Does economic freedom cause prosperity? An IV approach

A positive, statistical and economic significant relation between growth, income level and the Economic Freedom of the World (EFW) index has been amply documented. Most analyses, however, use OLS methods which, in the presence of endogenous variables do not establish causality and produce biased and inconsistent estimates. This paper uncovers the exogenous component of EFW using IV methods and finds a robust channel from economic freedom to prosperity. The findings, including instrument validity tests, support the importance of policies and institutions for development and warrants policy advice aimed at increasing economic freedom to foster prosperity.     

The Democratic Domino Theory: An Empirical Investigation

According to the democratic domino theory, increases or decreases in democracy in one country spread and "infect" neighboring countries, increasing or decreasing their democracy in turn. Using spatial econometrics and panel data that cover over 130 countries between 1850 and 2000, this article empirically investigates the democratic domino theory. We find that democratic dominoes do in fact fall as the theory contends. However, these dominoes fall significantly "lighter" than the importance of this model suggests. Countries "catch" only about 11% of the increases or decreases in their average geographic neighbors' increases or decreases in democracy. This finding has potentially important foreign policy implications. The "lightness" with which democratic dominoes fall suggests that even if foreign military intervention aimed at promoting democracy in undemocratic countries succeeds in democratizing these nations, intervention is likely to have only a small effect on democracy in their broader regions.     

Dynamic Representation(s): Federal Criminal Justice Policy and an Alternative Dimension of Public Mood

Does public policy respond to public opinion? Previous research suggests dynamic representation occurs in the aggregate. Yet, most of the evidence for policy response is limited to the policy intentions of elected officials on issues related to more or less government spending. We examine policy response to an alternative dimension of public mood, public preferences for more or less punitive criminal justice policies, using multiple indicators of policy from various stages of the policy-making process. Criminal justice policy should be responsive to public preferences given the public’s concern about crime and the negative social construction of criminals. Thus, there is an electoral incentive for public officials to respond to public preferences along this alternative dimension of public sentiment regarding criminal justice policy. We estimate a DYMIMIC model of federal criminal justice policy as a function of the multiple dimensions of public policy mood using Kalman filtering. The results indicate that criminal justice policy responds to the second, not the first, dimension of public mood. We find evidence that policy-makers at multiple stages of the policy process are able to differentiate among multiple signals from the public and respond appropriately. The results present a more sophisticated portrait of democratic responsiveness.     

Social Science and the Public Interest

Social Science and the Public Interest

Social Science and the Public Interest November/December 2009     

David Riesman and <Emphasis Type="Italic">The Lonely Crowd</Emphasis>

The reception of David Riesman’s classic sociological work The Lonely Crowd exemplifies both the possibilities and perils of the work of public intellectuals. The book was almost universally misread as a paean to inner-direction, and a lament upon the decline of the independent American spirit. But it was something rather more different, and more complex, than either of these things.     

The Bureaucratic Politics of Welfare-State Crisis: Sweden in the 1990s

This article suggests that key bureaucrats play a decisive role in times of welfare crisis. It argues that key bureaucrats, through their advice, define both the type of welfare crisis and the range of possible solutions, which have at least two important consequences: First, it broadens the distribution of welfare cuts, as key bureaucrats—contrary to politicians—have no interests in targeting special voter groups. Second, it enables political compromises, as both the government and the opposition trust the key bureaucrats' expertise. These suggestions are tested empirically in a case study of Sweden in the 1990s. It shows that key bureaucrats did indeed influence both the distribution of the cuts and enabled a compromise between the center-right government and the Social Democratic opposition.     

Resettling Refugees in Rural and Regional Australia: Learning from Recent Policy and Program Initiatives

Conscious policy and program support for the resettlement of refugees in regional and rural areas is a relatively recent trend in Australia. Resettlement is a complex process that hinges on the establishment of viable communities. This review suggests that its outcomes, especially for refugee communities, are potentially mixed. However, an appropriately resourced, well managed and well planned refugee resettlement program can potentially provide beneficial outcomes for refugees and host communities. This article draws on existing empirical data and contributions made at a VicHealth Roundtable in late 2007 to thematically explore the challenges facing rural and regional resettlement programs. Given that settlement is a dynamic process and the approaches to rural and regional settlement are evolving, this article provides 12 propositions for a more effective and integrated approach to policy and practice.     

Political Accountability in Hong Kong: Myth or Reality?

This article assesses the practice of political accountability in Hong Kong: whether it has largely been realised in practice, or whether it is merely a political slogan for the government to justify its executive-led governance. The analysis begins with a review of the theoretical concepts of political accountability and ministerial accountability, and then establishes an operational framework to analyse the current practice of political accountability in Hong Kong's political system. It concludes by addressing the degree of political accountability overall.     

The four Ps of corporate political activity: a framework for environmental analysis and corporate action

• In this paper, I propose a new integrated framework which may be used to conduct a thorough analysis of a firm's political environment. The four steps of the methodology include the problem (how a political problem emerges and can be shaped by actors), the procedure (the public decision‐making procedure), the policies (relevant public policies currently implemented) and the players (including policy‐makers as well as participants in the political debate). Together, they form what I call the ‘Four Ps of corporate political activity’.
• This framework can serve not only for environmental analysis and monitoring, but also to improve the effectiveness of a firm's attempts in the field of political influence, through actions such as arena selection, issue framing, the use of procedural opportunities, proactive negotiation of a compromise or gate‐keeping the political arena.

Copyright © 2009 John Wiley & Sons, Ltd.