The political economics of Wackersdorf: Why do politicians stick to their past decisions?

The politicians' reactions to changing circumstances appear often sluggish. The decisions about the construction of a nuclear reprocessing plant at Wackersdorf (Federal Republic of Germany) provide a recent example. Reprivatization of the company led to an immediate cancellation of the project due to its lack of economics. However, politicians tried (and still try) to save the project, despite a large public opposition. This may be considered as irrational because the politicians apparently account for their past investments. This paper argues that a piecemeal type of a policy is rational if voters honour both credibility and populistic decisions.I acknowledge the helpful comments from an anonymous referee and the suggestions from Elisabeth Szirucsek.     

How politicians see their relationship with top bureaucrats: Revisiting classical images

The relationship between politicians and bureaucrats is an enduring concern in political science. Central to this debate, Aberbach, Putnam, and Rockman (APR) in 1981 developed four images to characterize political-bureaucratic relations. We argue that the one-dimensional focus on roles in their images comes with important limitations. To deal with these limitations, we collect survey responses from 3,384 local politicians from four countries on seven dimensions of the political-bureaucratic relationship. We then use cluster analysis to develop six images bottom-up. Five of our images are largely consistent with APR's image II and III. Yet, they differ in the extent to which politicians trust the bureaucracy, consider them loyal, and see them as an important source of information. A sixth image is not consistent with any of APR's images. We find that both systemic (country, municipality size) and individual factors (ideology, position, seniority) contribute to differences in images. Overall, our images suggest that political-bureaucratic relations vary more between and within political systems than suggested by APR's images.     

The moment you decide,you divide: How politicians assess procedural fairness

Are politicians more rational decision makers than citizens? This article contributes to the ongoing debate by examining how politicians and citizens assess the fairness of the process leading to a controversial policy decision. It contains theories as to why it is tempting to match the favourability of policy decision with a fairness assessment of the preceding process, and how politicians and citizens differ in their approach to the task. Having derived three hypotheses, parallel scenario experiments are run in large samples of Swedish politicians and citizens, in which the outcome and fairness of a policy decision process are manipulated. As predicted, it is found that both politicians and citizens match the favourability of the decision with the assessment of the process, that these self-serving biases are stronger among politicians, and that policy engagement accounts for the group-level difference.     

More politicians,more corruption: evidence from Swedish municipalities

In the literature on political economy and public choice, it is typically assumed that government size correlates positively with public corruption. The empirical literature, however, is inconclusive, owing to both measurement problems and endogeneity. This paper creates a corruption index based on original data from a survey covering top politicians and civil servants in all Swedish municipalities. The effect of more politicians on corruption problems is analyzed using discontinuities in the required minimum size of local councils. Despite the fact that Sweden consistently has been ranked among the least corrupt countries in the world, the survey suggest that non-trivial corruption problems are present in Sweden. Municipalities with more local council seats have more reported corruption problems, and the regression discontinuity design suggests that the effect is causal.     

From laboratory to the WMD Commission: how academic research influences intelligence agencies

Academic research can improve national security, yet the process by which findings flow from the ivory tower to intelligence agencies is not well understood by scholars. This article addresses this gap through an exploratory case study of when research impacted intelligence: the incorporation of cognitive biases research in intelligence analysis. The results of this study illustrate the importance of idea entrepreneurs—individuals who promote academic research—as well as the need for making academic findings applicable to intelligence practitioners. These results, while based on a single case, suggest new avenues for scholarship exploring knowledge utilization in intelligence.     

Pay for politicians and campaign spending: evidence from the French municipal elections

Public Choice - This paper investigates the relationship between taxation and firm performance in developing countries. Combining firm-level data from the World Bank Enterprise Surveys and tax data...     

How news content influences anti-immigration attitudes: Germany, 1993–2005

Immigration is an increasingly important political issue in Western democracies and a crucial question relates to the antecedents of public attitudes towards immigrants. It is generally acknowledged that information relayed through the mass media plays a role in the formation of anti-immigration attitudes. This study considers whether news coverage of immigrants and immigration issues relates to macro-level dynamics of anti-immigration attitudes. It further explores whether this relationship depends on variation in relevant real world contexts. The models simultaneously control for the effects of established contextual explanatory variables. Drawing on German monthly time-series data and on ARIMA time-series modeling techniques, it is shown that both the frequency and the tone of coverage of immigrant actors in the news significantly influence dynamics in anti-immigration attitudes. The strength of the effect of the news, however, depends on contextual variation in immigration levels and the number of asylum seekers. Implications of these findings are discussed in the light of the increasing success of extreme right parties and growing opposition to further European integration.     

