Not All Housing GSEs Are Alike: An Analysis of the Federal Home Loan Bank System and the Foreclosure Crisis

While the financial crisis of 2008 ultimately affected the range of U.S. financial institutions, it began with practices in home ownership finance. The Federal Home Loan Bank (FHLBank) System was the first instrumentality created by the U.S. government, in 1932, to sustain affordable home ownership finance. In this article, the authors ask what role, if any, the FHLBanks played in the subprime lending and securitization practices that precipitated the current crisis. The authors analyze publicly available FHLBank financial data in terms of a framework focused on the System's assets: advances; mortgage loans acquired from members; and investments, particularly in mortgage-backed-securities. They conclude that the FHLBanks did not contribute significantly to problematic practices. Nonetheless, they recommend consideration of three reforms to the FHLBanks to ensure a return to effective regulation and responsible, affordable home ownership finance.     

Does Paid Family Leave Reduce Nursing Home Use? The California Experience

The intent of Paid Family Leave (PFL) is to make it financially easier for individuals to take time off from paid work to care for children and seriously ill family members. Given the linkages between care provided by family members and the usage of paid services, we examine whether California's PFL program influenced nursing home utilization in California during the 1999 to 2008 period. This is the first empirical study to examine the effects of PFL on long‐term care patterns. Multivariate difference‐in‐difference estimates across alternative comparison groups provide consistent evidence that the implementation of PFL reduced the proportion of the elderly population in nursing homes by 0.5 to 0.7 percentage points. Our preferred estimate, employing an empirically‐matched group of control states, finds that PFL reduced nursing home usage by about 0.65 percentage points. For California, this represents an 11 percent relative decline in elderly nursing home utilization.     

POLITICS AND REGULATION: THE PUBLIC CHOICE APPROACH

Abstract: Government regulation of the economy has been the subject of criticism both on the grounds of efficiency and equity. Traditional economic theories explaining regulation may be deficient insofar as they assume a benevolent welfare maximizing government, intervening only to correct "market failures". Political theories of interest group influence (for example pluralist, capture, Marxist theories) provide some more realistic insights into regulation, but fail to yield rigorous, testable propositions. The theory of public choice applies the rigour of economic analysis to political behaviour and suggests some useful approaches to the explanation of regulation, focusing on the public goods problem of organizing large groups of actors for collective action and on the role of the political entrepreneur in mobilizing large numbers of voters. The public choice approach may also be useful in suggesting strategies for deregulation in some key areas of the Australian economy currently under scrutiny (for example banking, airlines, telecommunications).     

LONG TERM CARE REGULATION IN THE STATES: A SYSTEMIC PERSPECTIVE

In recent years there has been growing interest in differing state roles in the regulation of the health care industry. Most of this attention has stressed the impact of regulatory policy with only superficial attention directed towards understanding the extent to which states can be counted on to act effectively in the area of health care regulation. Using the regulation of nursing homes as a focus, this study evaluates a variety of sociocultural, political, and economic conditions for their impact on the development of various regulatory policies. The findings suggest that the development of certificate of need legislation and reimbursement controls were not related to significant changes ir, states' budgets for Medicaid services or in bed/population ratios. Instead, regulatory efforts were more closely linked to the sociopolitical environments surrounding the policy arena. While these factors provide some indication of the potential for strong state action in the regulatory arena, ultimately the use of state regulatory policies will depend quite centrally on the innovative tendencies of the state, its organizational capacity for addressing policy issues, and the nature and extent of interest group politics.     

EDUCATING BUSINESS AND INDUSTRY ABOUT DISASTERS: LEGISLATIVE PROBLEMS IN THE ADOPTION OF MODIFIED LENDING TERMS BY HOME MORTGAGE LENDERS

The regulation of home mortgage-lending is another strategy for mitigating the danger of natural disaster through such regulation. Property owners could be made aware of the dangers posed to their property and required to share the risk of damage by purchasing subsidized insurance. This strategy, however, has not been utilized to an optimal degree in mitigating site specific geologic hazards due to legal barriers. Nevertheless, such barriers are not insurmountable and are amenable to legal remedies.     

International Dimensions of Legitimacy: Reflections on Western Theories and the Chinese Experience

Western legitimacy theories have mostly focused on the nation-state and the domestic aspects of political legitimacy. However, with the acceleration of globalization, a dimension of legitimacy has come into view that has previously been largely neglected in political science: the international dimension. While the interdependence of nation-states at the global level might put some constraints on the (re)production of legitimacy domestically, it simultaneously allows them to leverage their global standing to gain legitimacy abroad and at home. China is the most prominent example of the growing importance of this dynamic link between internal and external legitimacy. The paper starts with a critical reflection on the prevalent Western legitimacy theories. Based on these reflections, it introduces a new approach which aims to differentiate analytically between internal and external legitimation strategies and to examine the two-level logic linking the two.     

