The Fly Ball Effect: A Theoretical Framework for Understanding the Impacts of Short‐Term Seed Grants

The federal government has long used grants‐in‐aid to encourage state and local governments to carry out federal policies. Little research has been done that examines how short‐term seed grants affect program continuation. We propose the “fly ball effect” as a theoretical framework for understanding how seed money should impact program maintenance. Our theory suggests that short‐term seed grants by themselves should result in considerable funding uncertainty and program eliminations or stagnation once the initial grant money expires. We use data from drug court start‐ups in four states to provide empirical support for our theory. We argue that understanding the logic of the fly ball effect can help granting governments to improve the effectiveness of their grant funding systems, at least as measured by strong program continuation and expansion.     

INDUSTRY-UNIVERSITY TECHNOLOGY TRANSFER IN MICROELECTRONICS

Federal, state and local governments have encouraged university-industry cooperation in recent years through a number of different policies and programs. Industry has increasingly been looking to universities for new ideas, closer collaboration and more timely access to research results. Various levels of government have become increasingly involved in joint funding with industry in new university-industry research centers and institutes. State and local governments spend considerable effort to attract high-technology industry, using university-industry collaborative programs as one incentive. Yet despite the theoretical and policy importance of this topic, it has received little systematic research attention.
This contribution reports the results of a National Science Foundation-funded study investigating technology transfer in microelectronics between Arizona State University located in the Phoenix metropolitan area and surrounding microelectronics firms. The results describe state and local initiatives influencing such technology transfer, how the initial technology transfer contact comes about, how research goals, topics and activities are decided upon, and how resources and funding support is secured. In addition satisfaction from, benefits and costs of, as well as attitudes bout technology transfer are reported.     

Political accountability,fiscal conditions and local government performance—cross‐sectional evidence from Indonesia

Why are some local governments more successful than others in managing resources and delivering services? And even more vitally, how can malfunctioning governments be reformed so that they perform their responsibilities more effectively? This article contributes to our understanding of theses overarching questions by exploring the interactions between political institutions and public sector performance in the context of decentralisation and local governance. It shows–both theoretically and empirically–that performance outcomes are determined by the extent to which people can hold their governments accountable through political institutions. The basic hypothesis underlying this research is that political accountability, either by encouraging sanctions upon non‐compliant public agents or simply by reducing the informational gap regarding government activities, will create forceful incentives for elected officials and civil servants to reduce opportunistic behaviour and improve performance. Using a cross‐sectional regression the hypothesis is empirically tested against evidence from newly empowered local governments in Indonesia. The empirical findings broadly support our hypotheses. Improved public services on the ground, both in terms of quantity and quality, require informed and well functioning decision‐making processes that allocate resources to priority areas that meet the demand of the broader community. Copyright © 2008 John Wiley & Sons, Ltd.     

Management problems of the proliferation of local government in Nigeria

Local government throughout Nigeria was reconstituted on a uniform basis in 1976. The 1979 Constitution then empowered state governments to create new local governments. This article describes how the state governments have used their authority to proliferate the number of local governments; it explains the reasons for doing this both on the part of state governments and on that of local communities. The drive to create additional local governments has derived in part from a desire to promote local level development, yet enquiries into the managerial capacity of existing local governments suggest that this expectation will be frustrated.     

Autonomy and Performance: Decentralization Reforms in Zhejiang Province,China

Decentralization reforms rarely live up to the high hopes and expectations of the reformers for a variety of reasons rooted in actions and omissions of the governments pursuing it or in the context in which it is undertaken. The paper examines the experience of Zhejiang Province where decentralization was successful in achieving and indeed exceeding initial expectations. The remarkable feature of its reforms was ‘performance‐based’ decentralization wherein localities showing superior performance were awarded additional autonomy at a faster speed while the rest were given additional support to build their capacity for assuming more responsibility in the future. To understand the effects of this unique pattern of decentralization, the paper compares the performance of participating and non‐participating counties under five waves of reforms between 1992 and 2008, based on indicators such as gross domestic product, industrial output and local government revenue. It finds that performance‐based decentralization not only helped overcome the problem of capacity deficits but also fostered capacity in weaker counties to assume more autonomy in the future. The paper confirms that speed and sequence of transfer of autonomy and responsibilities to local governments are as important as the content of decentralization. Copyright © 2017 John Wiley & Sons, Ltd.     

