Agricultural Use‐Value Property Tax Assessment: Estimation and Policy Issues

This paper provides an overview of the theory and methods used to implement use‐value property tax assessment for agricultural land in the United States. After a critical review of the methods used by various states in their application of use‐value statutes for agricultural land, the paper examines several policy issues related to the estimation and application of use‐value assessment methods. Five state case studies are included, providing an overview of methods used in use‐value assessment, and suggestions are provided regarding several ways in which use‐value assessment methods need to be improved.     

Federal Financial Management and Budgeting: NPR Recommendations and GAO Views

Of the 384 recommendations contained in the September 1993 National Performance Review (NPR) report, thirteen were concerned with “improving financial management” and eight dealt with “mission-driven, results-oriented budgeting.” The General Accounting Office (GAO), in response to requests from several members of the Congress, provided its views on each NPR recommendation and more recently completed a first-anniversary assessment of the extent of implementation.¹ In this article, the principal NPR themes and recommendations regarding financial management and budgeting, and GAO's comments about them, are summarized and discussed.     

Federal Systems in the Global Economy: Research Issues

The emerging global economy has altered makeup of federal systemsand set the stage for new international institutions. This articleidentifies key research issues that bear upon the connectionbetween federalism and globalism. Five specific research questions are considered. The first concernsthe impact of global economic change on the sovereignty of nationaland subnalional governments. Second, the effect of the globaleconomy on intergovernmental relations is considered. Next,the question of placement of economic policy responsibilitiesin a federal system is posed. Finally, the article asks whetherfederalism eases adaptation to the global economy and protectsdemocratic values.     

Tax Competition and Tax Coordination in a Median Voter Model

This paper analyzes the welfare effects of capital tax coordination in a simple model of fiscal competition where fiscal policy is subject to majority voting and households differ with respect to their labor and capital income. It turns out that a coordinated capital tax increase may raise or reduce welfare, depending on the relative magnitude of i) economic distortions induced by a labor tax and ii) political distortions resulting from the influence of the median voter on fiscal policy decisions. A negative welfare effect is more likely, the smaller the marginal excess burden of the labor tax and the smaller the ratio of the median voter's labor income to average labor income. We also use empirical estimates of the marginal excess burden of taxation to determine the welfare effects of tax coordination; it turns out that a negative welfare effect of coordinated tax increases may emerge in our model for empirically reasonable parameters.     

Trade, Harmonization, and Domestic Autonomy in Environmental Policy

This article evaluates the environmental criticisms of free trade that have been such an important part of the critique of globalization. The first section briefly surveys the range of criticisms environmentalists have brought against the new economic order. The second section examines the available literature on the race to the bottom, one of the key concerns. The third section analyzes the World Trade Organization trade rules and how they have been interpreted by dispute resolution panels involving environmental issues. The fourth section turns to the specific rules of the North American Free Trade Agreement and examines several case studies of environmental issues in that region. The final section provides a summary evaluation of the environmental criticisms. The article argues that the environmental criticisms are exaggerated. Trade agreements leave far more room for domestic environmental measures than is frequently argued. The political globalization of the environmental movement has helped counter the threat to environmental policy created by the economic and trade aspects of globalization. Environmentalists do need to be careful about how they advance this critique of globalization, however, because their arguments risk becoming a self-fulfilling prophecy.     

Tax Structure Turbulence in OECD Countries

This paper analyses whether and to what extent politiciansmanipulate tax structures strategically in order to winelections or for ideological purposes. We introduce anindicator for tax structure turbulence which measures thedegree to which a country's tax structure changes from oneyear to another. Using data on 18 OECD countries over theperiod 1965–1995, we find clear evidence of a politicalbudget cycle in national tax structures. More precisely, wefind that in election years, tax structures are changedsignificantly less than in other years. Further, thedispersion of political power significantly lowers the abilityof governments to change the tax structure. We do not,however, find any evidence of partisan budget cycles innational tax systems following political regime changes.     

