Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries

This paper examines how government ideology has influenced deregulation of product markets in OECD countries. I analyze a dataset of non-manufacturing regulation indicators covering energy, transport and communication industries in 21 OECD countries over the 1980–2003 period and employ two different indices of government ideology. The results suggest that government ideology has had a strong influence on the deregulation process: market-oriented governments promoted the deregulation of the energy, transport and communication industries. This finding identifies remarkable differences between leftist and rightwing governments concerning the role of government in the economy and basic elements of political order.     

The policy impact of unified government: evidence from 2000 to 2002

Do the outcomes of government action differ between periods of unified and divided government? Using “event study” methodology, this articles addresses the question by looking at sudden shifts between divided and unified government—Bush v. Gore, the Jeffords switch, and the 2002 election. The results show that oil and gas stocks (i.e. Republican “constituent firms”) rose abruptly as Republicans took unified control, while renewable energy stocks (i.e. Democratic “constituent firms”) fell. The pattern reversed, however, when Democrats took back control of the Senate. These outcomes call into question non-partisan theories of law making.     

Does fiscal decentralization constrain Leviathan? New evidence from local property tax competition

This paper reexamines whether fiscal decentralization constrains Leviathan government. Using panel data for Pennsylvania, we compare actual property tax rates to the Leviathan revenue-maximizing rates for municipalities, school districts, and counties. Using spatial econometric methods we also estimate the degree of spatial dependence at the three levels of local government. We find that fiscal decentralization results in stronger intergovernmental competition and lower tax rates. We also find evidence of collusion among school districts that exhibit high interdependence but also high tax rates. This calls into question the current literature??s blind use of spatial dependence as a measure of intergovernmental competition.     

Who benefits from minority business set-asides? The case of New Jersey

Race-based remedies often are justified by evidence of prior discrimination. They work when they benefit groups previously disadvantaged. This article examines one such remedy—minority business set-asides—and its application in the award of public procurement and construction contracts by the state of New Jersey. Analyzed are contract awards to minority and non-minority/non-women-owned business enterprises in 1990, as well as in periods before, during, and after the imposition of a state minority set-aside program. Using a conventional decomposition approach, the article reveals significant discriminatory gaps in the success of minority- versus non-minority-owned firms in obtaining contracts from the state of New Jersey. The analysis suggests that minority contracting success rates fell from the pre-set-aside era to the set-aside era and that discriminatory outcomes persisted. The particular remedy chosen—while justified based on evidence of prior discrimination—appears not to have reduced the original discrimination nor did it unambiguously benefit minority businesses.     

When does inequality demobilize? New evidence from the American states

Income inequality has been rising throughout the industrialized world, particularly in the United States. This long been thought to depress turnout, but extant research has yielded mixed findings. Here, I argue that the inequality-turnout relationship is conditional, depending crucially on election salience. I test this by using three decades (1984–2014) of panel data from the U.S. states and by leveraging the fixed and exogenous occurrence of presidential (higher-salience) and midterm (lower-salience) elections. Overall, I find a negative and statistically significant relationship between income inequality and voter turnout in midterm election years, but a substantively small and non-significant relationship in presidential election years. I attribute this to the ability of presidential contests, relative to midterms, to counteract the demobilizing influence of high inequality, by piquing voters’ interest and activating citizens who would otherwise abstain. Overall, these findings help us to better understand of the politics of electoral participation in an era of high, and rising economic inequality.     

Does democracy produce quality of government?

This article analyses the effects of political regimes over state capacity or the quality of government (QoG): Do democratic states perform better than authoritarian ones? Previous studies point to a nonlinear relationship between democracy and government quality. It is argued here that QoG is a function of both forces of supply (leaders who have the power to make reforms) and demand (citizens' desire for mid‐ to long‐term investments over short‐term needs), the latter of which is a function of economic development. In democratic states, leaders have stronger incentives to improve QoG after a certain degree of wealth is reached, while in poorer countries they have little incentive for long‐term bureaucratic investments. Thus it is predicted that the relationship between democracy and QoG is conditional, based on economic development. With over 125 countries in the sample, this hypothesis is tested using time‐series panel data and spatial models, and strong empirical support is found.     

