Does social trust determine the size of the welfare state? Evidence using historical identification

Most modern welfare states offer an extensive array of services and benefits that are wholly or partly financed by tax revenue. One missing link in explaining the long-run sustainability of such comprehensive welfare states could be the already-existing stock of trust. Indeed, our cross-country results suggest that trust determines the size of welfare states as well as three features that are arguably necessary for their preservation: high levels of political confidence, strong legal institutions protecting private property rights, and low levels of bureaucratic corruption.     

Business as usual? Civil society organizations in a marketized Swedish welfare state

ABSTRACT

This article aims to examine the participation of pensioners’ organizations in a context of marketization within local elderly care. The literature on New Public Management (NPM) points out different views on the effects of marketization on the participation of civil society organizations within the decision-making process. One view states marketization implies less of participation by civil society organizations since this stands in conflict with inherent values of NPM, such as efficiency and the citizen as customer on a market. An opposite view states that marketization does not cause this effect, i.e., civil society organizations participate in the same manner as before. The empirical investigation consists of results from a questionnaire sent out to pensioners’ organizations in Swedish municipalities with a marketized elderly care. The main result is that marketization does not cause any major crowding out effect on civil society organizations from the decision-making process. However, according to the survey, there exists a variation in this respect – participation varies between municipalities.     

Austerity or welfare state transformation? Examining the impact of economic crises on social regulation in Europe

This article provides an encompassing analysis of how economic crises affect social regulation. The analysis is based on an innovative dataset that covers policy output changes in 13 European countries over a period of 34 years (1980–2013) in the areas of pensions, unemployment, and child benefits. By performing a negative binomial regression analysis, we show that economic crises do matter for social policymaking. Our main empirical finding is that crises impinge on social regulation by opening a window of opportunity that facilitates the dismantling of social policy standards. Yet crisis‐induced policy dismantling is restricted to adjustments based on existing policy instruments. We do not find significant variation in policymaking patterns across different macroeconomic conditions for the more structural elements of social policy portfolios, such as the envisaged social policy targets or the policy instruments applied. This suggests that economic crises do not lead to a profound transformation of the welfare state but to austerity.     

Does money have a conservative bias? Estimating the causal impact of Citizens United on state legislative preferences

Public Choice - Recent work has suggested that the US Supreme Court’s ruling in Citizens United (2010), eliminating restrictions on independent campaign expenditures, increased the election...     

Privatisation in Botswana: the demise of a developmental state?

This article argues that efforts by the Government of Botswana to embark on privatisation of some parastatals as well as contracting out the provision of certain services with the main intention of enhancing productivity and strengthening the private sector will not have a negative effect on the strength and nature of the existing strong developmental state. It is argued that the cautious and pragmatic approach adopted by the government, coupled with the fact that privatisation in Botswana is embraced voluntarily (that is not imposed on the country by either the World Bank or the International Monetary Fund (IMF) as a condition for financial assistance), hiving off parastatals to the private sector will not result in the weakening and ultimate demise of the state as it has happened in some countries within Sub Saharan Africa. Copyright © 2008 John Wiley & Sons, Ltd.     

Are we witnessing a paradigm shift in the analysis of political competition?

This presidential address assesses the crisis of the Downsian model of political competition in light of the mounting evidence on policy divergence and evaluates the possibility that the new theories of politicians’ quality and political selection provide an alternative theoretical conceptualization of political competition. Based on a critical review of the literature and on the author’s works on content analysis of policy speeches, income redistribution, politicians’ quality, and political legislation cycles, this address concludes that multidimensional Downsian models of political competition are adequate to explain policy divergence and points out the serious theoretical and empirical problems that models of political selection have to solve.     

The electoral consequences of welfare state retrenchment: Blame avoidance or credit claiming in the era of permanent austerity?