National Competition Policy: Progress and Prospects

National Competition perspectives Policy — contending perspective.
The Hilmer Report is to competition what fertiliser is to grass (Ian Salmon, BCA 1995).
These reforms are good for the Australian economy and community. They hold the promise of helping to deliver more growth, more jobs and lower inflation but with higher real wages and a better standard of living (Hon. George Gear MP 1995).
The legislation has the potential to be very far reaching and may have implications far broader than originally intended (General Evidence — Australian Senate Economics Legislation Committee 1995).
The process of putting detailed legal and administrative flesh on the bare bone of the principles was not going to be easy. The resolution of issues. at times came down to the balance of power rather than good sense (Christine Charles, South Australian Dept of Premier and Cabinet 1995).
The practical failure to deliver on the claims about competition and efficiency are becoming increasingly evident (Professor Frank Stilwell 1995).
The Commission has a number of concerns on the impact on rural and remote communities and how the competing demands of increased competition and maintaining levels of community service obligations will be balanced in a newly competitive environment (ATSIC 1995).     

The Tax Revolt and Electoral Competition

This paper explores the effect of electoral competition onstate and local expenditures in the US during the politicalenvironment following the tax revolt of the late 1970s. Itutilizes a theoretical model in which both electoralcompetition and tax and expenditure limits impact spending.Empirical results indicate the tax revolt's primary impact wastransmitted through political candidate competition, notthrough the adoption of tax or expenditure limitations, as iscommonly believed. However, tax and expenditure limits doaffect public education expenditures.     

Health-Care Workers and HIV: Policy Choice in a Federal System

In 1991, the Centers for Disease Control (CDC) announced thata health-care worker (HCW) had apparently transmitted the virusthat causes the Acquired Immune Deficiency Syndrome (AIDS) topatients while providing them routine medical treatment. Thisarticle examines the policy choices made based on this case.It begins by reviewing the federal system for making these policies.The conflicting public and professional policy recommendationsare then summarized. Next, a framework for policy choice ina federal system is outlined and federal and state choices aredescribed. The final section suggests some implications of thesechoices for American federalism.     

National Competition Policy: The Downside

Identifying the ‘downside’ of competition policy raises the question of whether there is an ‘up-side’. Competition is supposed to drive the organisers of commodity production to minimise the costs they have to bear in some short to medium term, within environments more or less circumscribed by government regulations. The actual period tends to be that for which the providers of finance are prepared to wait for returns after a poorly performing company is restructured. Economists used to say that cost minimisation requires an industry structure in which there are many independent producers. Nowadays, more enlightened writers speak of ensuring that the market positions held by existing producers are contestable by prospective new producers. The question of what government in Australia may do to establish competition in this sense of competition has recently focussed on the desirable re-organisation of public enterprises, perhaps especially those that exist at the level of the states. So what are the dimensions of the ‘downside’ of opening the market positions occupied by public enterprises to contestation by private companies, especially those which are monopolies? The answer takes a large measure of the gloss off the Hilmer promises. The problems to be addressed are: the limit put on contestability where there is an element of natural monopoly; the tendency for cost minimisation to depend on the tighter management of labour; and, the difficulty of insisting simultaneously on both ‘competition’ and the satisfaction of ‘community service obligations’ (CSOs).     

Electoral Competition and Agricultural Support in OECD Countries

Agricultural trade protectionism in developed countries remains a politically charged issue, yet few studies have attempted to explain the political dynamics behind this important trade issue. We consider agricultural subsidies as a type of distributive policy that targets the agricultural sector at the expense of consumers and taxpayers. Based on Cox (1987, 1990) and Myerson (1993) , we argue that electoral systems that encourage politicians to appeal to a narrow constituency tend to have a higher level of agricultural support. We test this theoretical hypothesis using OECD agricultural support data disaggregated by commodity and country. A cross-classified multilevel model is employed to account for complex variation of agricultural support across countries, commodities, and time. Our empirical results show that electoral systems that encourage politicians to target narrow (broad) constituencies are associated with relatively high (low) levels of agricultural subsidies.     

