Citizen-candidate mobility and endogenous local policy

In this paper we analyze the influence of personal mobility on the citizens’ willingness to run for a political office in their municipality and on the resulting local policy outcome. Our model portrays heterogeneous policy preferences that are coupled with different exogenous degrees of interjurisdictional mobility. We show that an increase in mobility can be liable to shift the policy outcome towards the preferred policy of the less mobile citizens. We thus identify an endogenous policy response to personal mobility diametrically opposed to the tax competition effect that has hitherto dominated the discussion of the political consequences of personal mobility.     

Capital mobility and the possibilities for international policy coordination

When capital is internationally mobile, small differences in macroeconomic policies generate massive payments imbalances that cannot be managed successfully with the policy tools used during the Bretton Woods era. Monetary and fiscal policy coordination is needed to stabilize the international economy, but is difficult to achieve. This article uses insights from the theoretical literature on international cooperation to account for characteristics of policy coordination in recent years. Examination of the strategic situation helps to explain why governments have rejected proposals for a rules-based regime (e.g., strict multilateral surveillance using quantitative indicators) yet have coordinated policy adjustments on an ad hoc basis in response to crises. A solution to the strategic problem — in which there is one mutually adverse outcome (no adjustment by any government) and a number of Pareto-optimal outcomes preferred by different governments — depends on the exercise of power. Consideration of theories about hegemony and cooperation suggests that the U.S. continues to act as a hegemon in this area, albeit of the coercive rather than benevolent sort. International theories of cooperation, however, neglect the domestic policy making practices and institutions that pose the central problems for international policy coordination.     

Addressing public risks: Federal earthquake policy design

This article considers the design of federal earthquake policy as an illustration of the difficulties of addressing “public risks” when public indifference, despite general awareness of the risks, is the norm. The present federal earthquake policy attempts to overcome this indifference through strategies aimed at building local governmental commitment to risk reduction and improving nonfederal capacity to implement risk reduction programs. Because of the fundamental difficulties in influencing actions among less capable and willing jurisdictions, federal efforts have resulted in disjunctive impacts among seismic prone regions. Some “leading” communities have become more prepared, while other “lagging” communities in the same region fall further behind. The preferred approach for overcoming these gaps entails a mix of federally backed earthquake insurance coupled with development of local regulatory standards. More generally, strategies for addressing public risks entail modification of the policy tools for addressing such “private risks” as crime and job-related accidents. The changes involve mechanisms that shift from individual responsibility to shared responsibility for addressing the risks.     

Federal health care policy and the geographic diffusion of physicians: A macro-scale analysis

The federal government passed legislation in the 1960's and 70's to increase physician supplies and reduce spatial inequalities in access to physicians. A major policy was to aggressively continue increasing the overall supply of physicians on the assumption that market forces would eventually divert physicians from areas of high physician density to those of low density. Using state-level, annual data collected over a 21-year period, this paper investigates the macro-scale spatial diffusion of physicians as an essential element in evaluating this policy. The results provide evidence of the policy impacting locational trends relating to primary care physicians, but not specialists. They also indicate that the Medicaid/Medicare programs may have adversely affected the maldistribution problem.     

Federal colonias policy in California: Too broad and too narrow

Abstract

This article presents data on the 50 largest metropolitan areas in the United States to compare the metropolitan population density in the eastern and western parts of the country. The data show that the West often has more densely settled metropolitan areas than the East, especially when compared with the Southeast. The difference is due in part to the arid and rugged environment in the West.

The article also develops a new understanding of Sunbelt development by comparing its eastern and western halves. The growth patterns of the Sunbelt are often contrasted with those of the Northeast and Midwest, the assumption being that its newer metropolitan areas share a common, lower‐density urban form. However, this study shows that intraregional differences within the Sunbelt make such comparisons difficult and deceptive.     

Federal housing policy and preservation: Historical evolution,patterns, and implications

Abstract

This paper considers the evolution and patterns of federal low‐income¹ housing policies and programs over roughly the past half‐century. It begins with an overview of the multifaceted involvement of the federal government in housing — only one aspect of which is its intervention in the low‐income sector. This is followed by an overview of federal low‐income housing policy from the New Deal to today. The underlying assumptions and approaches of these policies are then considered with respect to such considerations as the government's presence and role, its targeting of assistance, and the selection of subsidy levels and vehicles. The paper concludes with a brief review of the implications of the historical record for future policy.     

