Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence

Local governments' allocation decisions are modeled in the context of a slack maximizing bureaucrat who produces public goods according to a production function that includes both provision and the constituents' socio-economic characteristics. To gain a better understanding of the determinants of slack, comparative statics and an empirical study of Illinois municipalities are conducted. The indirect output distance function provides efficiency scores upon which we regress several variables, representing socio-economic characteristics, costs and competition measures. We find that slack or inefficient behavior is associated with richer communities, lower education levels and a lack of competition for residents among municipalities.     

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.     

A Question of Morality: Artists' Values and Public Funding for the Arts

In 1989, the combination of art, religion, homosexuality, ana¹ public dollars set off an explosive two-year battle and a decade of skirmishes over funding for the National Endowment for the Arts. To promote artistic freedom and to avoid political controversy, federal arts policy delegates specific funding decisions to private donors and arts professionals. In an era of morality politics—hot-button issues driven by deeply held beliefs rather than by expertise—that strategy no longer works. Artists, donors, and arts audiences diverge widely from the rest of the American public in their attitudes toward religion, sexual morality, and civil liberties, as General Social Survey data show. Delegating funding decisions to them has naturally led to some subsidies of art offensive to important segments of the population.     

Bureaucrats–Enterprise Negotiation in China's Enterprise Reform at the Local Level: case studies in Guangzhou

This article explores the implementation of SOE reform in China at the local level, using case studies in Guangzhou as illustration. It is argued that local government spearheads a reform agenda that puts locally-defined state objectives first, not necessarily favouring enterprise restructuring. A full-fledged negotiation model does not exist in SOE reforms because all enterprises are controlled by the state and have to comply with top-down policies and orders. Government-enterprise relations and the degree of entrepreneurial power depend largely on the economic strength of the enterprise, with the boomers getting a good economic bargain while the laggards fail to gain sympathy from government. Enterprise workers are largely at the mercy of restructuring decisions that come from bargaining and at times collusion between managers and local bureaucrats.     

Harvard

Abstract

The following position paper was presented by a five-man delegation from the Harvard CCAS chapter to the embassy of the People's Republic of China in Paris on February 20, 1969. The group included Thomas Engelhardt, Cheryl Goodman, and Jon Livingston, all graduate students at Harvard, Neale Hunter, an Australian who spent 1965–67 teaching English in Shanghai, and Jonathan Mirsky, Director of Dartmouth's East Asia Center, who was unable to go to Paris but helped compose the statement.