Tradable Permits for Common‐Pool Resources: An Assessment

Scholars often attribute deterioration in common‐pool resources (CPRs) to ill‐defined property rights and suggest privatization and tradable permit markets as a solution to the commons problem. CPRs are heterogeneous, differing in physical characteristics and use patterns. Regulating their use requires tailored policy solutions that cohere with these characteristics. This paper examines factors that contribute to a well‐performing tradable permit market. While the literature offers rich empirical analyses of individual tradable permit markets, it has not provided an analytical framework enabling comparative analysis of these markets. This paper develops and employs an analytical framework for comparing across markets. The comparative analysis of market performance suggests that markets are not successful in all environmental problems and all demand situations. Further, it shows that even some markets frequently cited as exemplary successes have been that for nonmarket‐related reasons. On the other hand, this comparative analysis identifies sources of success for markets that partial analytical frameworks would have predicted to fail.     

Tribes, States, and the Management of Lake Resources: Lakes Coeur d'Alene and Flathead

Divisiveness and conflict have often characterized the relationshipbetween native tribes and state governments. The two ordersof government, however, increasingly share resources and confrontcommon problems. Consequently, there is acknowledgment thatthere are mutual advantages to closer cooperation in some cases.One area of special significance is the management of sharednatural resources—specifically, lake watersheds. Thisarticle examines state-tribal management of Idaho's Lake Coeurd'Alene and Montana's Flathead Lake. It surveys the three principalissues (hunting and fishing, development, and water quality)for state and tribal policymakers, explores how state and tribalgovernments are responding to shared jurisdictional and managementchallenges, and suggests that these responses could be a basisfor a more flexible and balanced tribal-state relationship.     

Information Resources Management Expenditures in the States: A Case for Integrating Accounting and Budgeting Systems

A recent national study has found that states may be spending $20 billion on information resources management (IRM) in FY1989. The significant findings of the study regarding financial management are highlighted to show the dimensions of the IRM expenditures in the states. The second part of the paper examines how well the states' accounting systems are able to provide data on IRM expenditures for budgetary decisions. The article expands upon an important issue raised in the study's findings: the need for better integration of accounting and budgeting systems to improve management of information resources. An Information Object Classification Scheme, first suggested by the Commission on Federal Paperwork, is proposed as an important step in helping states improve their information resources management.     

The Declining Talent Pool of Government

We consider a government for which success requires high performance by talented ministers. A leader provides incentives to her ministers by firing those who fail. However, the consequent turnover drains a finite talent pool of potential appointees. The severity of the optimal firing rule and ministerial performances decline over time: the lifetime of an effective government is limited. We relate this lifetime to various factors, including external shocks, the replenishment of the talent pool, and the leader's reputation. Some results are surprising: an increase in the stability of government and the exogenous imposition of stricter performance standards can both shorten the era of effective government, and an increase in the replenishment of the talent pool can reduce incumbent ministers' performance.     

Historical Estimates of Total Taxable Resources for U.S. States, 1981-2000

Analysts have historically relied on slate personal income (SPI)as the benchmark for comparing state spending on public goodsand services and levels of state taxes. This occurs despitethe widely acknowledged shortcomings of using SPI as a measureof fiscal capacity, a state's ability to raise revenues fromits own sources. The U.S. Department of the Treasury has developeda more comprehensive measure of fiscal capacity, Total TaxableResources (TTR). Treasury has generated official estimates ofTTR since 1992 and has used two distinct methodologies to doso. The lack of a time series using a single methodology andcurrent estimates of income and production in the United Statesrepresents a significant barrier to the widespread use of TTRfor analytical purposes. This research note generates a timeseries (1981–2000) using Treasury's current methodologyfor estimating TTR and the latest estimates for income andproductionin the United States.     

