Optimal Central Banker Contracts and Common Agency

This paper considers the contracting approach to centralbanking in a simple common agency model. We suggest thatcentral banker contracts that do not consider the possibilityof more than one principal existing are incomplete contracts.Such incomplete contracts can be a poor form ofmonetary policy delegation under common agency. We develop amodel with two principals – society (government) and ageneric interest group, whose objective conflicts withsociety’s ex ante preferences by incorporating an inflationarybias. We determine when the government-offered orinterest-group-offered contract dominates the central banker’sdecision. The results largely depend on whether theinterest-group-offered contract is written in terms of outputor inflation.     

Book Reviews

Book reviewed in this article: HST: Memories of the Truman Years , edited by Steve Neal. Miracle of '48: Harry Truman's Major Campaign Speeches & Selected Whistle‐Stops , edited by Steve Neal.     

Black Cities/White Cities: Evaluating the Police

It is well known that African Americans and whites hold different views of the police, but nearly all of the previous research has been conducted in majority white settings. This research examines the relationship between race and evaluations of the police in majority black versus majority white contexts. Social dominance theory and the research on racial threat predict that when the racial majority changes, the relationship between race and attitudes toward police will change. We find that, in majority black contexts, the traditional relationship between being black and having negative evaluations of the police disappears, and it disappears because whites' evaluations of the police become more negative. Black evaluations of the police are relatively consistent across racial contexts. Also, white racial attitudes affect police evaluations in majority black contexts, but not in white contexts, while African American racial attitudes are inconsequential in both contexts. Furthermore, if a white citizen is victimized by crime in a black city, it has greater ramifications for evaluations of the police than if the victimization had occurred in a white city. All of this suggests that whites' views of the police may be more racialized than the views of African Americans.     

Acts of Faith: Churches and Political Engagement

Many observers suggest that white evangelical Protestant churches serve to mobilize their members into politics, while others argue that they encourage withdrawal from political life. This paper reconciles these two claims. I hypothesize that the time members of evangelical Protestant denominations spend in service to their church comes at the expense of participation in the wider community, contrary to the way mainline Protestant and Catholic churches foster civic activity among their members. However, I further hypothesize that the tight social networks formed through this intensive church activity can at times facilitate rapid and intense political mobilization. Data from the Citizen Participation Study supports the first hypothesis, while applying King's method of ecological inference to two elections in Alabama supports the second.     

Bonding in a High-Risk and a General Sample of Children:Comparison of Measures of Attachment and Their Relationship to Smoking and Drinking

Bonding in parent, peer, and school domains were compared in a general sample of children and a sample of children of methadone-treated parents. Bivariate comparisons revealed that children of methadone-treated parents had lower SES, and were significantly more likely to smoke cigarettes but not more likely to drink alcohol. Several measures of attachment were significantly different between the two samples across parent, peer, and school domains. Multivariate analyses indicated that the children of methadone-treated parents were more likely to smoke, even after accounting for the effects of demographic and attachment variables. For drinking, sample membership was not found to be significant. Attachment to school decreased the odds of both smoking and drinking in both samples. Peer attachment had no effect on the odds of smoking initiation; however,loyalty to best friend did predict increased odds of drinking initiation.     

Risky Drinking and Driving/Riding Decisions: The Role of Previous Experience

Factors related to risky drinking and driving/riding decisions were explored by presenting vignettes to 135 older adolescents, 17–24 years of age, with vignettes related to drinking and other social behaviors engaged in at a party. Analyses revealed that alcohol-related behaviors, attitudes toward the acceptability of drinking and driving, and previous drinking and driving/riding experiences were all significant predictors of decisions about driving or riding while intoxicated. Indeed, the overall model accounted for 46% of risky drinking and driving/riding decisions. As predicted, older respondents had more previous experiences with driving while intoxicated and riding with intoxicated drivers than did younger respondents, and they reported that drinking and driving was more acceptable among their peers. However, contrary to expectations, there were no differences in the number of risky decisions made by the two age groups or between males and females. The importance of previous experiences is discussed.     

Electoral Systems, Campaign Strategies, and Vote Choice in the Ukrainian Parliamentary and Presidential Elections of 1994

In the Ukrainian parliamentary elections of 1994 the Communist party gained the greatest number of seats, yet the presidential election of the same year was won by a liberal reformer, Leonid Kuchma. The question arises as to how within a period of only a few months the Ukrainian electorate could have brought about such divergent results. This article addresses the question with reference to the workings of the Ukrainian electoral systems. It argues firstly, that the systems governing the two types of election created distinctive incentive structures for campaign strategy which interacted with the structure of preferences of the electorate in different ways, and secondly, that majoritarian aggregative formulae had different effects in the two sets of elections.     

Service Efforts and Accomplishments Reporting: Has Its Time Really Come?

In April 1994 GASB released Concepts Statement No. 2, Service Efforts and Accomplishments Reporting , bringing required SEA external financial reporting a very large step closer to reality. Before long, public financial officials may be required to annually report measures of performance. We are now about halfway through the experimentation phase established in Statement 2. This article summarizes the status of GASB's SEA experimentation process. It then suggests important behavioral, auditing, and other issues which GASB ought to address before proceeding with any formal pronouncements regarding SEA reporting requirements.     

Common law environmentalism

The necessity to control environmental externalities is almost invariably given as justification for command-and-control regulation and other forms of state intervention in related markets. When even mentioned, common law remedies that protected environmental rights for centuries are quickly dismissed as either being unworkable or ineffective. A review of the common law experience indicates that the rule of law can be effective in protecting environmental rights. Indeed, it is quite possible that common law was too effective, which led to special interest demand for statute law. The rule of politics may be more attractive to rent seekers than the rule of law and markets.