Government growth and private contributions to charity

We exploit the time-series properties of charitable giving to provide additional insights into the relationship between charitable contributions and government spending. Cointegration tests reveal a significant long-run relationship between several categories of charitable giving and government spending. Granger causality tests provide evidence on the short-run giving and spending relationship. Evidence suggests that charitable contributions to education respond quite differently to state and local government education expenditures versus federal government expenditures. We argue that the government spending and charitable giving relationship depends on the source of government revenue, how this revenue is used, and the rational ignorance of private donors.     

Analyzing Greens in power: Setting the agenda

Abstract.  What are the key questions that political scientists investigating Green parties in government have to address? What are the possible contributions of a variety of theories and approaches to the explanation of the Green governmental experience, in a cross-national context? The international experience with Green party governmental participation is reviewed, followed by a discussion of past work and future challenges to explain Green parties' entry into government, their performance in government, the impact of government on them, and the conditions for their survival in or exit from government.     

Do government subsidies increase the private supply of public goods?

Public Choice - We study three different models in which public goods are supplied by private contributions. In one of these models, tax-financed government subsidies to private contributions will...     

ROAD GRANTS, INTERGOVERNMENTAL COMPETITION AND THE BENEFITS OF DUPLICATION

Abstract: This article argues that direct commonwealth involvement in road funding and road policy has benefited the states and local government. Although inefficiencies and friction are evident as a result of joint funding, the benefits of multiple accountability outweigh the costs. A competitive dynamic underlies the involvement of all three levels of government, producing outcomes that no single government dominates, but which reflect in part the responses of each to their respective constituencies. The commonwealth has been driven to more intrusive forms of intervention as existing controls failed to achieve the commonwealth's objectives, and to expanding its financial contributions to counter the diversion of funds by state governments. Its commitment to funding the road program is likely to be highest when its specific purpose grants can be identified closely with the provision of roads in particular regions and localities. In sum, joint funding of the road program produces a system that is responsive to competing conceptions and interests, and the commonwealth's "voluntary vacancy" from all but "national" roads is on balance likely to be detrimental to the program.     

Public choice and the economic analysis of anarchy: a survey

Public choice economists began studying anarchy in the 1970s. Since then, the amount of research on anarchy has burgeoned. This article surveys the important public choice contributions to the economics of anarchy. Following early public choice economists, many economists are researching how individuals interact without government. From non-public-interested explanations of the creation of government to historical studies of internalizing externalities under anarchy, public choice scholars are arriving at a more realistic perspective of human interaction with and without government. Although the economics of politics receives more attention, the economics of anarchy is an important area of research in public choice.     

Laissez-faire in campaign finance

In this paper we analyze the impact of campaign contribution limits on government expenditures. The theory is based on the proclivity of geographic-based legislators to support wealth transfers from the polity at large to finance benefits for local constituents. It predicts that laissez-faire in contributions will lead to less government spending on budgetary redistribution and to a greater output of laws by the legislature. The theory is tested using data on U.S. State governments.     

Social Capital and the Dynamics of Trust in Government

It is well understood that trust in government responds to the performance of the president, Congress, and the economy. Despite improved government performance, however, trust has never returned to the levels witnessed in the 1950s and 1960s. Social capital may be the force that has kept trust low. If so, we need to assess the relative contributions of both government performance and social capital at the macro level. Using macrolevel data, the analysis, here, is designed to capture the variation over time in both social capital and government performance and let them compete to explain the macro variation in trust. The empirical results demonstrate that both government performance and social capital matter, but that social capital appears to be the force which accounts for the decline in trust over the last 40 years.     

Charitable giving in the German welfare state: fiscal incentives and crowding out

There are two ways that government activities influence private charitable giving: (1) government spending on the provision of public goods may cause crowding out of private charitable contributions; and (2) tax incentives may boost private charitable giving. From a sample of German income tax returns, we estimate the elasticity of charitable giving relative to tax incentives, income, and government spending. Using censored quantile regression analysis, we derive results for different points of the underlying distribution of charitable giving. Evaluating overall treasury efficiency, the tax deductibility of charitable donations fosters enough private giving to offset foregone tax revenues.     

Block grants for the needy: the case of AFDC.

Changes in the federal program of Aid to Families with Dependent Children have been considered which would alter the program from one in which federal dollars match state and local contributions, to a program in which the federal contributions are fixed in the form of a block grant. A review of econometric evidence suggests that under a block grant scheme, the federal contribution must be substantially greater than under a matching grant if the program's beneficiaries are to receive the same level of benefits. If the federal government seeks to maintain benefits unchanged in real terms, the states' share of total welfare expenditures will decline.     

