Local government consolidations: The impact of political transaction costs

Local government in Norway comprises a large number of small municipalities. Cost efficiency can be improved by consolidating local authorities, and central government has designed a framework to stimulate voluntary mergers. Existing theories suggest that political transaction costs will impede consolidations. (1) Generous grants compensate diseconomies of scale. Central government has promised small municipalities that grant levels will be maintained, but policy promises may not be credible. (2) Property rights to local revenues are nullified when consolidations have been implemented. High-revenue municipalities will therefore go against merger with a poorer neighbor. (3) A consolidated local council may be composed of different political parties, and it may therefore pursue other policies than an existing council. Expected changes in party strength can lead municipalities to oppose a proposed consolidation. (4) Senior politicians are less likely to support mergers, particularly if they come from small polities. We offer an explicit test of these propositions based on data for Norwegian local government. Elected politicians and administrative leaders are more interested in consolidating when efficiency gains are large. Local revenue disparities and to some extent dissimilar party preferences are significant impediments to voluntary mergers. Additionally, smaller municipalities are often prepared to sacrifice some efficiency gain to remain independent polities.     

The rise and fall of support for political parties: a dynamic analysis

The dynamics of political systems are explained by writers in the Schumpetarian tradition in terms of such things as moods, tastes, animal spirits, fashions and irrational impulses. This paper takes the idea of a non-rational choice explanation seriously and explores some of its implications. It develops a model of how voters might behave if their actions were not rational. It shows that, under certain broad conditions, a system made up of voters that act on impulse produces cycles in party support. The analysis also raises some questions about time and continuity in the analysis partys support. I also suggest an empirical test of the theory.     

Managing contract performance: A transaction costs approach

Managing contracts is a complex process, often exacerbated by high transaction costs inherent in negotiating, implementing, and monitoring contract relationships with vendors. Through analyses of data from a 1997 International City/County Management Association survey of municipal and county governments, the way in which municipal and county governments respond to transaction cost factors inherent in contract service delivery is examined. The results of the analyses demonstrate that when governments contract for services in contexts that risk contract failure, they engage in a variety of monitoring techniques to improve their ability to monitor and correct vendor performance. © 2003 by the Association for Public Policy Analysis and Management.     

Competition of newspapers and the location of political parties

In this paper we suggest a model for an analysis of how newspapers and political parties determine their ideological orientation and how both decisions depend on each other. Quite naturally dissemination of information plays an important role. The model is set up as a two-stage game. Because elements of horizontal as well as vertical product differentiation are present in this model location patterns in ideology space exhibit in general neither maximal nor minimal differentiation, although we keep quite close to the Downs model, with information as the most important distinguishing feature. Furthermore, the model shows by way of example that economic theory can be a useful tool to investigate issues which are central to communication science.     

Partisan responses to Europe: Comparing Finnish and Swedish political parties

Abstract. This article analyzes party responses to European integration in Finland andSweden.We argue that such responses are shaped by seven explanatory factors: basic ideology, public opinion, factionalism, leadership influence, party competition, transnational links, and the development of integration. Each factor can lead to a positive or a negative evaluation of the European Union. In the empirical analysis, the sample includes all parties represented in the respective national parliaments, and the research material consists of party documents, parliamentary votes, statements by leading party figures, public opinion surveys, direct observation and interviews. Party competition and leadership influence are the strongest factors in the Finnish case, while public opinion and factionalism are the strongest factors in Sweden. Issue avoidance combined with the secondary importance of the EU in party politics explain why parties have been relatively successful in containing internal factionalism and discord, especially in Finland.     

The cumul des mandats,local power and political parties in France

French politicians show an unusual appetite for combining local and national elective offices, the practice known as the cumul des mandats. This feature of the French political system has arisen from the specific characteristics of central‐local relations in France and from the weakness of French political parties, which it has in turn reinforced. The cumul has survived both the ‘nationalisation’ of French politics under the Fifth Republic and the decentralisation legislation of the early 1980s, which removed some of its functions for local government. While multiple office‐holding is now limited by law, the incentives to combine the posts of Deputy and mayor for the same town are undiminished.     

An organizational analysis of political action committees

As the number and putative importance of political action committees have grown, so too has scholarly attention to this new breed of political organization. Yet this attention has been uneven. Although much is now known about the aggregate spending patterns of PACs, much less is known about their internal lives. The present study attempts to open the PAC black box to empirical inquiry. Drawing on interviews with the managers of 70 Washington-based political action committees, we suggest how theoretical perspectives about formal voluntary associations may be usefully applied in explaining the behavior of PACs. After examining the relationships among several variables — organizational goals, constituency relations and decision making, strategy, and interorganizational relations — we show how these forces affect the behavior of corporate, trade/membership, labor, and nonconnected PACS.     

Appropriation, violent enforcement, and transaction costs: a critical survey

This paper focuses on the extension of transaction costs to appropriative activity and coercive power in the property rights approach. It has been argued that including the costs of appropriation and violent enforcement in transaction costs is based on the assumption that Coaseian bargaining can be extended to any institutional scenario, i.e., voluntary as well as coercive exchange. However, voluntary transactions cannot capture the logic of coercive power. This means that the assumption of an efficient political market is not valid, and that the ??political Coase theorem?? lacks the logical consistency to provide a cornerstone for political theory.     

From occupational involvement to political participation: An exploratory analysis

Since Mill and Tocqueville, theorists have speculated that local participation, particularly involvement in workplace decision making, contributes to participation in wider politics. Theory suggests there should be two types of relationships between work and politics. First, there should be a correspondence between similarly formal or authoritative occupational and political involvements. Second, occupational participation should generate political participation. Thus, both authority patterns and actual participation connect work to politics.This paper hypothesizes that, other things being equal, occupational involvement, such as authority and participation at work, generates wider political participation, and that this influence occurs most strongly across levels of similar formality between the occupational and political spheres. The study finds that work participation, in fact, generates political participation, and that the connection is strongest along a hierarchy of formality connecting participation from the workplace to politics.An earlier version of this paper was presented at the Panel on Innovations in the 1985 National Election Study Pilot Survey, American Political Science Association, Washington, DC, August 1986.     

The literature on European parties and party systems since 1945: A quantitative analysis

Abstract. This article analyses the structure and evolution of the literature on parties and party systems in Europe since 1945. Using a bibliographical database comprising all references to scientific work on parties and party systems, we propose an innovative quantitative analysis. The completeness of our database allows us to show in detail the evolution of the literature over time. On the basis of a systematic coding of all references with respect to the type of parties, the countries and topics covered, as well as the language, place and type of publication, we propose a detailed quantitative analysis of the literature in all its dimensions. The result of our exploration is an accurate map of the literature on political parties in Europe.     

The political role of the Japanese media

This article examines the political role of the mass media in contemporary Japan. Journalists, especially newspaper reporters, have long enjoyed privileged access to politicians through a system of kisha (reporters') clubs, a system which allows for a cosy rapport between reporters and their sources, but often works against the public interest. In recent years, however, some television journalists have adopted a more rigorous approach to political stories. Critical programming by television stations such as TV Asahi may have contributed to the end of 38 years of Liberal Democrat Party rule in 1993. Nevertheless, there is insufficient evidence to argue that the Japanese media is now acting as an effective political watchdog. Like the mass media in many other Asian countries, the Japanese media continues to enjoy an ambiguous relationship with holders of political power.