Heterogenous demand for public goods: Behavior in the voluntary contributions mechanism

Numerous laboratory experiments have investigated the performance of several processes for providing public goods through voluntary contributions. This research has been able to identify features of the institution or environment which are reliably likely to produce outcomes “close” to the free riding outcome or “substantially” greater than the pessimistic prediction of standard models. One such feature is the “marginal per-capita return” (MPCR) from the public good. Various authors have altered MPCR between groups or for an entire group at the same time. The experiments reported here address a different question, “What would happen if, within a group, some persons faced a ‘high’ MPCR while others faced a ‘low’ MPCR?”     

A transaction-based approach to policy intervention

A transaction-based approach to policy intervention is presented. The approach overcomes a number of weaknesses in current approaches to policy intervention. The approach involves three main conceptual elements: transactions, transaction governance mechanisms, and governance principles. The transaction is taken to be the basic unit of analysis. Profiles of transactions vary along a number of transaction dimensions. Transaction governance mechanisms - such as, for example, government service, regulation, contracts, vouchers, markets, taxes, and self-service - are each suitable for governing transactions having particular profiles. A mechanism will fail when used to govern transactions not fitting the profile. Governance principles are criteria or expectations - for example, efficiency, justice and liberty - used to judge how well a mechanism fulfills or achieves important societal goals. Specific choices of governance mechanisms (from the set that are technically feasible) therefore should be made according to how well they satisfy these governance principles. Public high school education is used as an example to illustrate the approach. A number of conclusions are offered.This is a revised version of a paper presented at the Annual Meeting of the American Society for Public Administration Portland, Oregon, April, 1988.     

The earnings test and the short-run work response to its elimination

Eliminating the earnings test will have different effects on the work effort of persons aged 65-69, depending on whether or not they are currently working or currently receiving Social Security benefits. This article reviews the development of the earnings test and examines the theoretical implications on work effort of removing the test for members of this age group. It looks at the Current Population Survey (CPS) data to determine how many persons aged 65-69 have characteristics that can be identified with groups that would theoretically increase, decrease, or not change their work effort should they no longer be subject to the earnings test. This analysis suggests that at least 80 percent, and perhaps more than 90 percent, of the 9.7 million persons aged 65-69 will not change their level of work effort if the earnings test is eliminated. Individuals who would modify their hours worked and earnings are fairly evenly split among those who would increase, decrease, or have an undetermined direction of change in their work effort.     

On democracy and debt

As we explained there is really little a priori reasoning for a clear prediction that authoritarian regimes will incur more foreign debt. In fact, some other empirical literature reveals that such regimes will face a higher supply price for such debt. Anderson presents a study of a single year using an admittedly crude measure of authoritarianism that finds that such regimes do issue more debt.This study provides a fuller examination of the empirical relationship between foreign debt and the nature of the polity's regime. Utilizing a continuous democracy variable and a continuous political liberty variable, it tests the relationship between debt and political variables. It finds little empirical support for the thesis that democracy or autocracy influence foreign debt levels. Generally the continuous variables are not significant if we use a linear in the logs specification. While a linear specification obtains results more consistent with the idea that level of democracy decreases debt, it also obtains results even less favorable to the idea that extreme forms of autocracy increase debt.