Municipal Debt Issues in Foreign Markets: Managing Currency and Interest Rate Risk

Since the mid-1980s, there has been an acceleration of state and local government interest in the taxable bond market as a source of capital. This has resulted from, among other factors, restrictions imposed on economic and industrial development loan programs resulting from the passage of the Tax Reform Act of 1986. Increased state and local government involvement in the taxable bond markets has increased competition for such capital between the public and the private sectors. In turn, the developing capital competition has expanded into overseas securities markets. Private sector corporations have frequently accessed foreign capital markets to take advantage of lower interest rates and reduced financing costs. By contrast, state and local governments have accessed such markets only recently. This article discusses the policy issues considered by a state or local government entity when it decides to borrow funds in foreign markets and discusses the issues involved in managing currency and interest rate risk when issuing municipal bonds in foreign markets. It includes a review of the hedging techniques used by the Kentucky Development Finance Authority (KDFA) to protect against changes in the Yen/Dollar exchange relationship on a recent Samurai bond issue sold by KDFA as an example of such a transaction.     

Newspaper markets and municipal politics: how audience and congruence increase turnout in local elections

Media coverage of politics is widely considered essential to political participation. However, studies on local elections do not yet generally take the effect of the media environment into account. This article posits that the territorial fit between newspaper markets and municipal boundaries makes citizens’ exposure to locally relevant news more likely. We use fine-grained data on newspaper readership in order to assess the effect of the territorial structure of the newspaper market on turnout in municipal elections in Switzerland. The analysis shows that newspaper audience in a municipality and the congruence of newspaper markets with municipal territories both have substantial positive effects on levels of turnout in municipal elections. The findings suggest that future research on local political behavior should better acknowledge the influence of the media environment – which can be adequately measured by newspaper audience and congruence. Implications are that current structural changes in the media system bear threats to local democracy via the territorial upscaling of media markets.     

The impact of electoral reform at the local level in Africa: the case of Senegal's 1996 local elections

Local electoral systems in transitional polities can play a critical role in the growth and development of democratic governance. In this study, the impact of electoral system change at the subnational level in an African nation, Senegal, is examined. Senegal recently altered the electoral system it employs for the selection of its local and municipal councils. The mixed plurality-proportional system, favors the largest parties. It clearly introduced distortions between the distribution of voter support and seats on councils. These distortions are modified by the proportional part of the vote which provides opportunities for smaller parties to obtain seats. The presence and impact of strategic entry and strategic voting, both in rural and urban areas is assessed.     

Local Labor Demand and Program Participation Dynamics: Evidence from New York SNAP Administrative Records

This study estimates the effect of local labor demand on the likelihood that Supplemental Nutrition Assistance Program (SNAP) beneficiaries are able to transition out of the program. Our data include SNAP administrative records from New York (2007 to 2012), linked at the person‐level to the 2010 Census, and linked at the county‐month‐level to industry‐specific labor market conditions. We find that local labor markets matter for the length of time spent on SNAP, but there is substantial heterogeneity in estimated effects across local industries. Using Bartik‐style instruments to isolate the effect of labor demand and controlling for the changing composition of entrants and program rules brought on by the Great Recession, we find that fluctuations in labor demand in industries with high shares of SNAP participants—especially food service and retail—change the likelihood of exiting the program. Notably, estimated industry effects vary across race and parental status, with black participants being most sensitive to changes in local labor market conditions and mothers benefiting less from growth in local labor demand than fathers and non‐parents. We confirm that our results are not driven by endogenous inter‐county mobility or New York City labor markets and are robust to multiple specifications.     

The Expected Impact of State Immigration Legislation on Labor Market Outcomes

In response to the dramatic rise in the number of unauthorized immigrants to the United States, every state has passed some form of immigration legislation. These laws appear to be predicated on a belief that unauthorized immigrants impose greater costs than benefits to state and local communities, including the labor market. The purpose of this paper is to examine some evidence on what workers should expect if the immigration legislation is successful in eliminating undocumented workers from states' labor markets. © 2012 by the Association for Public Policy Analysis and Management.     