This article challenges the dominant assumptions in the literature that cutting social policy incurs voter wrath and that political parties can efficiently internalise electoral fallout with blame avoidance strategies. Drawing on the diverse literature on the role of partisanship in the period of permanent austerity, several partisan hypotheses on the relationship between social policy change and electoral outcomes are posited. The results indicate that religious and liberal parties gain votes, and thereby are able to ‘claim credit’, for retrenching social policy. None of the other coefficients for the effect of social policy cuts reach significance, raising the question of whether parties excel at blame avoidance or the public fails to place blame in the first place.     

European Union transgovernmental networks: The emergence of a new political space beyond the nation‐state?

Abstract. Does the European Union (EU) represent a new political order replacing the old nation‐states? The assessment of the real character of political orders requires the identification of political key actors and of the specific structure of their interactions. Transgovernmental networks have been considered to be one of the most important features of EU integration. Unfortunately, the network structures, processes and the impact of these informal horizontal inter‐organisational relations between nation‐states are mostly unknown. The main objective of this article is to measure and explain the selective pattern of informal bilateral relations of high officials of the EU Member States’ ministerial bureaucracies on the occasion of an EU Intergovernmental Conference. The quantitative data used rely on standardised interviews with 140 top‐level bureaucrats. The statistical estimation of network choices is based on recent developments of exponential random graph models.     

‘New politics’ in German labour market policy? The implications of the recent Hartz reforms for the German welfare state

The twin predicaments of German labour market performance and welfare state performance triggered an ongoing debate on reforming the German model. Recently, this debate has yielded an outcome in the form of the so-called Hartz laws, a bundle of labour market policies aimed at the reduction of unemployment and the decrease of non-wage labour costs. The Hartz reforms have played a prominent role in the public discussion, but are they really a watershed as both optimists and pessimists claim? In this article we investigate in what sense the Hartz reforms mark a substantive political change and how they are related to similar processes in other countries. To characterise the policy output we discuss three views of policy reform: reform as a process of policy-learning, reform as a process of competitive realignment and reform as a process of reinforcing path dependence. We show which of the three paradigms accounts for which part of the political result. We find evidence for both policy diffusion and retrenchment, but it is too early to speak of a change of regime. Rather, both the changes thus far and the blocked proposals follow a traditional German logic of strong institutional resistance.     

The impact of clean energy consumption on economic growth and CO2 emissions in BRICS countries: Does the environmental Kuznets curve exist?

This paper examines the impact of clean energy consumption (CEC) on economic growth (EG) and CO₂ emissions (CO₂) within a framework of environmental Kuznets curve (EKC) hypothesis in a panel of BRICS countries for the period 1992–2014. The results indicated that CEC and EG have a significant positive impact on EG, while CO₂ has a negative impact on it. Our results also found that EC and EG increase CO₂ while CEC significantly reduces it. Further, we found that the EKC hypothesis is valid in the BRICS countries. Finally, panel causality test indicated that unidirectional causality running from EC to EG. However, we did not find a causal relationship between CEC and EG. Based on these results, some of the policy implications have proposed for these emerging market economies.     

Does the pass‐through of exchange rate and globalization validate the rockets and feathers hypothesis in Nigeria? Evidence from a nonlinear model

The rapid shift in trade policy towards greater openness is theoretically presumed to leave domestic prices vulnerable to the change in exchange rate. This study investigates not only the asymmetric pass‐through of exchange rate but also globalization to consumer price inflation (CPI) in Nigeria and determines whether the pass‐through is consistent with the rockets and feathers hypothesis. Using the Nonlinear Autoregressive Distributed Lag (NARDL) model and the monthly data from 1986 M01–2015 M12, the results provide evidence that the pass‐through of exchange rate and globalization is asymmetric with depreciation and negative shocks to globalization exerting a higher pass‐through—a result that validates the rockets and feathers hypothesis. The results further suggest that the asymmetric pass‐through of exchange rate and globalization is elastic in the long run except for the positive shocks to exchange rate while in the short run, it is inelastic except for the negative shocks to globalization. Overall, the pass‐through, in the long run, is higher compared to the pass‐through in the short run.