Bribery and Public Debt Repudiation

In cases where policy makers accept ``bribes'' offered by organised lobbies or interestedparties, government decisions can be modelled as a first price menu auction. In this paper we adaptthis structure to model debt repudiation. We considera one-period model in which two generations, parents and children, are present, and debt titles are unevenlydistributed among parents. The government can repaythe debt by a combination of taxes on the children'sincome and on the outstanding debt. We excludeintergenerational conflicts, assuming that the parents'and children's objective is to maximise the utility ofthe family. In this perspective, families make offersthat relate monetary contributions to the taxstructures chosen by the government. On the hypothesisthat all interests are represented, we obtain theresult that the government is indifferent to the taxstructure.     

Some Thoughts about the Roles, Responsibilities and Future Scope of Auditors-General

This article treats Auditors-General in a generic sense, but focuses on those institutions developed out of the Westminster system of government which undertake financial statement or regularity audits as well as performance or value for money or efficiency-type audits. The audit offices included are those at both federal and state levels in Australia, the United Kingdom, United States of America, Canada and New Zealand.
The article is in two parts. The first selectively addresses perceived roles and responsibilities arising out of parliamentary legislation, debates and reviews or inquiries, Auditor-General reports, papers or similar contributions by academic and other interested commentators. The second deals with the future scope for influence, focusing mainly on possible contributions to the improved performance of the public sector including that of audit offices themselves. The latter recognises that auditors-general are very much part of the governance framework within which they operate. While they might be able to influence its development, the framework largely dictates their role, responsibilities and possible scope for action. Reflecting on that framework beyond the next few years might be an inviting conceptual exercise but is unlikely to add much value.     

THE DISCIPLINE OF PUBLIC ADMINISTRATION AND THE STUDY OF LOCAL GOVERNMENT

No doubt my colleagues in this venture will attest to the wide range of contributions which Robert Parker and Dick Spann have made to the field of public administration. I have benefited greatly from these contributions, as well as from discussions with both, in particular from those with Dick Spann during my period in the Department of Government and Public Administration at the University of Sydney. However, the breadth of their coverage has not been without some cost to the field, and in this paper I want to examine their influence on the area which I know best, that of local government.     

Post-Keynesian Public Budgeting & Finance: Assessing Contributions From Modern Monetary Theory

While Modern Monetary Theory (MMT) offers contributions that are worthy of serious consideration, some additional theory-building and synthesis with existing theory may be in order to tie MMT into the established budgeting literature. MMT focuses primarily on monetarily sovereign governments. These are governments that face extremely “soft” budget constraints insofar as they: issue and regulate the value of their own currencies, possess central banks that function as the fiscal agents of their government treasuries, are able to issue sovereign debt denominated in their domestic currency, and operate in a system of freely-floating currency exchange rates, with a minimum of currency and capital controls. National governments that are sovereign according to these criteria are able to make all debt service payments as they come due, virtually without regard to their level of outstanding debt; they cannot be forced to default against their will. They are also macroeconomically-autonomous. It is the collective position of the symposium papers that these conditions describe, in precise terms, the fiscal position of the U.S. federal government. As such, the existence of an ultra-soft U.S. government budget constraint is grounded in the extremely favorable conditions of money and credit that the federal government is subject to, and which in fact it has created and nurtured for itself since the Second World War. An important implication is that the federal level budgeting literature cannot ignore the macroeconomics and the administration of a sovereign currency regime, nor the monetary economics that ungirds it, without sustaining charges of unrealism.     

The effect of incomplete information in a threshold public goods experiment

Fiscal stress and decreasing government budgets have led to renewed interest in voluntary contributions for the funding of public goods. This paper experimentally examines the Provision Point Mechanism (PPM), a voluntary contribution mechanism for the funding of lumpy public goods. Previous research has demonstrated the effectiveness of this mechanism at providing public goods, however all were conducted in an environment of complete information, which fails to capture the uncertainties of the real world. This study tests the efficacy of the PPM in informationally limited settings. We find no significant differences in the rate of successful provisions or level of group contributions when subjects have limited information about the valuations of others than when they have complete information.     

Neuroscience and the Detection of Deception

The detection of deception is among the most important and pressing requirements faced by federal agencies with national security responsibilities. The polygraph is insufficient in its present state of development for meeting the needs of national security. While some neuroscience‐based alternatives to the polygraph have been proposed (e.g., EEG and fMRI), there are significant problems with these techniques and consideration of their operational use is premature. The development of a more effective means for detecting deception will require substantial conceptual advances in the science of deception, in particular the establishment of a sound theoretical basis on which to design such a system. Neuroscience and related fields can make significant contributions toward the development of a theory of deception, given sufficient government support and commitment to such an effort. However, even a sound theory of deception cannot guarantee success; it is vital that the associated policy, legal, and ethical implications of such a system be taken into account.     

