This article looks at whether political ideology matters for enforcement of the nation’s tax laws. An analysis of the Internal Revenue Service (IRS) budget and personnel suggests that the party affiliation of the President makes no difference to the overall level of IRS resources. However, there are significant increases in the number of IRS employees devoted to criminal investigation and revenue collection under Democratic administrations. Audits of tax returns filed by corporations, individuals and estates are also significantly more likely under Democratic administrations. The body of evidence points in the direction that while Congress has a greater influence in determining the overall level of resources available to the IRS, the President has a more pronounced influence on the allocation of those resources.

The generosity of maternity pay has been shown to be an important factor for mothers’ attachment to the labour market. In the UK, we can observe that the generosity of maternity leaves across universities varies greatly: some universities top up the statutory maternity pay with longer and better paid leaves, others are either less generous or only entitle academic women to the legal minimum. We want to understand why this is the case. Therefore, this article examines both theoretically and empirically how higher education employers decide about the generosity of the offered occupational maternity pay. We use a bargaining approach to model the supply and demand side of generous maternity benefits in universities with different characteristics and test the implications with a generalised negative binomial model. We find that universities’ income does not account for this variation while differences in terms of costs and benefits for employers do. Most importantly, our results show that more research intense universities with a higher previous share of female professors provide more generous maternity pay. We offer a range of explanations for these findings.

Auditing and Evaluation are two strategies which governments may use to ascertain if existing policies and programs are being administered as they ought. They provide critical information by which to determine the economy, efficiency, and effectiveness of government action and are the basis for holding accountable those responsible for the government policies and programs. The analysis compares the strengths and weaknesses of auditing and evaluation as means of monitoring accountability. Three types of accountability are discussed. Auditing makes its strongest contributing to managerial accountability through a focus on fiscal or regulatory issues.

Labour market regulation varies significantly, both within and between developed democracies. While there has been extensive research and debate in economics on the consequences of labour market regulation, the political causes for levels and changes in labour market regulation have received less scholarly attention. This article investigates a political economy explanation for differences in labour market regulation building on a theoretical argument that labour regulation can be used as a nonfiscal redistribution tool. Consequently, partisanship, the demand for redistribution and government budget constraint jointly determine whether labour market regulation will increase or decrease. Consistent with this argument, panel analyses from 33 Organisation for Economic Co-Operation and Development countries reveal that labour market regulation increases under left-wing governments that face increased market inequality and high government debt.

Although elected officials have the final say over pensions, boards of trustees also influence plan governance. Not a great deal is known about boards or how they shape policies. Boards are composed of politically and nonpolitically appointed members, as well as active and retired employees. Plan active-employee size turns out to be the best predictor of membership, suggesting that employee voice expands as plans cover more workers. Using both fixed effects and instrumental variables approaches, I show how boards shape plans’ policies and funded levels. Active and retired members shape discount rates, whereas active membership is positively associated with funded ratios. Interestingly, gridlock is also associated with higher discount rates. However, I find that plans’ actual investment returns are poor predictors of expected returns, irrespective of board composition. Although boards offer a venue through which states can manage funds, they are not suited to solving pensions’ governance challenges alone.

This paper considers the effects of uncertainty on the magnitude of prospective welfare gains from international macroeconomic policy coordination. Three different sources of uncertainty are studied: the initial state of the economy; the correct welfare weights to be assigned to policy targets; and the impact on the economy that economic models attribute to policy changes. Simulation results show that uncertainty about any of the three reduces the likely gains from coordination and creates the possibility of negative effects. The gains from improved economic knowledge can be quite substantial in relation to the gains from coordination. This suggests that the development and exchange of economic information can be an important function of international cooperation.

Environmental management typically involves multiple levels of government. Yet the intergovernmental context of environmental management in developing countries is seldom explored in the literature. This paper examines this issue by comparing the experiences in Guangzhou, Delhi, and Taipei, in which various types of unfavourable conditions create different problems for local regulatory enforcement. The study shows that, as commitment from the national government to local regulatory enforcement remains weak, the presence of local democratic institutions, legal remedies, and local environmental activism are key ingredients for checking against local enforcement slack. As legal remedies have various limitations, a bottom-up approach based on local flexibility, democratic processes, and environmental awareness and activism are more likely to bear fruit in the fight against pollution in developing countries.

