice: An approach to environmental and risk-related public policy

The most fundamental philosophical objection to cost-benefit analysis is that it fails to account for the distinction between more-necessary and less-necessary benefits. For example, it provides no way to avoid trading off a few cancer deaths in exchange for a more cost-effective but also more hazardous technology which provides cheaper paper or plastic products for the many. Since unjust distribution of benefits and burdens results primarily from the failure to prefer more-necessary goods (such as health and safety) over less-necessary ones (such as cheaper plastic razors), we shall see that a correct calculation of the rate at which marginal utilities diminish in value (as they become less necessary to their users) can determine degrees of necessity and thus the most just possible distribution of benefits and burdens. One way to measure the rate of diminishing marginal utility is provided by the wealth effect in occupational risk studies. Wealthier workers will not assume the same risk in exchange for a given salary increment (which to them is not very necessary) as poorer workers would assume for that same salary increment (which to them is more necessary). It is therefore possible to construct a mathematical model for the effect of necessity/non-necessity on quantitative decision principles for environmental and risk-related public policy, thus making such decisions more distributively just than traditional cost-benefit analysis would allow.     

A comparison of prospective and retrospective voting with heterogeneous politicians

A long-standing empirical literature has been concerned with determining whether voters vote “prospectively or “retrospectively.” Despite this interest, little is known about the consequences of one voting regime versus another. This study addresses this deficiency. We find that voter welfare can be greatly affected by the candidate selection technique employed by voters. Among other findings, we show that “electing the best candidate” does not always maximize voter welfare. Furthermore, “myopic” voting is sometimes superior to “farsighted” voting. These findings have implications for interpretations of empirical studies of voter behavior.     

The life satisfaction approach to valuing public goods: The case of terrorism

Terrorism has large social costs that are difficult to quantify for the well-known problems of eliciting people’s preferences for public goods. We use the LSA to assess these costs in utility and monetary terms. Based on combined cross-section time-series data, we estimate the costs of terrorism for France and the British Isles. We find large negative effects of terrorism on life satisfaction that translate into considerable compensating surpluses for a hypothetical reduction in terrorism, in particular for the serious conflict in Northern Ireland. The effects of terrorism are robust and differ across groups in accordance with prior expectations.     

Corruption monitoring and the supply of politicians in China

Monitoring institutions are usually perceived as efficient instruments for improving governance. This article evaluates the link between corruption monitoring and the supply of politicians in nondemocracies. Using China as a case, I show that corruption monitoring pushes capable young elites away from seeking government positions. This effect may be driven by two possible mechanisms: economic returns and career prospects. Specifically, corruption investigations may reduce the expected economic returns for government officials, undermining capable young elite’ willingness and efforts to become government officials. In addition, corruption investigations may indicate that there are potential uncertainties and risks involved when taking on a political career, which reduce capable young elites’ desire to pursue a political career. The empirical analysis confirms these two mechanisms and provides unique evidence for the unintended negative impact of corruption monitoring institutions.     

Voting competitions with interested politicians: Platforms do not converge to the preferences of the median voter

We examine equilibrium voting strategies for elections with interested politicians facing uncertainty about voter pReferences. If politicians' utilities are defined over the set of strategies that voters select (instead of being dependent only on the probability of winning an election), equilibrium strategies will diverge (instead of converging to the median voter's pReferences) as long as politicians have different pReferences. We present conditions (i) for political compromise, and (ii) for politicians with different utility functions to merge into parties with complete strategic agreement.     

Pay for politicians and campaign spending: evidence from the French municipal elections

Public Choice - This paper investigates the relationship between taxation and firm performance in developing countries. Combining firm-level data from the World Bank Enterprise Surveys and tax data...     

A neo-communitarian approach to international relations: Rights and the good

New communitarianism is important even to those who care little about academic disputes. A greatly altered communitarian position lays the foundation for an international legal framework that is more comprehensive than the United Nations' Universal Declaration of Human Rights. It is more attentive to beliefs in the East, and enhances the ability of nations that adhere to different values to find common ground on policies ranging from humanitarian interventions to fighting terrorist groups. The article first examines criticisms leveled against communitarianism and then highlights the ways a neo-communitarian approach has overcome these criticisms. The question of under what circumstances one nation may interfere in the internal affairs of another, especially to advance human rights, using means as different as cross cultural moral judgments to armed humanitarian interventions, serves as a litmus test for distinguishing the new from the old communitarian approach.     

Competing Approaches to the Study of American Federalism and Intergovernmental Relations

The development of theory in the study of American federalismand intergovernmental relations has long been marked by divergentapproaches. This article reviews the literature produced byfive "schools" within the field: (1) dual federalism, (2) cooperativefederalism, (3) pragmatic federalism, (4) noncentralized federalism,and (5) nation-centered federalism. As different as these approachesare, scholarly work in this field has made only sparing useof two other potentially useful approaches: distributive justiceand public choice theory. This article suggests how these alternateapproaches might contribute to reinvigorating a field that appearsto be otherwise at an intellectual impasse.