Pay‐as‐You‐Go Financing and Capital Outlay Volatility: Evidence from the States over Two Recent Economic Cycles

Pay‐as‐you‐go (pay‐go or cash) and pay‐as‐you‐use (pay‐use or debt) are two mechanisms to finance capital projects. While pay‐go faces multiple constraints, pay‐use smoothes outlays, stabilizes tax rates, and improves inter‐generational equity. Thus, pay‐use has dominated infrastructure financing for decades. In recent years, there has been revived academic interest in pay‐go as an alternate financing mechanism; however, there is a large gap in the literature and inadequate evidence on the effects of pay‐go, especially its effects on capital outlay volatility. This paper fills in the niche. Examining state experience over the two recent economic cycles, this paper finds evidence that suggests that pay‐go is associated with lower volatility in capital spending in the long run, but may increase short‐run variability. We recommend that states couple pay‐go in boom years with pay‐use in lean years. In unison, the two mechanisms can reduce aggregate volatility and increase long‐run stability of capital expenditures.     

Politicians,Media Moguls and PayTV: Pay‐TV Policy‐making in Australia 1977‐1995

This article explores the major influences on pay‐TV policy‐making in Australia from the late 1970s, when the issue was first discussed in the context of proposals to establish a domestic communications satellite, up until the introduction of pay‐TV in Australia in 1995, thereby placing current developments in the pay‐TV industry in context. The article argues that among larger broadcasting and telecommunications issues, pay‐TV has never been ‘the main game’. For both Coalition and Labor governments, the expansion of existing free‐to‐air television services in regional Australia and the introduction of competition in telecommunications have been much more important policy priorities than the introduction of pay‐TV. Furthermore, because pay‐TV policy‐making largely took place in this wider policy context, the structure of the broadcasting and telecommunications industries also shaped pay‐TV policy outcomes.     

Civil War and Social Cohesion: Lab‐in‐the‐Field Evidence from Nepal

We study effects of wartime violence on social cohesion in the context of Nepal's 10‐year civil war. We begin with the observation that violence increased levels of collective action like voting and community organization—a finding consistent with other recent studies of postconflict societies. We use lab‐in‐the‐field techniques to tease apart such effects. Our causal‐identification strategy exploits communities' exogenous isolation from the unpredictable path of insurgency combined with matching. We find that violence‐affected communities exhibit higher levels of prosocial motivation, measured by altruistic giving, public good contributions, investment in trust‐based transactions, and willingness to reciprocate trust‐based investments. We find evidence to support two social transformation mechanisms: (1) a purging mechanism by which less social persons disproportionately flee communities plagued by war and (2) a collective coping mechanism by which individuals who have few options to flee band together to cope with threats.     

The Impact of Elections on Cooperation: Evidence from a Lab‐in‐the‐Field Experiment in Uganda

Communities often rely on sanctioning to induce public goods contributions. Past studies focus on how external agencies or peer sanctioning induce cooperation. In this article, we focus instead on the role played by centralized authorities, internal to the community. Combining “lab‐in‐the‐field” experiments with observational data on 1,541 Ugandan farmers from 50 communities, we demonstrate the positive effect of internal centralized sanctioning authorities on cooperative behavior. We also show that the size of this effect depends on the political process by which authority is granted: subjects electing leaders contribute more to public goods than subjects who were assigned leaders through a lottery. To test the ecological validity of our findings, we relate farmers’ behavior in the experiment to their level of cooperation in their community organization. We show that deference to authority in the controlled setting predicts cooperative behavior in the farmers’ natural environment, in which they face a similar social dilemma.     

Assessing the Electoral Connection: Evidence from the Early United States

Students of legislative behavior are divided over the extent to which an electoral connection existed in the early United States. In this article, we offer a test of the electoral connection in early American politics by investigating the electoral aftershocks of the disputed presidential election of 1824. Using newly available county-level presidential voting data, along with the unique circumstances associated with the presidential contest, we examine the connection between representative behavior, district public opinion, and electoral outcomes. We find that representatives who voted for John Quincy Adams in the House contest, yet were from districts supporting Andrew Jackson, were targeted for ouster and suffered a substantial vote-loss in the subsequent midterm election. We also find that the entry of a quality challenger had a sizeable impact on the fortunes of incumbent legislators. These results serve to confirm that representatives could be held accountable for their behavior in office during the antebellum era .     

Political Control and Public Sector Savings: Evidence from the States

The right to access (and ultimately spend)public sector savings is determined by the party which can control the politicaloutcome. This implies that anticipatedfuture changes in the state's controllingpolitical party may systematicallyadversely affect current savings. Extendingthe Life Cycle/Permanent Income model, Ishow that a representative legislator willopt to forgo current saving in favor ofspending when his prospects for futurepolitical control diminish. Estimating apanel data model of 39 states from1973–1995, I find that an actual futurechange in the controlling party of astate's lower house significantly reducescurrent saving.     