Capital mobility,perspectives and central bank independence: Exchange rate policy since 1945

Hegemonic stability theory has been the traditional explanation in International Political Economy for the trend from fixed to floating exchange rates which was brought about by the collapse of Bretton Woods. This approach is found to be problematic. A more powerful explanation is the postwar rise in capital mobility, which produces a trade-off between exchange rate stability and policy autonomy. Preferences for these two policies have been a function of perspectives on economic policy and the degree of central bank independence. Independent central banks prefer domestic policy autonomy to exchange rate management, as they have no socio-political incentives to produce competitive, stable exchange rates. Their interests are predominantly in achieving low domestic inflation. In addition, current perspectives hold that the best way of securing international exchange rate stability is to pursue stable macroeconomic policies at home, resulting in the predominance of floating exchange rate policies. This trend will continue into the near future despite opportunities for international cooperation presented by the rationalization of world monetary politics into a G3 following the introduction of the euro. This may have adverse effects on the global economy for three reasons. First, there is a long-term danger that triad regionalization will result in a revival of neo-mercantilist policies, in which the exchange rate could play a part. Second, a high proportion of world trade and finance will be denominated in dollars and euros, rendering the stability of the dollar/euro exchange rate a global public good. Third, dollar/euro exchange rate misalignments which harm either the U.S. or EMU will be harmful to the global economy because of the high percentage of world GDP accounted for by these two areas.     

Federal policy mandating safer cigarettes: a hypothetical simulation of the anticipated population health gains or losses.

If manufacturing a safer cigarette is technically possible--an open question--then mandating that tobacco manufacturers improve the safety of cigarettes would likely have both positive and negative implications for the nation's health. On the one hand, removing toxins may reduce the incidence of smoking-related diseases and premature mortality in smokers. On the other hand, smokers might be less inclined to quit, those who have quit might resume the habit, and youth who have never smoked will have one less reason to avoid tobacco use. To assess the expected population health impacts of a legislative or regulatory mandate, we created the Tobacco Policy Model, a system dynamics computer simulation model. The model relies on secondary data and simulates the U.S. population over time spans as long as 50 years. Our simulation results reveal that even if requiring cigarettes to be safer makes smoking more attractive and increases tobacco use, a net gain in population health is still possible.     

"Federal Character" and Management of the Federal Civil Service and the Military

The "federal character" principle, which has been enshrinedin Nigeria's Constitution since 1979, seeks to ensure that appointmentsto public service institutions fairly reflect the linguistic,ethnic, religious, and geographic diversity of the country.Application of the principle in the federal civil service andthe military has amounted to a confused balancing of the meritprinciple and the quota system, based essentially on statesof origin. This has had adverse consequences for both institutionsin terms of discipline, morale, and overall effectiveness andefficiency. Faithful implementation of universal primary educationand imaginative rehabilitation of secondary and tertiary educationare required to ensure equal opportunities for all citizensto compete for civil service positions on the basis of merit.With regard to the military, only rapid implementation of theconstitutional provision on compulsory military training anda definitive end to military rule can help to reduce the salienceof the "federal character" principle.     

The West German Federal Constitutional Court as Guardian of the Federal System

The West German Federal Constitutional Court has generally actedas a guardian of the German federal system. The Court has preventedattempts by the federation to encroach upon the modest autonomyleft to the Länder. If a national solution for a problemseems indispensable, the Court favors techniques that compensatethe Länder for a loss of autonomy by granting them certainparticipation rights. Guided by that principle, the Court'sconstruction of the Basic Law has increased considerably thenumber of federal statutes that require the approval of theBunesrat. Thus the Court emphasizes today the idea of partnership.However, in a 1986 decision, the Court made clear that a certainamount of federal leadership is needed to keep the system running.In this decision, the Court reminded the federation expresslyof its responsibility for the whole.     

