Service Efforts and Accomplishments Reporting: Has Its Time Really Come?

In April 1994 GASB released Concepts Statement No. 2, Service Efforts and Accomplishments Reporting , bringing required SEA external financial reporting a very large step closer to reality. Before long, public financial officials may be required to annually report measures of performance. We are now about halfway through the experimentation phase established in Statement 2. This article summarizes the status of GASB's SEA experimentation process. It then suggests important behavioral, auditing, and other issues which GASB ought to address before proceeding with any formal pronouncements regarding SEA reporting requirements.     

Multiparty electoral competition in the Netherlands and Germany: A model based on multinomial probit

A typical assumption of electoral models of party competition is that parties adopt policy positions so as to maximize expected vote share. Here we use Euro-barometer survey data and European elite-study data from 1979 for the Netherlands and Germany to construct a stochastic model of voter response, based on multinomial probit estimation. For each of these countries, we estimate a pure spatial electoral voting model and a joint spatial model. The latter model also includes individual voter and demographic characteristics. The pure spatial models for the two countries quite accurately described the electoral response as a stochastic function of party positions. We use these models to perform a thought experiment so as to estimate the expected vote maximizing party positions. We go on to propose a model of internal party decision-making based both on pre-election electoral estimation and post-election coalition bargaining. This model suggests why the various parties in the period in question did not adopt vote maximizing positions. We argue that maximizing expected vote will not, in general, be a rational party strategy in multiparty political systems which are based on proportional representation.     

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.     

Intervention and Empire: John Stuart Mill and International Relations

It is surprising that John Stuart Mill's international thought, which focuses on intervention and empire, has not attracted the attention it warrants. It is particularly surprising that Mill has been largely overlooked by the English School, whose members acutely appreciate the contributions of classical political philosophers to international discourse. Galvanised by his introspection on his life, especially the impact of interference in his psychological and intellectual development, to his analysis of the impact of Britain on India's princely states and intervention in civil wars, Mill identified timeless problems intrinsic to international relations whilst profoundly appreciating the tensions they generated in the form of perverse effects, unintended consequences and moral hazard. Contemporary international relations are replete with examples of the unforeseen and unforeseeable developments that attend intervention and interference. If a concern of the English School is the tormenting decisions that fall to statesmen, Mill provides an understanding of the considerations that vastly complicate such decisions.     

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.     

The Lost Sexenio: Vicente Fox and the New Politics of Economic Reform in Mexico

The 2000 presidential election of opposition candidate Vicente Fox signaled an end to seven decades of Mexico's single-party regime and seemed to herald the advent of truly competitive politics. But by 2003, economic reform had largely stalled, and Fox's party suffered a historically unprecedented midterm' loss in the congress. This article analyzes the underpinnings of policy gridlock in the Fox administration. Fox inherited the need for microeconomic restructuring and increased competitiveness, more innovative and pragmatic state policies, the need to pay attention to the country's sharp income inequalities, and the challenge of crafting a political strategy that could build a middle ground and foster policy consensus. With his party's minority standing in the congress, Fox was constrained from the start by divided government. But more effective statecraft and coalition building would have helped. These will be essential elements for the success of any post-Fox regime.     

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.