Strategic fiscal interaction among OECD countries

This paper investigates whether OECD countries compete with each other for mobile factors by using various fiscal (tax-spending) policy instruments. We use a panel dataset of 20 OECD countries over the 1982?C2000 period. Results reveal evidence that international capital inflows (FDI) are affected by fiscal policy at home and abroad. Also, there is evidence that domestic capital tax rates react: (i) positively to changes in capital tax rates in neighboring countries, and (ii) negatively to changes in public investment spending in neighboring countries. In contrast, strategic interdependence over public investment spending decisions is not established.     

Debating Same-Sex Marriage: Lessons from <Emphasis Type="Italic">Loving</Emphasis>, <Emphasis Type="Italic">Roe</Emphasis>, and <Emphasis Type="Italic">Reynolds</Emphasis>

The United States Supreme Court, in its 2015 Obergefell v. Hodges decision, declared a constitutional right to same-sex marriage (SSM). With Republicans now controlling the Congress and presidency, and with value-traditionalists and ‘strict’ constitutionalists influencing the party’s legislative agenda and judicial nominees, Obergefell’s future and the contours of SSM rights are uncertain. Proponents assume the decision will delegitimate opponents, just as Loving v. Virginia (1967) accelerated the delegitimation of racial segregationists. SSM opponents counter with the Court’s 1973 Roe v. Wade ruling and argue that, like Roe, Obergefell undermines the democratic process, which is better suited to resolve a highly-charged moral dispute. Like Roe, Obergefell will not resolve the debate but, instead, trigger a durable opposition. We add a third possible path, drawing on the evolving public discourse on polygamy since the Supreme Court upheld prohibitions in Reynolds v. United States (1878). The politics of polygamy shows that, if SSM opponents are delegitimated, they may reemerge as legitimate participants in the public sphere. These paths offer insights into uncertainties, contingencies, and predictions regarding the durability of SSM resistance and other oppositional movements. They also lead to revisionist interpretations of the effect on public discourse flowing from these three seminal court decisions. The politics of interracial marriage (after Loving) shunned the losing political faction from the public forum, while those of abortion (after Roe), and, recently, polygamy, illustrate a more vibrant, pluralist model of deliberation. Whether SSM opponents will mimic a Roe model, or follow the trajectory of Loving or Reynolds, is now the question.     

The effect of legislature size on public spending: evidence from a regression discontinuity design

What is the effect of legislature size on public spending? An answer to this question is provided by Weingast et al. (J Polit Econ 89(4):642–664, 1981), whose “law of 1/n” posits that an increase in the number of elected representatives always leads to an increase in public spending. Because elected politicians regard the tax base as a common pool from which they can finance specific projects for their constituencies, and these specific constituencies internalize the full benefits of the projects, but only bear a fraction of the costs (projects are financed from the common tax base), fiscal inefficiency will increase with the number of representatives. In this paper, I test the validity of the “law of 1/n” using a dataset of 9325 German municipalities between 2008 and 2010. Through the application of a regression discontinuity design, many of the methodological pitfalls of previous studies can be avoided and a valid estimation of the causal effect of legislature size on public spending for German municipalities can be determined. The results do not corroborate the positive findings of previous studies, which generally supported the implications of the “law of 1/n”. For the years 2008–2010, I find a negative effect of legislature size on public spending in German municipal councils.     

Direct Government Investment: Perverse Privatization or New Tool of Government?

In recent years, public administration scholars have called attention to a blurring of the boundaries between the public and private sectors. However, little attention has been focused on the administration of public programs that seek to impact private markets through direct government investment in private firms. The direct government investment approach is a new tool of government that has been applied in several countries and at multiple levels of government. Through an analytic mix of theory and attention to practice, this article leverages a deep case analysis of the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program to propose and utilize criteria for examining justifiable rationales for direct government investment, areas of administrative capacity necessary to manage such investments, and potential pitfalls of this new tool of government.     