The Federal Formula and the Collapse of the USSR

A plan for the most ambitious political reform in Soviet historywas approved by the USSR's parliament in late 1988. As the reformunfolded, a key component came to be what Mikhail S. Gorbachevcalled "a renewed federal structure. "Reform proponents arguedthat only a renewed federalism could provide for the continuedintegrity of the Soviet state while assuring greater responsivenessto local demands. However, the attempt to breathe life intothe USSR's pseudo-federal structure unleashed long-suppressednationalist, territorial, and localist sentiments. Beginningin 1990, "refederalization" passed from mainly rhetorical discussionto a plan for a more loosely organized federation under theauspices of a Union Treaty. Following the attempted coup d'étatby Kremlin hard-liners in August 1991, pressures for decentralizationled, in the closing weeks of 1991, to the complete abandonmentof the "Great Soviet experiment." With the demise of the USSR,the plan for federal redesign was superseded by the rapid emergenceof independent states.     

Intergovernmental Relationships and the Federal Performance Movement

Although implementation of the federal Government Performanceand Results Act (GPRA) has provided the framework for the federalperformance effort, other efforts have been undertaken withinfederal agencies to balance the two often conflicting imperatives:to provide states with flexibility and yet maintain a commitmentto performance outcomes that acknowledges the expectations ofthose who fund and authorize programs. This analysis seeks todevelop a typology to examine the ways that the federal governmenthas attempted to bridge the goals of funders with the demandsof those who implement programs. This article highlights sixdifferent approaches that have been taken recently within federalagencies: performance partnerships, incentives, negotiated measures,building performance goals into legislation, establishment ofstandards, and waivers.     

Federal Cutbacks and the Fiscal Condition of the States

Given the drive to balance the federal budget, cutbacks andchanges in federal aid are likely to place added burdens onstate governments. This article examines whether state governmentsare fiscally up to task. A review of the recent and currentfiscal position of the states suggests that current state fiscalstrength may be temporary, and is unevenly distributed amongthe states. In addition, many factors will differentially influencestate responses to the changing federal environment. Statesmay not be as fiscally ready, as Washington assumes, to handleincreased long-term responsibilities.     

Federal labor protetons and the privatization of public transit

Federal transportation officials assert that labor protections in the Urban Mass Transportation Act inhibit the propensity of local transit agencies to contract with private firms for services. The authors present results from a survey of a large sample of transit managers and econometric analysis to support their conclusion that labor protections do not appear to reduce the incidence of contracting. The labor protections, however, may be costly to transit management in other ways. The authors recommend actions, aside from repeal of labor protections, to increase contracting by local transit agencies.     

The Two-Party System and the Federal Political Process

As part of its transition program to civilian federal democracy,the federal military government has constitutionalized a two-partysystem along federal lines, provided funding and other facilitiesto the two parties, and established institutions, such as theNational Electoral Commission and the Directorate for SocialMobilisation, to supervise and oversee the two-party process.This regimentation is seen as being necessary because Nigeriahas not been able to sustain either democracy or a stable partysystem in the past. The stage has been set, therefore, for themaintenance of a two-party system in the Third Republic, butmany problems remain to be resolved before the stable, competitiveparty system becomes rooted in Nigeria's federal system, societaldiversity, and political culture.     

The Electoral College and the Idea of Federal Democracy

On July 22, 1977, Martin Diamond spent the last morning of hislife moving to Washington, D.C., and testifying before the ConstitutionalSubcommittee of the Senate Judiciary Committee on the need tomaintain the Electoral College. That testimony, reprinted infull below, lasted approximately 35 minutes; and it representsa lively exchange between Professor Diamond and Senator BirchBayh, the sponsor of a proposed constitutional amendment forthe direct election of the President. Professor Diamond's priorpublication (see below), is a more systematic defense of theElectoral College against six American Bar Association chargesthat the College is "archaic, undemocratic, complex, ambiguous,indirect, and dangerous."     

Federal reserve appointments and the politics of senate confirmation

Public Choice - This paper examines the politicization of Federal Reserve (Fed) appointments. In contrast to the extant appointment literature’s almost exclusive focus on ideological...