Lobbying,political connections and emergency lending by the Federal Reserve

This paper tests whether the political connections of banks were important in explaining participation in the Federal Reserve’s emergency lending programs during the recent financial crisis. Our multivariate tests show that banks that were politically connected—either through lobbying efforts or employment of politically connected individuals—were substantially more likely to participate in the Federal Reserve’s emergency loan programs. In economic terms, participation in these programs was 28–36% more likely for banks that were politically connected than for banks that were not politically connected. In our final set of tests, we attempt to identify a proper explanation for this peculiar relationship. While a broad literature speaks of the moral hazard associated with receiving bailouts, we test whether another type of moral hazard exists in the period preceding the bailout. In particular, we argue that, to the extent that political connections act as synthetic insurance, banks may have engaged in more risky behavior that lead them to the Fed’s emergency lending facilities. Tests seem to confirm this explanation.     

Ideology,Learning, and Policy Diffusion: Experimental Evidence

We introduce experimental research design to the study of policy diffusion in order to better understand how political ideology affects policymakers’ willingness to learn from one another's experiences. Our two experiments–embedded in national surveys of U.S. municipal officials–expose local policymakers to vignettes describing the zoning and home foreclosure policies of other cities, offering opportunities to learn more. We find that: (1) policymakers who are ideologically predisposed against the described policy are relatively unwilling to learn from others, but (2) such ideological biases can be overcome with an emphasis on the policy's success or on its adoption by co‐partisans in other communities. We also find a similar partisan‐based bias among traditional ideological supporters, who are less willing to learn from those in the opposing party. The experimental approach offered here provides numerous new opportunities for scholars of policy diffusion.     

Incentives in Third‐Party Governance: Management Practices and Accountability Implications

Contract incentives are designed to motivate contractor performance and to provide public managers with a powerful tool to achieve contract accountability. Our knowledge of contract incentives is rooted in contract design, yet as we move beyond contract specification and further into the contract lifecycle, we know little about why and how managers implement incentives. This study assesses public managers’ use of contract incentives in practice and advances theory development. A typology of contract incentives is constructed to capture a comprehensive range of formal and informal incentives, and the factors that influence managerial use of incentives are identified. The findings shed light on the complexities of maintaining accountability in third‐party governance structures and the management techniques aimed at improving the performance of public agencies.     

State Capacity,Bureaucratic Politicization,and Corruption in the Brazilian State

Responding to recent articles in Governance highlighting the need for improved measurement of bureaucratic characteristics, this article describes efforts to map Brazil's federal agencies on three dimensions—capacity, autonomy, and partisan dominance—derived from data on more than 326,000 civil servants. The article provides a “proof of concept” about the utility of agency‐level measures of these variables, demonstrating how they relate to an output common to all agencies: corruption. The article provides a first step in the direction of building a comparative research program that offers objective evaluation of bureaucracies within nation‐states, with the intent of better disentangling their impact on governance outcomes.     

The Impact of Parties and Elections on Municipal Debt Policy in Mexico

Opportunistic electoral fiscal policy cycle theory suggests that all subnational officials will raise fiscal spending during elections. Ideological partisan fiscal policy cycle theory suggests that only left‐leaning governments will raise election year fiscal spending, with right‐leaning parties choosing the reverse. This article assesses which of these competing logics applies to debt policy choices. Cross‐sectional time‐series analysis of yearly loan acquisition across Mexican municipalities—on statistically matched municipal subsamples to balance creditworthiness across left‐ and right‐leaning governments—shows that all parties engage in electoral policy cycles but not in the way originally thought. It also shows that different parties favored different types of loans, although not always according to partisan predictions. Both electoral and partisan logics thus shape debt policy decisions—in contrast to fiscal policy where these logics are mutually exclusive—because debt policy involves decisions on multiple dimensions, about the total and type of loans.     

China's Hybrid Adaptive Bureaucracy: The Case of the 863 Program for Science and Technology

Portrayals of China's bureaucratic behavior tend to emphasize either streamlined central control via top‐down directives emanating from a Leninist system, or a highly fragmented organization characterized by continuous horizontal bargaining. While both views have merit, they miss important but little‐recognized dynamics of Chinese bureaucratic behavior. Examination of the 30‐year evolution of a single organization, China's 863 Program, allows us a unique look inside the “black box” of decision making. First, we highlight a largely unrecognized mechanism of top‐down control: a signal‐response process that fosters substantial uncertainty for officials in the system. Second, our case highlights a circumstance in which reformers made radical moves—deployed as a “band‐aid” layer of rational‐instrumentalism—to meet a perceived external security threat. These moves demonstrate efforts to incorporate Weberian norms, and suggest sources of dynamism and learning in a “hybrid adaptive” bureaucracy.     

The End of Sprawl? Not so Fast

This article takes a careful look at the recent state of sprawl among America’s 178 largest metropolitan areas through the lens of four sets of questions: (a) Measured at the metropolitan level, is sprawl really declining? Is it declining everywhere, or just in selected metropolitan areas? (b) If sprawl is indeed declining, are more compact growth forms on the rise? (c) If sprawl is indeed declining, is it the result of antisprawl land use and development policies? (d) Which metropolitan-level land market, demographic, and economic factors are most associated with changes in sprawl? It concludes that sprawl is indeed declining when measured by average population densities, but that the decline has been much less widespread if measured in terms of population growth in core-area neighborhoods, changing density gradient intercept and slope estimates, and increased employment clustering. In terms of policy, it finds no evidence that local regulatory regimes or growth management programs have had any effect on sprawl, but finds that the consistent administration of local regulatory programs in ways that incentivize infill development and send consistent signals to developers does contribute to reduced sprawl.