The effect of predatory rent-seeking on household saving and portfolio choices: A cross section analysis

The existence of predatory behavior, when measured by the number of lawyers per capita and the crime rate, seems to have an impact on saving and investment behavior in U.S. households. Where the risk of redistribution are lowest, the incentives to save are higher and, a fortiriori, the willingness to invest in highly vulnerable financial instruments is enhanced. Either because of low saving rates or because of disintermediation, households in states where the risks of redistribution are greater avoid accumulating financial assets.Recent years have seen a considerable decline in the U.S. saving rate. There is also evidence of large differences in saving rates from one country to another, with U.S. households among the lowest savers. Yet not all of these variations have been explained satisfactorily in empirical studies based on conventional theory. Perhaps one explanation which has been inadequately studied is the reduced expected retirement time horizon whether it be due to objective conditions such as retirement age and life expectancy or to uncertainty. Some reasons for myopic planning horizons are macroeconomic instability (McCauley and Zimer, 1989), the possibility of nuclear war (Slemrod, 1982, 1986 and 1989); Henderschott and Peek, 1985 and 1987); and the fear of socio-political conflict (Stewart and Venieris, 1985). I have suggested and tested here yet another factor: the fear of future redistribution. Using differences in interest income across U.S. states, this paper shows that fear of redistribution does seem to have a large influence on saving behavior.     

CHILD SUPPORT IN THE UNITED STATES

This article reports on the results of a telephone survey conducted with a random sample of households screened for eligibility to receive child support in the state of Colorado. Despite the recent enactment of ambitious child legislation at the state and federal levels, the accounts of 731 custodial parents reveal a massive level of unmet need, with child support problems being most extreme for those never married to the chilďs other parent. These mothers typically lack an order establishing a legal obligation to pay child support and have incomes that fall below the poverty level. Overall, women of Colorado with child support orders received only about half of the support they were due, and 73 per cent of all women due support reported that they had experienced problems in collecting support either currently or in the past. The average amount of back due child support owed to the 60 per cent of women in the sample who reported an arrearage was $12,000. Analysis revealed that payment behaviour tracked with the length of time since separation with payment patterns worsening over time and irregular visitation and/or the presence of problems around child access. Female obligors exhibited the same payment patterns as their male counterparts but were more apt to maintain visitation. The article documents the dramatic, negative economic consequences of irregular or missing child support payments for custodial parents, and discusses the additional legal and financial commitments needed to improve the situation. The efficacy of private child support transfers to achieve an adequate standard of living for all children is called into question.     

STATE SUPREME COURT APPLICATIONS OF TROXEL v. GRANVILLE AND THE COURTS' RELUCTANCE TO DECLARE GRANDPARENT VISITATION STATUTES UNCONSTITUTIONAL

In this article, the author reviews state supreme court applications of Troxel v. Granville , analyzing the impact of the decision on the courts' ongoing efforts to adjudicate visitation disputes between parents and grandparents. Set against a background of legislative recognition of grandparents' rights and judicial uncertainty regarding the appropriate role of nonparents in children's lives, Troxel reaffirmed the constitutional right of parents to direct their children's upbringing. The author argues that state supreme courts evaluating gradparent visitation statutes and seeking to enforce Troxel 's presumption in favor of parents should be more willing to strike down overly broad statutes. Such an approach would be a positive step toward addressing the excessive judicial discretion that the Troxel Court found so problematic, and would signal to state legislatures the need for statutes that both provide for the needs of children and protect parental rights.     

The race may be close but my horse is going to win: Wish fulfillment in the 1980 presidential election

Using data from the 1980 U.S. presidential election, we investigate the extent to which voter expectations about candidate electoral success and margin of victory are subject to systematic biases. In particular, we examine the extent to which candidate supporters overestimate their choice's likelihood of success. After finding a rather dramatic bias in the direction of wishful thinking, we review alternative explanations of this phenomenon, including a model based on nonrandom contact networks and one based on preference-related differences in expectations about exogenous variables that could affect the election outcome.     

Custody decisions in Alabama before and after the abolition of the tender years doctrine

This study investigated the impact of the abolition of the tender years doctrine on custody decisions in divorce cases. This doctrine supported the presumption that the mother is the more suitable parent for young children. In March of 1981, the Supreme Court of the State of Alabama found this doctrine to be unconstitutional. To assess the hypothesis that this ruling had a significant effect on custodyrelated decisions, a sample of court records for divorce cases in an Alabama county was examined as representative of the state on a number of key variables. Overall, no significant differences were found on indicator variables for the comparisons before and after the ruling. There was neither an increase in custody grants to fathers nor an increase in custody requests by fathers.     

Stalin and the cold war: A review article

Caroline Kennedy‐Pipe, Stalin's Cold War: Soviet Strategies in Europe, 1943 to 1956. Manchester: Manchester University Press, 1995, 218 pp., £40.00 h/b, £14.99 p/b.

R. C. Raack, Stalin's Drive to the West, 1938–1945: The Origins of the Cold War. Stanford: Stanford University Press, 1995, 265 pp., £35.00 h/b.