Fair-Play Obligations: A Critical Note on Free Riding

McDermott rejects the argument that an individual, in receiving benefits from a political community, thus incurs a 'fair-play obligation' to contribute to the provision of these benefits. While acknowledging that an individual receiving benefits without contributing is 'free riding' and that free riding may be morally wrong, McDermott denies that such moral lapses entail communities having any right to demand support. Not contributing may be morally objectionable, but individuals may still have a right not to contribute. However, both proponents and opponents of the fair-play obligation claim do not sufficiently differentiate between different forms of free riding. Arguments tend to be based on rights that may or may not be invoked when individuals free ride through consuming externalities. However, this form of free riding does not entail any reciprocal obligations. Yet it can plausibly be argued that when free riding occurs in the case of the production of public goods, then communities can demand support from individuals, and can have a right to do so.     

Fiscal Institutions,Credit Ratings,and Borrowing Costs

This paper investigates the impact of fiscal institutions on state government borrowing costs. We find that institutions have both a direct and indirect effect on interest costs paid by state governments. Revenue limits are associated directly with higher interest costs; expenditure limits, stricter balanced budget rules, and restrictions on state debt issuance are indirectly associated with lower interest costs because they lead to higher credit ratings. It appears that investors and bond raters incorporate information on fiscal institutions into their assessment of state government credit quality.     

The European union as a diplomatic actor: internal,traditional, and structural diplomacy

An investigation into EU diplomacy naturally requires an analysis of the diplomacy developed within the framework of the Common Foreign and Securiry Policy (CFSP) of the European Union (EU). But equally important is the ‘internal diplomacy’ focusing on the settlement of mutual relationships among member states and particularly the ‘structural diplomacy’ based on EU strategies and partnerships with other regions in the world, which is aimed at promoting structural long-term changes in these regions.