Political Strategies and Fiscal Retrenchment: Evidence from Four Countries

Political strategy matters – especially in the case of unpopular reforms. This is the main argument of this article. It shows that the analysis of political strategies gives complementary insights into the causal mechanisms of reform politics. It helps us to understand how political actors successfully implement unpopular reforms. The article provides empirical evidence for this claim by means of an analysis of adjustment efforts in Sweden, Belgium, Canada and France during the 1990s. It is shown that governments acted strategically in two areas: they used strategic manoeuvres in the political sphere in order to circumvent veto players. And they employed strategic organisation and communication in the public sphere in order to dampen the risk of being punished by voters for the implemented policies.     

Fiscal Policy Learning from Crisis: Comparative Analysis of the Baltic Countries

The experience of a major crisis is often expected to lead to policy learning but the empirical evidence about this is limited. The goal of the paper is to explore comparatively whether the crisis of 2008–2010 has led to fiscal policy learning by civil servants in the three Baltic countries. Despite some differences in the crisis experience, the finance ministry officials in all three countries have identified the same lesson from the crisis: fiscal policy should be counter-cyclical and help to stabilize the economy. The paper also discusses how various factors have influenced policy learning, including the acknowledgment of failure, blame shifting, and analytical tractability.     

Budget Transparency, Fiscal Performance, and Political Turnout: An International Approach

This paper attempts, for the first time, to assess the relationships between budget transparency, fiscal situation, and political turnout using a comparative international approach. With this aim, the authors build a comprehensive index of budget transparency encompassing 40 budget features based on international standards for a sample of 41 countries. They find a positive relationship between national government fiscal balance and budget transparency: The more information the budget discloses, the less the politicians can use fiscal deficits to achieve opportunistic goals. The univariate analysis shows a positive relationship between political turnout and transparency. This result gives some evidence of a positive answer to the question raised by James Alt and David Dreyer Lassen: Does transparency affect political outcomes such as turnout? To some extent, that the more transparent the budget reports are, the more incentives people have to vote. With respect to three variables—transparency, government fiscal balance, and electoral turnout—three clusters of countries arise: low transparency–fiscal imbalance, low transparency–small fiscal imbalance and high transparency–fiscal surplus.     

Fiscal, Service, and Political Impacts of Indianapolis-Marion County's Unigov

This article describes how city and county governments were,and were not, consolidated under Unigov in 1969, a measure thatfell substantially short of a complete consolidation. The articlethen reviews the available evidence concerning Unigov's effectson service delivery and performance, public finance, economicdevelopment, and voter participation. The available record suggeststhat Unigov has enhanced (1) the stability of Indianapolis'political leadership by establishing one-party control of localgovernment; (2) the effectiveness of its economic developmentstrategy of public subsidization of private developments; and(3) the ability of Indianapolis to shift a greater share ofthe burden for its expenditures to the state and federal governments.There is little evidence that Unigov has (1) reduced the numberof service provision, production, or taxing units in the county;(2) improved central-city residents' satisfaction with theirlocal public services; or (3) effected a substantial redistributionof the financial base for those local services. Instead, thereis some evidence to the contrary.     

Political Cycles,Fiscal Deficits,and Output Spillovers in Europe

This paper investigates whether national elections in Europegenerate political cycles in other European countries, and, ifso, whether these spillover effects are likely to surviveinside EMU. The paper first tests whether elections in Germanyaffect macroeconomic outcomes in other European countries andthen investigates the impact of elections on budget deficits.The results indicate that German politics significantlyimpacts macroeconomic variables in other European countries,and also that politics significantly affects the behaviour ofEuropean budgetary policy. The prospect of elections tends toincrease public deficits in recessions, whereas left-winggovernments tend to be more deficit-prone than right-winggovernments regardless of the state of the economy. Moreover,the existence of political cycles spillovers among Europeancountries suggest that there may be a need for electoralcoordination.     

Money, Time, and Political Knowledge: Distinguishing Quick Recall and Political Learning Skills

Surveys provide widely cited measures of political knowledge. Do seemingly arbitrary features of survey interviews affect their validity? Our answer comes from experiments embedded in a representative survey of over 1200 Americans. A control group was asked political knowledge questions in a typical survey context. Treatment groups received the questions in altered contexts. One group received a monetary incentive for answering the questions correctly. Another was given extra time. The treatments increase the number of correct answers by 11–24%. Our findings imply that conventional knowledge measures confound respondents' recall of political facts with variation in their motivation to exert effort during survey interviews. Our work also suggests that existing measures fail to capture relevant political search skills and, hence, provide unreliable assessments of what many citizens know when they make political decisions. As a result, existing knowledge measures likely underestimate people's capacities for informed decision making.     