Dynamics in the Dutch policy advisory system: externalization,politicization and the legacy of pillarization

Although the literature on policy advisory systems has experienced a revival in recent years, its empirical focus has mainly been on Anglophone countries (Craft and Halligan 2016). This paper applies the policy advisory systems approach to the Netherlands, which can serve as an example of the dynamics in the policy advisory systems of consensus-driven, neo-corporatist polities Lijphart in Patterns of Democracy: Government Forms and Performance in Thirty-Six Countries, 21, 235–266 1999). Using a historical-institutionalist perspective, the dynamics of the Dutch policy advisory system from the mid-1960s to the present day are examined. Based on original cross-time survey data and an analysis of secondary sources, the impact of depillarization (mid-1960s–mid-1990s), new public management (mid-1980s onwards) and an increased pressure on the executive have had for the Dutch policy advisory system (from the late 1990s): fragmentation, externalization and a non-partisan brand of politicization are shown. More specifically, the use of the institutionalized system of permanent advisory councils has lost part of its significance in favour of both external consultants and ad hoc advisory committees. The Dutch case, with its accumulative institutional design based on Weberianism, neo-corporatism and new public management elements, has thus experienced markedly different dynamics in its policy advice system than the Anglophone countries.     

Inter-regional redistribution through infrastructure investment: tactical or programmatic?

In this paper we study the political economy of the inter-regional allocation of investment in infrastructure, in an effort to disentangle tactical and programmatic motives, where tactical politics refers to the discretionary allocation of investment to districts with more ‘political clout’ and programmatic politics refers to the allocation of investment according to certain ‘objective’ criteria (e.g., income level). We use a panel of data from the Spanish electoral districts for the period 1964–2004 to estimate an equation in which investment depends both on economic and political variables. The results show that tactical politics do matter since the districts receiving the most funds are those in which: (i) the incumbent’s vote margin is low, (ii) few votes are needed to win an additional seat in the legislature, (iii) the central and regional governments are controlled by the same party, and (iv) regional parties play a pivotal role in the legislature. However, the results also show that programmatic politics matter, since inter-regional redistribution is shown to increase: (i) with the arrival of democracy and European Union funds, (ii) under leftist governments, and (iii) the weaker the correlation is between ‘political clout’ and regional income.     

The Reemerging Concern over Air Pollution in China: the Smog of the State’s Efforts to Guide Public Opinion

In January 2012, Beijing began releasing air quality report of PM 2.5. The move has been credited as a major breakthrough in China’s environmental governance as it is argued that online environmental activists in China were the major driving force behind it. Since then, the issue of air pollution has reemerged as one of the hottest issues and a series of new policies addressing air pollution have been adopted. Facing a relatively new phenomenon (wumai) and heightened public concerns, to what extent is the state still capable of guiding the pubic perception and opinions about the issue? By analyzing the discourse of air pollution in People’s Daily and comparing it with public opinion survey data, the paper finds that the state’s ability to guide public opinion is rather limited, indicating that opportunities do exist for civil society to play a bigger role in China’s environmental governance.     

Citizen (Dis)satisfaction: An Experimental Equivalence Framing Study

This article introduces the importance of equivalence framing for understanding how satisfaction measures affect citizens’ evaluation of public services. Does a 90 percent satisfaction rate have a different effect than a logically equivalent 10 percent dissatisfaction rate? Two experiments were conducted on citizens’ evaluations of hospital services in a large, nationally representative sample of Danish citizens. Both experiments found that exposing citizens to a patient dissatisfaction measure led to more negative views of public service than exposing them to a logically equivalent satisfaction metric. There is some support for part of the shift in evaluations being caused by a negativity bias: dissatisfaction has a larger negative impact than satisfaction has a positive impact. Both professional experience at a hospital and prior exposure to satisfaction rates reduced the negative response to dissatisfaction rates. The results call for further study of equivalence framing of performance information.

Practitioner Points

• The valence (positive/negative) of performance information can have substantial effects on citizens’ perception of public services—even if the underlying performance is exactly the same.
• Presenting citizens with a dissatisfaction rate of 10 percent induces a much more negative evaluation of public services than presenting them with a logically equivalent satisfaction rate of 90 percent.
• Policy makers must carefully consider how minor equivalent changes in the presentation of performance information can induce large shifts in citizens’ perceptions of public service performance.

     

Social welfare functions when preferences are convex,strictly monotonic,and continuous

The paper shows that if the class of admissible preference orderings is restricted in a manner appropriate for economic and political models, then Arrow's impossibility theorem for social welfare functions continues to be valid. Specifically if the space of alternatives is R ₊ ⁿ , n ≥ 3, where each dimension represents a different public good and if each person's preferences are restricted to be convex, continuous, and strictly monotonic, then no social welfare function exists that satisfies unanimity, independence of irrelevant alternatives, and nondictatorship.     