三方互动：规范我国地方政府间竞争的思考

在我国当前的制度环境下,地方政府在竞争中可以采取4种策略:约束“掠夺之手”、减少公共品的供给、将危机转嫁给不具流动性的要素、树立壁垒干预市场。规范地方政府间竞争应当避免地方政府采用第3、4种策略。为限制地方政府树立壁垒干预市场,从中央层面来看,需要建立全国统一大市场,推行以公平为基础的政策、制度化中央与地方的权力分配;从地方层面来看,需要转变地方政府职能,加强地方公共财政建设,构建地方特色;从社会层面来看,为限制地方政府转嫁竞争危机,需要充分发挥居民在地方政府间竞争中的裁决作用,发挥民营经济的力量以及发挥第三部门的力量。     

The Effects of Fiscal Decentralization on Public Spending: The Korean Case

The local government reforms of the 1980s and 1990s in Korea involved devolution of substantial resources from the central to local governments. Fiscal realignment between the levels of government occurred during the same period of time. This article places these changes within the context of fiscal decentralization, using a variety of time-series regression techniques, in an effort to assess its impact. Findings suggest that fiscal decentralization serves as a constraint on the behavior of central government, while it serves as a booster on behalf of underdeveloped local governments. Fiscal decentralization may be a very effective means of self-government, and plays a key role in improving the fit between the provision of public goods and citizens' demand in Korea.     

Savings from integrating administrative systems for social assistance programmes in Russia

Russian local governments now have primary responsibility for the administration of social assistance programmes thanks to a combination of decentralization of some responsibilities from higher levels of government and the transfer of certain administrative functions from state enterprises to municipalities. Over the past few years, there has also been a distinct shift to means‐testing of social assistance. This article reports on the results of a pilot project undertaken to improve the efficiency of programme administration conducted in the city of Arzamas (pop. 110,000). The municipal administration promotes it as a programme to ease client burden and improve access to benefits. Specifically, the pilot introduced a unified application form for all the major social assistance programmes in the city and required, regardless of how many programmes are applied for, that applicants visit only one office and supply one set of documents verifying their eligibility for assistance. Benefit processing is also consolidated. Staff efficiency improvements are substantial: under the one‐window system, 127 benefits are processed per month per staff member, while 85 benefits were processed per month per staff member under the old administrative system. Impressive time savings for clients were also observed: the statistically average client saves between 1.3 and 2.4 hours, depending on the degree to which a client was able to coordinate documentation collection and trips to the benefit agencies under the old system. The total potential time saved by clients as a result of the one‐window reforms is between 4100 and 7600 person hours per month. Copyright © 2002 John Wiley & Sons, Ltd.     

Federal Intervention in the Municipal Bond Market: The Effectiveness of the Build America Bond Program and Its Implications on Federal and Subnational Budgeting

The American Recovery and Reinvestment Act of 2009 (ARRA) included several new federal programs intended ostensibly to “unfreeze” the credit markets as a result of the global financial crisis. One such program, the Build America Bond (BAB) program, aimed to lower the borrowing costs for state and local governments by increasing their access to capital and providing a more generous federal subsidy than the traditional indirect tax exemption subsidy. BABs are taxable bonds sold by subnational governments, which carry a 35 percent direct federal payment subsidy to the borrower. In creating this program, the federal government hoped that the large direct federal subsidy along with greater potential investor interest in taxable securities would result in lower borrowing costs for state and local governments vis‐à‐vis traditional tax‐exempt bonds. This research study examines the relative effectiveness of the BAB program and details the various quantitative and qualitative implications on federal and subnational budgeting by moving from an indirect to a direct federal subsidy approach in facilitating state and local government capital raising.     

