Political markets, property tax referenda, and local school spending

For better or worse, fiscal decisions made through property tax referenda allow local political markets to work. Demand, supply, and voting process components of such markets are estimated for those Oregon K-12 school districts that held referenda between 1981 and 1986. Various attributes of the median voter were related to school spending, but supply decisions by school boards and administrators were also important. Large districts used state aid to substitute for local property tax revenues on nearly a one-for-one basis, while relying on reversion budgets (inadequate property tax bases and implicit threats of school closures) to extract greater-than-desired spending levels from the median voter.     

Intergovernmental grants and successful tax limitation referenda

Analyses of fiscal limitation referenda have typically ignored the role of institutional structure in referenda outcomes. This article demonstrates the importance of such structure through the investigation of intergovernmental grants in a model of federal tax rate determination. Tax limitation referenda are shown to depend upon both the use of tax rates as a grant disbursement criterion as well as the size of the proposed tax cut.     

Non-binding linked-issues referenda: Analysis and an application

Non-binding referenda (‘petitions') are an instrument of direct democracy that allows citizens to signal preferences to politicians outside the electoral cycle. This paper provides a simple theoretical and empirical analysis of a particular form of non-binding referenda, so-called linked-issues petitions. It analyzes the ability of issue linkage to increase participation levels above those of single-issue petitions and applies the analytical insights to a controversial referendum held in Austria in 2002 that linked issues of transboundary nuclear risk and Eastern enlargement of the European Union.     

Understanding land ownership and environmental conservation from perspectives of enviro-capitalism and enviro-socialism

Enviro-capitalism and enviro-socialism address natural resource management and environmental conservation from the different perspectives regarding property rights, roles of free market and governments. The case studies of land ownership evolution in United States and P.R. China illustrate that mandatory administrative order from government failed in P.R. China, while the private owned land and managerial ways also cause the problems in the United States. The understanding about land values and functions changes over time. The concern is getting more and more focused on exploring the efficient ways to get land resources yielded perpetually, as well maintaining economic, social and political sustainability. We learn the lessons from the past. The land management depends on rationally identifying and measuring the roles of individual, mass and government in social-economic-ecological system by using the market dimensions and indexes. The case studies indicate that the owners of the land property will be able to engage in negotiated contracts with those seeking environmental protection through the free market. It also requires the governments to take the responsibilities to identify property rights and help build up the capacities to make the policies and laws based on the land ecosystem processing features, as well considering the cultural and economic status within the different spatial units. The governments should help to develop the enforcement technology for policy implementation at local, regional, national and international levels. The big challenge is that we lack knowledge and information to determine the processes and functions of social-economic-ecological system and measure the comprehensive values of land in large geographic units.     

Why are highly informed citizens sceptical of referenda?

Past work on attitudes toward the use of referenda finds that the most politically informed citizens are more sceptical of its use than their less informed counterparts. An intriguing tension presents itself in that those citizens who may be best equipped for referendum voting, the highly informed and politically sophisticated, are the least likely to support the use of this tool of direct democracy. Using data from Canadian Election Studies, we consider three explanations for relative referenda scepticism among political sophisticates. Our analyses provide evidence to support a confidence in government explanation and a concern for minority rights explanation, but not an incompetent public explanation – a curious finding considering the centrality of citizen competence in the theoretical literature on referenda.     

Running against the status quo: Institutions for direct democracy referenda and allocations over time

Stylized institutions for direct democracy referenda are examined in a dynamic full information environment with myopic voters. Competitive-agenda (median-voter) processes are contrasted with monopolistic (controlled-agenda) processes by extending existing static analyses to a class of dynamic institutions not previously characterized, the status quo reversion rule. This highlights the dependence of the progression of real equilibrium allocations over time on institutional structure. By delineating the restrictions implied by each institutional form the model explains some persistent empirical regularities. In particular, a strict ceteris paribus ordering of the magnitudes of budgets by institutional form is derived for a wide portion of the parameter space.     

Political participation in Swiss referenda at federal and cantonal levels: 1879–1981

Political participation in the process of semidirect democracy differs in several important respects from political participation in elections in representative democracies. This study discusses patterns of participation in 300 referenda at the cantonal and federal level in Switzerland during the 1879–1981 period. The purpose of this survey is to account for cross-temporal and cross-cantonal variations in terms of: (a) referenda type, (b) competition intensity, and (c) the influence of a multiple political culture. The findings suggest that distinctive political cultures and life styles, and other collective factors account for turn-out percentages and competition intensity. Voters tend to mobilize essentially to reject constitutional revisions and laws rather than accept them. The significance of cross-temporal differences was found to diminish during the 1952–1981 period. This tendency toward increasing standardization of Swiss political participation does not, however, completely blur the specificity of participation within cantons, suggesting that the multicultural nature of Swiss society is still prevalent.     

