Books in review

He is the author of Importing Foreign Workers: A Comparison of German and American Policy.     

Heterogenous demand for public goods: Behavior in the voluntary contributions mechanism

Numerous laboratory experiments have investigated the performance of several processes for providing public goods through voluntary contributions. This research has been able to identify features of the institution or environment which are reliably likely to produce outcomes “close” to the free riding outcome or “substantially” greater than the pessimistic prediction of standard models. One such feature is the “marginal per-capita return” (MPCR) from the public good. Various authors have altered MPCR between groups or for an entire group at the same time. The experiments reported here address a different question, “What would happen if, within a group, some persons faced a ‘high’ MPCR while others faced a ‘low’ MPCR?”     

The ‘poisoned chalice’ of state ownership of water infrastructure in contemporary Blantyre,Malawi

The remunicipalisation of water in the global south has heightened a sense of optimism among left-leaning scholars and activists. This is widely heralded as a triumph over neo-liberal privatisation and therefore seen as putting water back into public hands. This article takes a critical view of this trend. It contends that insofar as remunicipalisation is conflated with state ownership, it may in other contexts not necessarily lead to water going back into public hands. An empirical account is presented of how state ownership in Malawi has been imbricated in commercialisation rationalities that have in turn undermined the establishment of an egalitarian public water network in Blantyre City. The article uncovers the extent to which the dominance of private capitalist interests in Malawi’s economy, lack of public financing and over-reliance on debt from global-local financial markets have systemically compromised the efficacy of the state in mediating the politics of water production and distribution.     

Book reviews

Mike Marqusee, REDEMPTION SONG: MUHAMMAD ALI AND THE SPIRIT OF THE SIXTIES (Verso Books, 1999)

Marilyn Buck, David Gilbert, and Laura Whitehorn, ENEMIES OF THE STATE, (Brooklyn, N.Y.: Resistance in Brooklyn Publication, 1998). Meyer, c/o WRL, 339 Lafayette Street, NY 10012 or mmmsrnb@igc.org.

Viviane Forrester, THE ECONOMIC HORROR (Cambridge, UK: The Polity Press [in association with Oxford, UK, and Maiden, Mass.: Blackwell Publishers], 1999).

Peter Roman, PEOPLE'S POWER: CUBA'S EXPERIENCE WITH REPRESENTATIVE GOVERNMENT (Boulder: Westview Press, 1999).

Stanislao G. Pugliese, CARLO ROSSELLI: SOCIALIST HERETIC AND ANTIFASCIST EXILE (Cambridge, Mass.: Harvard University Press, 1999).     

Impacts of housing and mortgage market discrimination racial and ethnic disparities in homeownership

Abstract

There are persistent differences in homeownership rates across racial and ethnic groups. Homeownership rates for whites are over 20 percentage points higher than for blacks or Hispanics. This paper uses a model of the housing tenure decision to gain a better understanding of these racial and ethnic differentials in homeownership and employs a decomposition technique that has been applied to labor market discrimination to report the results of the empirical testing of two hypotheses: (1) race (ethnicity) influences the probability of ownership through differences in household endowments (income, education, age, gender, and family type) and market endowments (price and location); and (2) race (ethnicity) directly influences the probability of ownership through racial or ethnic discrimination and other factors that may be correlated with race or ethnicity.

We find endowment effects important in explaining the persistent racial and ethnic disparities in homeownership. In brief, logit analysis of 1989 American Housing Survey (AHS) national sample data reveals that 81 percent (78 percent) of the differences between the predicted probability of ownership between black and white households (Hispanic/non‐Hispanic) are due to differences in group endowments. Direct effects explain 19 percent of the black‐white differentials and 22 percent of the Hispanic/non‐Hispanic differentials. Because the direct effects are modeled as residual differences, it must be realized that the residual components could also be capturing the influence of important omitted or harder to measure variables internal to the market process and correlated with race or ethnicity. These include wealth, household location, employment history, credit history, and cultural predisposition toward homeownership.