Institutional Collective Action During COVID-19: Lessons in Local Economic Development

At this point, little is known about local government responses to the economic crisis caused by COVID-19. This crisis is happening on Main Streets around the nation. This article examines how some local governments are taking collective action in partnership with other governments as well as with organizations at the local and regional levels. What is unique is that collective action is rare as it relates to traditional economic development practices, yet it is occurring and leading to offerings of multi-institutional grants and low-interest loans. However, some newer supply- and demand-side actions are the result of a lack of resources and need for expediency. Practitioners can learn about the collaborative economic development actions that governments are taking and how these partnerships can stabilize their local economies.     

Preservation policies in perspective

Abstract

This paper looks at the housing stock serving low‐income households and provides recommendations for future analysis and action. It concludes that too little attention is being paid to preserving the stock of unassisted units affordable by very low‐income families. This stock has shrunk in recent years, while the number of poverty‐level families has increased. Several recommendations for action by local governments are enumerated. Moreover, while much attention is focused on preserving projects developed under early federal assistance programs, policies for preserving units developed under the Section 8 program are needed to preserve owners’ incentives for maintaining these projects. Additionally, preservation issues must be considered in designing any new production programs. The paper outlines one option for a new program with a radically simplified financing structure.     

Fiscal Slack and Counter‐Cyclical Expenditure Stabilization: A First Look at the Local Level

There is a rich literature on how state governments use slack fiscal resources—most often in the form of rainy day funds and budget stabilization funds—to minimize the effect of economic downturns. This paper presents the first known examination of whether slack resources have the same counter‐cyclical effects at the local level. It uses a panel data set to determine whether one particular form of local fiscal slack, general fund balance, stabilizes current annual expenditures among a sample of 103 Minnesota cities from 1990 to 2000. The findings suggest different fund balance portions have marginal but nonetheless important effects on expenditures.     

Explaining Levels of Local Government Involvement in Service Delivery: The Dynamics of Cross‐Sector Partnerships in Malawi

This study explores how local governments and their development partners—that is, donors, non‐governmental organisations and private companies—structure their partnerships as they work together to provide services to communities. Cases of collaboration between four organisations working in the rural water supply sector and six local governments in Malawi are studied. Using a cross‐case qualitative methodology, we illustrate how power and control translate into practices, leading to different levels of local government involvement in service delivery. This study contributes to the literature on cross‐sector partnerships in particular by developing empirically‐based propositions that help explain the dynamic trajectories that partnerships between local governments and their development partners can take. Copyright © 2015 John Wiley & Sons, Ltd.     

Cyberattacks at the Grass Roots: American Local Governments and the Need for High Levels of Cybersecurity

This article examines data from the first‐ever nationwide survey of cybersecurity among American local governments. The data show that these governments are under constant or near‐constant cyberattack, yet, on average, they practice cybersecurity poorly. While nearly half reported experiencing cyberattacks at least daily, one‐third said that they did not know whether they were under attack, and nearly two‐thirds said that they did not know whether their information systems had been breached. Serious barriers to their practice of cybersecurity include a lack of cybersecurity preparedness within these governments and a lack of adequate funding for it. The authors make recommendations to local governments to improve their cybersecurity practice and to scholars for additional research into local government cybersecurity, an area that, to date, has largely been neglected by researchers from the social sciences and computer science.     

Multinationals and institutional competitiveness

This article discusses how institutional competitiveness and multinationals are mutually enriching concepts. Multinationals transfer capital, technology, and knowledge into new settings. They allow subsidiaries access to new markets, new resources, and new processes. Potentially, therefore, institutional competitiveness can be increased by the presence of multinational corporations (MNCs) and their subsidiaries. However, this depends on the type of multinational and the type of institutional context. By differentiating two types of MNC in terms of short‐term and long‐term orientations to investment, and two types of host institutional setting in terms of strength of institutional complementarities and interconnectedness, we develop a typology of four types of interaction between MNCs and institutional settings. We then analyze how each type influences institutional competitiveness. We conclude that these outcomes, while structurally shaped, are still dependent on how actors (individuals, firms, collective organizations, and governments) strategize to develop institutional frameworks in the context of highly competitive global markets.     