Previous research on deregulation in industrialised countries emphasises differences between left-wing and right-wing parties, but data on product market regulation (PMR) indicate that these differences have been modest. If partisan preferences on the merits of deregulation differ sharply, why such modest differences? We argue that partisan differences only become pronounced when the government is strong and rules a relatively unified legislature. Thus, legislative fragmentation should reduce the left-right difference in PMR. We test this theory against PMR data in 29 industrialised countries, 1978–2007. We find that right-wing governments only have a strong negative effect on regulation if the legislature and the government are not fragmented.

We maintain that political institutions’ policy objectives are best met under conditions when they are unified, and also when their administrative leadership is effective. We apply this argument to the understanding of how unified Democratic and Republican governments in the American states have influenced the incomes of affluent citizens. We find that affluent income gains occur under unified Republican state governments when compensation to executive agency heads is sufficiently high. These income gains are notable relative to both divided and unified partisan control of state governments. The evidence highlights the asymmetric role that bureaucratic leadership plays in attaining policy outcomes consistent with political institutions’ policy preferences, while underscoring the limits of electoral institutions to shape policy outcomes of their own accord. Efforts to lower the capacity of the administrative leadership constrain unified political institutions from converting their policy objectives into policy outcomes.

When and how can advocacy groups influence the diffusion of new technologies, such as wind power? We examine the relationship between two different strategies that advocacy groups can adopt: political lobbying and campaigns aimed at potential end users of the new technology. Our game-theoretic analysis shows that without the opportunity to engage in political lobbying, end user campaigns by an advocacy group have the counterproductive effect of reducing the government's incentive to subsidise the new technology. Instead of supporting the advocacy group's campaigning, the government free rides on the social movement's campaigning efforts. While political lobbying cannot prevent free riding, it increases the government's incentive to subsidise the new technology, and thus increases the advocacy group's payoff. These findings suggest that advocacy groups can promote technology diffusion if they can effectively deploy a dual strategy of political lobbying and end user campaigning.

The efficient use of market-based policy instruments is an area of increasing importance as scholars and policymakers work to balance effective climate policy with economic growth. Carbon allowances and carbon offsets, despite being statutorily substitutable, behave in practice like imperfect substitutes. This paper provides a synthesis of extant work, market data and the regulatory frameworks of the world’s major carbon markets, and provides a comprehensive assessment of the drivers of demand for carbon offsets. It also provides a detailed assessment of the process through which international carbon offsets are produced, the UN’s Clean Development Mechanism. Demand for carbon offsets is heavily influenced by key programme design parameters that are specific to carbon market design and its implementation. These design parameters heavily influence the degree to which transaction costs, regulatory uncertainty and risk factor into the decisions of firms operating within the carbon trading programme. This paper also identifies key extra-statutory drivers that are outside of the policymaker’s control, which should be considered in both the policy design and the implementation process. This paper provides an instructive set of guiding criteria for policymakers and scholars for the design of future market-based environmental policy.

In trade policy France ranks as one of the most protectionist countries in the European Union. From an outside perspective, the French attitude is usually explained as a consequence of the strength and influence of the agrarian lobby. The article argues that farm groups in France have lost their formerly privileged position and the power to pursue their interests politically. A closer look at domestic politics shows that agricultural reforms were successfully implemented against the opposition of the farm lobby during the last ten years. But at the same time, French policy-makers were keen to create the impression that they were unable to make concessions in international trade talks due to the resistance of the agricultural sector. The EU-Mercosur negotiations demonstrate how the French government fended off demands for liberalization using farm interests as bargaining chips.

In most economically developed societies at present there is an active debate about the implications of the growing proportion of their populations who are elderly. In most such countries the changing age structure is seen in almost entirely negative terms. This paper argues for a less pessimistic approach. The transition to an older population will be gradual enough to allow time to plan. The importance of the shift in the so-called ‘dependency ratio’ is exaggerated because ‘dependency’ is unsatisfactorily defined. Nor is there clear evidence that as more people live to be older health and social service costs will rise accordingly: people are remaining fit to later ages and there is strong evidence that they can continue to make a positive contribution to the economy as workers and as consumers until relatively late ages. Social services can also be redesigned to maximize the independence of the elderly while minimizing costs. Since the ageing of society is unavoidable we should seek ways to treat the elderly as a resource rather than viewing them as a burden.