REGULATION AND THE THEORY OF AGENCY1

The major arguments of this paper are that there is a need for an integrating framework for the study of regulation, including the design of regulatory institutions, and that the theory of agency may provide such a framework. The paper provides a brief overview of this approach. The theory of agency is a general theory of social relationships of “acting for” that is now under development in several disciplines, particularly economics and accounting. Regulation is seen as a generic relation observed widely in social behavior, and as a particular type of agency relationship. The problems of agency relations–e.g., the problems of principals in controlling agents and of agents in acting according to the principals' desires–have their counterparts in regulation.     

REGULATION OF THE FREE-ADVERTISING AND THE FIRST AMENDMENT

The "new" line between communications that have full First Amendment protection and those that are subject to regulation is still in the process of being delineated by the Supreme Court; legal and mass a communication scholars are proposing a plethora of tests for future cases. Rather than proposing yet another test, this article starts from the premise that future advertising regulation cases will be based on legal philosophy and judicial "world view" as well as law and precedent. First Amendment law and advertising regulation concerns have historically been based on two different concerns and perspectives that have only recently been seen to interact. This article charts a perspective on the differences in the legal, philosophical and historical roots of these two areas, shows how and why they are now seen as interrelated and attempts to give some insight into possible future legal directions in this area.     

Long‐term care reform and the role of housing finance

Abstract

The Clinton administration's recently announced home and community‐based care proposals have potentially important implications not only for long‐term care policy, but also for housing policy in the United States. This article attempts to draw out some of those implications. The first section examines problems inherent in the current “medical/welfare” system of financing long‐term care, which constrains consumer choice by limiting the supply of providers to control costs and by increasing medical professionals’ control over the types of services provided in the name of quality control. The medical/welfare dominance of long‐term care policy has resulted in an overreliance on nursing homes as providers, resulting in both escalating costs and continued consumer dissatisfaction.

The second half of the article looks at recent market and policy developments in response to consumer demand for lower cost alternatives to nursing homes. These alternatives promote more consumer autonomy and control in supportive housing arrangements. A more comprehensive services and housing policy could promote these developments in an approach that combines the security of public financing of supportive services with the benefits of consumer choice, market competition, and legal protections that characterize housing markets. In such a scenario, housing finance institutions—including government agencies, lenders, developers, and investors—could play a pivotal role in the long‐term care debate not only by unlocking substantial financial resources but, equally important, by transforming the provision of long‐term care services to promote consumer choice and autonomy.     

Does the public sector outperform the nonprofit and for‐profit sectors? Evidence from a national panel study on nursing home quality and access

Are public and private organizations fundamentally different? This question has been among the most enduring inquiries in public administration. Our study explores the impact of organizational ownership on two complementary aspects of performance: service quality and access to services for impoverished clients. Derived from public management research on performance determinants and nursing home care literature, our hypotheses stipulate that public, nonprofit, and forprofit nursing homes use different approaches to balance the strategic tradeoff between two aspects of performance. Panel data on 14,423 facilities were analyzed to compare measures of quality and access across three sectors using different estimation methods. Findings indicate that ownership status is associated with critical differences in both quality and access. Public and nonprofit organizations are similar in terms of quality, and both perform significantly better than their forprofit counterparts. When compared to nonprofit and, in some cases, for‐profit facilities, public nursing homes have a significantly higher share of Medicaid recipients. The paper proposes strategies to address the identified long‐term care divide. © 2008 by the Association for Public Policy Analysis and Management.     

Helen Holt: A Centenarian's Reflections on a Lifetime of Public Service

Women have made great strides in the past 100 years. As the iconic cigarette commercial told us almost 50 years ago, “You've come a long way, baby!” Yet women are still underrepresented in the highest leadership ranks, including state and federal office. Before being asked to “lean in” or share valuable insights, a small group of very capable women were leaders long before those two words were seen in the same sentence. One such remarkable woman, Helen Holt, was a “servant‐leader” throughout her illustrious and inspiring career as a member of West Virginia's House of Delegates, then as secretary of state (1957–58), and later as a presidential appointee charged with developing the nation's nursing home system. Holt's work in state and federal government, her appointment by seven U.S. presidents to develop and implement the national nursing home program that is still in use today, and her leadership in civic and nonprofit organizations have made her an inspiration to countless women and men.     

DEVELOPING A FRAMEWORK FOR MANAGEMENT EDUCATION IN THE VICTORIAN PUBLIC SERVICE

Abstract: The Public Service Board of Victoria initiated a project in March 1989 to plan a framework for the development of competent managers. The methodology involved an examination of the current practices of 23 organisations, together with a worldwide literature search. The major findings were that the managerial task is similar across sectors, but the manager level and the environment are qualifying variables; that training, management education and development in private sector organisations and statutory bodies has total commitment from the chief executive, is closely linked to the business plan, forms part of an integrated human resource management system, and is continually reinforced by the organisation's culture and values; and that there is no strategic and focused approach to developing managers across the Victorian Public Service. The 21 recommendations covered the areas of investment and commitment, the development of a systematic approach by providing quality management programs based on core managerial competencies and the integration of training, education and development with performance management processes.
The implementation plan calls for pump-priming funds for resourcing and delivering high quality programs, a change in the culture, the adoption of a set of principles, the establishment of a management education unit, acceptance of a common language of competence for managers, and an integration of education and development needs with corporate plans through the performance improvement system. Commitment to implementation should result in a systematic approach to the formation of competent managers with the benefits flowing to the community through improved services, the government gaining by increased performance of the agencies, and public servants being able to reach their full potential.     