Learning More from Political Communication Experiments: Pretreatment and Its Effects

Research on political communication effects has enjoyed great progress over the past 25 years. A key ingredient underlying these advances is the increased usage of experiments that demonstrate how communications influence opinions and behaviors. Virtually all of these studies pay scant attention to events that occur prior to the experiment—that is, in “pretreatment events.” In this article, we explore how and when the pretreatment environment affects experimental outcomes. We present two studies—one where we control the pretreatment environment and one where it naturally occurred—to show how pretreatment effects can influence experimental outcomes. We argue that, under certain conditions, attending to pretreatment dynamics leads to novel insights, including a more accurate portrait of the pliability of the mass public and the identification of potentially two groups of citizens—what we call malleability reactive and dogmatic.     

Fiscal Illusion and Political Accountability: Theory and Evidence from Two Local Tax Regimes in Britain

Local tax reform in Britain in 1993 (reinstating a propertytax) may have reversed some intended fiscal illusion reducing,and ``accountability'' improving, features of the poll tax(itself a reform introduced in 1990 with the specific aim ofpromoting accountability). We formalize these features withina median voter model of the demand for local publicexpenditure that distinguishes between accountability andfiscal illusion effects. The model shows that a prioriaccountability effects on expenditures are ambiguous.Available data for England and Wales are used to test themodel. We find strong evidence of grant illusion (the flypapereffect), similar across tax regimes, with evidence of renterillusion and of less accountability under the property tax.The degree of local income inequality appears to affectexpenditure levels only with the property tax.     

State Regulation and the Political Consequences of Urban Fiscal Stress

The correlates of citizen-initiated municipal tax limitationreferenda are examined for the period 1975–1977. Locallevel conditons are found to be only a partial explanation forthe initiation andoutcome of tax referenda. State fiscal support(i.e., aids and direct spending) and constraints on local fiscaland programmatic activities are found to be significant correlatesof tax referenda.     

Disgust,Anxiety, and Political Learning in the Face of Threat

Emotions feature prominently in political rhetoric and media frames, and they have potent effects on how people process information. Yet, existing research has largely overlooked the influence of disgust, which is a basic emotion that leads people to avoid contamination threats. We illustrate how disgust may impede learning, as compared to the more commonly studied emotion of anxiety. Disgust and anxiety are natural reactions to many kinds of political threats, but the two emotions influence political engagement in different ways. This study investigated the distinctive effects of disgust in a series of experiments that manipulated information about the outbreak of an infectious disease. People who felt disgusted by a health threat were less likely to learn crucial facts about the threat and less likely to seek additional information. Thus, disgust has the counterintuitive effect of decreasing public engagement in precisely those situations where it is most critical.     

The Effects of Political and Fiscal Incentives on Local Government Behavior: An Analysis of Fiscal Slack in China

This study examines the determinants of fiscal slack from the perspective of Chinese local government officials. Given China's rapid economic growth over the past 30-plus years, Chinese local governments reportedly hold huge slack resources that attract public scrutiny. In an effort to improve their fiscal performance, some localities recently established budget stabilization funds, following a top-down initiative. However, it remains unclear to what extent fiscal slack has accumulated and which factors affect slack resource levels of Chinese local governments. By employing a panel dataset (249 prefecture-level cities, 1999–2009), this study finds that political and fiscal factors exert significant influence over local officials’ decisions about slack resource levels. The findings of the study bear implications for establishing fiscal rules and improving the performance of sub-national governments in China and other countries.     

President Clinton's Fiscal 1998 Budget: Political and Constitutional Paths to Balance

This article examines President Clinton's FY 98 budget proposals and the political and economic factors that led to the balanced budget agreement. Also explored are the constitutional approaches to fiscal discipline: the balanced budget amendment, the tax supermajority amendment, and the line item veto that was used 80 times by President Clinton to delete over a billion dollars. The analysis reveals that budget bargaining was continuous before and after the budget agreement was reached, moving downward from decisions on macro-budgetary totals to micro-budgetary choices on tax cuts and appropriations. The study concludes that President Clinton was relatively successful in achieving budgetary goals under divided government, that the agreement was significant despite the economic growth that made it easier, and that constitutional remedies will continue to be important in the coming years.     

