State Debt Limits: How Many Are Enough?

There is a growing concern among state policy makers that unrestrained debt may exceed politically acceptable or financially sustainable levels of debt. Many states have established limits to restrict debt, but many of these limits are circumvented through issuing more complex and specialized bonds. In this article, we focus on the use of debt limits as an instrument to manage a state's debt in context of two key questions: (1) under what circumstances should a state consider multiple debt limits and (2) if multiple limits are established, what factors should be considered in setting such multiple limits. In addressing these issues, we consider the theoretical and conceptual issues associated with setting debt limits, we highlight current state debt limit policies, and discuss factors that appear to be influencing decisions to establish and set multiple limits.     

Debt Issued Through Others: Conduits,Joint Powers Authorities,and Borrowing Costs in California Local Governments

The issuance of debt is a complicated and time‐consuming task requiring governments to pay substantial fixed transaction costs. Conduit financings, where one entity issues debt on behalf of a government, including bond pools, where multiple governments issue debt together, are methods that offer the potential to reduce the burdens of participating governments, ideally lowering their costs. But conduit hosts have costs of their own to cover and may not be able to offer a cost advantage to their participants. In this paper we examine debt issued under the Marks Roos Act of 1985, a law created to facilitate pooling but actually used for conduit financing. We seek to determine how issuers fare using this mechanism rather than issuing by themselves. We examine issuance costs and borrowing costs (true interest cost) and find both to be significantly lower for those governments that issued by themselves.     

Measuring Municipal Borrowing Costs: How Missing Cost Information Biases Interest Rate Calculations

A substantial literature exists on federal tax expenditures, but almost no empirical research has been done on state tax expenditures. This article examines Michigan tax expenditures, with an emphasis on comparison to findings from the federal level. Three major topics are addressed: (1) allocation of resources by policy area, (2) distribution of tax expenditure benefits by income class, and (3) tax expenditure growth over time. Only the findings on resource allocation are consistent with findings from the federal level, suggesting that simple theories may be insufficient to systematically describe tax expenditures.     

Presidential address: How to improve poverty measurement in the United States

This paper discusses the reasons why the current official U.S. poverty measure is outdated and nonresponsive to many anti‐poverty initiatives. A variety of efforts to update and improve the statistic have failed, for political, technical, and institutional reasons. Meanwhile, the European Union is taking a very different approach to poverty measurement. The paper ends with four recommended steps that would allow the U.S. to improve its measurement of poverty and economic need.     

Debt,democratization, and development in Latin America: How policy can affect global warming

The environmental Kuznets curve (EKC) hypothesis conjectures a nonlinear relationship between pollution and economic growth, such that pollution per capita initially increases as countries economically develop, but then reaches a maximum point before ultimately declining. Much of the EKC literature has focused on testing this basic hypothesis and, in studies that find evidence of an EKC, estimating the “turning point” level of development at which the per capita pollution‐growth relationship changes sign. This approach has not emphasized the policy relevance of specification issues or the potential role of policy variables. This research explores a modified EKC specification which conditions the pollution‐growth relationship on a country's level of debt and degree of democratization. These variables turn out to be significant, implying that different political and economic contexts can shift EKCs and their turning points. These findings suggest that policies to relieve debt burdens and institute political reform, in addition to their usual justifications, also could be used as a strategy to reduce carbon emissions from developing countries. © 2008 by the Association for Public Policy Analysis and Management.     

Subnational Debt Swaps in Mexico,How Big Is Risk Exposure?

Research and practice with derivative instruments by States and Municipalities in Mexico are virtually unexplored. This paper investigates the effect of interest rate jumps and financial contagion on the risk exposure of Subnational Government debt swaps in Mexico. Unconditional risk exposure measures of debt swaps are obtained by simulating a set of stochastic processes with jumps. Simulation results confirm that risk exposure of local debt swaps increases with Poisson discontinuities while a significant effect is observed after crisis contagion is accounted for.     

How State Capacity Varies within Frontier States: A Multicountry Subnational Analysis

While there is a growing literature on state formation and the rise of state capacity over time, this literature typically deals with differences between countries, neglecting the fact that state formation also occurs differentially within a country over time. This article examines legacies of state formation spatially, by looking at variation within “frontier” states—countries that in recent centuries have extended rule over new territories adjacent to their core regions. Frontier zones are found to have ongoing lower levels of public order and deficient public goods provision. Several theories are examined to explain this discrepancy, including internal resettlement, costs of monitoring and enforcement, and the relationship between settlers and the indigenous population. It is argued that the formation of strong social institutions among settlers leads to resistance to attempts to impose governance over frontier regions, and to “select for” lower fiscal capacity and lower provision of public goods.     