Behavioral Determinants of Citizen Involvement: Evidence from Natural Resource Decentralization Policy

This article examines the robustness of citizen involvement in decentralized governance. It develops two behavioral theories of citizen involvement and examines their relative explanatory power with survey data collected from subsistence households in forest‐dependent communities in Bolivia, Kenya, Mexico, and Uganda. Counterintuitively, the analysis finds that households that have been engaged with collective action the longest are the most likely to disengage from decentralized institutions once they confront crises. This result is interpreted in light of psychological self‐licensing theory: people justify noninvolvement with decentralization precisely because of their past effort. This result implies that policies that rely on local involvement may be unsustainable insofar as they fail to address the underlying vulnerability of local users. In order to ensure that citizen involvement with decentralized governance is consistent and effective, policies need to address the structural factors that make users vulnerable to crises.     

The Declining Value of Revolving-Door Lobbyists: Evidence from the American States

‘‘Revolving-door” lobbyists are individuals who transition from governmental positions into lobbying for private entities. Such lobbyists thrive on the insider connections and political knowledge that they developed while in government. These assets afford former lawmakers more access to and influence over incumbent lawmakers. The value of their connections and knowledge, however, is contingent on former colleagues remaining within the legislature. As new legislators enter the assembly, the connections and knowledge of former members expire and lose value. Whereas increases in turnover or assembly size generate more former lawmakers who might lobby, such increases negatively affect former members’ value as lobbyists. Interest groups accordingly hire fewer former legislators to lobby. Other factors, such as longer cooling-off periods or increased legislative staff resources, produce slight or no substantive effects on rates of revolving. Legislative characteristics mostly determine rates of revolving for former lawmakers.     

On‐Bill Financing Programs to Support Low‐Carbon Energy Technologies: An Agent‐Oriented Assessment

On‐bill financing (OBF) schemes have been welcomed as innovative mechanisms for encouraging the adoption of low‐carbon energy technologies. Yet while the potential effects of these schemes have received growing attention, less is known about their actual performance. Departing from New Institutional Economics and insights from Behavioral Economics, this theory‐driven assessment examines the How$mart^® program in Kansas (United States) and the Green Deal in the United Kingdom. The study identifies the mechanisms designed to trigger behavioral change and technology adoption. We focus on market agents, and related market failures and behavioral anomalies that often prevent energy efficiency improvements. The paper adds to our theoretical and empirical understanding of public and utility‐driven OBF programs applied to the residential sector. Our findings suggest that simple, carefully designed on‐bill programs, where the financing of efficient technologies takes the form of a service rather than a loan, are more effective for the diffusion of low‐carbon energy technology and the reduction of transaction costs. At the same time, on bill‐financing schemes challenge the core business of utilities, and given the complexities and dynamics of energy efficiency markets and energy use, other policy interventions are needed.     

Political Institutions and Pollution: Evidence from Coal‐Fired Power Generation

What is the relationship between political institutions and air pollution generated by the power sector? Here we focus on the association between democracy and power generated from coal, the most polluting of all fossil fuels. Using a new dataset on coal‐fired power plants commissioned between 1980 and 2016 in 71 countries, we find that the relationship between democracy and coal varies according to the environmental Kuznets curve logic. Democratic political institutions at lower levels of economic development are correlated with increased commissioning of coal power plants, as governments seek to appeal to an electorate prioritizing economic growth and affordable energy access. As a country becomes richer, democracy comes to have a negative association with coal power, as clean air becomes a more salient issue for the public.     

The Rise of Professional Government: Evidence from Large-Scale Public Works Projects

Books reviewed:
Drew Fetherston, The Chunnel:The Amazing Story of the Undersea Crossing of the English Channel
Joanne Goldman, Abel.Building New York's Sewers: Developing Mechanisms of Urban Management
Stephen Halliday, The Great Stink of London: Sir Joseph Bazalgette and the Cleansing of the Victoria Metropolis     

Neo‐patrimonialism and Corruption: Evidence from 8,436 Firms in 17 Countries in Sub‐Saharan Africa

This article introduces four innovations to the literature on administrative corruption. First, it employs a neo‐patrimonialism framework by addressing measurement, identification, and endogeneity issues that beset the literature. Second, unlike cross‐country studies, it uses firms as the unit of analysis. Third, unlike the conventional literature, the article uses large‐n (n = 8,436) panel survey data of key informants in 17 countries in sub‐Saharan Africa. Finally, unlike the conventional literature, the article focuses on a particular type of corruption: the supply and demand for bribery. The authors find that the uncertainty associated with neo‐patrimonialism has a strong, positive, and significant effect on the propensity of civil servants to demand bribes in exchange for services and for firms to supply bribes in exchange for winning government contracts. The results are robust to controls on the characteristics of firms and their regulatory environments. The article concludes with implications for research and practice.     

