Proposed fiscal year 1997 budgets for social and behavioral science research

COSSA is the advocate in Washington for the social and behavioral sciences. He also chairs the Coalition for National Science Funding. He has testified before Congress many times and has written and spoken extensively on legislative-executive relations, the federal budget process and science policy, particularly as it affects the social and behavioral sciences. This report was prepared by the author with the assistance of the COSSA staff.     

(Non)equivalence in a federalism: Dual tax shares, flypaper effects and Leviathan

Among the best-known theorems of fiscal federalism is the presumed allocative and distributive equivalence between a lump-sum grant to a collectivity and a set of lump sum grants to the members of a collectivity. Interestingly, the simple elegance of the theorem is at odds with observed behavior. Grants to governments produce greater public spending than does tax reduction. Explanations of this "flypaper effect" range from misspecified econometric modeling to presumed behavior based on fiscal illusion. In this paper we show that theoretical equivalence exists in a model that recognizes only one tax share, the citizen voter's local tax share. When the model is expanded to include voters' federal tax shares as well as local taxes, non-equivalence and the flypaper effect become the rule, not the exception.     

The public demand for smoking bans

Smoking bans are gaining widespread support in the United States and other countries. While supporters argue that bans are necessary to resolve market failures associated with negative externalities, the Coase Theorem predicts that, under various conditions, private markets internalize negative externalities. We examine the smoking issue within the framework of the Coase Theorem and hypothesize that smoking bans misallocate air space resources shared by smokers and nonsmokers. Because smoking bans shift ownership of scarce resources, they are also hypothesized to transfer income from one party (smokers) to another party (nonsmokers). Supporting evidence for these hypotheses is provided by an examination of a comprehensive smoking ban imposed in San Luis Obispo, CA.     

The political economy of central bank intervention

This paper analyzes an exchange rate policy game between a central bank and rational speculators under symmetric information. The central bank tries to counteract shocks to the exchange rate by means of sterilized intervention working through the expectations channel. Private speculators resist being fooled. They anticipate the interventions. An “intervention bias” results with an inefficiently high equilibrium volume of intervention which does not reduce the impact of shocks to the exchange rate. The model implies that the more independent the central bank the smaller and the more consistent the intervention efforts. An empirical illustration lends some support to the model.     

Workplace education for hourly workers

Concerns about U.S. competitiveness have increasingly focused the attention of policymakers on the workforce and mechanisms that could be used to enhance both the quality and quantity of human capital in the workplace. This article focuses on basic skills education of hourly workers, precisely the type of human capital which is likely to be most underprovided by the private market. Five questions are addressed: First, what is the nature of workplace education programs? Second, why do some firms provide workplace education programs while others do not? Third, what, if any, characteristics distinguish those firms that provide workplace education programs from seemingly comparable firms that do not? Fourth, what, if any, evidence can be found identifying the effects of these programs on the firms that sponsor them? Fifth, what policies appear most likely to stimulate additional workplace education?     

Negative affect and hormone levels in young adolescents: Concurrent and predictive perspectives

The purpose of this study was to test hypotheses regarding (1) relations among negative affect and hormones of gonadal and adrenal origin in young adolescents, at three times of measurement, over a one-year period; and (2) stability of negative affect. The sample consisted of 10- to 14-year-old boys (N=56) and 9- to 14-year-old girls (N=52). The adolescents were assessed three times at 6-month intervals over one year. Serum levels of gonadotropins, gonadal steroids, adrenal androgens, and cortisol were assessed, as well as stage of pubertal development (Tanner criteria). The negative affect assessments consisted of self-report questionnaire and interview measures of anxiety and depressive affect, as well as mother reports of internalizing behavior problems. In the concurrent (cross-sectional) analyses, boys reporting higher levels of negative affect tended to be those at higher genital stage or older age, with lower testosterone and cortisol levels and lower dehydroepian-drosterone sulphate levels. In the longitudinal analyses, negative affect, and to a lesser extent hormone levels at the first time of measurement predicted negative affect 12 months later. The findings suggest that puberty-related hormone levels should be considered along with psychological characteristics in examining the processes involved in the development of negative affect during the pubertal years.Received Ph.D. from The Pennsylvania State University. Research interests include hormone-behavior interactions and emotional development.Received Ph.D. from The Pennsylvania State University. Research interests include neuroendocrinology and adolescent depression.Recieved M.D. from Athens University. Research interests include hypothalamic releasing factors and stress.