The participation of women in urban labor markets in Mexico: 1970-1980

This article analyzes the presence of women in urban labor markets in Mexico during the 1970s in terms of the regional location of the city and the type and diversity of employment opportunities for women. 49 cities with over 100,000 inhabitants in 1980 were grouped into 3 regions, the relatively urban and industrial north, the heterogeneous center, and the less developed south. Census data for 1970 and 1980 on male and female labor force participation in the municipios containing the 49 cities were analyzed to assess urban labor markets. The cities were grouped according to whether they had higher or lower than average rates of labor force participation in the 2 study years. The cities of the north included the greatest relative number of cases of low female and male labor force participation in 1970 and 1980 and a declining trend for the 1970s. Cities of the center had the highest levels of male and female labor force participation in both 1970 and 1980 and showed a trend toward increasing female participation in the 1970s. Cities in the south were in an intermediate position, but during the 1970s a high percentage showed a trend toward increase in male participation and decrease in female participation. Typologies of the cities were then constructed based on female age specific participation rates and female occupational distribution. Urban areas with high rates of participation among young women aged 15-24 years were distinguished from those with high participation rates for younger and older women, and those with less diversified employment opportunities for women were distinguished from those with more diversity. Female participation presented marked variations between regions. In general, women participated to a greater degree in diversified labor markets that absorbed workers of different ages and degrees of qualification. There were not necessarily more female workers in cities that were more dynamic in terms of economy and male participation. Cities of 100,000 or more inhabitants in the center were characterized by a high proportion of women of different ages in the labor market. Cities in the north had lower average levels of female participation although those on the northern border had a high participation of young women in manufactures and assembly. Southern cities employed women in manual occupations, especially in commerce and services. Primarily adolescents under 15 and women over 25 were employed. Apart from the regional variations there were variations in female employment within regions. An annex discusses the study methodology in greater detail.     

Promotion Tournament,Labor Market Tightening and Pension Generosity: A Comparative Public Policy Analysis of Pension System for Urban Workers in China (1997–2013)

Abstract

This article conducts a comparative public policy analysis of China’s generous urban worker basic pension system. It is commonly believed that Chinese local governments, which are motived by office-seeking incentives under decentralization, may foster economic growth at the expense of citizens’ social rights and thus “promotion tournament competition” comes into being. This article challenges this view by arguing that such competition can increase the generosity of social programs such as public pensions, especially in the condition of labor scarcity. This argument is supported by time-series cross-section analysis of 31 Chinese provincial units (1997–2013) using a novel indicator of the intensity of inter-locality competition. When the labor market tightens, workers can leave a locality to seek better compensation. Motivated by the promotion tournament competition to develop the local economy, which requires the issue of labor shortage to be addressed, local governments then provide generous local pension schemes to retain workers. Operating in a macroeconomic climate of labor scarcity, promotion tournament competition becomes an unlikely catalyst for welfare expansion in China.     

Lobbying with conflicting interests: Norwegian local-central relations

Abstract.  The costly lobbying model of Potters and van Winden is confronted with data on lobbying interactions between local assemblies and the national assembly in Norway. A total of 239 interactions are studied. Survey responses by a large number of voters and politicians, as well as registry data on fiscal standing, demographics and elections are utilised. Two of the main predictions of the costly lobbying model gain support in the data. The probability of obtaining substantial discretionary funding from the central level increases: with decreasing conflict of interest between local and central politicians; and with the lobbying cost incurred by local politicians. For a given conflict and cost, however, the rate of lobbying success depends crucially on structural characteristics of the municipality. In particular, the success rate is significantly higher for poor municipalities located in national electoral districts with many seats per voter than for rich municipalities located in districts with few seats per voter.     

THE PROBABILITY OF PLACEMENT BY THE PUBLIC EMPLOYMENT SERVICE

In a typical year, the United States Employment Service places over 4 million persons from among 16 million applicants. This investigation of which applicants are most likely to be placed shows that placement occurs in two labor market segments, corresponding roughly to the primary and secondary labor markets described in the economic literature. The equity and efficiency implications o f devoting a substantial percentage o f Employment Service resources t o secondary labor market placements are considered. Several states currently use Employment Service data as a source of local labor market information. An argument is made that these states are misusing this data and suggestions for improvements are offered.     