Pay for Success: Diffusion of Policy Innovation for Social and Economic Stability

Across the United States, communities struggle with numerous social and environmental issues, while the funding to address these issues continues to diminish. Therefore, actors inside and outside of government are seeking new policy solutions to persistent social problems. Significant hurdles to new policies exist, however, including a lack of funding and a reluctance to take on the risks inherent in implementing new programs. A recent innovation in the policy sphere, pay‐for‐success (PFS) financing, has been able to overcome these hurdles. Policy innovation does not come easily, though, and change within government is often slow and methodical. What catalyzes jurisdictions to engage with PFS? By developing an understanding of the mechanisms and processes of PFS, diffusion scholars and practitioners can facilitate innovation within jurisdictions. Such innovation, which the federal government has an opportunity to facilitate, is necessary to shift business‐as‐usual service provision and enable greater social, environmental, and economic stability.     

State fiscal constraint and local overrides: a regression discontinuity design estimation of the fiscal effects

Public Choice - Despite abundant evidence regarding the influence of US state-imposed tax and expenditure limitations on local governments, the causes and consequences of local overrides remain...     

The Secret of West Indian Success

For nearly a century, black immigrants from the West Indies have enjoyed greater economic success than African Americans. Several explanations have been proposed for this trend, but until now, none of these explanations have been subjected to systematic scrutiny. Recent efforts to adjudicate among them indicate that West Indian success can be attributed entirely to the “selectivity of migration”. This phrase refers to the tendency of people who migrate to be more talented and determined than the compatriots they leave behind. One implication of this discovery is that sympathetic observers should stop exhorting African Americans to behave more like West Indians. Such pleas are inappropriate because West Indian success is a consequence of choosing to move, not a consequence of Caribbean birth. A second implication is that persons of West Indian background remain vulnerable to racism. The new findings provide no evidence that positive selection protects West Indians from the negative stereotypes that Americans associate with black skin.

IS Success and Failure—The Problem of Scale

In the midst of Implementing Electronic Government (IEG), the almost knee-jerk reaction of our political elite seems to be to embrace hugely ambitious Information Systems (IS) solutions to public-sector operations. Problem after problem has been viewed as solvable by throwing some big IT at it. However hindsight and a wealth of evidence and examples shows that overly large-scale public-sector IT projects do not work and persistently end in failure and costly waste. In this article we consider IT projects 'failures' and the combination of social and technical factors that contribute. We illustrate our argument with more detailed reference to the Connecting for Health agenda, part of the NHS National Programme for IT. We suggest 'think local, think modular' to build on good practice and advocate use of the government's own 2004 eGovernment Interoperability Framework (eGIF) to learn lessons from past IT project catastrophes.     

The demand for local government goods

Abstract. This paper analyses the spending preferences of local government elected politicians. It is argued that the median voter model is inappropriate in multi-party systems that provide multiple government services, and that the preferences of the representatives are consequential to local resource allocation. We develop a micromodel in which service demand is conditioned by exogenous public revenue, prices, and demographic factors. We hypothesise that politicians demands are affected by party affiliation, public sector occupation and committee assignment. The estimates of the micro demand functions are based on data pertaining to Norwegian local governments. It is found that the estimated income elasticities correspond approximately with elasticities of output studies. Party affiliation has an impact on demand patterns, while government occupation and committee appointment are major determinants of politicians desired allocation of public services. Further analyses reveal that the numerical strength of parties impacts weakly on the actual service allocation, whereas the representation of government employees has occasional effect. The budgetary allocations are imperfect expressions of the elected council's underlying preferences.     

Implementing PBB: Conflicting Views of Success

A modern budget reform, performance‐based budgeting (PBB) emphasizes the measurement of government performance by agencies and public servants. In this article we define PBB as requiring strategic planning regarding agency mission, goals and objectives, and a process that requests quantifiable data that provide meaningful information about program outcomes. Performance‐based budgeting requirements are now pervasive in the states. Of forty‐seven states with PBB requirements, thirty‐one have legislated the process to be conducted, while sixteen have initiated the reform through budget guidelines or instructions.¹What remains unknown, yet of vital interest to state administrators, their staff, legislators, and citizens, regards implementation status of PBB systems. How many states are utilizing a PBB process as prescribed by law or administrative directive? And if PBB has been implemented, has it been successful regarding improvement of agency effectiveness and decision making about spending? Perhaps most importantly, has PBB influenced appropriation decisions?. This research is based on responses to a mail survey of executive and legislative budgeters regarding the PBB system established in their state. Results discussed in this article consider budgeters’ response about PBB implementation status and effectiveness as conducted. We find that there are differing perceptions across the branches of government regarding both the extent of PBB implementation as well as its success. Results show that states with better‐known PBB systems have not necessarily realized greater success in terms of effectiveness from this budget reform than states with less popularly known systems, at least as perceived by the budgeters included in this article.     

Coercion,Information, and the Success of Sanction Threats

This article explores when and why sanction threats succeed in extracting concessions from the targeted country. We focus on two different, albeit not mutually exclusive, mechanisms that can explain the success of sanction threats. The first mechanism relates to incomplete information regarding the sanctioner's determination to impose sanctions and suggests that threats help to extract concessions by revealing the sanctioner's resolve. The second mechanism underscores the direct impact of common interest between the two countries and explains the success of sanction threats by the targeted country's greater dependence on this link between the two countries and the sanctioner's ability to exploit this dependence. We test the hypotheses using a new strategic structural estimator. Our results provide no evidence in favor of the informational hypothesis, while lending robust support for the coercive hypothesis.