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.     

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.     

End note: Reflections and limitations

Abstract

It may seem curious to some readers to match the outstanding athlete biographical sketches of the main scholar-researchers of this volume with their fierce message regarding the threat to sport, and its practitioners, from sexual harassment. In an absolutist, three second sound bite, mass consumption stereotype-driven developed world, one might expect here a “weakest link” debate about the value(s) of sport. This debate would feature effete, intellectual critics and very muscular, tradition-bound advocates. Not so; for these writers not only demonstrate well-reasoned and literature-informed arguments, and thorough, data-driven analyses but also courageous research programmes extending back to times when the work they did was completely marginalised and misunderstood. Their work, then as now, was fuelled in great part by a deep awareness and regard for the experience of sport as a healthy and joyful human right and by a wish to preserve it as such, for all.