Comment on Jean L. Cummings and Denise DiPasquale's “The Low‐Income Housing Tax Credit: An Analysis of the First Ten Years”

Abstract

The Low‐Income Housing Tax Credit (housing credit) that Cummings and Di‐Pasquale portray is effective, efficient, and healthy. However, rapid changes in the industry have turned some of their data stale, and the absence of suitable context and information invalidate some key analyses and findings. Moreover, the researchers sometimes seem to see the glass as 10 percent empty instead of 90 percent full. A practitioners’ perspective is more positive.

The housing credit generates an array of public benefits while harnessing private investors’ business discipline. Genuinely low‐income tenants occupy the housing. The housing revitalizes low‐income communities. Properties are in good financial and physical condition. The housing credit is also cost effective. The economic fundamentals of producing low‐income rental housing, not the housing credit, necessitate substantial subsidies. A remarkably high proportion of the federal tax‐credit subsidy goes into the housing, and investor returns are modest. Nonprofit‐sponsored production appears to cost more because nonprofits are prominent in high‐cost locations and for other similar reasons, not because nonprofit developers are inefficient.     

A new look at creative finance

Abstract

In his seminal work, Stegman contended that creative finance is an inefficient means of financing low‐income housing production. As evidence, he cited the high transaction costs associated with the complex financing structures that make a low‐income housing development feasible. In this article, we extend Stegman's work by examining the impacts of creative finance over time. We rely on data gathered as part of an evaluation of 36 housing developments sponsored by nonprofits.

The data indicate that most of the developments in our study remained financially viable in part because of their reliance on creative finance. We find evidence supporting three positive impacts of creative finance: the establishment of long‐term partnerships, the increased community acceptance of low‐income housing developments, and the improved technical skills of organization staff. We also find that none of the long‐term negative impacts are inherent in creative finance and offer four suggestions on minimizing them.     

The human rights and 'Asian values' debate in Southeast Asia: Trying to clarify the key issues

This article investigates the validity of the concept of 'Asian values' in Southeast Asia, and attempts to explain and reconcile where possible some of the key differences between the position on human rights of ASEAN, which has remained semi-united despite internal tensions, and 'the West', particularly the US, and the non-governmental organizations' (NGOs) in the ongoing 'Asian values' debate. The article explores differences over the issues of the changeability of values and hence rights as these affect the 'universality' argument, the relevance of timing and sequence, the omission of crime by agencies other than the state as a source of human rights violations, and the controversial issue of the use of conditionality by the West. It is argued that, in fact, the debate principally concerns the question of what constitutes 'good government' and the 'good society', and takes the position that the question of how to achieve these is significantly influenced by the values of a government and a society.     

Experimental Evidence on the Effect of Childhood Investments on Postsecondary Attainment and Degree Completion

This paper examines the effect of early childhood investments on college enrollment and degree completion. We used the random assignment in Project STAR (the Tennessee Student/Teacher Achievement Ratio experiment) to estimate the effect of smaller classes in primary school on college entry, college choice, and degree completion. We improve on existing work in this area with unusually detailed data on college enrollment spells and the previously unexplored outcome of college degree completion. We found that assignment to a small class increases students’ probability of attending college by 2.7 percentage points, with effects more than twice as large among black students. Among students enrolled in the poorest third of schools, the effect is 7.3 percentage points. Smaller classes increased the likelihood of earning a college degree by 1.6 percentage points and shifted students toward high‐earning fields such as STEM (science, technology, engineering, and mathematics), business, and economics. We found that test‐score effects at the time of the experiment were an excellent predictor of long‐term improvements in postsecondary outcomes.     

Reconsidering individual-level heterogeneity in economic voting

This paper proposes a general theory of individual-level heterogeneity in economic voting based on the perspective that the strength of the relationship varies with factors that influence the relevance of the economic evaluation to the vote choice. We posit that the electoral relevance of the economic evaluation increases with the strength of partisanship as well as political sophistication. Given the strong correlation between partisanship and sophistication, this theoretical perspective casts doubt on extant evidence that more sophisticated voters are more likely to hold the incumbent party electorally accountable for macroeconomic performance since this result might be an artifact of failing to control for the economic evaluation being more relevant to the vote choice of stronger partisans. Our statistical investigation of this question finds no significant evidence that sophistication conditions the economic voting relationship once the conditioning effect of partisanship is included in the model. This finding suggests that individual-level heterogeneity in the strength of the economic voting relationship is largely due to stronger partisans voting more consistently with their national economic evaluation than to more sophisticated voters being more policy-oriented by holding the incumbent party more electorally accountable for macroeconomic performance.     

Human Rights, Free Movement, and the Right to Leave in International Law

This article starts from a rights-based premise: freedom ofmovement is an established human right recognised in a rangeof international instruments. The right to leave one's own countryis one aspect of this general concern with free movement. Thisarticle addresses the status of this right under internationallaw, a right that is enshrined in several different internationalinstruments and has attracted considerable attention. This articleexplores how the Human Rights Committee, the only United Nationshuman rights treaty body that has examined the right to leavein significant detail, has interpreted this right in light ofstate practice. This article considers whether internationallaw requires, or allows, states to prevent their nationals fromleaving their own states by unauthorized or irregular meansand whether such prevention could be construed as a violationof the right to leave. This article also examines whether statescan legitimately prosecute migrants when they leave their ownstates with documents that they know to be fraudulent. The legitimacyof exit visas and regulations related to holders of state secretsis also explored. Finally, this article presents some thoughtson the continuing significance of the right to leave.     

The “Independent Variable” in Restorative Justice: Theory-Based Standards for Evaluating the Impact and Integrity of Victim Sensitive Process (Part II)

For almost two decades restorative justice practices have demonstrated positive impacts on crime victim satisfaction when compared to court and other adversarial processes. Although these practices have by no means addressed the myriad needs of crime victims, researchers and policy makers have puzzled about how to interpret these generally positive findings. We suggest that remaining difficulties in concluding that positive findings are a result of restorative process rather than some other factor (e.g., procedural justice) are due largely to (1) the lack of clear standards for gauging the integrity, or “restorativeness,” of interventions and (2) the failure to articulate logical mechanisms (i.e., intervention theories) that connect practices to immediate and intermediate outcomes, and these outcomes to long-term changes in the well-being of victims, offenders, and communities. In part 1 of a two-part discussion previously published in this journal, we described alternative definitions of restorative justice and outlined three core principles that provide a useful normative theory of restorative justice. In part 2, we focus on the “intervening variable” in restorative justice, utilizing qualitative data from a national case study to illustrate some potential immediate and intermediate outcomes of restorative justice practice on victims. We also discuss the implications of these outcomes for intervention theory and future research.