European integration and electoral democracy: How the European Union constrains party competition in the Member States

The assignment of policy competencies to the European Union has reduced the divergence of party policy positions nationally, leaving the electorate with fewer policy options. Building upon insights from spatial proximity theories of party competition, the convergence argument predicts convergence particularly in policy domains with increasing EU competence. As the policy commitments that derive from EU membership increase, parties become more constrained in terms of the feasible policy alternative they can implement when in office. The analysis uses manifesto data at the country‐party system level for nine policy domains. It uses ordinary least squares (OLS) estimation with country fixed effects, a lagged dependent variable and country corrected standard errors. Controlling for other factors that could plausibly explain policy convergence, the models also assess whether the convergent effect of party positions varies across different types of parties. The main finding is that in policy domains where the involvement of the EU has increased, the distance between parties' positions tends to decrease. The constraining impact of EU policy decisions differs between Member and non‐Member States. This effect is more apparent for the policy agendas of larger, mainstream and pro‐EU parties in the Member States.     

论行政权力对政府职能转变的影响

本文从职能与职权的内在统一性出发,对行政权力五个方面的特殊性质作了深入探讨,分析其特殊性对政府职能转变产生的隐性影响.针对其中的不利方面给出了相应的建议.     

The Mormon dilemma: How old and new religious divides hurt Mormon candidates in the United States

This paper shows that attitudes towards Mormons are very divisive on two levels: many religious conservatives distrust Mormons and refuse to vote for them because they are not Christian as they claim to be, while religious and political liberals see Mormons as part of a repressive religious coalition along with evangelicals and Catholics. Mormon politicians are in an awkward position between these two sides of America's “culture war,” not fully accepted by either. Using new survey questions about attitudes towards Mormons and Mitt Romney, this paper explores the nature of the two anti-Mormonisms and their electoral consequences. I argue that feelings about Mormonism have been an important factor in respondent evaluations of Mitt Romney.     

How Bush bungled Asia: militarism,economic indifference and unilateralism have weakened the United States across Asia

Abstract

Criticism of the Bush administration's policies in East Asia is hardly common fare. Roseate colors certainly pervade the picture painted by defenders of Bush's policies toward Asia who argue that relations between the US and that region have never been better. This paper shows to the contrary that the Bush administration politicized wide swaths of public policy, including foreign relations, in an effort to create a permanent Republican electoral majority. That effort created a host of failures in America's Asian relations. The article focuses on three central problems: excessive militarization of American foreign policy; economic mismanagement; and a unilateralism that distanced the US from the rising Asian regionalism. The failures are not irreversible however and a change in administration has the potential to revitalize cross Pacific ties.     

Government Deficit and Debt: Learning from the Canadian Experience

A Government Reinvented: A Study of Alberta's Deficit Elimination Program C BRUCE, R KNEEBONE and K McKENZIE (eds) The Trojan Horse: Alberta and the Future of Canada G LAXER and T HARRISON (eds) Unnecessary Debts L OSBERG and P FORTIN (eds) Deficit Reduction: What Pain, What Gain? B ROBSON and W SCARTH (eds)     

Eating the Rich vs. Feeding the Poor: Borrowing Constraints and the Reluctance to Redistribute

This paper offers an explanation why most democracies arecharacterized by moderate taxation of wealth although thewealth distribution is persistently skewed to the right. Wemodel an economy in which agents have to acquire highereducation to qualify for skilled work and in which capitalmarket imperfections prevent poor individuals from making sucha profitable human capital investment. If these borrowingconstraints do not bind for members of the middle class, theymay rationally reject redistribution although both the currentand the future median of the wealth distribution are below themean.     

Rethinking Fundamental Principles of Global Governance: How to Represent States and Populations in Multilateral Institutions

International politics are undoubtedly in transition along recognizable lines. The resulting disruptive effects on the international institutions founded after World War II are no less evident. Such times demand a principled basis to guide the politics of structural choice for global governance. This article provides a heuristic argument about the most general issues of structural choice, focusing on how to designate the constituencies of the global governance system and the mode of their representation. A concrete illustration of this heuristic argument is provided to demonstrate its plausibility as a starting point for deliberation about the structure of a global governance system.