Public finance in autocratic process: An empirical note

Our title is borrowed in a modified form from that used by Buchanan 1967. All data, as well as the relevant computer print-outs, is available upon request.     

Political systems and distortions: An empirical study

This paper studies empirically why price distortions are more prevalent in some countries than in others. We find no significant difference between democracies and dictatorships, but frequent regime changes reduce distortions. Political systems (factional-subordinate) that encourage redistributive activities (RDA) tend to have more distortions. Allowing for different effects of RDA in democracies and dictatorships, there is a positive and significant effect of RDA on distortions in dictatorships. In democracies, “distortions-destroying” lobbying seems more important since no significant relation between RDA and distortions can be found.     

Economic voting in provincial elections: Revisiting electoral accountability in the Canadian provinces

ABSTRACT

We examine the outcomes of the provincial elections having been held in Canada since the Great Recession and compare them with outcomes from past decades. Given the severity of the 2008 financial crisis, we test for whether provincial governments’ electoral fortunes over the recent period have been negatively impacted by this important economic shock. Our analyses of aggregate-level provincial electoral outcomes: (1) confirm that provincial incumbent parties are held accountable for provincial economic conditions; (2) show that this provincial economic voting pattern has been heightened during the financial crisis; and (3) demonstrate that provincial incumbents also incur vote share losses when national economic conditions worsen and their respective family party is in power at the federal level, although this referendum voting pattern appears to have been unaffected by the financial crisis.     

Electoral promises and minority governments: An empirical study

Abstract.  This article studies the relationship between electoral policy proposals and subsequent government actions in the case of minority governments. Content analysis of electoral pledges of Spanish parties is utilised to study the gains that a relatively small party obtains when it helps to sustain the governing party in office without entering a coalition government. According to the authors' results, cooperating in parliament to maintain the minority government in office can be a rational choice for a party because it allows it to obtain significant gains in terms of programme fulfillment.     

Political participation and procedural utility: An empirical study

Abstract.  Democracy can be characterized by policy outcomes as well as governmental processes. In this article, it is argued that people have preferences about both aspects and that they derive utility from the processes involved in decision making over and above the utility gained from outcomes. The authors study political participation possibilities as an important source of procedural utility. To distinguish between outcome and process utility, they take advantage of the fact that nationals can participate in political decision making, while foreigners are excluded and thus cannot enjoy the respective procedural utility. Utility is assumed to be measurable by individually reported subjective well-being. As an additional indicator for procedural utility, reported belief in political influence is analyzed.     

Industry characteristics and interest group formation: An empirical study

The role of interest groups in the political process has been the subject of much analysis in both political science and economics. However, few studies have examined directly the factors which influence the variation in interest group formation across industrial sectors and between countries. Using data on 75 industrial sectors in 10 countries, we examine the way in which variations in interest group formation are explained by variations in industrial and political characteristics. In cross-sectional empirical relationships we test for the significance of a variety of industry and political variables. Our results indicate that industry characteristics such as the proportion of total demand purchased by households and the concentration ratio are related to variations in interest group formation. We discuss the implications that our results have for recent theoretical work on the effect of interest groups on economic policy.For helpful comments, we would like to thank Antonio Estache, Bruce Gardner, Dennis Mueller, Mancur Olson, and participants at the meetings of the Public Choice Society and the Southern Economic Association. The International Institute of Management of Berlin, Paul Geroski, Neal Kennedy, Alexis Jacquemin, Kenneth Platto, Joachim Schwalbach, and Hideki Yamawaki helped in providing data. The Computer Science Center of the University of Maryland is acknowledged for provision of computational resources.     

Public expenditures and the risk of social dominance

Public Choice - Based on the observation of an unabated trend towards higher social spending-to-GDP ratios in advanced countries, the study analyzes the risk of social dominance, a situation in...     

Public Managers as the Missing Variable in Policy Studies: An Empirical Investigation Using Canadian Data

The article draws on survey data from a 2007–09 study of Canadian policy analysts to assess several propositions concerning the role of public managers in policy‐making. It is argued that little is known and much taken for granted concerning the role public managers play in policy making. The discussion begins with a conceptual discussion of the nature of policy advice systems in modern governments and situates public managers among the range of actors who affect different stages of policy making activity. Propositions derived from this conceptual discussion are then subject to empirical analysis using a large‐n 2007–09 Canadian federal, provincial, and territorial dataset.     

The demand for military expenditures: An international comparison

Earlier studies have explained inter-country variations in the share of GNP devoted to military expenditures by international spillovers and by differences in the threat of attack related to relative incomes. In this paper, we use the theory of public choice to explain these differences. We attempt to measure the importance of both international spillovers and relative incomes, along with two other factors: the tax-price elasticity of demand and economies of scale in the consumption of security. We find that international spillovers are significant and positive, that the income elasticity of demand is greater than unity, that the tax-price elasticity of demand explains part of observed inter-country differences, and that there are considerable economies of scale in the consumption of military spending. Finally, between 1960 and 1975, there was apparently a substantial increase in the value which each country derived from a dollar of military spending by its allies. This phenomenon, which seems related to the increased importance of deterrent weapons, has tended to induce individual alliance members to reduce the share of their national income devoted to defense.     