论新世纪行政体制改革的目标与路径

进入新世纪，在全面建设小康社会的新形势下，我国行政体制改革的目标是建立和完善公共行政体制。公共行政体制下的政府是公共型政府、公正型政府、民主型政府、法治型政府、有限型政府、分权型政府、透明型政府、服务型政府、效能型政府和责任制政府。建立和完善公共行政体制。必须切实解决传统行政体制中的一系列深层次问题，实现政府体制转型。     

Social Security: a financial appraisal for the median voter

Several explanations have been proposed for why voters continue to support unfunded social security systems. Browning (1975) suggests that the extremely large unfunded pension systems of most democracies depend on the existence of a voting majority composed of middle-aged and older people who fail to fully internalize the cost of financing the system. In fact, when voting, economically rational workers consider only their current and future contributions to the system and their expected pension benefits--not their past contributions, which they regard as sunk costs. If, for a majority of voters, the expected continuation return from social security exceeds the return from alternative assets, an unfunded social security system is politically sustainable. This article explores the validity of Browning's proposition by quantifying the returns that U.S. voters in presidential elections from 1964 to 1996 have obtained, or expect to obtain, from Social Security. Did "investments" in Social Security outperform alternative forms of investment, such as mutual funds or pension funds, for a majority of the voters? What can be expected for the future? The U.S. Social Security system redistributes income within age cohorts on the basis of sex, income, and marital status. To account for some of these features, the median voter is represented by a family unit whose members--a husband who accounts for 70 percent of household earnings and a wife who accounts for 30 percent--make joint economic and voting decisions. Thus, retirement and survival benefits paid out to the spouse of an insured worker can be included in the calculation of Social Security returns. Interval estimates of voters' family incomes from the U.S. Census Bureau were used to obtain the median voter's household earnings. The median voter's age is derived from the ages of those who voted in presidential elections, not from the ages of the entire electorate. The median voter's contributions to Social Security are the product of the joint employer/employee Old-Age and Survivors Insurance (OASI) tax rate and employee earnings. Data on actual contributions are available for median voters in the 1964 to 1976 elections; Social Security Administration (SSA) estimates are used for future tax rates and average wage growth rates. Data on actual old-age, retirement, and survivor benefits, as well as estimates of future benefits, are also available from SSA. Analysis of ex-post returns from "investing" in Social Security and from a buy-and-hold strategy applied to three alternative assets--the Standard & Poor's Composite Index (S&P), the Dow Jones Industrial Average (DJIA), and U.S. government bonds--shows surprising results. In 1964 and 1968, Social Security largely outperformed the other three assets. In 1972, Social Security and the stock market performed almost equally. In 1976, however, the median voter would have been better off in the stock market. The expected returns for median voters in later elections cannot be directly compared with realized returns from alternative assets. However, estimates range from 5.7 percent in 1984 to 7.0 percent in 1996 and thus compare favorably with average returns of 5.6 percent for S&P, 5.3 percent for DJIA, and 2.1 percent for government bonds over the 1964-1996 period. Although these findings must be taken with caution since they compare ex-post returns, they show that, despite a continuous reduction in profitability, Social Security still represents a safe, high-return asset for a majority of families.     

Interest groups and lobbying in Latin America: theoretical and practical considerations

The major purpose of this Special Issue is to provide the first comprehensive treatment of interest groups in Latin America. This first article provides background to this end by defining key terms and concepts; explaining the ubiquity of power groups, interests and interest groups in politics and government, and the fundamental elements of an interest group system, relating all this to past characteristics of Latin America's politics. Additionally, the article identifies the reasons for the dearth of studies of interest groups in the region and makes the case for the value of such studies. Drawing on this background, the article also sets out a heuristic for approaching the contributions to this volume and for developing a theoretical framework for the analysis of Latin American interest group systems. Copyright © 2013 John Wiley & Sons, Ltd.     

Coordination between government and voluntary organizations (NGOs) in Thailand's rural development

This paper investigates the coordination between government organizations and nongovernmental, voluntary organizations in Thailand. The contributions, the nature and the cooperation mechanisms of development NGOs are considered on the basis of field data collected from local government and NGO officers working in rural development. Based on theoretical considerations, an overview of coordination is developed within the framework of development in the country. The problems of coordination boil down to a fundamental mistrust of the NGOs’ style of operation in spite of the personal relationships that are often the only basis for coordination attempts. While decentralization efforts will improve the situation, a more direct policy, as well as plan formulation and implementation management efforts, will be needed to arrive at a mutually reinforced effort in rural development.     

The robustness of Kingma’s crowd-out estimate: Evidence from new data on contributions to public radio

We revisit Kingma’s (Kingma (1989). Journal of Political Economy, 97, 1197–1207) widely cited study of charitable contributions to public radio. Kingma’s estimate of partial, but statistically significant crowd-out remains a benchmark in the literature because he was able to match household-level contributions data with station-level data on revenue, including revenue from government grants. To the best of our knowledge, no comparable data have become available until now. We replicate Kingma’s estimates with the original data and then apply the same methodology to very similar data from 1996. Kingma’s estimates are not robust to the use of the newer data.