A Public Accounting: "Behind the State Budget"

Editor's Note: This article has been adapted from a series of articles written by Howard F. Miller for the Albany (N.Y.) Times-Union in February 1961. Dr. Miller, who resigned as New York State's director of the budget this past June after an extended illness, now serves as fiscal policy advisor to the governor. His stature as a fiscal expert is attested to by his selection by four governors, two Republicans and two Democrats, to serve as deputy director of the budget, a discretionary political appointment.
Dr. Miller, a graduate of Syracuse University who earned two graduate degrees from Harvard, also served as secretary of the Ways and Means Committee of the New York State Legislature from 1965 to 67. While there, he established the first full-time professional analytical staff in the legislature.
The only person in the history of New York State to hold the top fiscal staff positions in both the legislative and the executive branches, Dr. Miller was on the faculty of the Maxwell School at Syracuse University from 1947 to 1969, except for periods while on leave to New York State.     

Public Value Accounting: Establishing the Philosophical Basis

Questions of how best to define the ends, justify the means, and measure the performance of governments have preoccupied political economists for centuries. Recently, the concept of public value—defined in terms of the many dimensions of value that a democratic public might want to see produced by and reflected in the performance of government—has been proposed as an alternative approach. This article develops three philosophical claims central to the practice of public value accounting: (1) when the collectively owned assets of government are being deployed, the appropriate arbiter of public value is the collectively defined values of a “public” called into existence and made articulate through the quite imperfect processes of democratic governance; (2) the collectively owned assets include not only government money but also the authority of the state; (3) the normative framework for assessing the value of government production relies on both utilitarian and deontological philosophical frameworks.     

Retrospective voting: An experimental study

This essay reports on some experiments designed to study two candidate electoral competition when voters are ‘retrospective’ voters. The experiments consist of a sequence of elections in which subjects play the part of both voters and candidates. In each election the incumbent adopts a policy position in a one-dimensional policy space, and voters are paid (on the basis of single peaked utility function over that space) for the position adopted by the incumbent. Neither voters nor candidates are informed of the voter utility functions, and the only information received by the voter is the payoff he has received from the present and previous incumbent administrations. Despite the severely limited information of candidates and voters, we find that, generally, candidates converge toward the median voter ideal point.     

OMB and the Budget Examiner: Changes in the Reagan Era

This is the first of a two-part retrospective on the role of the OMB budget examiner during the Reagan administration. Changes in the federal budget process, historical federal deficits and the inability of Congress to meet appropriation deadlines have significantly altered the role of OMB and its budget examiners, undermining the examiner's traditional role as program analyst and controler. This part focuses on the preparation of the president's budget and budget execution, and the compressed time in which OMB must respond to "top-down" budget requirements. The summer of 1987 is presented as a case study of the demands now placed on OMB.
Part Two, in the next issue, will focus on the budget examiner in the congressional budget process and in advocacy roles for the president.     

The Financial Crisis: A Retrospective

Government efforts to manage the financial crisis and to promote economic recovery have been extensive over the past three years. Hundreds of billions of dollars have been distributed—and much of it now repaid—from the Troubled Asset Relief Program. The Federal Reserve holds more than $2 trillion in mortgage‐backed securities, collateralized loans to financial institutions, and other assets and liabilities to maintain liquidity in the financial markets. The American Recovery and Reinvestment Act injected more than $600 billion into the economy through tax breaks, loans, contracts, grants, and entitlements. Congress also passed the Dodd‐Frank Wall Street Reform and Consumer Protection Act in 2010. Yet economic recovery remains flat. The author examines the reform effort to date, key points of its primary focus, and the politics of implementing the reform as a factor in eventual economic recovery. One component of the reform, the creation of a Consumer Financial Protection Bureau, holds the greatest potential for changing the way consumers participate in the financial markets, but also has drawn the greatest debate and opposition. While regulatory reform alone will not revive the economy, a newly conceived and broadly participatory Consumer Financial Protection Bureau could simplify and streamline the complex linkages that contribute to the supply of credit.     

The Post-Modern Self: A Retrospective

This paper examines the idea that the self is now post-modern, meaning fragmented, fluid, boundaryless, defenseless and lacking identity. This idea was popular a while back, but it now looks faddish and out-dated. The pomo self theorists over-emphasized some things and under-emphasized others, i.e. they engaged in the fallacy of reduction. They mistook minor changes in the self for major ones. They overlooked the power of the primary group. And they under-rated the self??s defenses, especially inner speech as a device for protecting the self and agency as a weapon for managing one??s environment.     

Electoral Backlash against Climate Policy: A Natural Experiment on Retrospective Voting and Local Resistance to Public Policy

Retrospective voting studies typically examine policies where the public has common interests. By contrast, climate policy has broad public support but concentrated opposition in communities where costs are imposed. This spatial distribution of weak supporters and strong local opponents mirrors opposition to other policies with diffuse public benefits and concentrated local costs. I use a natural experiment to investigate whether citizens living in proximity to wind energy projects retrospectively punished an incumbent government because of its climate policy. Using both fixed effects and instrumental variable estimators, I identify electoral losses for the incumbent party ranging from 4 to 10%, with the effect persisting 3 km from wind turbines. There is also evidence that voters are informed, only punishing the government responsible for the policy. I conclude that the spatial distribution of citizens' policy preferences can affect democratic accountability through ‘spatially distorted signalling’, which can exacerbate political barriers to addressing climate change.     

Retrospective Voting on the Party Level: An Icelandic Test

This research note adds to the emerging body of literature arguing that retrospective voting works on the level of political parties – for government and opposition parties alike – by investigating the generalisability of previous research findings. Furthermore, it tests whether there is a knowledge gap in retrospective voting on the party level. Using the data of the Icelandic National Election Study (ICENES), support is found for the argument that mechanisms of electoral accountability work both for incumbent and opposition parties. Second, while previous research raised doubts on the electorate’s ability to hold governments accountable, there is no evidence of a knowledge gap in retrospective voting on the party level.     

Public sector efficiency: An international comparison

We compute public sector performance (PSP) and public sector efficiency (PSE) indicators, comprising a composite and seven sub-indicators, for 23 industrialised countries. The first four sub-indicators are “opportunity” indicators that take into account administrative, education and health outcomes and the quality of public infrastructure and that support the rule of law and a level playing-field in a market economy. Three other indicators reflect the standard “Musgravian” tasks for government: allocation, distribution and stabilisation. The input and output efficiency of public sectors across countries is then measured via a non-parametric production frontier technique. The study finds significant differences in PSP and PSE, which suggests a large potential for expenditure savings in many countries.     

Parties and Partisanship: A 40-Year Retrospective

The study of political parties and voter partisanship has come full circle in 4 decades. During the 1960s and 1970s numerous scholars advanced the thesis of party decline, contending that party organizations had disintegrated, party influence in government had plummeted, and voter partisanship had eroded. The 1980s and 1990s saw a turnaround in scholarly judgments, however, as first party organizations, then party in government, and finally voter partisanship appeared to strengthen. This article reviews the evidence for the downs and ups of parties, suggesting that the evidence of party resurgence is more equivocal than often realized. The parties subfield currently lacks the theory and theoretical sensitivity that enables us to interpret ambiguous empirical evidence. This contrasts with the congressional subfield where the issues now confronting the parties subfield were recognized a decade ago.