The Emerging Federal Quasi Government: Issues of Management and Accountability

There has been a growing trend in the federal government toward reliance on organizations that commingle legal attributes of the government and private sectors. These hybrid organizations now constitute a quasi government that occasions both interest and concern by political leaders, practitioners, and scholars alike because these organizations touch the very heart of democratic governance: To whom are these hybrids accountable? How well is the public interest being protected against the interests of private parties? In this article, the author seeks to define the quasi government and place these hybrid entities into manageable categories from which legal and behavioral generalizations may be drawn. Are hybrid organizations a problem or a solution? Looking critically at this question, the author suggests the answer may depend in large measure on which of two management paradigms the reader accepts: the constitutionalist management paradigm or the entrepreneurial management paradigm, both of which are defined and discussed. The author concludes that the increasin reliance on hybrid organizations constitutes a threat not only to accountable management within the government, but to the fundamental values of democratic governance as well.     

Old Pictures in New Frames: Issue Definition and Federal Arts Policy

Over the past three decades, those advocating for arts funding have shifted their arguments. When the National Endowment of the Arts (NEA) was created in 1965, its supporters praised arts and culture for their uplifting qualities, and for their ability to counterbalance trends toward materialism and militarism. By the 1990s, arts advocates were far more likely to use instrumentalist arguments, showing that investment in arts and culture produce other desirable benefits, most notably economic development advances. This article reviews the changing discourse of arts advocacy in several ways: (1) by reviewing and coding Congressional debates on arts funding from 1965–2000, (2) reviewing arts coverage in the New York Times and selected arts periodicals during this same time period. Comparing this case to others in the literature on policy redefinition, the paper argues that cultural advocates have consciously reframed their arguments to broaden their appeal in the face new and more threatening opposition.     

Interstate Competition and Welfare Policy

In 1996, the federal government terminated the Aid to Familieswith Dependent Children (AFDC) program and replaced it withthe Temporary Assistance for Needy Families program (TANF).Many powers once held by the federal government are now beingused by state governments. Will welfare assistance be redesignedand expanded or will states "race to the bottom?" This issueis investigated by examining state welfare policy choices duringthe latter years of AFDC(1976–1994). Because each stateunder AFDC had the authority to set the level of its welfareguarantee for families that had no income, it is possible toestimate the effects of interstate competition on AFDC guaranteelevels. By estimating a spatial autocorrelation coefficientwhile controlling for theoretically relevant variables and statefixed effects, this study finds evidence that states are sensitiveto the welfare policies of their competitors.     

Tax Competition and Income Redistribution: An Empirical Analysis for Switzerland

Tax competition is supposed to lead to thecollapse of the welfare state because, first, it willbecome difficult for a single jurisdiction to levy aredistribution tax upon the rich and mobile, andsecond, such a policy, if undertaken in onejurisdiction, will attract poor individuals from otherjurisdictions and erode internal redistributionpolicies. In this paper, the impact of personal incometaxes and transfers on residence decisions oftaxpayers is analyzed with Swiss subfederal data. Therelationship of tax competition and the erosion of theSwiss welfare state is tested with aggregate data onincome redistribution.     

The Values Shaping Australian Asylum Policy: The Views of Policy Insiders

Drawing on interviews with former political leaders and senior public servants, this article maps the values that have guided asylum policy decisions over the past three decades. The findings support the view that a culture of control permeates policy decisions, but pushing deeper, that policy‐maker perceptions of asylum issues are shaped by two primary values: nation building and good governance. Values that tend to preoccupy policy critics, for example human rights, compassion, international legal obligations and national character, are by no means absent, but are subsumed within and harnessed to the desire to be a good engineer and responsible governor. The study adds to the insights required for constructive dialogue between governments and refugee advocates, and affords a comprehensive framework within which asylum policy can be understood and analysed.     

In Defence of Competition: The Successful Application of Competition Policy in NSW Rail

This paper argues that recent rail reform in NSW has been successful. NSW rail is now not only more cost effective, but also offers improved service and safety levels to its customers. As such the NSW rail reforms have been of benefit to the community as a whole, and have laid the groundwork for a resugence of the rail sector. Despite the criticism surrounding recent job losses, it is argued that the reforms have reinvigorated an industry that had been caught up in an ever decreasing vicious circle. The success of the 1996 reforms have been dependent upon a reform model that mixes factors such as vertical separation and independent regulation with government provision of targeted community service obligation payments. This paper argues that the most important ingredient for rail's future is the removal of the enormous bias in government tax and user charging policy against rail and towards road transport. In addition to keeping faith with the traditional National Competition Policy agenda, nothing is more important than that Australian governments address this continuing and debilitating bias against rail transport.