ERISA, agency costs, and the future of health care in the United States

Because so many Americans receive health insurance through their employers, the Employee Retirement Income Security Act (ERISA) of 1974 plays a dominant role in the delivery of health care in the United States. The ERISA system enables employers and insurers to save money by providing inadequate health care to employees, thereby creating incentives for these agents to act contrary to the interests of their principals. Such agency costs play a significant role in the current health care crisis and require attention when considering reform. We evaluate the two major health care reform movements by exploring the extent to which each reduces agency costs. We find that agency cost analysis clarifies the benefits, limits, and uncertainties of each approach.     

The ‘Perils’ of an Identity Politics Approach to the Legal Recognition of Harm

In the past, and it still remains the case, people with learning difficulties who are victims of violence have been cast as being in need of protection rather than rights and justice. Such an approach belies an institutionalised perspective of harm that does not readily engage with criminal justice structures or solutions. At the same time, Sect. 146 of the Criminal Justice Act 2003 gives the court the power to pass enhanced sentences where it can be proven that a crime was motivated by hostility towards someone because s/he is disabled. However, this provision may simply remain a symbolic pledge to equality that fails to tackle the complex and deep rooted causes of violence and oppression in modern society. The consequences of automatically turning to hate crime ‘solutions’ have yet to be explored. This article will draw from the ideas of a number of thinkers in the context of diverse activism to construct a bridge between current debates about how to theorise and tackle violence and oppression in the modern world and the campaigns fought by people with learning difficulties and their supporters. The hope is that this exercise will not only help people with learning difficulties to access the current debate but will further develop current thinking about how to understand and tackle violence in the modern world.

The Relationship between Legal Systems and Economic Development: Integrating Economic and Cultural Approaches

This paper seeks to demonstrate the need to bridge the gap between the economic and culture-based approaches to two issues which are fundamental to the debate over the relationship between legal reform and economic development: (a) the relative importance which economic actors around the world place on the legal system and (b) the core components of an effective legal system, as defined by those economic actors. It first outlines the major tenets of current economic legal reform policy, focusing on its underlying assumption that the perceptions and expectations of economic actors around the world do not vary significantly. Data from Geert Hofstede's study of variance in cultural values are then analysed in order to demonstrate how cultural values might affect private sector perceptions and expectations of legal systems as supporters of material progress. It concludes that there is a clear need for a more interdisciplinary approach to the debate over the relationship between legal reform and economic development, and the potential variance in private sector perceptions and expectations of legal systems in particular. Such an approach might be initiated through a systematic integration of existing data and theory from each discipline, reinforced by a new multi-country survey.     

Industry characteristics and interest group formation: An empirical study

The role of interest groups in the political process has been the subject of much analysis in both political science and economics. However, few studies have examined directly the factors which influence the variation in interest group formation across industrial sectors and between countries. Using data on 75 industrial sectors in 10 countries, we examine the way in which variations in interest group formation are explained by variations in industrial and political characteristics. In cross-sectional empirical relationships we test for the significance of a variety of industry and political variables. Our results indicate that industry characteristics such as the proportion of total demand purchased by households and the concentration ratio are related to variations in interest group formation. We discuss the implications that our results have for recent theoretical work on the effect of interest groups on economic policy.For helpful comments, we would like to thank Antonio Estache, Bruce Gardner, Dennis Mueller, Mancur Olson, and participants at the meetings of the Public Choice Society and the Southern Economic Association. The International Institute of Management of Berlin, Paul Geroski, Neal Kennedy, Alexis Jacquemin, Kenneth Platto, Joachim Schwalbach, and Hideki Yamawaki helped in providing data. The Computer Science Center of the University of Maryland is acknowledged for provision of computational resources.