Pension Reform and the Fiscal Policy Stance

The increased budget deficit caused by the privatization of a public pension plan does not imply a relaxation of the stance of fiscal policy. The reform's impact on the fiscal stance and national saving depends primarily on its effect on the sum of explicit and implicit public debt and on the postreform payroll tax and private system contribution rates. Its impact also depends on the difference between the rate of interest on implicit and that on explicit public debt, among other influences. Pension privatization, if not offset by fiscal consolidation, can loosen the fiscal stance in some circumstances.     

‘twinning’ as a method of sustainable institutional capacity building

‘Twinning’ is the distinctive method employed during the last two decades by the Swedish International Development Co‐operation Agency (Sida) to promote institutional capacity building in development co‐operation. This article reports on a study undertaken to provide evidence which would help Sida to make judgements about the efficacy of the twinning model as a basis for sustainable capacity building, and to explore ways of enhancing the method. The study indicates that the twinning method has potential advantages over other modes of development co‐operation, particularly that it offers enhanced possibilities for organizational learning and sustainable capacity building. However, the study suggests that this potential is not being fully exploited. Twinning arrangements have produced major benefits in professional/technical upgrading, but there is less evidence of outcomes at the level of sustainable institutional capacity building. Contrary to Sida's expectations of its distinctive advantages, in operation, twinning tends to become a rather routine process, viewed by developing country partners as an unexceptional way of delivering aid which presents few fundamental challenges and provides essentially the same benefits as alternative methods. It appears that institutional development and organizational learning are generally not issues of major significance for partner organizations in twinning arrangements. Even at the individual level the focus is on training rather than learning, which results in the usual emphasis on formal off‐job training rather than seeking opportunities for learning from work. The article presents ideas on how the current twinning approach might be renovated, and considers how agencies such as Sida might enhance their development co‐operation in the realm of governance by moving beyond twinning. Copyright © 1999 John Wiley & Sons, Ltd.     

Not by Twins Alone: Using the Extended Family Design to Investigate Genetic Influence on Political Beliefs

Variance components estimates of political and social attitudes suggest a substantial level of genetic influence, but the results have been challenged because they rely on data from twins only. In this analysis, we include responses from parents and nontwin full siblings of twins, account for measurement error by using a panel design, and estimate genetic and environmental variance by maximum‐likelihood structural equation modeling. By doing so, we address the central concerns of critics, including that the twin‐only design offers no verification of either the equal environments or random mating assumptions. Moving beyond the twin‐only design leads to the conclusion that for most political and social attitudes, genetic influences account for an even greater proportion of individual differences than reported by studies using more limited data and more elementary estimation techniques. These findings make it increasingly difficult to deny that—however indirectly—genetics plays a role in the formation of political and social attitudes.     

Upbringing, Early Experiences of Discrimination and Social Identity: Explaining Generalised Trust among Immigrants in Denmark

The aim of this article is to analyse the causes of generalised trust among immigrants. Three different explanations of generalised trust are examined, focusing on the role of a restrictive upbringing, early experiences of discrimination and social identity. The data consist of a panel of immigrants from Turkey, Pakistan and former Yugoslavia living in Denmark and surveyed in 1988 and 1999. The results from a multivariate analysis, including a host of background variables, show that only a restrictive upbringing affects generalised trust significantly as having experienced this type of upbringing leads to lower trust. Early experiences of discrimination and social identity in terms of national identification do not affect generalised trust. The article concludes by discussing the finding that parental socialisation in terms of a restrictive upbringing affects generalised trust.     

Exit, collective action and polycentric political systems

Elinor Ostrom and the Bloomington School’s important contributions include the development of the concept of “polycentric” political systems and the demonstration that solutions to common-pool resource problems may be solved voluntarily by rational individuals, even in situations that resemble Prisoners’ Dilemmas. The program, however, pays little attention to how individuals’ ability to exit may affect the interaction in Prisoners’ Dilemma-like situations, for worse or better. We argue why this is a worthwhile consideration and survey results from public choice and game theory.     

Determinants of the probability and timing of commercial casino legalization in the United States

The adoption of lotteries by state governments has received significant attention in the economics literature, but the issue of casino adoption has been neglected by researchers. Casino gambling is a relatively new industry in the United States, outside Nevada and New Jersey. As of 2007, 11 states had established commercial casinos; several more states are considering legalization. We analyze the factors that determine a state’s decision to legalize commercial casinos, using data from 1985 to 2000, a period which covers the majority of states that have adopted commercial casinos. We use a tobit model to examine states’ fiscal conditions, political alignments, intrastate and interstate competitive environments, and demographic characteristics, which yields information on the probability and timing of adoptions. The results suggest a public choice explanation that casino legalization is due to state fiscal stress, to efforts to keep gambling revenues (and the concomitant gambling taxes) within the state, and to attract tourism or “export taxes.”     

Coercive versus cooperative policies: Comparing intergovernmental mandate performance

Cooperative policies hold out promise of an improvement over coercive mandates as ways to enhance implementation of intergovernmental programs. By treating subordinate governments as regulatory trustees and emphasizing substantive compliance, the cooperative mandates avoid the onerous aspects of heavy-handed regulatory federalism. Our comparison of state hazard-mitigation policy in Florida and in New South Wales, Australia addresses procedural and substantive compliance under the two forms of intergovernmental policies. When local governments are not committed to state policy objectives, the coercive policy produces better results as evidenced by higher rates of procedural compliance and greater effort by local governments to achieve policy objectives. When local government commitment exists, the cooperative policy produces substantive results that are at least the equivalent to the coercive policy. Moreover, over the long run cooperative policies may have greater promise in sustaining local government commitment. The dilemma is to figure out how to motivate lagging jurisdictions that seem to require a coercive policy, while not straightjacketing leading jurisdictions that are capable of thriving under a cooperative regime.