Priming citizens to think about public participation initiatives: Does it impact their view of government?

Prior research has shown that public participation initiatives may have positive effects on how participating citizens view government. However, little is known about whether and how priming citizens to think about such initiatives influences the view of government among the larger public. Using a survey experiment, we find that the effect of priming citizens to think of a public participation initiative that includes a small group of citizens on their view of government is conditional on how proximate the service, which the initiative resolves around, is to citizens. Notably, across outcome measures we a find a negative priming effect among those for which the service is not proximate. These results are highly important, as they suggest that among the larger public, public participation initiatives—that involve few citizens—may have mixed results on the view of government, thus questioning the legitimacy of decisions reached by such initiatives.     

Does neighborhood matter? Assessing recent evidence

Abstract

This article synthesizes findings from a wide range of empirical research into how neighborhoods affect families and children. It lays out a conceptual framework for understanding how neighborhoods may affect people at different life stages. It then identifies methodological challenges, summarizes past research findings, and suggests priorities for future work.

Despite a growing body of evidence that neighborhood conditions play a role in shaping individual outcomes, serious methodological challenges remain that suggest some caution in interpreting this evidence. Moreover, no consensus emerges about which neighborhood characteristics affect which outcomes, or about what types of families may be most influenced by neighborhood conditions. Finally, existing studies provide little empirical evidence about the causal mechanisms through which neighborhood environment influences individual outcomes. To be useful to policy makers, future empirical research should tackle the critical question of how and for whom neighborhood matters.     

Does economic globalization affect government spending? A meta-analysis

Public Choice - Despite extensive econometric testing, the research literature has been unable to draw firm conclusions regarding the effect of economic globalization on government spending. This...     

When do people accept government paternalism? Theory and experimental evidence

Under what conditions are people willing to accept paternalistic government policies? The use of libertarian paternalism (“nudges”) has gained popularity and captured the attention of scholars and policy-makers alike. A central underlying assumption in advancing governmental nudges is that the public prefers them over classic paternalistic policies, which, unlike nudges, are coercive. This paper studies the extent and circumstances under which this assumption is justified, arguing that the claim for the preeminence of nudges is overstated. I develop a theoretical framework to account for the conditions under which people prefer coercive and non-coercive paternalism, and test it experimentally among a national U.S. sample. I find that in certain theoretically predictable contexts, individuals not only tolerate, but even prefer coercive paternalism over nudges. These attitudes are systematically explained through the interaction between the coercion level and policy domain in question.     

What is the impact of bilingual communication to mobilize Latinos? Exploratory evidence from experiments in New Jersey,North Carolina,and Virginia

Should materials aimed at increasing Latino voter turnout be in English or bilingual? Credible, theoretical arguments can be made both ways: bilingual materials may be more effective if signaling cultural awareness or less effective if seen as pandering. We tested these competing hypotheses with two rounds of randomized field experiments in New Jersey and Virginia in 2015, and North Carolina in 2016. While some GOTV experiments have used bilingual mailers, previous scholarship has not tested whether bilingual mailers are more effective than English-language materials. In the 2015 elections, both treatments increased turnout, and the monolingual English version was more effective at increasing turnout than the bilingual version. These results are replicated in the high salience 2016 election in North Carolina. These results indicate that further research is needed about bilingual communication across political and demographic contexts and about how household composition may condition the effects of bilingual communication.     

