The role of credible commitments in state finance

Margaret Levi's Of Rule and Revenue raises a host of important problems in the theory of the state. It provides an important step in the development of a theory that combines economic and political institutions into the same framework, potentially allowing scholars to address important issues such as the divergent economic paths taken by various states. It will therefore be an important book, and warrants attention. This approach holds much promise for the development of a theory of institutional development of the state from the middle ages onward.I have tried to sketch some additional directions for the theory to develop, pointing toward the answer of questions not directly faced by Levi — or for that matter, by much of the public choice literature: How do we explain the evolution of a predatory state into one with explicit limits on its powers? How do we explain the rise of representative institutions? Answering these questions often requires looking beyond the individual state to its international context. Competition among states, especially in the form of war, plays a key role here, and has two consequences. First, a major consequence of large-scale wars was fiscal stress. At such times, even a preditory state might agree to exchange limitations on its own powers for revenue. Second, the brief discussion of early modern Europe suggests that states with limited government might have had a financial advantage over those which were not so limited. The latter played a major role in the successful Dutch revolt against Spain and in the English defeat of France.     

Prospects for Distributive Justice Theory

Theoretical progress is essential to the viability of any scientific subdiscipline. Ever since a growth spurt in the 1980s, however, and despite a very active research enterprise, distributive justice theory has developed very little. Our approach is first to discuss the role that theory plays in disciplinary growth. After noting the indicators of stagnation in distributive justice areas, we identify key problems with the way distributive justice theories are constructed and evaluated. Specifically, little attention is paid to the clear definition and consistent use of theoretical terms, or to the construction of explicit logical arguments from which empirical hypotheses may be derived. Weaknesses in these areas all but prohibit the evolution of improved theories over time. We conclude with a set of evaluative criteria that, if applied collectively by members of the field, would optimize the chances for theoretical progress. Ultimately this also would lead to more efficient empirical tests and better-informed practical applications of distributive justice theories.     

The Economics of Science and Technology

This paper provides a non-technical, accessible introduction to various topics in the burgeoning literature on the economics of science and technology. This is an interdisciplinary literature, drawing on the work of scholars in the fields of economics, public policy, sociology and management. The aim of this paper is to foster a deeper appreciation of the economic importance of science and technology issues. We also hope to stimulate additional research on these topics.     

When Is Science Used in Science Policy? Examining the Importance of Scientific and Technical Information in National Research Council Reports

A frequent lament among researchers is that public policy makers should pay more attention to scientific and technical information (STI). If there is any single area where one might expect STI to be used in public policy making and agenda setting it is in science and technology policy. Many of the policy makers in science and technology policy are themselves scientists or researchers and presumably would prove especially receptive to STI. However, STI is only one of many types of information used in policy making and policy actors often differ in the extent to which they view STI as credible, particularly compared to other types of potentially policy‐relevant information. Research on credibility (the believability of information, information types, and media) has shown variance and policy makers’ “credibility maps.” Thus, some policy makers have preference for formal information generally and STI specifically, but others privilege raw data, personal experience, authority, history and anecdote, analogical reasoning, or conformance to ideology, to name just a few of the information choices. Here, we build on the current researchers’ previous bibliometrics‐based work and use data from 41 semi‐structured elite interviews with National Research Council (NRC) executives and staff and NRC committee members concerning the use of STI in reports issued by the NRC. Findings show that the use of STI in NRC reports varies according to the nature of the inquiry and the sponsor. Information used in the reports is based on not only the assessed credibility of information but also its perceived direct relevance and the availability of STI as compared to other types of information. In general, the amount of STI in the NRC reports tends to have modest effects on the likelihood that reports will be used in policy making or by the mass media. More important factors include the timing of the report with respect to political agendas, the party requesting the report, and the enacted roles of NRC staff members and committee chairs.     

In defence of FTAs: from purity to pragmatism in East Asia

This paper discusses the shift in East Asia from a focus on multilateral trade liberalization through the WTO to a pragmatic approach since 1999 favouring bilateral and regional FTAs while continuing to support the WTO system. It is argued that such FTAs are a second-best option compared to WTO agreements. However, while economists may seek the ideal solution, governments will focus on the politically attainable, especially as new multilateral agreements require lengthy negotiations beyond the life span of governments. As the WTO negotiating process has become bogged down, even once sceptical governments in East Asia are turning to FTAs. It is contended that such FTAs could form a lattice network within and across regions. In this context, the paper discusses the underlying security rationale for the conclusion of FTAs, highlighting the nexus between security interests and international economic policy in East Asia.