The Federal Role in State Fiscal Stress

This article examines the extent to which the federal government'spolicies were responsible for the fiscal stress experiencedby most state governments in the early 1990s. Federal policieshave contributed considerably to recent state fiscal stress,particularly through the Medicaid program—the fastestgrowing part of state budgets—and the recession, whichdepressed revenue and increased welfare and Medicaid spending.Federal aid reductions have not been an important source ofrecent state fiscal stress. The real value of per capita federalaid other than for welfare programs fell considerably in the1980s, but the reductions were much greater for local governmentsthan for states. The largest reductions were in the early 1980s.Federal policies have affected state finances in several otherways—through tax policy, unfunded mandates, and the federalfailure to cope effectively with problems like health and poverty.Federal court rulings have also caused budget problems (as havestate court decisions). In some respects, state fiscal problemsare not a federal responsibility. Rising school enrollments,new corrections policies, and inelastic tax systems have createdfiscal stress for many states. Excessive state spending in the1980s has contributed to recent fiscal problems in some states,but not generally.     

The Fiscal Consequences of Changing Federal and State Revenue Policies: The Case of Small Oregon Cities

This article examines the fiscal consequences for twelve, smallOregon cities of recent changes in federal and state intergovernmentalrevenue policies. Many small local governments have experienceddouble revenue reverses in recent years—reductions inown-source revenues because of economic decline as well as decreasesin intergovernmental revenues, especially federal aid. The twelvesmall cities are compared with all 241 cities in Oregon andthe 136 Oregon cities in the 1,000 to 49,999 population range.Using aggregate and interview data, a major finding is thatalthough stabilization and/or decline in federal-state revenuesharing and entitlement program funds have accentuated difficultlocal revenue situations, economic decline has been the moreimportant contributor to the fiscal stress of the twelve smallmunicipalities. Most of the twelve cities had limited fiscalcapacity—as indicated by low assessed property valuations—makingit difficult to produce sufficient revenue to meet basic publicservice needs. These cities were also unable to get citizenapproval of increases in property taxes.     

Political Fragmentation and Fiscal Outcomes

In this paper we develop the analysis ofthe effects on political fragmentation onfiscal policy in a number of ways. Weanalyze three kinds of fragmentation: sizeand control, institutional and over timefragmentation. In doing so we introduce anumber of new variables that allow us tolook at this issue in a broader way. At thesame time we have tackled somemethodological problems that affectedprevious analyses, using a panel of 19 OECDcountries over 1975–1995. Overall we findrelatively poor evidence in favor of sizeand over time fragmentation, and moreevidence of institutional and controlfragmentation.     

The Political Consequences of the Crash

The financial crash of 2008 precipitated a major recession. It shattered the financial growth model that had dominated the previous twenty years and plunged the international economy into a period of economic and political restructuring of uncertain duration. The immediate origins of the crash lay in the lending practices associated with the sub-prime mortgages in the United States which produced the credit crunch in 2007, but the wider causes were the unbalanced character of growth in the international economy and the particular role played by finance. The crisis has been explained in a number of different ways, focusing on the behaviour of the financial markets, the institutional and policy conditions that made the boom possible and then undermined it, longer-term economic and policy cycles and the nature of uncertainty and risk in complex social systems. The political impact of the crash and the recession has not been uniform; it has been highly uneven, depending on the position of particular states in the international economy. The rapid interventions by governments to stave off financial collapse at the end of 2008 were successful, but at the cost of creating serious problems of adjustment for the future. The political debate around what were the causes, who should be blamed and what should be done is only just beginning, and the way this crisis comes to be understood will play a major part in determining how it is eventually resolved and how far-reaching will be the changes to the international economy and to domestic politics.     

The Political Economy of State Environmental Regulation: The Distribution of Regulatory Burdens

This article examines interstate variance in the distribution of costs for hazardous waste regulation in the American states. The analysis identifies the distribution of regulatory costs for technical externalities and answers specific questions about the regulatory strategies of competing states in a federal system.     

Exploring the Consequences of Negative Political Advertising for Liberal Democracy

ABSTRACT

This paper explores existing thinking and research on the use of negative advertising strategies in political campaigning, and in particular examines their potential impact on liberal democracy. We ask what impacts negative forms of political communication may have on our system of government and democratic participation. Though political advertising makes up only a part of political discourse, an analysis of it is necessary given the increasing “marketisation” of political communication, coupled with concerns regarding the so called “democratic deficit.” In order to more truly evaluate its impact, the evidence pertaining to both the positive and detrimental consequences of employing negative ad strategies is examined. What emerges are some very real short-term benefits, some very real concerns over its use, and confusion over its “true” impact. Of particular note is the need for researchers and campaign managers to take a longer-term view of the potentially detrimental consequences of employing negative advertising strategies-to look beyond the short-term gains of winning elections and to consider the longer-term societal consequences of consistently employing advertising strategies characterised by the creation of doubt, fear, anxiety, violation and viciousness. We argue that the “winning” mentality of political ad campaigns needs to be balanced by a more “nurturing” orientation if the tenets of liberal democracy are to remain sustainable.     

No Compromise: Political Consequences of Moralized Attitudes

Evolutionary, neuroscientific, and cognitive perspectives in psychology have converged on the idea that some attitudes are moralized—a distinctive characteristic. Moralized attitudes reorient behavior from maximizing gains to adhering to rules. Here, I examine a political consequence of this tendency. In three studies, I measure attitude moralization and examine how it relates to approval of political compromise. I find that moralized attitudes lead citizens to oppose compromises, punish compromising politicians, and forsake material gains. These patterns emerge on economic and noneconomic issues alike and identify a psychological phenomenon that contributes to intractable political disputes.     

Mexican Economic and Fiscal Policies to Sustain Political Stability

During the 1980s, Mexico was in a state of crisis. Its economic prosperity collapsed in 1982, and its political system almost self-destructed in 1988. Yet by 1994, the economy was once again growing and the party that had ruled the country since 1929 appeared poised to win the national election of August 1994, despite the traumatic assassination of the ruling party candidate for president. How did the Mexican regime do it? This article examines the role of economic policies in restoring the fortunes of the Mexican regime.     

Fiscal Coordination and Financial Dependence of State Governments in Mexico

This paper presents evidence of the effects on subnational financial dependence of the intergovernmental fiscal agreement implemented in 1980. In contrast with a previous study that uses annual time series national data, we use a panel of annual time series (1975–1995) of 31 Mexican states. We propose and estimate three different empirical models using the fixed effects panel data approach. In concordance with previous literature, we find strong statistical evidence that the implementation of the agreement increased financial dependence. The main contribution of this paper is to distinguish the effect of the 1980 fiscal arrangement on every state's degree of financial dependence.