Greasing the wheels? The impact of regulations and corruption on firm entry

This paper investigates the question of whether corruption might ‘grease the wheels’ of an economy. We investigate whether and to what extent the impact of regulations on entrepreneurship is dependent on corruption. We first test whether regulations robustly deter firm entry into markets. Our results show that the existence of a larger number of procedures required to start a business, as well as larger minimum capital requirements are detrimental to entrepreneurship. Second, we test whether corruption reduces the negative impact of regulations on entrepreneurship in highly regulated economies. Our empirical analysis, covering a maximum of 43 countries over the 2003–2005 period, shows that corruption facilitates firm entry in highly regulated economies. For example, the ‘greasing’ effect of corruption kicks in at around 50 days required to start a new business. Our results thus provide support for the ‘grease the wheels’ hypothesis.     

Does war destroy business? A review of empirical publications

The study investigates the economic dimensions of war. It considers empirical literature through structure review to explore the different effects of war on businesses. The scope of the study covers all geographical areas and studies dealing with any respective event in the 20^th and 21^st centuries. However, the study caters for quality, relevance, and recentness in publications. Hence, publications in 4*, 4, and 3 stars journals that are placed in Association of Business Schools of UK Guidelines in 2015 are reviewed. The study with its extant literature presents an important realization that against the stereo-typed opinion about war being devastating to businesses indicates that war affects in various dimensions, that is, positive, negative, or even no effects depending on the nature and place of business. Whereas businesses, in general, may be negatively affected in wartime, businesses critical to war may get an unprecedented boost. The study also indicates a dire need of developing a framework for investigating this important relationship on sound footings.     

Does an effective bankruptcy reform impact the selling cost behavior of firms? Evidence from India

This study examined whether strengthening of creditors' rights impacts the selling cost behavior of firms or not? To investigate this question, the author exploited implementation of the Insolvency and Bankruptcy Code (IBC) in 2016 in India as an exogenous policy shock. The author found that selling cost of firms in India in the pre-implementation period were not “sticky”. Further, implementation of the IBC produced no impact on the selling cost behavior of Indian firms in the post-implementation period. Nonetheless, legislation of the IBC was found to have lowered financial resources that firms devoted to their selling activities. In addition, firms that faced a higher risk of bankruptcy because of more leverage in the pre-IBC period demonstrated greater response to promulgation of the IBC. Thus, it can be inferred that an effective bankruptcy reform has little impact on the selling cost behavior of firms but incentivizes them to devote lesser financial resources to their selling activities in order to lower their bankruptcy risk.     

Does foreign aid distort incentives and hurt growth? Theory and evidence from 75 aid-recipient countries

Foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent seeking as opposed to productive activities. We construct a model of a growing small open economy that distinguishes two effects from foreign transfers: (i) a direct positive effect, as higher transfers allow the financing of infrastructure; (ii) an indirect negative effect, as higher transfers induce rent-seeking competition by self-interested individuals. In this framework, the growth impact of aid is examined jointly with the determination of rent-seeking behavior. We test the main predictions of the model for a cross-section of 75 aid-recipient countries. There is evidence that aid has a direct positive effect on growth, which is however significantly mitigated by the adverse indirect effects of associated rent-seeking activities. This is especially the case in recipient countries with relatively large public sectors.     

Defining subnational open government: does local context influence policy and practice?

Policy Sciences - What is open government? The contemporary conceptualization of open government remains rooted in transparency and accountability, but it is embedded within the political economy...     

Are integrated impact assessments the way forward for mainstreaming in the European Union?

This article assesses the utility of impact assessments (IAs) as an effective tool for mainstreaming. Specifically, it analyses whether the European Union's (EU's) system of integrated impact assessments (IIAs) contributes to the realization of six mainstreaming objectives defined in the EU treaties. The article first studies whether the legal framework for the EU's system of IIAs makes it a viable tool for mainstreaming. It then proceeds with an empirical analysis of 35 IAs to assess the extent to which mainstreaming objectives are taken into account in practice. The analysis shows that all six mainstreaming objectives have a place within the IIA system, but the system does not ensure systematic consideration of them. There is considerable variation across mainstreaming agendas, as well as across Directorates‐General. The article concludes that the IIA system is no panacea for mainstreaming, and proposes changes to the institutional framework to improve its mainstreaming potential.