The two freedoms,economic growth and development: An empirical study

Log-linear methods are applied to categorical data containing economic freedom, political freedom, the level of income, and the rate of economic growth for a panel of about 100 countries from 1975 to 1992. The main results are: given economic freedom, the rate of economic growth is independent of political freedom and the level of income; given the level of income, political freedom is independent of economic freedom and the growth rate. The analysis suggests the fundamental effects of economic freedom in fostering economic growth, and a high level of income as the condition of a high degree of political freedom.     

Common pool size and project size: an empirical test on expenditures using Danish municipal mergers

The paper examines the proposition from the law of 1 over n (Weingast et al. 1981) that project size tends to increase with common pool size. Comparable studies have tended, firstly, to focus on assets and debt rather than on expenditures and, secondly, on district population rather than on the number of districts as in the original formulation of the law. Both issues are sought to be remedied in this paper. The proposition is examined on Danish municipal expenditures from 1996 to 2006, using municipal mergers towards the end of this period as a quasi-experiment. A difference-in-difference identification strategy and a subsample strategy are used to identify the effect of the availability and size of a common pool on municipal expenditures. The paper finds positive, statistically and economically significant effects of the availability and size of a common pool in the final year of the treatment period. The importance of the number of districts over district population suggests a reappraisal of the law of 1 over n as originally formulated.     

Populism as political communication style: An empirical study of political parties' discourse in Belgium

Abstract.  The scientific debate about populism has been revitalised by the recent rise of extreme-right parties in Western Europe. Within the broad discussion about populism and its relationship with extreme-right, this article is confined to three topics: a conceptual, an epistemological and an empirical issue. First, taking a clear position in the ongoing definition struggle, populism is defined primarily as a specific political communication style. Populism is conceived of as a political style essentially displaying proximity of the people, while at the same time taking an anti-establishment stance and stressing the (ideal) homogeneity of the people by excluding specific population segments. Second, it is pointed out that defining populism as a style enables one to turn it into a useful concept that has too often remained vague and blurred. Third, drawing on an operational definition of populism, a comparative discourse analysis of the political party broadcasts of the Belgian parties is carried out. The quantitative analysis leads to a clear conclusion. In terms of the degree and the kinds of populism embraced by the six political parties under scrutiny, the extreme-right party Vlaams Blok behaves very differently from the other Belgian parties. Its messages are a copybook example of populism.     

Technology,behavior, and safety: An empirical study of automobile occupant-protection regulation

Technology and human behavior can influence the effectiveness of safety policies. In the field of traffic safety, rational-choice theorists postulate that automobile safety devices induce increased driver risk taking. Such behavioral responses could partly or totally nullify the lifesaving potential of governmental safety rules for new cars, such as the crashworthiness standards adopted by the United States in the late 1960s and early 1970s. This study explores the behavioral-response hypothesis in the context of a car-vintage model of U.S. car occupant death rates. Results from the model imply that U.S. standards have reduced the occupant death rate by roughly 30 percent, a finding consistent with minimal driver response to safety devices. The study provides support for the technological approach to safety policy and suggests that policymakers might consider adopting additional crashworthiness regulations, such as some form of passive-restraint program.Financial support was provided by the Economic Studies Program, Brookings Institution. I thank Robert W. Crandall, Steven Garber, Lawrence Summers, and the editors for comments. All views and residual errors are solely my responsibility.     

Macro-economic decision-making in Norway: an analysis of economic decisions within the politico-economic framework

Summary. The aim of the study is to analyze when and why Norwegian governments carry out expansive decisions rather than contractive ones. Following the politico-economic approach, it is proposed that both the governmental re-election prospects and economic indicators may influence macro-economic decision making.
The article attempts to employ this framework in an empirical analysis of events data, i.e. in an analysis of 318 decision events spread throughout the period from 1964 to 1984. Unemployment is the major determinant of macro-economic policies. The hypothesis of political business-cycle receives only limited empirical support, and there is little reliable evidence of socialist governments responding differently to economic and political factors compared to borgeois governments.     

The number of rent-seekers and aggregate rent-seeking expenditures: An unpleasant result

I examine a rent-seeking contest in which the winner gets a minimum rent but also gets an additional rent which is an increasing function of his lobbying expenditure. I give real-world examples of such rent-seeking competitions. Contrary to the standard result in the rent-seeking literature, I obtain the perverse result that aggregate rent-seeking expenditures may be inversely related to the number of rent-seekers. However, I note that even if this result holds, the cost of administering rent-seeking competitions may imply that society is better off with fewer contenders than with an infinitely large number of contenders, although the optimal number may not be the smallest number.     

Budget-maximizing governmental agencies: An empirical test

Niskanen's theory of government budgeting, involving powerful agencies interested in maximizing their budgets through bargaining with a weak, poorly informed governmental ‘Sponsor’, has received wide recognition. This paper presents the first direct empirical tests of Niskanen's ideas. One implication of Niskanen's model of budgeting is that the demand for public services will appear to be elastic. Niskanen's model also implies restrictions on the elasticity of the derived demand for labor in the public sector. Neither set of predictions is supported by existing empirical research on government activity.