Who will vote quadratically? Voter turnout and votes cast under quadratic voting

Who will vote quadratically in large-N elections under quadratic voting (QV)? First, who will vote? Although the core QV literature assumes that everyone votes, turnout is endogenous. Drawing on other work, we consider the representativeness of endogenously determined turnout under QV. Second, who will vote quadratically? Conditional on turning out, we examine reasons that, in large-N elections, the number of votes that an individual casts may deviate substantially from that under pure, rational QV equilibrium play. Because turnout itself is driven by other factors, the same determinants may influence how voters who do turn out choose the quantity of votes to cast. Independently, the number of votes actually cast may deviate dramatically from pure QV predictions because of the complex and refined nature of equilibrium play. Most plausibly, voting behavior and outcomes would be determined predominately by social and psychological forces, would exhibit few of the features emphasized in the analysis of hyper-rational equilibrium play, and would have consequential properties that require a different research agenda to bring into focus. Some of our analysis also has implications for voting behavior under other procedures, including one person, one vote.     

Step return versus net reward in the voluntary provision of a threshold public good: An adversarial collaboration

This research concerns how costs and benefits affect the voluntary provision of threshold public goods. Cadsby and Maynes (J. Public Econ. 71:53–73, 1999) hypothesized that the difference between the value and cost of such a good, its net reward, influences the likelihood of provision. Croson and Marks (Exp. Econ. 2:239–259, 2000) focused on the ratio of group payoff to total cost, the step return. We find that step return is the best predictor overall, although net reward has some impact, negatively affecting the probability of provision with inexperienced participants and positively affecting it with experienced participants.     

Envisaging the future — scenarios and public affairs practice

Public affairs in the third millennium will develop in three significant ways.

• (1) It will deal increasingly with global issues and authorities. ‘The chief executive needs to be an entrepreneur with global vision. He needs political skills, to steer a course through the regulatory maze.’
• (2) The companies that succeed may be global, but many of the regimes of regulation and control will remain national. The ability to deal with them will be essential.
• (3) Public affairs will have to deal effectively not only with national and international regimes but also with organised ‘civil society’. NGOs have now formed global alliances. They are recognised and consulted formally and informally and have begun to ‘show their teeth’.

These developments create strong and specific challenges for corporate communications. ‘Sovereignty is what you belong to.’ The European Union (EU) has developed as a model for global public affairs. Companies that have learnt to combine national with supranational public affairs in the EU will be well equipped in the fora of WTO, OECD, ILO and others yet to come. The communications challenges are two:

• (1) Support for mergers: As globalisation proceeds by merger, companies will need fluency in communicating the benefits of mergers, both internally and externally.
• (2) Trading identities: As countries go for national brands to achieve tourism and investment, mega‐merged global companies are using nation‐building techniques to achieve internal cohesion across cultures.

Copyright © 2001 Henry Stewart Publications     

The life and times of Gordon Tullock

Gordon Tullock is a founding father of public choice. In an academic career that has spanned 50 years, he forged much of the research agenda of the public choice program and he founded and edited Public Choice, the key journal of public choice scholarship. Tullock, however did much more than this. This Special Issue of Public Choice honors Gordon Tullock in precisely the manner that he most values: the creation of new ideas across the vast range of his own scholarly interests.     

Court-ordered redistricting and the law of 1/<Emphasis Type="Italic">n</Emphasis>

This paper examines the effect of redistricting on the law of 1/n, which posits that government spending increases with the number of legislative districts. Our analysis suggests that court-ordered redistricting in the 1960s significantly influenced the 1/n effect, because dividing districts (increasing their number) and merging districts (reducing their number) both reduce public spending. After redistricting, the positive relationship between seats and spending holds for lower chambers in bicameral legislatures. The US experience informs those interested in the design of bicameral institutions about the fiscal implications of legislative apportionment.     

The Attitudes of the Chinese Middle Class Towards Democracy

Little has been done to quantitatively establish the connection between the middle class and a specific regime type. In an effort to fill in the gap, this study uses Asian Barometer survey dataset to examine the attitudes and orientation of China’s rising middle class. We find that the Chinese middle class does show higher democratic orientation than those we categorize as lower class, but only if class is defined by occupation or by self-identification, and not by income level. We interpret this result to mean that economic development offers new life experiences with the creation of new types of professions and enhances people’s agreement with modern democratic values by arousing people’s consciousness of their new social class status.

