Government spending cycles: Ideological or opportunistic?

This paper examines whether partisan and opportunistic motives affect government expenditure growth in the Netherlands. The time series analysis, covering the period 1953–1993, allows for different types of government spending. In general, spending is inspired by ideological and opportunistic motives: all government expenditure categories show an upward drift during election times and the ‘partisan’ motives behind government spending are clearly revealed: left-wing cabinets attach greater importance to social security and health care than right-wing cabinets and right-wing cabinets value expenditure on infrastructure and defense more than left-wing parties.     

A political economic analysis of labor migration and income redistribution

We present a two-country political economic model of income redistribution with internationally mobile labor. Migration can be exogenous and/or endogenous (i.e., determined by labor income differentials). Political influence is determined by the size and homogeneity of the groups, where the latter can be affected by immigration. We show that immigration can increase the transfers to, and the income of, the mobile group. We also investigate the possibility of migration regulation, tax-transfer policy competition and coordination and, finally, coordination of regulation policies. It is shown that the selection of any of those regimes will depend on the particular distribution of political influence among the relevant social groups in the two countries.

     

The ruthless Fed: A critique of the AST hypothesis

This paper examines the hypothesis that the Great Contraction was the result of rational rent-seeking by members of the Federal Reserve System. In contrast to the AST hypothesis, evidence on the share prices of member banks that survived the contraction suggests that the owners of these banks suffered an absolute decline in real wealth and a decline relative to a broad spectrum of other investment alternatives. Furthermore, monetary surprises had no statistically discernible effect on the share prices of these banks. This evidence conflicts with the notion that rational rent-seeking would lead the owners of member banks and their bureaucratic conspirators in the Federal Reserve System to unleash a policy with the goal of contracting the money supply by 35 percent.     

Revealed preferences for public goods: Applying a model of voter behavior

Most analyses of preferences for government-supplied goods disregard the fact that in a democratic society, these preferences are revealed by an individual choice: the vote. In this paper this is taken account of in a model, explaining the dynamics in voting behavior in a multi-party system. The model assumes that voters may be categorized into K groups of individuals, pursuing the same interests, who remember how parties do in representing these interests (given the level to which they are held responsible for government policy). The model allows one to estimate party identification, sensitiveness to economic performances, time preference, and relative preferences for public versus private goods, all for each of the groups. Furthermore, the model allows for an estimation of the level to which various parties are held responsible for government policies.An empirical application of the model to the Netherlands is presented, albeit that data restrictions did not allow a distinction of more than one group. The results in terms of significance of the coefficients as well as the interpretation of the original parameters are promising. The two main conclusions are that the relative preference for private versus collective consumption is lower than the existing ratio in the Netherlands, and that two parties forming a government coalition are not held equally responsible for the policies.     

Neighborhood Disadvantage, Individual Economic Distress and Violence Against Women in Intimate Relationships

A continuing debate in sociological criminology involves the association of crime with economic disadvantage at both aggregate and individual levels of analysis. At the aggregate level, data from law enforcement sources suggest that rates of intimate violence are higher in disadvantaged neighborhoods. Disadvantaged neighborhoods may experience higher rates of intimate violence for compositional or contextual reasons, or rates may only appear to be higher because of differential reporting. Similarly, at the individual level, intimate violence appears more common among couples that are economically distressed, but whether economic distress triggers intimate violence is not certain. Using data from waves 1 and 2 of the National Survey of Families and Households and from the 1990 U.S. Census, we investigate the effects of neighborhood economic disadvantage and individual economic distress on intimate violence against women. Controlling for violence at time 1 and other individual level characteristics, we find that neighborhood economic disadvantage, neighborhood residential instability, male employment instability, and subjective financial strain influence the likelihood of violence at time 2. The relationship between neighborhood disadvantage and intimate violence appears to reflect both compositional and contextual effects.