Rent-seeking in natural resource quota allocations

This paper examines the incentives for rent-seeking in the allocation of natural resource quotas to competing user groups by political bodies. The political body has discretion in making the allocation, and competing user groups rent-seek to influence the allocation. We investigate ways in which the governmental body can affect the behavior of the players by setting the ground rules for the competition. A political body can affect an allocatively (Pareto) efficient outcome by choosing an appropriate default (pre rent-seeking) policy. Surprisingly, an allocatively efficient default policy is unlikely to minimize social costs. However, winner-take-all default policies are likely to maximize, not minimize, rent-seeking. A competitive post-allocation market reduces rent-seeking, but is not, either itself or in combination with an efficient default policy, capable of minimizing social costs. However, forcing winners in political redistributions to fully compensate losers both lowers the rent-seeking levels relative to a potential compensation criterion and, when used together with an efficient default policy, is capable of obtaining the first-best solution of an allocatively efficient allocation with zero rent-seeking.     

Taking the Keys from Grandpa

Recent highly publicized traffic accidents involving older drivers have led to renewed interest in state policies and administrative practices that award and renew drivers’ licenses in the American states. Because the probability of traffic accidents is linked to the medical conditions that are more prevalent among the elderly, and because the number of older drivers is expected to rise over the next several decades, one might expect that this will be an increasingly important policy issue. This article discusses variations that are observed across states in law and administrative practice. A longitudinal analysis of data on crashes involving elderly drivers in fifteen states indicates that crash rates are directly related to the length of the renewal cycle for older drivers and inversely related to the stringency of testing at renewal. It is also likely that states requiring physicians to report conditions that would impair driving will experience lower crash rates. A secondary analysis of policy impacts on the licensing rates is not conclusive, a finding that is attributable to inaccuracies in the reported numbers of licensed drivers.     

Hedonic Estimation and Policy Significance of the Impact of HOPE VI on Neighborhood Property Values

HOPE VI was designed as a program to revitalize distressed public housing. This study uses hedonic methods to test whether projects that are rebuilt with HOPE VI funds have a positive effect on surrounding property values. Comparisons are made between HOPE VI and other types of public housing programs using data on property values by census block groups from the 2000 census. We find that HOPE VI had a statistically significant positive impact on surrounding property values on the order of 8–10% for every quarter‐mile closer that a housing unit was located to the development. Other public housing developments were found to have little if any effect on property values.     

Informelle transgouvernementale Koordinationsnetzwerke der Ministerialbürokratie der EU-Mitgliedstaaten bei einer Regierungskonferenz

We investigate the informal bilateral transgovernmental relations between equivalent ministries of EU member states during the preparation of the Intergovernmental Conference 1996. Starting point of this analysis is the hypothesis of a growing importance of transnational and transgovernmental relations as a cause and a result of European integration. Whereas these proclaimed tendencies have been extensively researched with regard to economic interdependencies and transnational relations of societal actors, networks of the administrative and bureaucratic elites have been rather neglected. Applying diverse concepts of network analysis, we identify the hitherto latent informal network structures of the governments. The overall configuration can be described as a mixture of a centre-periphery structure and cohesive blocks. The gradual center-periphery structure consists of a “triumvirate” of the powerful member states (Germany — France — Great Britain) and smaller states, and is characterized by a clear north-south dimension. The costs of informal coordination are mainly borne by the large member states as well as by “brokers” (Austria, BeNeLux, Finland, Sweden).     

An Evaluation of Private Sector Provision of Public Infrastructure in Australian Local Government

Private sector provision of public infrastructure in Australia at all levels of government, including local government, has steadily increased over the past twenty years. Nevertheless, this method of providing public infrastructure remains controversial. This article seeks to provide a critical review of the arguments surrounding private sector provision of infrastructure in Australian local government. It examines both the case for private sector provision of municipal infrastructure in Australia and the major arguments advanced against this approach to infrastructure development. Given the conceptual argumentation and empirical evidence on private municipal infrastructure provision, it is argued that policy makers should employ a nuanced performance evaluation framework to assess the benefits and weaknesses of private provision on the basis of the specific type of infrastructure in question and the kind of services it provides rather than simply endorse carte blanche privatization.     

The Reform of Public Administration in Northern Ireland: From Principles to Practice

The system of public administration in Northern Ireland has, perhaps inevitably, been of secondary concern during 30 years of inter-communal sectarian strife. Faced with combating terrorism, successive United Kingdom governments would not consider reform of the province's local public administration, pending a resolution of the wider constitutional imbroglio. Consequently, much of the system atrophied, becoming progressively more cumbersome and ill-equipped to deal with the requirements of modern government. Moreover, to help minimise charges of sectarian discrimination, quangos provided many public services, compounding the 'democratic deficit' of Direct Rule. In 1998, the Belfast Agreement (also known as the Good Friday Agreement), offered a breakthrough in the search for a durable settlement that could command cross-community support. As part of subsequent devolved executive's Programme for Government, a Review of Public Administration (RPA) was launched to consider sub-regional governance arrangements with a view to enhancing democratic accountability and improving efficiency through streamlining the current arrangements. To that end, the RPA has been committed to adhering to clear principles on which any credible reform should be based. While devolution itself has proved fitful, the work of the RPA has continued apace. Although embarking on reforms within functioning devolution is ministers' preferred option, there is a determination to continue the reform process irrespective of the present impasse. This paper outlines the issues, values and concepts that might shape the principles for conducting a review before considering the particular context within Northern Ireland. It also considers the impediments to overhauling the present arrangements and speculates on the likely outcome.     

Public Management and Departments: Contemporary Themes – Future Agendas

The purpose of this article is to review themes in recent academic research on public management at the national level and to see how it aligns with emerging agendas within the Australian public service. This provides an opportunity to identify strengths and gaps and to explore options for research.