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.     

Court Awards of Damages for Loss of Future Earnings: An Empirical Study and an Alternative Method of Calculation

This article examines the effect upon damages for personal injury of methods used in the United States of America to calculate loss of future earnings. The work of lawyers is examined from the perspective of labour economists. The damages calculated by using these alternative methods are compared with those actually awarded in over a hundred cases determined by courts in England and Wales. This interdisciplinary and comparative study reveals that the tort system fails to satisfy one of its main objectives in that it does not provide recipients of damages with 'full' compensation.     

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.     

Symposium: Policy analysis for congress. Policy analysis for congress: Lengthening the time horizon

Policy analysis for the Congress is a timely subject. Several policy initiatives have emerged recently from the “first branch.” Others have demonstrated an independent capacity for analysis that is impressive by historical standards. This article introduces a practitioner symposium of three related works on policy analysis for Congress, with appropriate commentary by a distinguished veteran. It argues that because timing is crucial in the congressional policy process, anticipation and advance preparation are central to the effective use of analysis. The other articles illustrate the stages of advance preparation—of the policy analyst, the congressional environment, and the Member for voting—in the form of case studies.     

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.     

Assessing Civil-Military Relations and the January 6th Capitol Insurrection

The events of January 6, 2021, when violent rioters attacked the Capitol building in Washington in order to disrupt validation of the 2020 presidential election, forced an unprecedented reckoning with the state of American politics. Members of Congress struggled to account for the rhetoric that gave rise to the event; law enforcement grappled with the challenge of holding accountable those who perpetrated the violence; and journalistic outlets wrestled with reporting a complex web of conspiracy theories and disinformation that gave rise to the insurrection. But for senior military leaders, the question was how to explain the troubling presence of active duty servicemembers and veterans in the first attack on the American seat of government in two centuries. The result is a profound and urgent discussion in U.S. civil-military relations.     

Living Under Aboriginal Exemption: Negotiating State Governments' Policies and Practices

This volume of the Australian Journal of Politics and History presents an edited collection of papers delivered by emerging and established researchers at the Second Rethinking & Researching 20th Century Aboriginal Exemption Symposium, co-hosted by the University of the Sunshine Coast with La Trobe University in October 2021. The papers reveal the human costs, hardships and legacies of the state policies of Aboriginal Exemption last century which supposedly offered the promise of freedom to Indigenous Australians confined to reserves and missions. Equally, the papers explore innovative and culturally safe ways to investigate and further understand Aboriginal exemption that ensure Ancestors and Elders, who actively negotiated, resisted and subverted its use, are recognised and honoured.     

Book reviews

Marju Lauristin and Peeter Vihalemm with Karl Erik Rosengren and Lennart Weibull, Return to the Western World. Cultural and Political Perspectives on the Estonian Post‐communist Transition (Tartu University Press, Tartu, 1997), xvi +387 pp., ISBN 9985–56–257–7

Peter H. Merkl and Leonard Weinberg (eds), The Revival of Right‐wing Extremism in the Nineties (Frank Cass, London, 1997), 289 pp., ISBN 0 7146 4676 8 (hb), 0 7146 4207 X (pb)

Arthur Lipow, Political Parties and Democracy (Pluto, London, 1996), 256 pp., ISBN 0 7453 1099 0 (hb), 0 7453 1098 2 (pb)

Gerald F. Gaus, Justificatory Liberalism: An Essay on Epistemology and Political Theory (Oxford University Press, Oxford, 1996), ix + 374 pp., ISBN 0–19–509439–5 (hb), 0–19–509440–9 (pb)

Mark T. Berger and Douglas A. Borer (eds), The Rise of East Asia: Critical Visions of the Pacific Century (Routledge, London, 1997), 308 pp., ISBN 0–415–16167–3 (hb), 0–415–16168–1 (pb)

Paul Anderson and Nyta Mann, Safety First: The Making of New Labour (Granta, London, 1997), 456 pp., ISBN 1–86207–070–9