Persuasion, slack, and traps: how can economists change the world?

Contrary to my critics, voter irrationality does not imply that economists cannot mitigate political failure. With rational voters, reform-minded economists have few viable tactics; with irrational voters reformers have more options. Rational voters can be swayed only by facts and logic; irrational voters could respond to better rhetoric. Rational voters strategically punish those who ignore their policy preferences; irrational voters use less effective disciplinary strategies that create political slack. Even with irrational voters, efficiency-enhancing reform is hard. With rational voters, however, democracy’s failure to adopt a reform is strong evidence that the reform does not enhance efficiency.     

Sovereignty and the Foreign Fighter Problem

Sovereignty is the bedrock of international law. If security requires that the United States transgress sovereign borders to attack foreign fighters and their support networks hiding in third countries, then the U.S. should adopt a strategy to amend international law accordingly. One should not be too quick, however, to disregard a robust notion of sovereignty, a concept that has helped avert conflict among the world's major powers. The United States needs a strategy for sovereignty's future that is based in the emerging security context and a prioritization of American interests. Instead, the United States and the rest of the world are meandering toward a less robust sovereignty with weaker and more ambiguous international law. The U.S. and its global interests would be better served by strong and clear international rules that increase predictability and that confer legitimacy to action against dangerous enemies.     

Standing Tiebout on his Head: Tax Capitalization and the Monopoly Power of Local Governments

Unlike other governmental units, statelottery agencies publicly acknowledge thattheir primary objective is revenuemaximization. This claim and the inherentmonopoly power of lottery agencies providesa unique arena to test for Leviathan. Withdata obtained from United States' lotterygames, I perform a Laffer curve analysis toderive the optimal lottery tax rates fordifferent categories of games. Theseoptimal tax rates and Monte Carlosimulations are then used to test whetherthe current tax structure of lottery gamesis indeed the revenue maximizing structure. I find strong empirical evidence for the``Leviathan Lottery''.     

Making Connections: Performance Regimes and Extreme Events

Local officials in the emergency management field have reached out and increased their connections with other agencies and organizations during the past several years. Collaborative networks have been created in an effort to address the complexities and uncertainties surrounding extreme events. But has this collaboration really taken root? In this article, the authors find that although a collaborative ethos has penetrated local emergency management, it is neither deep nor uniform. Data from a survey of emergency managers in North Carolina counties show that maintaining a functional network—a performance regime in which participants develop consistent management practices and rely on each other for the generation of new ideas—is a difficult task. The explanation for the variation found across the counties largely involves capacity and vulnerability.     

Spillover Effects of Voluntary Environmental Programs on Greenhouse Gas Emissions: Lessons from Mexico

We compare the environmental performance of voluntary environmental programs (VEPs) with different attributes. Using club theory, we argue that the differential performance of VEPs is due in part to their specific design attributes that will either enhance or diminish their ability to improve both targeted and untargeted environmental impacts. We analyze two VEPs in Mexico, the global standard ISO 14001 and the local standard Clean Industry. These two VEPs differ in the stringency of the standards and in their ability to sanction noncompliant facilities. These differences ensure that firms adopting the local standard are less likely to shirk their responsibilities and enhance potential spillover effects on untargeted environmental emissions. Our empirical results support our hypotheses and show that the local Clean Industry program is more effective in improving both targeted (toxic emissions) and untargeted environmental impacts (greenhouse gas emissions).