Fiscal Capacity, Fiscal Need, and Fiscal Comfort among U.S. States: New Evidence

During its lifetime, the U.S. Advisory Commission on IntergovernmentalRelations periodically published estimates of each state's relativefiscal capacity. This research note provides new estimates updatedto fiscal year 1994, the latest year for which all requisiteunderlying data are available. We find that dispersion in capacitynarrowed from 1987 to 1994, largely because the capacities ofCalifornia and the Northeast states, historically enjoying amplecapacity, fell relative to the national average. We also findthat these states generally experienced an increase in relativefiscal need, further narrowing interstate dispersion in fiscalcomfort (capacity relative to need). We conclude with evidencesuggesting that states with low fiscal comfort generally preferrelatively low levels of state and local public services.     

Generation, Age, and Time: The Dynamics of Political Learning during Russia's Transformation

When the Soviet Union collapsed, most Russians had lived their entire lives in a quintessentially authoritarian culture. Having been socialized in this environment, how could citizens acquire the attitudes and behaviors necessary to support a new, more pluralistic regime? Cultural theories of political learning emphasize the primacy of childhood socialization and hold that altering initial attitudes is a decades‐long process that depends on generational replacement. Institutional theories emphasize adult relearning in response to changing circumstances regardless of socialization. Lifetime learning integrates the competing perspectives. Multilevel models using New Russia Barometer data from 1992 to 2005 confirm the persistence of some generational differences in Russian political attitudes but demonstrate even larger effects resulting from adult relearning. Lifetime learning provides the most comprehensive account and suggests that Russians would quickly acquire the attitudes and behaviors appropriate to democracy—if Russian elites supply more authentic democratic institutions.     

The Changing Finnish Democracy: Stronger Parliamentary Accountability, Coalescing Political Parties and Weaker External Constraints

Examining constitutional and political developments since the Second World War, this article shows that Finland has moved from a system dominated by the president toward a normal parliamentary democracy. Government formation is now based on partisan negotiations and the president is almost completely excluded from the policy process in domestic matters. The chain of delegation from the voters to the civil servants is thus now simpler than before and subject to fewer external constraints. In fact, Finland is probably the only West European country where parliamentary democracy has become less constrained since the 1980s. Leadership by presidents has effectively been replaced with leadership by strong majority governments, which have ruled, without much effective opposition, since the early 1980s. The stronger role of parties in shaping public policy stands in contrast to the weakening of the parties among the electorate. The ability of political parties to effectively align preferences is increasingly in doubt, as indicated by the transforming cleavage structure, lower turnout and declining party membership.     

The Political Economy of India's Fiscal Federal System and its Reform

This article examines recent and potential reforms in India'sfiscal federal system. We summarize key federal institutionsin India, including tax and expenditure assignments, and mechanismsfor Center–state transfers. We discuss the institutionalprocess by which reforms can and do take place, including therole of academics, political influences, and especially institutionssuch as the Finance Commission. In contrast to the past, recentcommissions have played a greater role in articulating an agendafor fiscal federal reform, which then proceeds through politicalbargaining. This change has taken place in the context of, andbeen influenced by, broader economic reform in India.     

From Active Learning to Taking Action: Incorporating Political Context Into Project-Based,Interdisciplinary, International Service Learning Courses

Educational approaches that enable students to actively and directly participate in “real-world” projects are increasingly recognized as valuable pedagogical tools and, as such, being incorporated into university curriculums worldwide. Though not traditionally associated with political science courses, project-based international service learning presents a tremendous opportunity to bring classroom concepts and theories to life, provide an active approach to addressing international challenges, and assist students in the development of the hands-on, problem-solving, team-based, critical-thinking skills that are increasingly important to employers across all sectors. This article seeks to encourage political science faculty to incorporate international service learning—and/or project-based approaches—into their educational offerings. Through examination of the course Global Synthesis in Liberal Arts and Engineering Studies at California Polytechnic State University, we have identified multiple factors that can help promote successful execution of project-based international service learning as a pedagogical tool, and provide additional suggestions for faculty interested in adopting specific aspects of these educational approaches, and/or in doing so closer to home.