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.     

紧抓奥运契机做好供热保障

北京城市供热作为城市建设发展的支撑和城市运行的载体,在七年的奥运筹办期间,充分利用奥运给予行业发展的历史契机,科学发展,圆满实现了奥运供热保障的目标。     

The Relation of Antisocial Behavior Patterns and Changes in Internalizing Symptoms for a Sample of Inner-city Youth: Comorbidity within a Developmental Framework

Research examining the relationship between internalizing symptoms and antisocial behaviors has generally been cross-sectional in design. Thus, although extant data have substantiated a strong correlation between internalizing symptoms and antisocial behaviors, few studies have focused on describing the nature of the co-occurrence over time. This study examined the relation between growth in internalizing symptoms and longitudinal patterns of antisocial behavior in a sample of 283 inner-city males and their caregivers assessed as part of a longitudinal developmental risk study. Participants were assessed annually in four waves. Non-offenders and escalating offenders had lower levels of internalizing problems at wave 1 than did chronic minor and serious-chronic-violent offenders. Results revealed a developmental trend of decreasing internalizing problems across study years for most participants, as would be expected, with adolescents participating in serious, chronic, and violent patterns of antisocial behavior displaying greater internalizing problems than those participating in stable patterns of less serious or no antisocial behavior. Further, when there was escalation of seriousness and frequency of antisocial behavior, there also was increased internalizing problems relative to non-escalating juveniles. Results are discussed in the context of developmental psychopathology.

The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?

The flow of foreign direct investment into developing countries varies greatly across countries and over time. The political factors that affect these flows are not well understood. Focusing on the relationship between trade and investment, we argue that international trade agreements—GATT/WTO and preferential trade agreements (PTAs)—provide mechanisms for making commitments to foreign investors about the treatment of their assets, thus reassuring investors and increasing investment. These international commitments are more credible than domestic policy choices, because reneging on them is more costly. Statistical analyses for 122 developing countries from 1970 to 2000 support this argument. Developing countries that belong to the WTO and participate in more PTAs experience greater FDI inflows than otherwise, controlling for many factors including domestic policy preferences and taking into account possible endogeneity. Joining international trade agreements allows developing countries to attract more FDI and thus increase economic growth.