The changing representation interface: democracy and direct contact with politicians

The interface between politicians and the electorate is a vital component of the infrastructure of democracy and politicians now have many more tools available to communicate and engage with the electorate. Direct contact between politicians and the electorate is associated with increased levels of civic engagement. In this article, we examine the responsiveness of politicians in the UK by conducting: (i) an innovative test of responses to an undecided voter's email and (ii) follow-up interviews with electoral candidates. We found that a majority of electoral candidates had an identifiable email address and more than half responded to our undecided voter's email. However, there were considerable differences in the content relevance of the responses. There were also very few follow-up emails or further contact from the electoral candidates, suggesting only limited evidence of an integrated communication strategy. Electoral candidates also expressed concerns about communicating in a way that was ‘on record’. The findings provide a unique insight into the dynamics of communication between politicians and the electorate and the changing nature of the representation interface. Whilst the Internet has the scope for more personalized and two-way communication and for electors to hold politicians to account, it seems that politicians are more focused on campaign advantage rather than renewing the representation interface.     

Janos Kornai: a non-mainstream pathway from economic planning to disequilibrium economics

This paper first positions Janos Kornai in the controversies about the feasibility of socialist planning (Lange, Hayek). Kornai has leant in favor of Hayek’s thesis contending that, without an actual market price system for conveying information to those who can beneficially use it, a socialist economy is impracticable. The paradox is that Kornai worked at the Computer Centre of the Hungarian Academy of Sciences in relation with the Planning Institute of the National Planning Office and conceived an algorithm for decentralized two-level planning, i.e., the best improvement ever brought into Lange’s model of market socialism. This is due to Kornai being also involved in actual dysfunctions of central planning in Hungary (shortages) that he eventually theorized with disequilibrium modelling in his Economics of shortage. However, the latter departs from standard disequilibrium economics (Barro–Grossman) which has been joined by most former planometricians (such as Malinvaud for instance). Eventually Kornai adopted a more institutional approach for his recommendations as regards post-communist transformation into a market economy with a Hayekian flavor, in particular his support to an organic development of a privately-owned sector within a gradualist process instead of mainstream-supported overnight privatisation. His recent analysis of capitalism as a surplus economy shows the continuity of his non-mainstream view of disequilibrium over five decades. All this makes Kornai an original front-running researcher and breaking-through analyst, though somewhat paradoxical, and a quasi-heterodox economist, one foot in and one foot out of the mainstream.

     

Towards a positive theory of political rhetoric: Why do politicians lie?

This paper presents a model in which politicians can increase the probability of election by making exaggerated claims about the benefits of their own platform — referred to as positive campaigning — and by exaggerating the undesirable characteristics of their rival — i.e., negative campaigning. Such lies may be detected at some point in the future and thus result in a costly loss in reputation. Thus the politician must tradeoff immediate benefits against potential future costs. Of course this problem is similar to any commercial endeavor — a car maker, for example, is tempted to claim that his car is better and the competition's is worse than it is. But it is shown that the lack of transferable property rights to political office makes lying more likely in political markets. It is also shown that there is a natural tendency for politicians to engage in more negative campaigning.     

Political institutions and academic freedom: evidence from across the world

Public Choice - There is scant systematic empirical evidence on what explains variation in academic freedom. Making use of a new indicator and panel data covering 64 countries 1960–2017, we...     

Population and economics in Quintana Roo state: some considerations from recent experience

"This article focuses on the explosive population growth in Quintana Roo [Mexico] during the last few years and its...implications [for] the local economy. First, the article briefly describes population structure, emphasizing some migratory and socioeconomic aspects. Next it considers the status sectoral and regional production structure, which [emphasize] the strong dependence on tourism and its concentration in Cancun. In the conclusions population and economic aspects entwine, providing a more comprehensive developmental perspective." (SUMMARY IN ENG)     

How federalism influences welfare spending: Belgium federalism reform through the perspective of the synthetic control method

The question of whether and how federalism influences a country's welfare state has been a longstanding concern of political scientists. However, no agreement exists on exactly how, and under what conditions, federal structures impact the welfare state. This article examines this controversy. It concludes theoretically that the specific constellation of federal structures and distribution of powers need to be considered when theorising the effects of federalism on the welfare state. Using the case of Belgium and applying the synthetic control method, it is shown in the article that without the federalism reform of 1993, the country would have had further decreases in social spending rather than a consolidation of this spending in the years after 1993. In the case of Belgium, the combination of increased subnational spending autonomy in a still national financing system provided ideal conditions for a positive federalism effect on social spending to occur.     

Positive constitutional economics: A survey

The author distinguishes between normative and positive constitutional economics. Taking the observation that the normative branch of the new discipline is much better developed than its positive counterpart as a starting point, the available positive literature is surveyed nevertheless. The available evidence is arranged into four categories: (1) Constitutional rules and the procedures bringing them about, (2) constitutional rules as the result of preferences and restrictions, (3) constitutional rules channeling constitutional change, and (4) the economic effects of constitutional rules. Additionally, various concepts of the constitution are presented, the tools suited for a positive theory of constitutional economics discussed, and precursors as well as related research programs shortly described.     

