Optimal Central Banker Contracts and Common Agency

This paper considers the contracting approach to centralbanking in a simple common agency model. We suggest thatcentral banker contracts that do not consider the possibilityof more than one principal existing are incomplete contracts.Such incomplete contracts can be a poor form ofmonetary policy delegation under common agency. We develop amodel with two principals – society (government) and ageneric interest group, whose objective conflicts withsociety’s ex ante preferences by incorporating an inflationarybias. We determine when the government-offered orinterest-group-offered contract dominates the central banker’sdecision. The results largely depend on whether theinterest-group-offered contract is written in terms of outputor inflation.     

A Public Choice Analysis of Endangered Species Listings

Sizable economic consequences may resultfrom listing under the Endangered SpeciesAct (ESA). Potentially adversely affectedparties will attempt to use the politicalprocess to protect their interests. Thequestion is, “are listing determinationssubject to political manipulation?” Inthis paper, we explore empirically thepossibility that implementation of the ESAis determined, in part, by politicalconsiderations. Specifically, weinvestigate whether states with strongcongressional representation are able touse their political muscle to reduce thenumber of listings in their states, ascompared to states with weak congressionalrepresentation. Controlling for otherfactors, we find that states with greaterrepresentation on the U.S. Fish andWildlife Service’s budgetary oversightsubcommittee in the U.S. House ofRepresentatives have significantly fewerESA listings than states with weakerrepresentation on that subcommittee.     

Demokratie, Autokratie und die regulative Gestaltung der Außenwirtschaftsbeziehungen in Entwicklungsländern

This paper investigates into the political determinants of trade policy regulation in developing countries. When choosing between the trade policy instruments tariffs and quota governments consider the effects of these policies on their political support from interest groups and voters. It is argued that quantitative restrictions become increasingly less attractive as a country democratizes. Instead, motives of revenue generation gain importance. Therefore, the likelihood of democratic governments choosing quota is smaller than for their autocratic counterparts. Empirical tests based on a sample of 75 developing countries for the years 1979–1998 support the hypothesis.     

Mobilisierung, Verstärkung, Konversion? Ergebnisse eines Experiments zur Wahrnehmung der Fernsehduelle im Vorfeld der Bundestagswahl 2002

Based on an experimental study about the televised debates in the last German federal election campaign, the article analyses how the candidates — Schröder and Stoiber — were perceived by the audience. Based on real-time-response-data, the crucial role that already existing attitudes play in the process of debate perception is shown. Still, debates do have effects, although these vary among voters depending on their specific situations. Debates have a mobilizing effect on partisans, while there is a potential persuasive effect on independent voters.     

Under Two Flags: Symbolic Voting in the State of Mississippi

Participants in a specialelection held in the State of Mississippion April 17, 2001, voted overwhelminglyagainst changing the design of the state'sflag, which incorporates a symbol of theConfederacy. The determinants of voting onthe flag are analyzed and turnout rates inApril 2001 are compared with those forrecent gubernatorial and presidentialelections. We find that the flag votedivided Mississippians sharply along linesof race, class and political ideology. Akey empirical implication is that voterpositions in issue space tend to be morepolarized when political choices haveexpressive as opposed to instrumentalconsequences.     

A Spatial Model of U.S. Senate Elections

The importance of primaryelections is considered within the contextof U.S. Senate elections where senatorsserve overlapping terms and voters areassumed to balance their two senatorsagainst each other. Voters behavestrategically in the primaries butconvergence to the median position is notachieved except as a knife-edge result.More generally, constraints in the partyspace prevent the party of the sittingsenator from obtaining the median'spreference allowing the opposition party tonominate a candidate further away from themedian while still capturing the medianvoter. Empirical evidence supports thenotion that senate divergence is a functionof the state primary system.     

Tinpots,Totalitarians (and Democrats): An Empirical Investigation of the Effects of Economic Growth on Civil Liberties and Political Rights

Ronald Wintrobe (1990, 1998) has recently provided atheoretical foundation for estimating equations that attemptto explain the dependence of civil liberties and politicalrights in non-democratic regimes on the history of economicgrowth. This theory suggests that data from different kinds ofnon-democratic countries should not be pooled without allowingcoefficients to vary with regime type. It also placesinteresting restrictions on the signs of the coefficients ofeconomic growth in equations explaining freedom in the typesof regimes Wintrobe identifies. In this paper, we employ theserestrictions to test Wintrobe's theory. Some additionalhypotheses about the difference between democratic andnon-democratic regimes and about the role of education, notconsidered by Wintrobe, are also investigated.The results indicate clearly that the relationship between thedegree of freedom – as measured by the sum of the Gastilindexes of civil liberties and political rights – andeconomic growth varies significantly across all types ofregimes. Totalitarians (that attempt to maximize power) areclearly different than tinpots (that just attempt to maintainpower) in this respect, and non-democratic regimes differ fromdemocracies. Other aspects of the theory are partiallyconfirmed. In particular, in totalitarian regimes, positivegrowth reduces freedom, and negative growth increases it insome specifications. The theory predicts the opposite patternfor tinpots, and we do find that negative growth reducesfreedom in tinpot regimes. However, positive growth in tinpotsalso appears to reduce freedom in some cases, which is not inaccord with the theory. Secondary schooling has a positive effect on freedom, as inprevious empirical work, a result that is shown here to holdeven when each type of regime is considered separately. Butthe effect of primary schooling is different: in tinpot andtotalitarian regimes, but not in democracies, primaryschooling is associated with reduced freedom.     

Does merit pay reward good teachers? Evidence from a randomized experiment

A common criticism of merit‐pay plans is that they fail to systematically target rewards to the most effective teachers. This study presents new evidence on this issue by evaluating data from Tennessee's Career Ladder Evaluation System and the Project STAR class‐size experiment. Because the students and teachers participating in the experiment were randomly assigned, inferences about the relative quality of teachers certified by the career ladder should be unbiased. The results indicate that Tennessee's career ladder had mixed success in rewarding teachers who increased student achievement. Assignment to career‐ladder teachers increased mathematics scores by roughly 3 percentile points but generally had smaller and statistically insignificant effects on reading scores. © 2004 by the Association for Public Policy Analysis and Management.