Free riders or easy riders?: An examination of the voluntary provision of public radio

This paper tests the widely accepted hypothesis that when a pure public good is voluntarily provided incentives to free ride increase with the number of individuals consuming the good. Specifically, I use unique data on the number of listeners and contributors to public radio to test two hypotheses. First I test whether the proportion of contributors falls as group size increases and second I test whether contributions per contributor falls as group size increases. I find that increases in group size result in significantly more free riding. However, I also find that group size has no effect on contributions per contributor.     

The effects of group size and income on contributions to the Corporation for Public Broadcasting

This paper examines the extent to which individual contributions to public television are explained by the size of the audience which receives the individual station's television signal. It also incorporates the effects of income on contributions to public television in order to assess the combined effects of income and group size on contributions to public goods.The existing literature on contributions to public goods differs from this paper in several respects. First, this study uses field data to test the effects of group size on a public good. The majority of the existing literature on public goods contributions is based on experimental data. Most of this literature addresses the issue of free riding behavior, not the effects on contributions of different sized groups. Finally, the theory of group size developed in prior work does not address the issue of how contributions differ for groups which are very different in size.     

Interstate migration,income and public school expenditures: An update of an experiment

This article re-examines the relative importance of per capita income and net out-migration (Weisbrod's welfare-maximization hypothesis) as determinants of expenditures for public primary and secondary education. A repetition of Weisbrod's experiment shows that the existence of a high correlation between per capita income and migration in the 1950s would have made it difficult to distinguish between their relative importance. An update of the experiment yields results contrary to the hypothesis that communities (states) are welfare maximizers. They support the contention that per capita income is a primary determinate of educational expenditures.     

Voluntary contributions with imperfect information: An experimental study

This paper uses a two-person linear voluntary contribution mechanism with stochastic marginal benefits from a public good to examine the effect of imperfect information on contributions. Estimates of individual risk preferences are obtained using data from second-price auctions over lotteries. The results show that limited information about the value of the public good significantly lowers average contributions in all periods but the last. Moreover, the results support the interpretation that subjects bid “as if” they were risk averse, and suggest that “as if” risk-averse behavior is negatively correlated with willingness to contribute.     

Comment on Roberto G. Quercia and George C. Galster's “The challenges facing public housing authorities in a brave new world”

Abstract

We find Quercia and Galster's article on reforming public housing an intriguing academic exercise that contains some key insights useful to practitioners. However, the article fails to consider several key elements in the provision of assisted housing that make their “constrained quadrilemma” much less problematic than they assume.

The article ignores the tenant‐based certificate/voucher approach to meeting the housing needs of low‐income and very low income persons and households. This is a significant oversight, in that many public housing authorities (PHAs) manage a larger portfolio of certificates than of PHA‐owned housing. If the litmus test of the success of public housing's “reinvention” is the extent to which it is able to maximize both the number of low‐income households served and their social and geographic integration, then public housing's extensive use of certificate/voucher programs demonstrates a road out of the quadrilemma.     

Voluntary Regulations and Innovation: The Case of ISO 14001

Governments enact environmental regulations to compel firms to internalize pollution externalities. Critics contend that regulations encourage technological lock‐ins and stifle innovation. Challenging this view, the Porter‐Linde hypothesis suggests that appropriately designed regulations can spur innovation because (1) pollution reflects resource waste; (2) regulations focus firms’ attention on waste; and (3) with regulation‐induced focus, firms are incentivized to innovate to reduce waste. This article explores the regulation–innovation linkage in the context of voluntary regulations. The authors focus on ISO 14001, the most widely adopted voluntary environmental program in the world. Examining a panel of 79 countries for the period 1996–2009, they find that country‐level ISO 14001 participation is a significant predictor of a country's environmental patent applications, a standard proxy for innovation activity. The policy implication is that public managers should consider voluntary regulation's second‐order effects on innovation, beyond their first‐order effects on pollution and regulatory compliance.     

Perceptional inequality and preferential judgements: An empirical examination of distributional axioms

There are two categories of income distribution evaluations: first, the more-or-less “value-free” perception of income inequality as a statistical dispersion; and second, the valuation of income distributions according to an explicit social welfare function which is meant to capture all of society's value judgements. These societal value judgements can be expressed in the form of preferences. Whereas the inequality perception of income distributions appeals to an observer's sober judgement, the revelation of preferences with respect to specific income distributions appeals to his or her sentiments. This paper is an empirical analysis which investigates the juxtaposition of preferences with respect to income distributions and corresponding perceptions of distributional inequality. We do this through a questionnaire in which attitudes towards various distributional axioms are tested. The source of our data is 1773 completed questionnaires collected from five German universities. Based on our data, we observe that individuals' preference orderings over the set of income distributionssubstantially deviate from their perceptions of distributional inequality. In fact, our test responses showed that even when some income distribution is judged to be more unequal than another, that distribution might be preferred, as it accords higher incomes to each individual. We hold that the preference for these greater incomes expresses a compensation for the increased degree of inequality. This explanation applies both to equiproportional and to equal fixed-sum increases in incomes, which implies a support of Paretian ethics.     

