Private sector shrinkage and the growth of industrialized economies: Reply

Further tests and thoughts on the OECD data lead me to conclude that, if anything, my 1986 paper underestimated the magnitude of the inverse relation between economic growth and government size. If one takes the nominal-based measure of government scale, as advised by Saunders, the significance levels, coefficient magnitudes and goodness of fits improve over what I found with my initial investigation. I would suggest that Saunders reconsider his reluctance to believe that the size of the public sector is unrelated to economic growth in OECD countries over this time period.One additional thought appears relevant to the current policy debate concerning budget deficits and economic performance within the major industrialized economies. The empirical work displayed here and in my 1986 paper suggests serious problems associated with the various proposals urging governments to raise taxes and/or ease fiscal policy. Elsewhere, I have suggested that available empirical evidence implies that plans to increase taxes as a way out of budget deficits are plans that carry the potential for raising government spending and possibly future deficits as well. Coupled with the evidence presented here, we should also recognize the potential of tax increases to raise the level of government participation in a country and, accordingly, exert inverse influences on its future economic performance as well. As suggested in my 1986 paper, the empirical evidence may suggest the following irony: While political participants may crave larger and larger non-market resource allocations, their future ability to satisfy that craving may very well be severely constrained by the satisfaction of that same appetite.     

Reviews

Recently, various authors have examined the relationship between growth in government size and total economic growth. In each case, the authors permitted only a monotonic relationship. This paper examines the issue of a non-linear relationship between growth in government and overall growth in the economy.Government contributes to total economic output in various ways. The provision of Pigovian public goods enhances the productivity of the private sector inputs increasing total output. However, the public decision-making process can result in an inefficient quantity of public goods. The likelihood of this outcome increases with the size of government. Further negative effects are created by the revenue raising and spending mechanisms of government, and the increasing diversion of resources into unproductive rent-seeking activities. The magnitude of these effects is likely to increase with the relative size of government.     

Do Śrāvakas understand emptiness?

Conclusions The present study has attempted to artriculate a central issue of Mahäyäna soteriology through an examination of the writings of two Mädhyamika masters, Bhävaviveka and Candrakïrti. The purpose here has been to demonstrate a further criterion for the retrospective designation of their respective philosophies with the terms Svtantrika and Prasangika an exhaustive study of the nature of the Hinayäna wisdom according to the Mädhyamika school would entail an analysis of the writings of many other masters, especially those who produced what has been called the Yogäcära-Mädhyamika synthesis. To attempt to determine the position of Maitreyanätha, for example, on this issue would entail an analysis of the famous Five Treatises (the Dharmadharmatävibhaa, the Madhyäntavibhaga, the Mahayanasutrlamkara, the Uttratantra, and the Abhisamayälamkära) as well as the myriad commentaries on these works. It is possible to speculate briefly here on what the position of Nägärjuna may have been on this issue and then go on to discuss the implications and possible motivations of the views of Bhävaviveka and Candrakïrti.     

PPS waivers: implications for Medicare, Medicaid, and commercial insurers

This paper compares the Medicare prospective payment system (PPS) to four all-payer rate-setting systems that operated under HCFA waiver authority. The study examines the experience of Medicare, Medicaid, and commercial insurers under the two approaches. Data from several American Hospital Association surveys and from Medicaid 2082 report forms are analyzed. The paper concludes that the all-payer waiver programs have been as successful as PPS in controlling the rate of growth in Medicare costs. In addition, Medicaid programs are more successful in controlling their outlays in all-payer rate-setting environments than when they "go alone." Finally, there is no evidence to suggest that hospitals can increase charges in response to greater financial need under either PPS or the state waivers. Nevertheless, it appears that commercial insurers are better able to compete with Blue Cross plans in all-payer rate-setting states than elsewhere.     

Assessment of competency for execution? A guide for mental health professionals

Assessment of competency for execution presents two compelling ethical questions for mental health professionals: whether clinicians can ethically provide such assessment, and if so, how it should be done in order to maximize quality and minimize ethical conflict. In this article we address the issue of whether to participate and, if so, how. The question of whether to participate is discussed by summarizing the arguments for and against participation and offering guidelines for making a decision. The question of how to proceed is discussed in two contexts: preadjudication (before a formal decision about competency) and postadjudication (following a determination of "incompetent" and transfer of the offender to another facility for treatment and further assessment). Finally, recommendations are made regarding research that would improve the quality of execution competency assessments.     

Resolving university landlord-tenant disputes

Conclusion The housing arbitration system used by Brigham Young University's Housing Arbitration Board (HAB) has been widely used at the school for many years. It has not worked perfectly. Some landlords are critical of the school's laxness in enforcing arbitral awards.In general, students prefer the process over small claims court (chiefly, it appears, because of cost factors). The school administrators prefer mediation over arbitration but recognize that mediation does not always resolve impasses. Legal questions exist about BYU's potential restraint of trade in using the obligatory contracts the school mandates for landlords. The process relies upon persons of goodwill to serve on the tribunals, but has a long enough track record to demonstrate the HAB concept works quite well. Because of annual turnover, the need for training of mediators/arbitrators is always critical. Other universities may well wish to emulate (or modify) the HAB model in resolving their landlord and student-tenant disputes. William M. Timmins is Professor of Personnel Administration and Labor-Management Relations at the Graduate School of Management, Brigham Young University, Provo, Utah 84602. Among his recent publications isThe International Economic Policy Coordination Instrument: The OECD Experience (London: The University Press, 1985).     

Bicommunalism in Northern Ireland

Northern Ireland is a bicommunal society in which Protestantsare numerically dominant; Roman Catholics constitute virtuallyall of the remaining population. On the island as a whole, Protestantsare heavily outnumbered; the Republic of Ireland (the "South")has a population that is about 96 percent Catholic. Social segregationof the two northern communities is relatively distinct, andthere is little crosscutting between groups that might lessenbicommunal conflict. A reciprocal relationship exists betweenthe social system and political structures. Northern Irish politicalinstitutions followed the Westminster model, which facilitatedthe political exclusion of Catholics and impeded social as wellas political integration. The bicommunal social structure hasimpeded the development of more accommodating political structures.Geographic issues and external linkages compound the politicalproblem. Northern Irish politics can be viewed as a "dual dyad"in which the United Kingdom and the Republic of Ireland arecritical components. Psychological dimensions of Northern Irishbicommunalism further exacerbate the conflict.     

Cyprus: Federation Under International Safeguards

Constitutional engineering to overcome ethnoregional cleavagesis being put to a severe test on Cyprus, where Greek and Turkishcommunities haltingly endeavor to salvage a divided state Threeyears after independence in 1960, the attempt to govern throughfunctional federalism ended in civil war. Intervention by Greeceand Turkey in 1974 resulted in a de facto partitioning of therepublic into two ethnically homogeneous areas. Under UnitedNations auspices, communal elites bargain for a consociationalsettlement, balancing national autonomy and individual rights.The solution requires international safeguards guaranteeinga new constitution and providing for "free cities" under a bicommunaladministration. Failure of the international community to actwill lead to a partitionist solution as manifested by a growingacceptance of Turkish Cypriot statehood.