Block Grants: A Perennial, But Unstable, Tool of Government

During 1995 and 1996, the Congress and the president gave considerableattention to block granting over $200 billion in federal intergovernmentalgrant programs, ranging from large entitlement programs to smallerprograms in housing, vocational education, and law enforcement.In the end, the record of successes was modest—highlightedby welfare-reform legislation that, in some respects, resembleda block grant and in others did not. The contrast between processand outcomes in this most recent block-grant cycle reinforcesthe point that block-grant prospects depend on fundamental fiscal,political, and programmatic forces that are separate from federalismconsiderations. The states' maturation as leaders in many domesticpolicy areas strengthens the performance rationale for blockgrants. The federal fiscal crisis will continue to stimulateinterest in block grants among fedeal as well as state policymakers.The proposals offering the greatest fiscal advantage (i.e.,Medicaid and AFDC) may not be those with the strongest performancerationale. Although recent congressional developments suggeststronger support for states, nationalizing forces remain embeddedin domestic policymaking. Thus, substantial questions remain,posing obstacles to a fundamental and sustained role for blockgrants in the federal system.     

European Integration and Citizens' Rights: A Comparative Perspective

The prospects for European Union citizenship are sometimes discountedby reference to homogeneity in the United States compared todiversity in the European Union. This article suggests thatthere may be more similarities between the two systems thanis sometimes supposed by many observers. Even though there areimportant differences, both systems have had to address similarquestions about how to combine the benefits of integration andthe protection of rights. In discussing the common and divergentfeatures, the author argues that comparison also reveals thepossibility that it is diversity, not homogeneity, that is necessaryto the protection of citizenship's rights.     

The public demand for smoking bans

Smoking bans are gaining widespread support in the United States and other countries. While supporters argue that bans are necessary to resolve market failures associated with negative externalities, the Coase Theorem predicts that, under various conditions, private markets internalize negative externalities. We examine the smoking issue within the framework of the Coase Theorem and hypothesize that smoking bans misallocate air space resources shared by smokers and nonsmokers. Because smoking bans shift ownership of scarce resources, they are also hypothesized to transfer income from one party (smokers) to another party (nonsmokers). Supporting evidence for these hypotheses is provided by an examination of a comprehensive smoking ban imposed in San Luis Obispo, CA.     

Just Social Policy on Life Issues: Ethical Considerations

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That, to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed." These words from the Preamble to the Declaration of Independence, proclaimed a conviction and announced a challenge for our newly formed nation. Today, they either stir the American heart with pride or generate nostalgia for a time when any truth was self-evident and the right to life was deemed inalienable.     

Economics and distributive ethics

This essay, adapted from his Inaugural Lecture as the Simon Professor at Lafayette, was dedicated to the memory of Aaron Wildavsky.     

The fragile politics of addiction

Suppose the optimizing consumer only has local information, then what? Obviously, there will be a random element of consumption. The link between the frequency distribution of consumption by person and preference surface is worked out. Under convex preferences there will be a unimodal distribution and conversely. A local optimizing theory of addictive behavior is developed from nonconvex preferences. The resulting bimodal distribution of consumption implies a nonrobust outcome for median voter politics. Such a local optimizing model of addiction is compared with globally optimizing models of addiction.     

SYMPOSIUM: RESURGENT ISLAM IN THE MIDDLE EAST

The following is an edited version of the proceedings of a symposium sponsored by the Middle East Policy Council on May 26, 1994, in the Hart Senate Office Building in Washington, DC. Former Senator George McGovern, President of the Council, introduced the panel; Thomas R. Mattair, the Councis Director of Research and Policy Analysis, was the organizer and moderator; Michael Collins Dunn, Senior Analyst of The International Estimate, Inc., and editor of its biweekly newsletter, The Estimate, was the discussant.