Political pressure deflection

Much economic policy is deliberately shifted away from direct political processes to administrative processes—political pressure deflection. Pressure deflection poses a puzzle to standard political economy models which suggest that having policies to ‘sell’ is valuable to politicians. The puzzle is solved here by showing that incumbents will favor pressure deflection since it can deter viability of a challenger, essentially like entry deterrence. U.S. trade policy since 1934 provides a prime example, especially antidumping law and its evolution.     

The impact of surplus sharing on the portfolio mix of public sector defined benefit pension plans: a public choice approach

The riskiness of state employee pension plan portfolios varies across states. We investigate whether this variation is related to how public employees and taxpayers share actuarial surpluses of pension accounts. We focus on two determinants of a plan’s asset mix: the relative influence of public employees to taxpayers; and whether a surplus-sharing contract is specified. Our theoretical model demonstrates that the effect of public employee influence on the asset mix is ambiguous. Our empirical results corroborate this complex theoretical result. In our theoretical and empirical analyses, if a surplus sharing rule is specified, plans adopt a more aggressive investment allocation.     

Liberal Democracy Series I, 1972–1988: Definition, measurement, and trajectories

The purpose of this paper is to provide the definitional and empirical background to the Liberal Democracy Series I Index of democracy that is available in Bollen (1998) but whose rationale has not been published. More specifically, the paper (1) gives a definition of liberal democracy that has guided the formation of this index, (2) describes measures that correspond to this definition, (3) provides a measurement model that links the indicators of democracy to the latent variables that represent the concept, (4) explains the construction of the Liberal Democracy Series I Index, and (5) compares the Series I democracy measure to two other widely used democracy measures in a latent curve model. The Liberal Democracy Series I Index provides a simple unweighted measure of liberal democracy that minimizes the bias in expert ratings, is highly reliable and highly correlated with the latent liberal democracy variable. The evidenced reviewed here suggests that its measurement properties are superior to the Polity and Vanhanen democracy indices with the exception that it is available for a more limited period of years than these latter two.     

Note on land reform in Bangladesh: The efficacy of ceilings

In this note, new data concerning the agrarian structure of Bangladesh are employed to test the efficacy of ceilings on the size of landholdings as a means of making land available to the landless and the near landless. The data confirm that the numbers of potential claimants for land far exceeds the potential supply, even if ceilings on holdings were lowered from 100 standard bighas (331/3 acres) to 25 standard bighas (81/3 acres).     

Negotiating the EU–U.S. Open Aviation Area Agreement 2007 in the Context of Transatlantic Airline Regimes Since 1944

Between 1944 and 2002, the United States sought to create a competitive and commercially driven international civil aviation regime. It tried to peel away politically inspired regulations, which fragmented the marketplace, and deliver efficiencies and consumer benefits. In contrast with the American liberal tradition—albeit with limitations—the industry in Europe was over-regulated and largely based on subsidised state-owned carriers with international market quotas. Thus for many years Europe and the U.S. followed different paths; but political and economic dynamics conspired together in the 1980s and early 1990s to produce remarkable change in the European Community and, by 1997, there were the makings of a competitive and lightly regulated single market, which brought it close to U.S. practice. Since 2002, the United States has been less liberal in its airline policies; the EU has been more liberal. It would be an irony indeed if the great regime liberaliser since 1944 were now to become a force of regulatory conservatism that denied consummation to the vision of a transatlantic open aviation area that could be a magnet to draw in the rest of the world into a truly global commercial airline market.