Auctioned oil import licenses

Three times in recent years American Presidents have tried to levy a tax on imported oil in order to decrease the quantity. Three times, the U.S. Congress has blocked the policy, demonstrating that a tax is politically infeasible. As an alternative, we propose an auctioned import license policy, in which the President would have discretion over the quantity of petroleum sold each month. The quantity might be chosen to maintain a certain differential between the domestic and international prices of oil. Under this strategy, licenses would have economic characteristics very similar to those of a tax. The political characteristics, however, would be quite different. Sections of the public would be less likely to perceive licenses as transferring revenues from households to the government and more likely to perceive them as effective in reducing imports. Alternatively, oil import licenses could be used to negotiate with OPEC and other importing nations.The authors wish to thank William Dunn, Robert Walters, Richard Nehring and Charles Phelps for their helpful comments. The usual caveat applies.     

Moral hazard in work organizations: A comment on Gaynor,Eswaran and Kotwal,and Holmström

A key question in the economics of organization is whether it is possible to induce a group of employees to produce some quota of labor desired by the director of their organization. Holmström (1982) argued that it is possible to achieve the desired result via a simple incentive scheme. The essence of the scheme is to pay the employees only if they reach the quota; if they fail, the director is allowed to take what they have produced and use it for his own compensation. In response, Eswaran and Kotwal (1984) pointed out that because the director's compensation is smaller if the employees succeed in reaching the quota than if they fail, he has an incentive to bribe an employee to shirk, thus guaranteeing that the quota is not reached. The director, in other words, is subject to moral hazard. In a recent issue of Public Choice, Gaynor (1989) criticized the Eswaran-Kotwal argument by suggesting that it is possible to design incentive schemes which eliminate the director's moral hazard problem. In this note, we defend the Eswaran-Kotwal argument, and raise further questions about the assumptions upon which Holmström's incentive scheme is based.     

Distant friends and nearby enemies: The politics of legislative coalition formation

It is usually thought that a coalition leader in a legislature will construct coalitions of legislators who are ‘close’ to each other in the policy space. However, if there is some ‘status quo’ or other reversion point that will hold if the coalition leader fails to construct a winning coalition, a counter-intuitive result about the nature of these coalitions emerges: the coalition leader may be forced to construct a coalition which includes legislators who are ‘distant’ from him and which excludes legislators who are ‘close’ to him.     

The Effects of Substance Use on Offender Crime Scene Behavior

Abstract:  Substance use has an effect on an individual's propensity to commit acquisitive crime with recent studies showing substance users more likely to leave forensic material at a crime scene. An examination of acquisitive crime solved in Northamptonshire, U.K., during 2006 enabled 70 crime scene behavior characteristics to be analyzed for substance and nonsubstance use offenders. Logistical regression analyses have identified statistically significant crime scene behavior predictors that were found to be either present at or absent from the crime scene when the offender was a substance user. Most significant predictors present were indicative of a lack of preparation by the offender, irrational behavior, and a desire to steal high value, easily disposed of, property. Most significant predictors absent from the crime scene were indicative of more planning, preparation, and execution by the offender. Consideration is given to how this crime scene behavior might be used by police investigators to identify offenders.     

Cognitive bias in line-up identifications: The impact of administrator knowledge

Prior knowledge of the likely or expected outcome of a forensic investigation has been shown to produce biases in the results obtained, reducing objectivity. The wide prevalence of such cognitive biases in many judgments has long been recognised by social psychologists, but its importance is only now gaining appreciation within forensic science communities. It is therefore timely to draw attention to the power of cognitive biases found in a study of the influence of administrator expectations on photographic identifications. Data are presented to show that when a line-up administrator knows the identity and position of a target within a line-up choice, in which the ‘witness’ is ignorant of the actual target, that target is more than twice as likely to be selected compared with when the administrator is kept ‘blind’. These findings, taken together with related studies, support the recommendation that all forensic analyses are made ‘double-blind’—a method that has proven to be effective in reducing such effects within the social sciences.     

Committees and the core of the Constitution

An ongoing debate in the formal theory of legislatures involves the question of why these institutions (apparently) manifest so much stability. That is, why do the institutions not continually upset policies adopted only a short time before? A large number of answers have been advanced. This paper proposes that the stability derives from the interaction of two factors, (i) the fundamental constitutional rules (bicameralism, executive veto, and veto override) that structure the legislative process, and (ii) the committee systems endowed with veto powers that many American legislatures have developed. This interaction, we argue, can create a core — a set of undominated points — so large that even a substantial change in the legislature's members (reflecting electoral outcomes, for example) will be unlikely to shift its location enough for the status quo to be upset.     

Investigation of the labial photoplethysmograph (LPG) in the idiographic assessment of female sexual interest: its viability in the forensic context

This paper presents a viability study of the labial photoplethysmograph (LPG) in the physiologic assessment of female sexual function and investigates whether it would meet the requirements of a female sex offender assessment. Evaluation of physiologic components of female sexual responding is technically challenging and there are several limitations that present some unique challenges to forensic clinicians. The present study was designed to investigate the effectiveness of the LPG as a measure of female sexual arousal with a view to evaluating it as an analogous technique to phallometric testing for male sex offenders. Seventeen sexually healthy women were evaluated. General and genital physiological measurements were taken at baseline and in response to erotic and control stimuli. The correspondence between subjective appraisal of arousal and physiological responses was also undertaken. Findings indicated a clear and unequivocal measureable response to the sexual stimuli using the LPG but challenges remain and are discussed.