Does economic freedom cause prosperity? An IV approach

A positive, statistical and economic significant relation between growth, income level and the Economic Freedom of the World (EFW) index has been amply documented. Most analyses, however, use OLS methods which, in the presence of endogenous variables do not establish causality and produce biased and inconsistent estimates. This paper uncovers the exogenous component of EFW using IV methods and finds a robust channel from economic freedom to prosperity. The findings, including instrument validity tests, support the importance of policies and institutions for development and warrants policy advice aimed at increasing economic freedom to foster prosperity.     

Clientelism and polarized voting: empirical evidence

One must take country-specific institutional features into account when analyzing former communist countries’ transformation process to new political institutions. We do so for post-communist Albania, where the regional and cultural polarization that has existed for centuries has evolved to clientelism in the new democracy. We show how clientelistic parties give rise to very particular voting patterns. These reveal major differences across regions not only in party choice but also in voters’ responses to government policies. These responses depend on the party in government and on the region concerned. This is in sharp contrast with results obtained when applying the same model to a large number of more advanced democracies with similar electoral institutions. A proper evaluation of democratization in Albania thus requires looking beyond the formal institutions governing elections and taking clientelism and its effect on voter behavior into account.     

The impact of surplus sharing on the portfolio mix of public sector defined benefit pension plans: a public choice approach

The riskiness of state employee pension plan portfolios varies across states. We investigate whether this variation is related to how public employees and taxpayers share actuarial surpluses of pension accounts. We focus on two determinants of a plan’s asset mix: the relative influence of public employees to taxpayers; and whether a surplus-sharing contract is specified. Our theoretical model demonstrates that the effect of public employee influence on the asset mix is ambiguous. Our empirical results corroborate this complex theoretical result. In our theoretical and empirical analyses, if a surplus sharing rule is specified, plans adopt a more aggressive investment allocation.     

Individual campaign contributions and candidate ideology

Individual citizens are the largest source of contributions for congressional candidates in the United States. This paper investigates if and how fundraising from this source is related to the ideological positions of candidates. Specifically, we ask whether the amount of contributions depends on: (1) the extremity of candidate ideology; and (2) the level of candidate divergence in the same race. These results have important implications for candidate positioning strategies, as well as for evaluating the effects of recent campaign finance reforms.     

Bad for Men,Better for Women: The Impact of Stereotypes During Negative Campaigns

In this paper, we examine whether the impact of negative advertising on citizens’ evaluations of candidates depends on the gender of the candidates. Given common gender stereotypes, we expect negative campaigning aimed at women candidates will affect citizens differently than negative campaigning against male candidates. The results of our study, derived from a survey experiment conducted on a nationwide sample of more than 700 citizens, demonstrate that negative commercials are less effective at depressing evaluations of woman candidates, compared to male candidates. The findings are consistent and strong, across a range of forces that people use to assess competing candidates (i.e., affect and trait evaluations, people’s beliefs about issues, anticipated vote choice). The tight control of the experimental design, including randomization of respondents into different conditions that vary in only one way, demonstrates that the gender of the candidate influences people’s reactions to different types of negative commercials.

Terrorist Threat,Leadership, and the Vote: Evidence from Three Experiments

From 9/11 in the U.S. to train, subway, and airport bombings elsewhere, individuals frequently must make political decisions in the shadow of terrorist attacks. To date, few studies have examined how times of terror threat influence voters’ decision-making processes. Using data generated from three experiments we show that, in times of terrorist threat (compared to good times), individuals weight leadership more heavily in the voting booth. Our results also shed light on how much weight is given to other determinants of the vote (issues and partisanship) across these two conditions.     

On the Rights of Undocumented Children

Changes in immigration laws over the last three to four decades have given rise to unprecedented numbers of undocumented children. However, as others have argued, policies regarding the control of undocumented migration have had deleterious effects on undocumented children and their basic access to social rights. Undocumented youth in the United States can legally attend K-12 education, but cannot legally work, vote, receive financial aid, or drive in most states. Their situation calls for a reexamination of immigration laws and a recasting of the frame that has been used to promote their inclusion.

Leading from Below: How Sub-National Governments Influence Policy Agendas

This article takes a state's eye view of trends towards a more centralised system of governance in Australia. It argues that while globalisation strengthens the roles of national governments it also provides less noticed public policy and management opportunities for sub-national governments. The article shows how state governments in Australia can use high-level policy proposals to reinforce their continuing relevance as key members of a federal system of government. It proposes that skilful deployment of policy ideas and analyses can enable the states to sustain alternative national agendas despite hostility or lack of interest by the federal government. In conclusion, the article examines the implications for federal-state relations under the Rudd government. It suggests that the elements for productive reform agendas are present but that bringing them together will require considerable effort.