Municipalities’ Contracting Out Decisions: An Empirical Study on Motives

Municipalities have various motives behind their decisions about the modes of their task execution. Empirical studies have not yet provided a fully satisfying explanation for municipalities’ contracting out decisions. Therefore, we interviewed several Dutch principal municipal managers to evaluate the causes and motives for the choices of the current structures for the delivery of their services. This study investigates the relevance of common public choice and transaction cost motives on contracting out and explores the relevance of additional institutional and pragmatic motives. We found that municipalities do not regularly evaluate the service provision of their activities and the potential benefits of outsourcing. In fact, if the activity has an adequate performance level and complaints from municipal employees, local politicians or inhabitants do not occur, a catalyst for a discussion on the contracting out of this activity is, in general, lacking. Principally in the case of structural underperformance municipalities consider a change of service provider, and then the efficiency motive is most relevant. Thereby, institutional motives – such as the stability of service provision – and pragmatic motives are also relevant. Institutional pressures in particular initiate the evaluation of organisational performance, whereas both economic motives as institutional and pragmatic motives are used to compare alternative service providers.     

Preventive War and Permissive Normative Order

Following the terrorist attacks of September 11, 2001, U.S. president George W. Bush articulated a new national security strategy based on striking terrorist organizations and the states that harbor them before they could endanger the United States. Though expressed in the language of preemption, the Bush strategy embodied a far more problematic doctrine of preventive warfare. Whereas the grounds for preemption lie in evidence of a credible, imminent threat, the basis for prevention rests on the suspicion of an incipient, contingent threat. We argue that an American national security strategy that embraces preventive war will set an inauspicious precedent, undermining normative restraints on when and how states may use military force.     

Using State Child Labor Laws to Identify the Causal Effect of Youth Employment on Deviant Behavior and Academic Achievement

On the basis of prior research findings that employed youth, and especially intensively employed youth, have higher rates of delinquent behavior and lower academic achievement, scholars have called for limits on the maximum number of hours per week that teenagers are allowed to work. We use the National Longitudinal Survey of Youth 1997 to assess the claim that employment and work hours are causally related to adolescent problem behavior. We utilize a change model with age-graded child labor laws governing the number of hours per week allowed during the school year as instrumental variables. We find that these work laws lead to additional number of hours worked by youth, which then lead to increased high school dropout but decreased delinquency. Although counterintuitive, this result is consistent with existing evidence about the effect of employment on crime for adults and the impact of dropout on youth crime.

The political economy of IMF forecasts

We investigate the political economy of IMF forecasts with data for 157 countries (1999–2005). Generally, we find evidence of forecast bias in growth and inflation. Specifically, we find that countries voting with the United States in the UN General Assembly receive lower inflation forecasts as domestic elections approach. Countries with large loans outstanding from the IMF also receive lower inflation forecasts, suggesting that the IMF engages in “defensive forecasting.” Finally, countries with fixed exchange rate regimes receive lower inflation forecasts, suggesting the IMF desires to preserve stability as inflation can have detrimental effects under such an exchange rate regime.     

A scale for the measurement of attitudes toward handgun control

This paper presents a scale designed for the measurement of attitudes toward handgun control. A review of the literature was undertaken in order to identify salient questions used in previous surveys measuring attitudes toward gun control in general and, more specifically, toward handgun control. Subsequently, thirteen items were developed and included in a statewide survey of 1,442 Texas residents. The thirteen items were then examined using the Guttman scaling evaluation procedure, and nine items were retained on the final scale. The coefficient of scalability for the nine-item scale was .698, and the coefficient of reproducability was .915. This scale represents the first multi-item instrument available for the measurement of attitudes toward handgun control and, therefore, presents a means for more advanced statistical analysis of the factors influencing these attitudes.     

The economic impacts of the tobacco settlement.

Recent litigation against the major tobacco companies culminated in a master settlement agreement (MSA) under which the participating companies agreed to compensate most states for Medicaid expenses. Here the terms of the settlement are outlined and its economic implications analyzed using data from Massachusetts. The financial compensation to Massachusetts (and other states) under the MSA is substantial. However, this compensation is dwarfed by the value of the health impacts induced by the settlement. Specifically, Medicaid spending will fall, but only by a modest amount. More importantly, the value of health benefits ($65 billion through 2025 in 1999 dollars) from increased longevity is an order of magnitude greater than any other impacts or payments. The net efficiency implications of the settlement turn mainly on a comparison of the value of these health benefits relative to a valuation of the foregone pleasure of smoking. To the extent that the value of the health benefits is not offset by the value of the pleasure foregone, the economic impacts of the MSA will include a share of these health benefits.