Transactions costs and the optimal instrument and intensity of air pollution control

Conclusions To what extent do the transactions costs of implementing alternative instruments for pollution control affect the choice of the optimal instrument and the efficient intensity of control under that instrument? In a comparison of Least-Cost Regulatory Standards and Revenue-Neutral Pigouvian Taxes, it is the higher transactions costs of implementing the taxes that make Pigouvian Taxes the more costly of the two instruments. However, a more practical comparison of instruments is between Politically Feasible Standards, Marketable Discharge Permits, and Revenue-Raising Pigouvian Taxes. Here, the relationship between the transactions costs of implementation and total pollution costs are in an almost linear inverse relationship. The lower the pollution costs associated with a particular instrument, and therefore the more desirable the instrument, the higher the transactions costs of implementation. Other factors such as political distortion and welfare gains prove to be more important than the transactions costs of implementation.Assuming that variable transactions costs decrease with the optimal level of pollution for regulatory standards but increase with the optimal level for market oriented instruments, an accounting of transactions costs results in less stringent control in the case of regulatory standards and more stringent control in the case of market oriented instruments. However, the percentage effect is very small. Moreover, it is smaller in both cases if marginal pollution damage rises with the level of pollution, as it is usually presumed to do, rather than remain constant as assumed in this paper for purposes of aggregation. A major conclusion of this paper is that Pigouvian Taxes are the superior instrument for pollution control when the raising of public revenues is a desired objective. However, the various conclusions of this paper should be viewed as tentative because the data on which they are based are no longer current. Moreover, the critical estimates of transactions costs are somewhat dubious. It is hoped that new data will be collected for answering the questions raised in this paper. When this is done, a more powerful approach, one that obviates the need for the artificial, one-dollar-damaging, aggregate pollutant, would be an expanded linear programming model in which the transactions costs are treated as separate coefficients of the individual pollution control methods. Separate sets of such coefficients, each corresponding to a different policy instrument such as Least-Cost Regulatory Standards, Revenue-Neutral Pigouvian Taxes, etc., would enable the investigator to directly derive solutions that specify the optimal policy instrument as well as the optimal set of pollution control method activity levels.I am grateful to William Ascher, Murray Weidenbaum, and two anonymous referees for helpful guidance on the paper.     

Political fragmentation of the Dutch Windward Islands

The Dutch Windward Islands are examined to see if they throw any light on the problems experienced when very small island communities try to come together to form a larger political unit. The Constitution of 1954, though federal in intent, was unitary in practice, with the main island, Curacao treating the others like municipalities. However the island authorities are capable of asserting themselves against the centre. They control implementation, raise revenue and receive local political support. Because of the small size of the populations and civil services involved, island and federal officials collaborate harmoniously. Leading individuals are important for development, notably St Maarten's Claude Wathey. New initiatives also require effective negotiations to deal with off-shore tourist organizations. However, there is little significant industry beyond tourism. In 1988 the three Dutch Windward Islands agreed to co-operate with each other. Decentralization within the largest island could help this cooperation as could a regional association along the lines of the South Pacific Forum.     

Tax Expenditure Reporting: The Utilization of an Innovation

Central to this article is the question, “Are tax expenditure reports used?” State legislators serving on tax committees in ten states were surveyed regarding their use and their perceptions of others' use of tax expenditure report information. Responses indicate (1) strong acceptance and broad use of report information; (2) purposes and policy stages of use characteristic of technical information use; and (3) use focused predominantly on resource acquisition (revenue) policy rather than resource allocation (budget) policy. Thus it appears that tax expenditure reporting does not operate to secure budgetary control over tax expenditures, and consequently tax expenditures continue largely to escape budget scrutiny.     

Abortion Policy in Western Democracies: A Cross-National Analysis

This article provides a comparative analysis of abortion policies for 21 countries in Western Europe and North America. First, after briefly discussing the historical evolution of abortion attitudes and policies, a typology of current abortion laws is presented. Second, the mode of determining abortion policy is compared — judicial (Germany, Canada), legislative (Britain, France), and direct democracy (referenda in Italy, Ireland). Third, the question of abortion policy implementation is considered. In other words, does the legal status of abortion really make a difference regarding the pattern of availability and use of abortion services? Fourth, potential explanatory variables (left-wing party strength, feminism, Catholicism) regarding the content and process of abortion policies is evaluated.     

Partisanship and the party system

The defining properties of party identification long established for the United States fail with some frequency to be replicated in electoral systems abroad. A number of plausible suggestions have been made to account for this system-level variability: Most of these have some face merit, but none taken alone is adequate to provide a full cross-system explanation. Variation in party system size or fractionalization has recently been discussed as another source of differential dynamics of party loyalties. Unfortunately, the conventional means of assessing party identification properties are subject to rather severe artifacts, typically ignored, when comparisons are made across systems of very different party size. The conceptual stakes underlying key methods options for such comparisons—most notably, between continuous and discrete statistical tools—are examined. The use of continuous statistics for systems of very multiple parties rests on an assumption that voters do in some degree regard these party systems as imbedded in a continuous space. A simple test for this assumption is mounted in four systems and unsurprisingly it shows very clear support. Analysis of residuals beyond this obvious result add several points of less obvious information about the distribution of party affect in such systems.     

Identity and dating commitment among women and men in college

Lower division and upper division college women's and men's commitment in a dating relationship was examined in connection with their (a) gender role attitudes, (b) educational aspirations, (c) certainty about their future vocation, and (d) the importance they attach to work vs. marriage as a source of life satisfaction. Dating commitment was also examined for women in relation to their dedication to work for pay after marriage, and for men in terms of their ideas about their future wife working. The more certain upper division college women's vocational identity, the more committed they were to their dating partner, but the more they planned to work after marriage the less involved they were in a relationship. Additionally, upper division women who placed more importance on a job than marriage and who had a clearer vocational identity were less involved in a relationship. The clearer upper division men's vocational identity, the more committed they were in a relationship. Lower division men who placed more importance on work compared to marriage were less involved in a dating relationship. The results are discussed in light of Erikson's stages of identity development and more recent research that suggests women's identity development follows a different course from men's.Received Ph.D. in child development and family relationships at the University of Texas at Austin. Current research interests include the influence of parent-child interaction on children's mastery and achievement motivation, peer and intimate relationships, and identity development.Received Ph.D. from the State University of New York at Albany. Research focuses on the development of relationships from courtship into marriage and first-time parenthood.Received Ph.D. from the University of Minnesota. Program of research concerns the developmental origins, correlates, and consequences of identity formation in adolescence. Recent research addresses the dynamics of relationships in adoptive families and the consequences of openness in adoption on family members.Received B.A. in child development and family relationships program at the University of Texas at Austin.