Politicians,regulators, and regulatory governance: The neglected sides of the story

We offer a series of reflective insights about the state and direction of studies related to the politics of regulation. Notably we argue that the field is characterized by persisting divisions between Americanists and Europeanists. Largely focused on the actions taken by political principals, the former regularly report a substantial politicization of regulatory behavior. Reflecting on recent developments in US politics however, we show that political influence could be overestimated in the United States. Symmetrically, this same influence could be underestimated by Europeanists, who for now have largely focused on regulators and agencies. This is notably suggested by a discussion of recent development in European politics, as revealed by contributions systematically measuring agency politicization in Western European democracies. On this basis, we identify some promising research questions and agendas for future studies on the politics of regulation.     

International Cooperation to Manage High‐Skill Migration: The Case of India–U.S. Relations

Highly skilled people are among the most valuable factors of production in the contemporary world economy. Some have characterized the competition among nations for these people as a “brain drain” or “war for talent,” which imposes significant costs on the countries of emigration. However, the distribution of costs and benefits that results from high‐skill migration is not necessarily zero‐sum or fixed. It may be altered through international cooperation, producing a self‐reinforcing “win–win” scenario for sending and receiving countries. Bilateral cooperation, focused on specific sectors affected by migration, is the most promising approach for realizing such a scenario. This paper explores the prospects and potential for such cooperation between India and the United States, which comprise what is probably the world's largest high‐skill mobility relationship. After sketching the broad contours of the relationship, we explore the prospects for mutually beneficial cooperation in three specific fields of high‐skill migration: information technology services, medicine and nursing, and graduate education.     

An overview: A new era of tax enforcement – from “big stick” to responsive regulation

Recent developments in regulation and tax administration in Australia inspired this article on tax compliance and responsive regulation. This article analyzes the economics of crime and compliance as the dominant approach to tax enforcement of the past three and a half decades. It evaluates the key advantages and disadvantages of the economic approach as well as its application to tax. The article then explores responsive regulation as an alternative method that draws on the economic paradigm but also supplements this approach with other theories, particularly those involving identity, conflict escalation, and procedural justice. Building on this analysis and a case study of Australian investors in mass marketed tax schemes, the article suggests that the broader, more balanced, and closely tailored method of regulating responsively may enable regulators to draw on the advantages of the economic model while alleviating some of its drawbacks. Responsive regulation may therefore constitute a superior method for regulating compliance.     

REGULATING THE ACCOUNTABILITY OF CHARITABLE ORGANISATIONS: THE VICTORIAN EXPERIENCE

Abstract: This paper concentrates on the regulation of charitable organisations in the state of Victoria, where governments have sought to determine the bona fides of these organisations by obtaining their financial reports. A survey of the financial reports of registered Victorian charities indicates, however, that a significant proportion of charities do not supply this information. This deficiency indicates that government judgements about the bona fides of organisations cannot always be made, and the efficiency of regulation is therefore questioned. Other shortcomings in the regulation of charities are also identified. These include the problems incurred in seeking to implement these regulations and those which arise through the enforcement of the regulations themselves.     

Moral dilemmas

She is a licensed family therapist. She is co-author of Sociology;and Growing Old in America (the latter published by Transaction).She is also author of Older Women.Her current research focuses on gender-specific predictors of nursing home placement, health correlates of depression in old age, and the portrayal of older women in film.     

Home rule and municipal revenue stability: New evidence from Texas

Scholars have long debated whether home rule powers help improve municipal financial well-being; however, a consensus has yet to be reached. This study advances the home rule literature by causally estimating the impact of home rule in Texas on municipal revenue stability. To accomplish this, we employed a difference-in-differences estimator coupled with event-study specifications on a 40-year-long panel data set. This approach revealed strong empirical evidence that cities adopting a home rule charter had a significant reduction in the probability of experiencing revenue decline. This finding remained robust with multiple measures of revenue change, an alternative sample, and different model specifications. Moreover, we found that home rule cities’ revenue stability was likely to come from their increase in property taxes.     

Managing in the Regulatory Thicket: Regulation Legitimacy and Expertise

Although the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This article investigates how the understanding of and attitudes toward government regulation among public, nonprofit, and for‐profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Findings suggest that managers’ perceptions of regulation legitimacy—views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates—positively affect service quality. Subgroup analysis suggests that managers’ views of regulation matter in nonprofit and for‐profit organizations but not in public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise—better knowledge of the regulatory standards. In for‐profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.     

THOMAS HOBBES AND THE CONSTITUENT POWER OF THE PEOPLE

Abstract. The paper examines Hobbes's doctrine of representation and argues that implicit in this doctrine is the modern notion of the people as the constituent power of the state. Attention is focused on the progressive evolution of Hobbes's ideas about the multitude, the people, and the constitution of political unity, and on the connection between his doctrine of political representation and his concept of personality. The paper ends by assessing the compatibility of Hobbes's concept of the people as constituent power and his concept of the commonwealth by acquisition.