The one-third rule: Learning about the net economic benefit of a subsidy from a single observation

The subsidization of a natural monopoly is justified on welfare-economic grounds if the resulting total economic surplus exceeds total costs. Using rather standard assumptions, a simple check, managing with a minimum of information and, in particular, without virtually any knowledge of the demand curve, is developed which is capable of confirming an existing economic case for subsidization.     

Institutional arrangements and the quality of publicly provided goods: A tentative note

There are considerable differences in the quality of publicly provided goods. A simple model is presented to explain these observations by differences in institutional arrangements without having to rely on eventual differences in the relative preferences of bureaucrats and politicians.     

Closeness counts if it matters for electoral victory: Some empirical results for the United Kingdom and the Federal Republic of Germany

It has been argued, that closeness counts not only with respect to the overall decision of a (general) election, but also with respect to the outcome in subelectorates. This proposition is tested using data both from the last German Bundestagswahl as well as the UK General Election in 1987. We find that (expected) closeness counts for turnout on the level of the individual electoral district, but not on any level below, e.g. on the level of precincts. Therefore, closeness seems to count only if it is relevant for electoral victories or defeats.