Public–private partnerships and developing‐country agriculture: Evidence from the international agricultural research system

This study examines the role of public–private partnerships (PPPs) in promoting pro‐poor productivity‐enhancing technological innovation in the international agricultural research system. The study examines the extent to which PPPs are being used to overcome market and institutional failures that otherwise inhibit the development and dissemination of technologies targeted specifically to small‐scale, resource‐poor farmers in developing countries. Drawing on a survey of 75 PPP projects in the international system, findings suggest that while PPPs are changing the way the system manages its research agenda, few partnerships lead to joint innovation processes with the private sector. This indicates the need for closer examination of organizational practices, cultures, and incentives in the international agricultural research system. Copyright © 2010 John Wiley & Sons, Ltd.     

Determinants and Evaluation of Local Energy‐Efficiency Initiatives from the American Recovery and Reinvestment Act

This article examines variation in local‐level energy‐efficiency grants and corresponding initiatives from the American Reinvestment and Recovery Act (ARRA) in the United States. The analysis is based upon a hurdle model of counts of energy‐efficiency grants received by 348 local governments that received these grants from 2009 to 2013, as well as 348 matched local governments that did not receive such funds. City‐level characteristics including amount of federal financial support, per capita income, signaling of preferences for sustainability policies, manufacturing, and political influences are shown to be empirically important determinants of variation in local energy‐efficiency initiatives. The evidence suggests that all else held equal, the $21.8 billion in ARRA funds expended with the intent of increasing local energy‐efficiency programs and policies successfully led to this end.     

Taking a Closer Look at the Empowerment‐Performance Relationship: Evidence from Law Enforcement Organizations

This article examines the influence of empowering leadership practices on police officers' job performance, perceptions of managerial effectiveness, and unit performance. These relationships are examined using multisource survey data collected from 100 law enforcement managers, 446 of their subordinates, and 98 of their direct supervisors. The analysis shows that empowering leadership contributes positively to subordinate officers' job performance and unit effectiveness. Empowering leadership is also positively associated with subordinate but not with supervisor ratings of managerial effectiveness. Task‐oriented leadership, however, is positively associated with both subordinate and supervisor ratings of managerial effectiveness. Implications of these results for managerial leadership in law enforcement organizations are discussed.     

绩效管理改革的效果:来自美国联邦政府的证据

从1993年的《政府绩效与结果法案》(GPRA)以及布什政府的项目评估定级工具(PART)已经建立了一种新的政府管理惯例,两者的目的均在于促进美国联邦政府绩效管理实务的发展。但从绩效信息的使用方面来看,两者所做出的努力都极其有限,即一旦考虑其它因素,机构雇员不论是否参与PART评审,是否参与GPRA的实施进程,他们几乎都没有影响到绩效信息的使用。本文采用顺序Probit回归模型,通过对美国联邦审计总署基于1996、2000、2003和2007年的数据进行调研,最终得出依赖于难以观测的官僚行为来实现的政府改革是具有局限性的以及在政府绩效改善的过程中绩效信息使用的重要性。对数据的深层分析还揭示了一系列影响绩效信息使用的组织因素,这包括领导对结果的承诺、监管者引导学习惯例、工作动机的性质、将测量与行动链接起来的能力、管理的自由裁量权以及利益相关者之间的政治冲突。     

Improving the Budget Process in Fragile and Conflict‐Ridden States: Two Modest Lessons from Afghanistan

Both the donor community and scholars have created a cottage industry studying “fragile” states. International nongovernmental organizations that have developed indexes measuring corruption or governance have been unkind to Afghanistan. One index suggests a different and more optimistic story. The International Budget Partnership measures transparency every two years with its Open Budget Index. Afghanistan demonstrated dramatic improvement on this index between 2008 and 2012. The authors use the improvement in Afghanistan's transparency score as an entry point to explore how donors try to intervene and promote transparency as part of broader efforts in public financial management development and how legislative strengthening has also contributed to budget reform. The analysis offers a modest corrective to the overly pessimistic assessments of fragile states by showing that a fragile state can improve its budgetary transparency and enhance governance by strengthening the legislature's involvement in the budget process.     

The Majority‐Minority Divide in Attitudes toward Internal Migration: Evidence from Mumbai

Rapid urbanization is among the major processes affecting the developing world. The influx of migrants to cities frequently provokes antagonism on the part of long‐term residents, manifested in labor market discrimination, political nativism, and violence. We implemented a novel, face‐to‐face survey experiment on a representative sample of Mumbai's population to elucidate the causes of anti‐migrant hostility. Our findings point to the centrality of material self‐interest in the formation of native attitudes. Dominant group members fail to heed migrants' ethnic attributes, yet for minority group respondents, considerations of ethnicity and economic threat crosscut. We introduce a new political mechanism to explain this divergence. Minority communities facing persistent discrimination view in‐migration by coethnics as a means of enlarging their demographic and electoral base, thereby achieving “safety in numbers.” Our article sheds light on the drivers of preferences over internal migration. It also contributes insights to the international immigration literature and to policy debates over urban expansion.