This article examines the divergences in labor market-performances in four small, open economies: Austria, Belgium, the Netherlands, and Sweden. It argues that great unemployment in Belgium and the Netherlands is partly due to the implementation of deflationary policies during the 1980s. The decline of Keynesian intervention in Belgium and the Netherlands is traced to the institutional independence of their central banks to set monetary and exchange rate policies separate from government. Because the Swedish and Austrian central banks are more integrated in the policy process and their countries are not members of the Common Market or the European Monetary System, social democratic governments have been able to go against the European trend of monetary restrictiveness and fiscal austerity. Accordingly, business in Austria and Sweden is more optimistic about future profit returns and is more willing to invest in productive capital, resulting in lower unemployment.

An extended conceptual and analytical framework is elaborated where proximity in time as one dimension of a multidimensional concept of disparity is used as a tool to integrate space and time in comparative analysis. Time distance measures the difference in time (number of years) when two compared units achieve a given level of the indicator. Time distance emphasises a novel perspective of disparity between the compared units, and time is a universal unit of measurement comparable between countries, levels and units of comparison. It complements rather than substitutes for conventional measures, at the conceptual level the overall degree of disparity is looked upon as a weighted combination of static and dynamic dimensions of disparity.

The comparative analysis of socio-economic data sometimes employs comparison across time within a country, e.g. monitoring trends in productivity, per capita income or unemployment. Alternatively, comparison is made across space between countries, e.g. comparing the level of productivity or unemployment in different countries at a given point in time. In each case, the analysis seeks to identify disparities. The purpose of this article is to demonstrate the advantage of analysing disparities, referred to often as inequalities or differences, by intergrating comparisons across both time and space. Empirical examples from the regions (republics and autonomous provinces) of the former Yugoslavia are used to provide empirical illustrations of this expanded analytical framework

This article contributes to the literature on direct democracy and public spending in two ways. First, we explore how direct democratic institutions interact with a specific aspect of the representative system, the size of the governing coalition, to influence public spending. Second, based on newly collected data, we examine the relationship between three different direct democratic institutions, coalition size and public spending over the period from 1860 to 2015. Empirically, we find that initiatives increase the size of the public sector under single-party governments, but this positive relationship disappears as coalition size increases. In contrast, we find that financial referendums slow down the growth of public spending, while law referendums are not systematically associated with public spending. Finally, we find that the relationship between direct democratic institutions, coalition size and public spending does not change over time despite the long period under investigation.

Communities with high levels of social capital enjoy an array of positive economic and community development outcomes. We assess the role of several key community characteristics, including the strength of government institutions, in explaining local social capital variation. The analysis draws on data from United States counties and includes regression modelling and a Blinder–Oaxaca decomposition to explore differences in social capital across an area’s metropolitan status and region. The data show social capital determinants vary by place both due to the endowment levels of these determinants and the productive value of their coefficients. For example, the coefficient productive values of government capacity explain some differences in social capital levels across metropolitan status (but not across region). Concurrently, variations in government capacity endowment levels help explain some differences in social capital levels across region (but not across metropolitan status).

Evidence of a link between the retrenchment of the welfare state and the expansion of the penal state has sparked a debate about the existence of a nexus. In this study, we critically explore this link by focusing on political parties. First, we argue that welfare and penal policies are likely to follow distinct paths, with left-liberal/green parties pushing for less punitive penal and market-liberal/conservative parties for less generous welfare policy. Second, we only expect a nexus between both policy domains if conservative or “third way” social democratic governments are in power. The former follows a coherent ideology, the latter compensates for welfare retrenchment with tough-on-crime policies. We test these claims quantitatively on a unique dataset covering all changes to welfare and penal legislation in Denmark, Germany, the United Kingdom and France between 1990 and 2014 and find our expectations supported except conservative influence on the penal–welfare nexus.

The purpose of this article is to examine the implications for welfare state retrenchment of central-local financial relations. In the post-war period, welfare state expansion has been a dominant theme in the development of central-local government relations in advanced industrial democracies. By the 1980s, however, nearly all OECD member countries had resorted to deficit financing as stagnant tax revenues combined with political pressure for increased public services. Faced with the urgent necessity of fiscal reconstruction, conservatives in advanced industrial democracies have favoured cutting public services throughout the 1990s. As always in times of retrenchment, elected officials have needed to win the goodwill of voters and interest groups for these unpopular cutbacks. There is no doubt that the politics of retrenchment is distinctively different from that of growth. Despite this new stage in the development of the welfare state, few systematic attempts have been made to analyse the impact of retrenchment politics on central-local financial arrangements. This article contributes to the new debate on comparative theories of retrenchment by analysing the impact of welfare state retrenchment in the context of Japan's recent fiscal reconstruction.