To distort the market: The role of society in Chinese modernization

Market distortions are generally caused by the state or social institutions. This paper discusses the social distortions of the Chinese market through examining a “Chinese style” labor market-the community-based labor markets. Along with the now standard argument emphasizing the role of the state, this paper concludes that the “right kind” of societal distortions or control of the market have been crucial to the phenomenal success of the Chinese marketization and the seemingly puzzling political and social stability in that country. Besides contending for the general “necessity” of market distortions, this paper calls for further studies on the significant role of social institutions in contemporary China.     

Bureaucrats and Markets in China: The Rise and Fall of Entrepreneurial Local Government

Local government entrepreneurship in China in the reform era is argued to have been, on balance, instrumental to growth and market-oriented reform.¹ Economic factors are emphasized in explaining both its rise and anticipated decline. Undeveloped markets and established local state trading networks favored agencies of the local state in exploiting business opportunities arising from deregulation. However, market development and increasing autonomy of firms are now reducing the advantage of local government business agencies, and they face a diminished and changed role.     

The ends justify the means: A global research agenda for political marketing and public affairs

Political marketing has developed into an increasingly mainstream discipline in universities globally over the last decade. There are many schools of political marketing with different approaches, such as the North American approach, the Western and Eastern European perspectives, and the Asian position. The study and application of political marketing has been categorised with different perspectives, such as electoral, governmental, and international aspects. It is becoming increasingly evident that political marketing needs further classification like any matured and established discipline. A close analysis of political marketing practices and academic research leads one to perceive two distinct areas of political exchanges in two different markets: the intranational market and the international market. The first deals with political marketing at a local, district, municipal, state/provincial, and national levels. The second deals with political marketing across national borders. As in the case of commercial marketing, international marketing became a major study field when marketing grew into a matured mainstream discipline in the 1980s.     

Multilevel analysis of the effects of antidiscrimination policies on earnings by sexual orientation

This study uses the 2000 U.S. Census data to assess the impact of antidiscrimination policies for sexual orientation on earnings for gays and lesbians. Using a multilevel model allows estimation of the effects of state and local policies on earnings and of variation in the effects of sexual orientation across local labor markets. The results suggest that gay men face an earnings penalty that varies significantly (though not sizably) across local areas, and that state antidiscrimination policies may decrease that penalty in private sector employment. There is, however, no evidence that lesbians in any sector average higher earnings or wages in areas with antidiscrimination policies. The strongest evidence of effects for antidiscrimination policies is for weeks of employment and for gay men who are in the private sector, white, and in the upper half of the earnings distribution. © 2011 by the Association for Public Policy Analysis and Management.     

Patterns of Local Policy Disruption: Regulatory Responses to Uber in Ten North American Cities

Since its inception in 2009, Uber has grown into a technology behemoth, with operations in over 70 countries and 500 cities around the world. Along the way, it has successfully forced regulatory upheaval in hundreds of local taxi markets controlled by municipal authorities. In this sense, Uber is not only a market disruptor, but also a policy disruptor. This paper examines the nature of such policy disruption at the local level by reviewing regulatory responses to Uber in ten North American cities. We find that regulatory outcomes are a function of two factors: Uber’s government relations strategy, either cooperative or confrontational, and the degree to which local governments perceive Uber as complementary or harmful to the existing marketplace. We conclude by proposing a typology of regulatory responses to Uber as a basis to identify patterns in the behavior of municipal regulatory authorities and political leaders.     

Accelerating Municipal Bond Market Development in Emerging Economies: An Assessment of Strategies and Progress

The advantages of using municipal bonds to finance urban infrastructure are increasingly evident to policymakers in emerging economies, some of whom are undertaking efforts to accelerate the development of municipal bond markets in their countries. Many of these efforts use the strengths of the U.S. municipal market as a guide to suggest the kinds of market characteristics necessary to attract issuers as well as investors to the marketplace. Features of the U.S. market are often difficult to recreate in these countries in the short run, but policymakers are using a variety of innovative techniques to approximate essential market characteristics. This article reviews these efforts in four emerging economies: Indonesia, the Philippines, Poland, and South Africa.     

Effects of the Form of Government and Property Tax Limits on Local Finance in the Context of Revenue and Expenditure Simultaneity

This paper examines the impact of the form of government and state‐imposed property tax limits on municipal finance. We suggest that municipal revenues and expenditures are determined concurrently and estimate revenue and expenditure functions as simultaneous equations. We use the instrumental variable approach and fixed effects to address revenue and expenditure endogeneity. By testing the model on a cross‐section of rich municipal data for fiscal year 2002, we find evidence that revenues and expenditures are simultaneously determined, that potentially binding state‐imposed property tax limits effectively restrict local revenues and that the form of government is a significant predictor of local expenditures.     