Engaging in Small Talk: Nanotechnology Policy and Dialogue Processes in the UK and Australia

This article discusses the phenomena of nanotechnology, and notes that despite high investment levels for global research and development, the public presently understands neither the implications of this emerging technology nor how it might be best governed. It considers the notion of the public interest and its place in the public policy cycle, and notes some of the specific challenges posed by this new technology. Adopting a comparative jurisdictional approach, this article maps a range of policy and dialogue activities currently underway within the United Kingdom and Australia and concludes that policy dialogue is an essential component of public policy development for all emerging technologies. While the Australian government is currently beginning this process, compared to countries such as the United Kingdom, such efforts here are still embryonic. A fuller engagement in wide‐ranging public debate is suggested as a part of protecting the public interest.     

How Tame Will Leviathan Become in Institutional Competition – Competition Among Governments in the Provision of Public Goods

This article critically examines thehypothesis of Brennan and Buchanan that competition amonggovernments in the provision of publicgoods can serve as a substitute forconstitutional constraints on governments.Since Leviathan-type governments withfree choice of tax instruments will be ableto escape competitive pressure by shiftingtaxes to immobile factors, one could thinkof a rule of competition which prohibitstaxes on immobile factors. Indeed, such arule leads to a Nash-equilibriumwhere the tax burden lies on the mobilefactor. However, net income of the citizensmay or may not increase as a result fromsuch a rule, depending on a number ofvariables presented in this article. Acomplete substitution of constitutionalconstraints by the rule of competition may,depending on the same variables, evendecrease net income. Moreover, somepotential for increases in net income maybe forgone, since capital allocation andthe supply of public goods will usually beinefficient in equilibrium. Finally,applying the rule in a real-worldenvironment will be difficult and may evenlead to further serious inefficiencies. Forthese reasons, such a rule will hardly everbe introduced. Hence, competition amonggovernments cannot be viewed as a propersubstitute for constitutional constraints.Whoever is afraid of Leviathan shouldthus not rely on competition amonggovernments (alone).     

The public issue life cycle and corporate political actions in China's transitional environment: a case of real estate industry

• Based on the ‘structured content analysis’ of the longitudinal data from a journal of Chinese real estate industry during last 11 years, this paper studies the nature of public issue life cycle and corresponding corporate political actions (CPAs) in a transitional economy. This paper finds out that in a transitional economy like China: (1) a new stage called ‘policy trial’ and double steps of policy introduction were found in the public issue life cycle; (2) the possible outcomes of Chinese public issues are partially consistent with Tombari's arguments; (3) the evolution of CPAs takes a more complex and different path compared with that in the West. In general, this paper provides an available research perspective (the public issue life cycle model) for firms to manage and monitor their external political environment by effectively developing CPAs in a transitional economy.

Copyright © 2008 John Wiley & Sons, Ltd.     

Rebel or Rioter? Luddites then and now

The Encyclopaedia Britannica contains an entry under the heading ‘Luddite’ and has had such an entry for over 100 years. This essay employs standard discourse analysis techniques to identify changes in the way the Luddites have been presented to the public by the Encyclopaedia over the same period. It is argued that as the potential readership has broadened and deepened across class boundaries, so has the narrative shifted from autocratic towards populist and the Luddites from rioting simpletons to rebel handicraftsmen.     

The Evolution and Continuing Challenges of E‐Governance

E‐governance comprises the use of information and communication technologies (ICTs) to support public services, government administration, democratic processes, and relationships among citizens, civil society, the private sector, and the state. Developed over more than two decades of technology innovation and policy response, the evolution of e‐governance is examined in terms of five interrelated objectives: a policy framework, enhanced public services, high‐quality and cost‐effective government operations, citizen engagement in democratic processes, and administrative and institutional reform. This summary assessment of e‐governance in U.S. states and local governments shows that the greatest investment and progress have been made in enhanced public services and improved government operations. Policy development has moved forward on several fronts, but new policy issues continually add to an increasingly complex set of concerns. The least progress appears to have occurred in enhancing democracy and exploring the implications of e‐governance for administrative and institutional reform. ICT‐enabled governance will continue to evolve for the foreseeable future providing a dynamic environment for ongoing learning and action.