Moderated Commitment: Members’ Decisions Not to Give to Professional Associations

Abstract

Workers pay membership dues to professional associations, which mark their identification with a particular field. Professional associations invite additional voluntary contributions for new or expanded programs, but most members do not make these additional gifts. We advance and test a conceptual model of the forces that might interrupt an otherwise committed or engaged member’s decision to make such a voluntary contribution. We conclude that giving decisions can be displaced by member beliefs that their dues and fees are sufficient or that their disposable income is committed to other obligations. We also conclude that giving decisions intersect with weak association strategy, such as a failure to solicit gifts in ways that are informative or useful to prospective donors.     

Engaging the reluctant taxpayer

Abstract

A commitment to political neutrality means that citizens have a legitimate complaint when the coercive power of the state is used to advance some particular conception of how it is good to live. In this paper I investigate how to address this complaint in the case of public funding for the arts. There are two promising ways to justify public arts spending. First, as Thomas Nagel argues, the arts are a source of intrinsic values and so command our respect. I reject this argument because intrinsic values are not automatically political values. Second, Ronald Dworkin argues that access to the arts is required to fully participate in social life. This argument draws a connection between the arts and citizenship and so fares better in establishing a political justification for the arts. However, Dworkin relies on the special value of high art relative to popular art, which undermines the neutrality of his argument. I show that a justification can be given that does not depend on the high value of the arts. I develop an account that shows how the arts can support just relations between citizens. This account is in keeping with a liberal commitment to neutrality.     

Work,Leisure, and Care: A Gender Perspective on the Participation Income

In ‘The case for a participation income’, Anthony Atkinson identified unconditionality as an obstacle to support for a citizen's income. He advocated prioritising the universality and individuality of a citizen's income but replacing its unconditionality with a ‘participation’ requirement. At the time, Atkinson's critique read as political realism: to eliminate means‐testing, make a concession to the fear of free‐riding. Ironically, Atkinson remained opposed to unconditionality despite his own critical contributions to documenting the growing income and wealth inequality that have increased support for an unconditional basic income. In this article I consider the ‘participation’ requirement from a gender perspective in order to uncover the problematic notions of ‘dependence’, ‘independence’, reciprocity, and free‐riding that underlie normative arguments for conditional over unconditional benefits. Employing such a perspective demonstrates the superiority of unconditional benefits in achieving more efficient and effective income support and reducing inequality—Atkinson's core commitments throughout his distinguished career.     

Symposium Introduction: Anthony Atkinson's ‘The Case for a Participation Income’

This article introduces the published proceedings of a symposium into Anthony Atkinson's proposal for a participation income. Just one of his many intellectual contributions, Atkinson famously argued for a scheme that gave up on the ambition of an unconditional scheme in order to press the case for a universal and non‐means tested income support scheme. The 'participation requirement' was a response to criticisms of basic income based on the absence of reciprocity. The contributions represent a range of responses and includes critics of participation income as well as those who are sympathetic to the goal of a participation income. All of them demonstrate the continuing relevance of Atkinson's proposal to ongoing debates on the reform of the welfare state.     

Voluntary purchase of public goods

This paper examines the application of Buchanan's ‘independent adjustment’ model of public good provision to individual donations to voluntary or non-profit organizations. An individual's donation function is a simple transformation of the Marshallian demand function; consequently donation functions ‘reveal,’ in principle, preferences for public goods. The existence of a tax-subsidy system sustaining a Pareto optimal level of provision is demonstrated, and the relationship to the existing subsidy scheme in the U.S. is examined. Finally, two implications of the model suggest that it is not appropriate as a representation of actual donor behavior.     

The Public's Increasing Punitiveness and Its Influence on Mass Incarceration in the United States

Following more than 30 years of rising incarceration rates, the United States now imprisons a higher proportion of its population than any country in the world. Building on theories of representation and organized interest group behavior, this article argues that an increasingly punitive public has been a primary reason for this prolific expansion. To test this hypothesis, I generate a new over‐time measure of the public's support for being tough on crime. The analysis suggests that, controlling for the crime rate, illegal drug use, inequality, and the party in power, since 1953 public opinion has been a fundamental determinant of changes in the incarceration rate. If the public's punitiveness had stopped rising in the mid‐1970s, the results imply that there would have been approximately 20% fewer incarcerations. Additionally, an analysis of congressional attention to criminal justice issues supports the argument that the public's attitudes have led, not followed, political elites.     

