Municipal Bond Issuance: Is There Evidence of a Principal-Agent Problem?

Is there evidence of a principal-agent problem in the municipal bond industry? Do public managers, either on their own or through private sector agents, act to increase their own utility at the expense of the public? This article examines municipal bond decisions in the context of principal-agent theory based on data collected through a random sample survey of municipal bond issuers. Principal-agent theory is not well developed in the public sector. In the municipal bond industry, however, we have evidence that it helps explain the actions of public managers and elected officials, in particular for pay to play and the importance of interest rates vis-à-vis relationships. These actions carry potential costs to citizens.     

Retributivism and the inadvertent punishment of the innocent

Retributivism is generally thought to forbid the punishment of the innocent, even if such punishment would produce otherwise good results, such as deterrence. It has recently been argued that because capital punishment always entails the risk of executing an innocent person, instituting capital punishment is tantamount to intentionally taking innocent lives and therefore cannot be justified on retributive grounds. I argue that there are several versions of retributivism, only one of which might categorically forbid risking punishing innocent persons. I also argue that our moral practices reveal either that we do not hold this particular version of retributivism, or that we reject equating risking punishing the innocent with intentionally doing so. *** DIRECT SUPPORT *** A9102008 00005     

Facts, Law, Exculpation, and Inculpation: Comments on Simons

Orthodox criminal law doctrine treats mistakes of law and mistakes of fact differently for purposes of both exculpation and inculpation. Kenneth Simons’ paper in general defends this orthodoxy. I have earlier criticized the criminal law’s attempt to distinguish mistakes of law from mistakes of fact, and I continue to maintain, in opposition to Simons, that the distinction is problematic.     

Governance and community benefit: are nonprofit hospitals good candidates for Sarbanes-Oxley type reforms?

Recent investigations into the activities of nonprofit hospitals have pointed to weak or lax governance on the part of some of these organizations. As a result of these events, various federal and state initiatives are now either under way or under discussion to strengthen the governance of hospitals and other nonprofit corporations through mandatory board structures and practices. However, despite policy makers' growing interest in these types of governance reforms, there is in fact little empirical evidence to support their contribution to the effectiveness of hospital boards. The purpose of this article is to report the results of a study examining the relationship between the structure and practices of nonprofit hospital boards relative to the hospital's provision of community benefits. Our results point to modest relationships between these sets of variables, suggesting considerable limitations to what federal and state policy makers can accomplish through legislative initiatives to improve the governance of nonprofit hospitals.     

Social funds and local government: the case of Malawi

Two instruments—social funds and decentralization—are currently quite popular policy instruments being adopted in many developing countries throughout the world. Each of these instruments is currently being used or is being implemented in Malawi, Africa. While each instrument is intended to improve the flow of public services in a locality, the article discusses how each has certain potential theoretical advantages over the other. The article then goes on to describe and analyze the flow of resources to Malawian communities under the two largest social action programs, neither of which currently relies on substantial inputs, financial or human, from local governments. The data illustrates a wide disparity in the per capita amounts allocated to these demand‐driven initiatives across districts but also shows the relatively diverse set of local public services supported by the funds. The article close with a discussion of how these two initiatives might be merged within the context of the new Local Government Act 1998, under which local services are to be devolved in the near future. Copyright © 2000 John Wiley & Sons, Ltd.