School vouchers and academic performance: results from three randomized field trials

This article examines the effects of school vouchers on student test scores in New York, New York, Dayton, Ohio, and Washington, DC. The evaluations in all three cities are designed as randomized field trials. The findings, therefore, are not confounded by the self‐selection problems that pervade most observational data. After 2 years, African Americans who switched from public to private school gained, relative to their public‐school peers, an average of 6.3 National Percentile Ranking points in the three cities on the Iowa Test of Basic Skills. The gains by city were 4.2 points in New York, 6.5 points in Dayton, and 9.2 points in Washington. Effects for African Americans are statistically significant in all three cities. In no city are statistically significant effects observed for other ethnic groups, after either 1 or 2 years. © 2002 by the Association for Policy Analysis and Management.     

Understanding the academic learning of university students using smartphone: Evidence from Pakistan

As the number of smartphone users have increased worldwide, research on the usage of the smartphone has received scholarly attention. However, different results were found in previous studies in different contexts. The main research question is whether adopting smartphones by students improve learning or generates interference. The purpose of this study is to examine the usage of smartphone among university students in Pakistan. Using a survey approach, data were collected from different universities/colleges of Karachi, Sindh, Pakistan. total, 585 entries was analyzed using SPSS 21.0 and AMOS 21.0 software. Results of analysis, validated most of the hypothesis showing the intention of Pakistani students towards smartphone usage for academic purpose. In addition, findings confirm that students' self‐efficacy related to a smartphone works as a moderating role of intention to use a smartphone for learning and actual usage of the smartphone. The current study has several implications in terms of smartphone usage and student academic performance. Limitations and implications of the study are also discussed in the last section.     

Public choice and public policy: The vulnerability of economic advice to the interpretation of politicians

The confidence with which politicians defend their policies is in marked contrast to the qualifications which academic researchers attach to their results. The difference is indicative of a failure of the political market, whereby politicians have an incentive to select policies for electoral and ideological reasons and to minimise any uncertainty associated with policy effectiveness. In this scenario dissension between economists is of value if it alerts individuals to the sensitivity of policy answers to the framework in which they are derived. Moreover, with government failure, public choice analysts are faced with the problem of how best to amend policy advice in order to allow for potential distortion at the hands of politicians.The authors are Senior Lecturers in Economics and Members of the Centre for Fiscal Studies, University of Bath. They wish to acknowledge the very helpful comments of Professors Gordon Tullock, Harry Collins and an anonymous referee. Any errors that might remain are, of course, the sole responsibility of the authors.     

Support for electoral system reform among voters and politicians: Studying information effects through survey experiments

Does information about the consequences of proposals to change the Norwegian parliamentary electoral system influence voters' and politicians' attitudes towards the system? Is the willingness to accept change greater among voters/politicians who “lose” under the present electoral system? These questions are illuminated using empirical data from two identical survey experiments, with responses from both voters and politicians about 1) increased proportionality between parties (more seats for smaller parties) and 2) increased geographical proportionality (stronger representation for the more populous counties). The results show that being informed about the consequences of the proposals has a major effect on voters' and politicians' attitudes. This applies especially to the question of increased proportionality between parties, where feedback was particularly negative from respondents who were told that the proposal might weaken the larger parties’ representation and make it more difficult to establish viable governments. The responses to the question about increased proportionality between parties were also influenced by partisanship; politicians who belonged to or voters who voted for one of the smaller parties favour increased proportionality. We also find that there is limited support for the proposal to distribute parliamentary seats according to the number of inhabitants in the counties, and this support is further reduced when the respondents are informed that the measure will increase representation from the more populous parts of the country.     

Leading from Below: How Sub-National Governments Influence Policy Agendas

This article takes a state's eye view of trends towards a more centralised system of governance in Australia. It argues that while globalisation strengthens the roles of national governments it also provides less noticed public policy and management opportunities for sub-national governments. The article shows how state governments in Australia can use high-level policy proposals to reinforce their continuing relevance as key members of a federal system of government. It proposes that skilful deployment of policy ideas and analyses can enable the states to sustain alternative national agendas despite hostility or lack of interest by the federal government. In conclusion, the article examines the implications for federal-state relations under the Rudd government. It suggests that the elements for productive reform agendas are present but that bringing them together will require considerable effort.     

How clients' characteristics affect organization performance: Lessons from education

Those who support a greater role for the private sector in the delivery of social services cite evidence indicating that private organizations are more efficient than public agencies. Many of the quality differences between the two types of organizations, however, stem from differences in the composition of the client groups they serve; and these differences in turn stem from regulations that have the effect of sorting the clients of these organizations into groups with distinctly different socioeconomic characteristics. The challenge is to design the public regulations that govern private providers of social services in a way that reduces the tension between clients' demands for access and providers' demands for autonomy. The federal government's experience with education vouchers in the 1970s illustrates the difficulty of meeting this challenge.