All-pay-all aspects of political decision making

Decision-making processes are studied using non-standard all-pay structures. Our interest is motivated by regulatory, political, legal, military, and economic applications in which individual actions determine the consequences for a larger group or the general public. The common features of these examples are a competitive environment, a winner-takes-all reward structure, and some form of all-pay-all payment rule.     

Affordability and mortgage design: Permanent buydowns and buyups

Abstract

A simulation model that mirrors the actual practices of lenders in setting qualification requirements for mortgage loans is used to assess the impact of permanent buydowns and buyups on the maximum sale price that buyers can afford. Buydowns are reductions in the coupon rate traded off against higher discount points; buyups are the reverse. Although buydowns have little effect on afford ability, buyups can have significant effects. Their potential is largely unrealized, however, because of the call risk to lenders of loans carrying premiums. The authors propose a “discount recovery” provision, which would be similar to a prepayment penalty except that the payment upon prepayment would be tied to the amount of the discount foregone by the lender. This would protect lenders against call risk, giving them every reason to offer buyups as a way of expanding demand.     

The intellectual legacy of J.E. Hodgetts

Abstract: J.E. (Ted) Hodgetts was influenced by both the political economy approach that he learned at the University of Toronto and by the comprehensive historical method developed by Leonard White, under whom he studied at Chicago. His first great project, Pioneer Public Service, convinced him that responsible government was impossible without responsible public administration. The authors examine how his response to management theories and practices evolved following his participation in the Glassco, Lambert and Gomery commissions. Hodgetts consistently refused the complete separation of politics and administration, and he promoted the use of management techniques to strengthen parliamentary supervision of the public service. The two key components of his legacy are thus a commitment to the democratic values of representative government and the comprehensive study of the internal dynamics of public administration in interaction with the relevant environmental factors.     

The inventory of differences

The new democratic left interprets socialism as involving the radical democratization of civil society and the state. Both conceptions of democracy and conceptions of socialism are variations on the theme of a self-govering community. The first part of this paper explores the diversity of accounts of democracy and of the issues in dispute between them. Part 2 then proceeds to identify conceptual difficulties with these ideas, and to examine some of their consequences for political analysis. While the theme of a self-governing community has always been somewhat problematic there are significant features of the modern world that further undermine any plausibility it may once have had. These conceptual weaknesses inherent in ideas of democracy and of socialism limit their untility as tools of political argument, and help to account for some of the difficulties socialists have in coming to terms with the world in which they now find themselves. The argument is not that the idea of socialism as enhanced democratization should be abandoned, but rather that such an idea is radically incomplete. A socialism that is worthy of support must address the substantive social and political problems of the societies in which it operates. The slogan of democratization is of limited value in identifying those problems or in establishing solutions to them.     

What If? The Historian and the Counterfactual

This essay lays out why many scholars, particularly historians, are inherently skeptical of counterfactuals. It highlights several of the most obvious errors that are often made by those undertaking counterfactual reasoning. It also highlights how these articles go a long way toward developing effective rules for the appropriate and most effective use of counterfactuals.