Benevolence in Beijing

My brand new bicycle had been stolen! Disbelief. Anger! Disappointment... I had been riding it for only a day,and was as excited as a,well,a boy with a new bike. Even though I only paid what would be the equivalent of half a tank of gas for my truck back home,I was still sorely put out.     

Managerial autonomy: does it matter for the performance of water utilities?

The public administration literature asserts that autonomy is central to performance. In this article we develop a managerial autonomy index, which we apply to 22 water utilities in Africa, Asia and the Middle East. The 16 items that underlie our composite autonomy index display a high degree of internal consistency. This speaks for the validity of the autonomy concept. We find that the autonomy scores of the 22 utilities vary widely. We also find strong and positive associations between autonomy scores and six out of eight key performance indicators. Our results support the idea that autonomy is central to the performance of water service providers. Copyright © 2007 John Wiley & Sons, Ltd.     

Friends in high places: The wealth effects of JFK's assassination on the assets of LBJ's supporters

This paper uses anecdotal evidence to identify a group of firms that had significant ties to President Lyndon Johnson and determines the effect of Johnson's unexpected rise to the Presidency on the market value of these firms. The unexpected nature of President Kennedy's death eliminates the confounding event problem typically associated with election results. We are able to identify four separate portfolios of firms that had political ties to Lyndon Johnson. Our research suggests that the market expected significant benefits to accrue to these firms as a result of Johnson's becoming President. When Catholic John Kennedy and Johnson were running together in 1960 a joke hop-scotched around the parties in Texas and Washington that Kennedy had told Johnson, “Lyndon, when we get elected I'm going to dig a tunnel to the Vatican,” and Lyndon had replied, “That's OK with me as long as Brown & Root gets the contract” (Dugger, 1982: 286).     

The Diffusion of Responsibility: An Alternative Perspective for National Policy Politics in the US

This article proposes a diffusion of responsibility perspective in analyzing post–World War II politics in the United States. Many analysts test the American system by a responsible party perspective, proposing reforms that will orient the system toward the goals of that model. Divided government has characterized much of the period since 1945 and identifiable (and wholly constitutional) politics has accompanied that development. The diffusion of responsibility alternative is characterized by a separated presidency, an expansive Congress, competition between the branches for shared power, and, absent a crisis, a tendency toward perpetuation.     

Disposable income,unemployment, inflation and state spending in a dynamic political-economic model

This paper formulates a medium-term macroeconomic model of disposable income, unemployment, inflation and state spending, proposes a theory of qualitative choice to explain electoral popularity in terms of these variables and develops three approaches to the formulation of political-economic policy. The first approach is static, sets the tax rate to reconcile the interests of various pressure groups and yields a political trade-off between the private and public sector. The second approach relies on maximizing the probability of winning the next election and gives rise to a political business cycle unless the electorate votes strategically. The implications of crowding out of private investment under alternative monetary rules, autonomous behaviour of the state bureaucracy and tax-indexation for the political business cycle are also examined. The third approach analyzes the objective of maximizing the uninterrupted length in office. It yields a short-run political cycle superimposed on a longer cycle.