Small States,Large Unitary States and Federations

Employing a political-economics approach, this paper comparessmall states and unions when the former fail to internalizecross-border externalities of publicly provided goods. Itdiscusses two types of unions: federations with more than onelevel of government and unitary states. While unitary statesare unable to differentiate public spending according todiffering preferences, rents of governments in a federationare higher due to a common-pool problem. The comparison leadsto the following results. (1) Citizens prefer small states tolarge states if spillover effects are weak. (2) They benefitfrom a multi-level government only if their preferencesheavily differ from the median-voter's preferences and ifspillovers are strong. Based on this comparison the paper alsodiscusses the creation of unions. Making specific assumptionon the distribution of preferences, it analyzes strong Nashequilibria at the union formation stage.     

Curriculum Reform in The Common Core Era: Evaluating Elementary Math Textbooks Across Six U.S. States

Can a school or district improve student achievement simply by switching to a higher-quality textbook or curriculum? We conducted the first multi-textbook, multi-state effort to estimate textbook efficacy following widespread adoption of the Common Core State Standards (CCSS) and associated changes in the textbook market. Pooling textbook adoption and student test score data across six geographically and demographically diverse U.S. states, we found little evidence of differences in average achievement gains for schools using different math textbooks. We found some evidence of greater variation in achievement gains among schools using pre-CCSS editions, which may have been more varied in their content than post-CCSS editions because they were written for a broader set of standards. We also found greater variation among schools that had more exposure to a given text. However, these differences were small. Despite considerable interest and attention to textbooks as a low-cost, “silver bullet” intervention for improving student outcomes, we conclude that the adoption of a new textbook or set of curriculum materials, on its own, is unlikely to achieve this goal.     

Europe and the Common

Significant attention has been given to the necessary conditions for a viable and legitimate European polity. Drawing on traditions in political philosophy, a central strand of this debate has concerned what must be common to a set of people such that they may be ruled through the same institutions, with various types of collective bond proposed as possible bases for political community. The argument of this article is that many such approaches, which conceive a bond in terms of shared interests, cultural attributes or shared values and principles, are liable either to underplay or to overplay how much the citizens of a polity must have in common, tending either to empty public life of the pursuit of shared ends or conversely to downgrade the importance of adversarialism. Both may be seen as depoliticising moves. The article goes on to explore how a more explicitly political bond, based on the appraisal of political problems, might be conceived for a European polity.     

HAVA and the States

Two major events—the 2000 vote counting crisis in Floridaand passage of the Help America Vote Act (HAVA) in October 2002—spawneda wave of federal, state, and local policy innovation and policyimplementation. The major effect of the Florida crisis was anationwide effort to analyze information on elections and todebate policy solutions. Subsequently, HAVA, the first majorelection law in U.S. history that includes federal funds forelection equipment and operations, had a more substantial effecton policy innovation and implementation. Both before and afterHAVA, election law changes have been affected by partisan considerations,policy analyses, and entrepreneurial leadership. Thus far, HAVAhas positively affected election administration, though administrativepractices and their effectiveness vary across and within thestates.     

Piling On: Multilevel Government and the Fiscal Common‐Pool

This article discusses the common‐pool problems that arise when multiple territorially overlapping governments share the authority to provide services and levy taxes in a common geographic area. Contrary to the traditional Tiebout model in which increasing the number of competing governments improves efficiency, I argue that increasing the number of overlapping governments results in “overfishing” from the shared tax base. I test the model empirically using data from U.S. counties and find a strong positive relationship between the number of overlapping jurisdictions and the size of the local public sector. Substantively, the “overlap effect” amounts to roughly 10% of local revenue.     

Industrial Policy and the States

The emergence of industrial policy proposals on the nationalscene raises the prospect of a greater role for the states inAmerican economic policy. Four types of industrial policy proposalsare described, each representing a distinctive strategic orientation.After describing the implied role of states in each type, weargue that state involvement is politically necessary if anyproposal is to succeed in the national policymaking arena. Weassess the four strategic proposals in light of that contentionand conclude that two of the approaches—infrastructureinvestment and subnational jurisdiction proposals—havean advantage over the better known trade policy and sectoraltargeting strategies.