The other side of Malaysia’s enviable economic and multiethnic stability: the obstinate resilience of ‘money politics’

Many governments, in their zeal to progress and deliver the fruits of development, are caught in a web of unsavory habits and practices that impair not only their international image but also domestic legitimacy. One such perennially persistent and resilient disease is ‘money politics.’ Taking Malaysia as a case study, we note that despite sustaining a remarkable record of economic and multiethnic stability, the country has also been helpless in mitigating this obstinate issue. In this article, it is posited that the phenomenon is not a new or recent portent but has actually persisted even prior to independence. We shall then contend that unless the ruling Barisan Nasional (BN) coalition government attaches greater priority in stamping out this political bug, the country’s otherwise enviable development trajectory and the quest to reach a ‘developed nation’ status via its Vision 2020 declaration, even if fulfilled, are not cause for celebration, given its implications to the country’s economic sustainability and multiethnic stability.     

Rent-seeking and competitive preferences

In this experiment, I examine the extent to which competitive social preferences can explain over-bidding in rent-seeking contests. The Human treatment is a standard two-player contest. In the Robot treatment, a single player bids against a computerized player, eliminating potential social preference motives. The results show no difference in bids between treatments at the aggregate level. Further analysis shows evidence of heterogeneous treatment effects between impulsive and reflective subjects. Moreover, impulsive subjects are more likely than reflective subjects to deviate qualitatively from the shape of the theoretical best response function.     

On high fertility rates in developing countries: birth limits, birth taxes, or education subsidies?

In this paper, we consider two types of population policies observed in practice: birth limits and birth taxes. We find that both achieve very similar equilibrium solutions if tax revenue finances lump-sum transfers. By reducing fertility and promoting growth, both birth policies may achieve higher welfare than conventional education subsidies financed by income taxes. A birth tax for education subsidies can achieve the first-best solution. The welfare gain of the first-best policy may be equivalent to a massive 10–50% rise in income, depending on the degree of human capital externalities and the elasticity of intertemporal substitution.      

The effects of religion on subjective aging in Singapore: An interreligious comparison

This interreligious comparison deals with Buddhist and Christian Chinese elderly Singaporeans. Based on the data gathered from in-depth interviews with five Buddhists and five Christians, this article explores how religion plays a role in the adjustment to the physical, social, and existential aging processes. It investigates the similarities and differences between Buddhist and Christian beliefs in terms of their effects on the subjective experience of aging. Findings indicate that religion can play an integrative role that facilitates adjustment to the aging process. Also, they suggest that though there are fundamental, irreducible differences in terms of religious beliefs and practices between Buddhism and Christianity, there are far less differences in the ways they impact on the integrative aging process. Some negative effects of religion on aging and some viewpoints about successful aging are presented in the discussion.     

Can faster income growth reduce well-being?

In his book Luxury Fever: Why Money Fails to Satisfy in an Era of Excess (1999) economist Robert Frank describes a number of significant trends in the U.S., and to a lesser extent in other industrial economies, since the late 1970s: rapidly rising incomes, for those at the upper end of the income scale, increasing hours of work, and increased consumerism (share of consumption of ‘status goods’). We demonstrate that the first development can parsimoniously account for the latter two. Our novel specification of the utility function simultaneously incorporates a relative-consumption effect for status goods and non-homotheticity of preferences between status and non-status goods, and we also allow for endogenous labour–leisure choice. It is possible that well-being has declined, notwithstanding the faster income growth, or at least not risen pari passu with the growth in earnings. Comparisons are made with other studies, and policy implications briefly discussed.

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ON EQUILIBRIUM PLAYER ORDERING IN DYNAMIC TEAM CONTESTS

We study equilibrium player ordering in a dynamic all-pay contest between two teams. The contest lasts two periods, and each team consists of two players who perform in different periods on behalf of their teams. The team with the higher aggregate output wins the prize, which is a public good to its players. Each team has one stronger player and one weaker player, and the two teams can differ in their values of the prize. The teams maximize their winning odds by strategically assigning their players to different periods. We find that when the intrateam heterogeneity in player ability is not excessive, the teams would allocate their stronger players to the late positions as the “anchormen.” When both the intrateam ability gap and interteam heterogeneity in teams' values become excessively large, the team with high value always places its stronger player in the early position, who will place a large bid to preempt late competition. (JEL C7, D7, D8)     

Recent trends in rural development and their conceptualisation

The reversal of rural-urban traditional migration patterns in the last 20 years and the diffusion of non-agricultural activities in rural areas indicate that recent trends in rural development have not followed expected patterns. The paper retraces these recent changes, using as examples the case of France and Italy, two countries with quite different patterns of economic and social development. It follows the characteristics of the real processes under way on the one hand and the conceptualisations and categories used to understand them on the other. The paper concludes that recent trends require a thorough theoretical revision of the traditional assumptions in the social sciences. It suggests that the rural-urban criteria of spatial differentiation is losing significance while the regional or local economy approach provides a more useful framework, to explore the relevant criteria for differentiating rural development.