Much Ado about nothing? A multilevel analysis of the relationship between voluntary associations' characteristics and their members' generalized trust

The last 20 years of research on the micro-level relationship between involvement in voluntary associations and generalized trust has been characterized by a growing theory–data gap. This gap is especially problematic in terms of including diversity across voluntary associations in empirical analyses. This article aims to bridge this gap by using a hierarchically clustered data set (active members nested in voluntary associations) and multilevel analyses to test several hypotheses drawn from prior studies about the relationship between voluntary associations' characteristics and members' level of generalized trust. Overall, the results indicate that in explaining the variability in individual generalized trust levels, differences among the associations in which individuals are involved could contribute marginally at best. Almost all variance (97.6%) in individual level of generalized trust lies between the individuals and not between the associations. Furthermore, the analyses show no correlations for most tested associational characteristics. As for membership diversity, the most pronounced result runs opposite to expectation—thus providing some support for a membership similarity hypothesis rather than for a diversity hypothesis. The article raises the question whether the search for associational differences that might explain the lack of a general relationship between membership in voluntary associations and individual level of generalized trust is in fact a dead end.     

Not it: opting out of voluntary coalitions that provide a public good

Most coalitions that form to increase contributions to a public good do not require full participation by all users of the public good, and therefore create incentives for free riding. If given the opportunity to opt out of a voluntary coalition, in theory, agents should try to be among the first to do so, forcing the remaining undecided agents to bear the cost of participating in the coalition. This study tests the predicted sequence of participation decisions in voluntary coalitions using real-time threshold public goods experiments. We find that subjects’ behavior is more consistent with the theoretical predictions when the difference in payoffs between coalition members and free-riding non-members is relatively large.     

Nationally poor,locally rich: Income and local context in the 2016 presidential election

When social scientists examine relationships between income and voting decisions, their measures implicitly compare people to others in the national economic distribution. Yet an absolute income level (e.g., $57,617 per year, the 2016 national median) does not have the same meaning in Clay County, Georgia, where the 2016 median income was $22,100, as it does in Old Greenwich, Connecticut, where the median income was $224,000. We address this limitation by incorporating a measure of one's place in her ZIP code's income distribution. We apply this approach to the question of the relationship between income and whites' voting decisions in the 2016 presidential election, and test for generalizability in elections since 2000. The results show that Trump's support was concentrated among nationally poor whites but also among locally affluent whites, complicating claims about the role of income in that election. This pattern suggests that social scientists would do well to conceive of income in relative terms: relative to one's neighbors.     

Pumpkin Pies and Public Goods: The Raffle Fundraising Strategy

Charitable organizations, such as schools and churches, oftenuse raffles to raise money. This article explores the economicincentives inherent in raffle fundraisers. Raffling off aprize is compared to simply asking for voluntary contributions(i.e., a raffle without a prize). Even if every contributor isrisk-averse, offering a prize can increase contributions to apublic good by more than the value of the prize. Thus, tyingcontributions to a raffle can increase the equilibrium supplyof a public good. Moreover, there exists a raffle prize thatmaximizes the supply of public good over other prizes.     

An Examination of the Public Good Externalities of Professional Athletic Venues: Justifications for Public Financing?

A review of the literature shows that stadiums and arenas are insignificant in terms of creating employment, engendering aggregate increases in local spending, and increasing per capita income levels. Public subsidies, then, may be better justified with reference to the nonpecuniary, public good externalities of professional athletic venues. This research examines whether the public good externalities of Baltimore's Oriole Park and Cleveland's Jacobs Field justify the use of taxpayer resources to finance such projects. This research finds that the public good externalities of Oriole Park and Jacobs Field are determinants of willingness to support the use of taxpayer resources to finance stadium projects.     

Do Better Monitoring Institutions Increase Leadership Quality in Community Organizations? Evidence from Uganda

We offer a framework for analyzing the impact of monitoring—a commonly recommended solution to poor leadership—on the quality of democratically elected leaders in community organizations in low‐income countries. In our model, groups may face a trade‐off between leader ability and effort. If the group's ability to monitor the leader is low, then the leader may exert too little effort. A higher level of monitoring increases leader effort, raising the value of the public good. However, more intense monitoring may also drive higher‐ability members to opt out of candidacy, reducing public‐goods value. The result is an inverted U‐shaped relationship between the level of monitoring and the value of the public good. The trade‐off between leader effort and ability, however, only exists in the presence of sufficient private‐income opportunities. These predictions are assessed using original data gathered from Ugandan farmer associations.     

Benefiting from Public Sector Innovation: The Moderating Role of Customer and Learning Orientation

This article examines whether the payoff from engaging in innovation‐generating activities is contingent on an organization's level of customer and learning orientation. The authors suggest that innovative activity is associated with higher public service quality when the level of customer and learning orientation within the focal organization is high. They test this hypothesis by drawing on a novel panel data set covering all public nonspecialist hospital organizations in England. Using dynamic panel data estimation techniques, the authors find strong support for a direct relationship between innovative activity and public service quality and for a moderating role of both customer and learning orientation. These findings call for a contingency perspective on public sector innovation and highlight some of the boundary conditions that need to be in place if public service organizations are to benefit fully from their innovative activities.