International Constraints and Domestic Choices: Economic Convergence and Exchange Rate Policy in France and Italy

As tensions in the European Monetary System demonstrate, international capital flows can have a decisive influence on countries' economic policies. The external constraint of high international capital mobility led the countries of Western Europe in the 1980s to attempt to stabilize their exchange rates and converge toward low levels of inflation. Yet this process was not uniform: French governments pursued a rigorous anti-inflationary policy of high interest rates and a strengthening currency, while Italian governments had difficulty controlling inflation and maintaining the lira in the European Monetary System. This difference is best explained by comparing political institutions and policymaking processes in the two countries. Particular attention is given to political leaders' access to economic policy tools and their capacity to design and implement long-term goals.     

SEMATECH and collaborative research: Lessons in the design of high-technology consortia

This article reviews the experience of SEMATECH as a model for high-technology research consortia. SEMATECH's original aims of developing next-generation manufacturing technology proved hard to achieve, and the program has refocused on generic technology and the equipment industry infrastructure. Though more modest, these new objectives have produced significant tangible results. The study considers the reasons for the change and implications for consortium design. This is contrasted with the history of other major collaborative research programs in Japan, Europe, and the United States.     

Risk compensation and the effectiveness of safety belt use laws: a case study of New Jersey

This paper investigates the effectiveness of New Jersey's mandatory belt use law (MUL) by testing specifically for: (1) a safety effect, and (2) a risk-compensation effect that could offset (in part) any safety impact. The main findings are that injury severity declined significantly in the 22 months following implementation of the MUL; but that accident frequency increased significantly. The increase in accidents may be explained only partially by increased driving mileage. These findings suggest that the real safety effect of the law may have been diluted by risk-compensating behavior.This paper is based on a study conducted for the New Jersey Office of Highway Traffic Safety by the Rutgers University Bureau of Economic Research. We are grateful to William Ascher and two referees for useful comments.     

Vouchers and voting: An initial estimate based on the median voter model

One of the major concerns associated with school voucher proposals is that they will only benefit those who leave public schools in favor of private schools. The children left behind in public schools are expected to necessarily be made worse off by such policies. This paper provides evidence suggesting that children left behind in public schools will also benefit. The available evidence suggests that, after a voucher plan, voter support for public schools will rise enough to increase the human capital of public school students, despite the presence of negative peer group effects.     

A transaction-based approach to policy intervention

A transaction-based approach to policy intervention is presented. The approach overcomes a number of weaknesses in current approaches to policy intervention. The approach involves three main conceptual elements: transactions, transaction governance mechanisms, and governance principles. The transaction is taken to be the basic unit of analysis. Profiles of transactions vary along a number of transaction dimensions. Transaction governance mechanisms - such as, for example, government service, regulation, contracts, vouchers, markets, taxes, and self-service - are each suitable for governing transactions having particular profiles. A mechanism will fail when used to govern transactions not fitting the profile. Governance principles are criteria or expectations - for example, efficiency, justice and liberty - used to judge how well a mechanism fulfills or achieves important societal goals. Specific choices of governance mechanisms (from the set that are technically feasible) therefore should be made according to how well they satisfy these governance principles. Public high school education is used as an example to illustrate the approach. A number of conclusions are offered.This is a revised version of a paper presented at the Annual Meeting of the American Society for Public Administration Portland, Oregon, April, 1988.