Changing State Fiscal Capacity and Tax Effort in an Era of Devolving Government, 1981 2003

The American system of fiscal federalism requires that stateand local governments finance the bulk of their budgets fromown-source revenues, not transfers. This article analyzes statetotal taxable resources from 1981 to 2003 to evaluate how statefiscal capacity has changed in that time and how it has beenaffected by national recessions, to examine the extent to whichfiscal capacity differs among states and whether capacity hasconverged, and to consider whether states have responded toservice demands by changing tax effort and whether tax efforthas converged in the face of interstate competition and otherharmonizing forces. Because the capacity measure employed herecan be compared across years, something impossible with majoralternative indices, the analysis provides insights importantto the analysis of fiscal federalism and of the implicationsof revenue devolution not previously possible.     

Isolated counties,administrative monitoring,and the misuse of public funds in China

This article empirically investigates the effects of administrative monitoring on the misuse of funds by local governments and provides a representative model of fiscal decentralization with political centralization, where administrative monitoring relies on the top‐down hierarchy of the bureaucratic system in China based on a unique data set from audit programs. We show a double effect between distance and monitoring in local China. The incentive for misusing public funds can be strengthened if the county (a) is governed by a leader whose tenure is longer than 3 years, (b) is governed by a politician from outside the county, or (c) receives more transfer payments. These findings suggest that the administrative monitoring of local governments can be vital to remedying the misuse of public funds.     

Making Good Use of Partners: Differential Effects of Managerial Networking in the Social Care Domain

ABSTRACT

Public managers engage in networking relationships with a wide variety of external actors and organizations from which they can draw different types of support and resources. Most empirical studies on managerial networking merely present different intensities of external networking in general, as if it were a unidimensional concept. In practice, however, public managers strategically differentiate between functional or task-related groups of external partners, based on the specific policy context. Moreover, such differentiation in networking behavior can be expected to systematically impact agency and public program performance outcomes. This article derives contextualized hypotheses on how managerial networking affects the performance of Dutch local governments in the social care domain. Multilevel structural equation analyses of 3,257 social care clients in 71 local governments provide evidence that bilateral client-interest networking is more beneficial to the Social Support Act's overall goal of improving the level of social participation of clients than professional networking. Moreover, the effect is indirect: managerial networking with client interest groups improves the physical self-reliance of clients, enabling them to engage in social activities.     

Management and change in northern Nigerian local government

This paper looks at some recent changes introduced by the Federal Government of Nigeria which seek a return to civilian rule in a stable polity. A first step in this policy has been completed with the election of chairmen and councillors at the local government level. The stated purpose of this initiative is to encourage ‘grass roots democracy’, which is expected to mobilize local action for urban and rural development. It is envisaged that local politicians and local administration will work together to this end. The paper concentrates on the consequences of the policy for the management of local government in Northern Nigeria, in which the predominant need is for rural development. The resource and management issues that arise for local government from the introduction of this polity are discussed under the following headings: finance, material resources, human resources and political relationships. The measures adopted appear radical, but have not led to a situation in which local government can easily predict what resources will be available to it. The question that is addressed is how, in an uncertain environment, local governments might use the powers and resources that are within their control to facilitate rural development in the Northern States. Suggestions are made as to what a management agenda should be and how this might be achieved through appropriate management systems and improved training.     

Does type of well drilling matter for local governments' fund balances?

The purpose of this study is to examine whether the type of wells drilling in Pennsylvania matters to the fund balance of local governments in Pennsylvania. After conducting one‐way analysis of variance and Kruskal–Wallis equality‐of‐populations rank test, the median value of fund balance of local governments have differences by the type of wells drilling. This result can suggest that the local governments of Pennsylvania should consider how to levy the level of impact fee to the companies operating wells for extracting shale gas. In other words, it should be designed more systemically by the type of wells drilling in Pennsylvania.