中国劳动力市场演化与政府行为

劳动力市场培育是中国改革的核心问题之一.中国经济改革是在城乡隔绝的特殊背景下展开的.旧体制下,城市国有部门人浮于事,大锅饭、铁饭碗造成效率低下;农村劳动力被禁锢在土地上,隔离在国家工业化进程之外,大量农村剩余劳动力不能及时转移到非农产业,造成极大浪费和损失.劳动力市场改革基于城市"治懒"、农村"治贫"的目标展开.逐步把国有部门职工推向市场,同时逐步改善农村劳动力的配置效率,渐进式改革、逐步释放被压抑的生产力,这是中国经济持续高速增长的根本动力.劳动力市场培育也是城乡劳动者权利的双向调整和逐步接近的过程.改革已取得了很大进展,但城乡劳动者的平等权利尚未实现.名义权利与实际权利的差异是当前最突出的问题.这种权利差异对经济社会协调发展造成威胁.增长、稳定、公平是左右政府改革行为的三大变量.劳动力市场上的权利不平等已成为经济持续增长和社会稳定的巨大障碍.贯彻新发展观,构建和谐社会正在使政策导向发生改变.     

Exploring the Basis of Declining Party Membership in Denmark: A Scandinavian Comparison*

Short-term changes in party membership figures have hypothetically been attributed to a connection between electoral success and membership effort. In the long-term, however, mass party organizations may be doomed to oudive themselves, since elections can be won by utilizing modern mass media techniques. Both assertions could more easily be falsified than confirmed in my study of Scandinavian party membership. After World War II. party membership in Scandinavia has steadily been increasing, except in Denmark where membership has continuously shrunk. Findings show that most rank-and-file party members are superfluous in electoral campaigns. But Die main function of party members is no longer campaigning. Instead, they are holding seats in a multitude of municipal councils, boards, and committees. This change is made possible mainly by two factors public party subsidies and the politicization of municipal elections. The causal link between these two factors is, however, not mechanical. Instead it depends on how many public subsidies are offered, the platforms of parties, and the number of seats needed in running the municipalities. In Denmark, public subsidies are unheard of and expensive public elections are held at least annually. Also, the number of supplied seats are few. Thus, if costs are high and rewards are few, then a membership decline is probable.     

Adolescents' formal employment and school enrollment: Effects of state welfare policies

Variations in state welfare policies in the reform era may affect adolescents through two mechanisms: A competing labor market hypothesis posits that stringent state welfare policies may reduce adolescent employment; and a signaling hypothesis posits that stringent welfare policies may promote enrollment. To test these hypotheses, we use a dynamic joint model of adolescents' school enrollment and formal employment, separating state welfare policies from non‐welfare state policies, state labor market conditions, and unobserved state characteristics. Longitudinal data from the NLSY97 on adolescents aged 14 to 18 and various state data sources over the period 1994–1999 support the competing labor market effect but not the signaling effect. In particular, lower‐income dropouts suffer more severely from fewer labor market opportunities when state welfare policies are more stringent, which indicates that welfare reform may compromise work opportunities for lower‐income dropouts. © 2004 by the Association for Public Policy Analysis and Management.     

Everything for Sale? Neoliberalism and the Limits of Michael Sandel’s Philosophical Critique of Markets

Contesting the central tenets of mainstream economic theory, Michael Sandel’s work on markets argues that the marketization of certain goods risks corrupting the value of those goods, and that a reinvigorated public discourse is needed to establish the appropriate use of markets. This article assesses Sandel’s work on markets, arguing that although it provides a convincing critique of liberal defenses of the market, it does not do enough to challenge marketization itself. To illuminate the flaws of Sandel’s argument, the article contrasts it with Marxist critiques of neoliberalism, arguing that the latter oppose the expansion of markets and market thinking in more comprehensive and productive ways. Specifically, it is argued that Sandel ignores the one market that underpins all other markets, namely the labor market; erroneously suggests that marketization is caused by the dominance of market thinking; and fails to appreciate the class interests that are served by growing marketization.