Public good and private good valuation for waiting time reduction: a laboratory study

In a laboratory experiment, subjects were endowed with money and waiting time. Preferences for waiting time reduction were elicited with salient rewards both as a private good and as a public good. The allocations of the public good that were theoretically predicted by the Nash equilibrium and the Lindahl equilibrium, respectively, were computed from the individual private good valuations and compared with the subjects?? actual contributions. We found a significant positive correlation between private good valuations in terms of willingness-to-pay and public good valuations in terms of voluntary contributions. Group contributions to public waiting time reduction significantly exceeded the non-cooperative prediction and were close to the socially optimal level. However, for a majority of subjects, the Lindahl equilibrium was not able to predict the observed contributions.     

GOVERNMENT DEBT‐THRESHOLD CONTRACTS

Politicians tend to push the amount of public debt beyond socially desirable levels in order to increase their reelection chances. We develop a model that provides a new explanation for this behavior: office holders undertake debt‐financed public projects, but postpone the timing of part of the output to the next term. This makes it difficult to replace them. As a consequence, the office holders' reelection chances rise—as does public debt. As a potential remedy for this inefficiency, we allow candidates for public office to offer government debt‐threshold contracts. Such a contract contains an upper limit for government debt and the sanction that an office holder violating this limit cannot stand for reelection. We show that such competitively offered contracts contain low debt levels that limit debt financing and improve the citizens' welfare. When negative macroeconomic events occur, government debt‐threshold contracts may be violated, and the economy is stabilized. (JEL: D7, D82, H4)     

INFORMATION DISCLOSURE POLICIES: EVIDENCE FROM THE ELECTRICITY INDUSTRY

While theory suggests that information programs may correct market failures and improve welfare, the empirical impacts of these policies remain undetermined. We show that mandatory disclosure programs in the electricity industry achieve stated policy goals. We find that the proportion of fossil fuels decreases, and the proportion of clean fuels increases in response to disclosure programs. However, the programs may produce unintended consequences. For example, programs may make “clean” firms cleaner, while leaving “dirty” firms relatively unchanged. If the marginal benefits of pollution abatement are larger at dirty firms than at clean firms, disclosure programs may induce inefficient abatement allocations. (JEL D83, Q58, D21)     

Inequality and public good provision: An experimental analysis

Recent studies report that economic inequality is associated with reduced government expenditures on social programs. Several prominent social scientists, including Putman (Putnam, R., 2000. Bowling Alone. Simon and Schuster, New York), attribute this to the detrimental “psychosocial effects” of group heterogeneity on cooperation. We test the hypothesis that inequality within a group reduces individual contributions in a public goods experiment. Unlike previous examinations of inequality and public good provision, we introduce inequality by manipulating the levels and distributions of fixed payments given to subjects. When made salient through public information about each individual's standing within the group, inequality reduces contributions to the public good for all group members.     

城市生态绿化项目的政府投资方式改革——基于绿地建设与房产开发商的利益互动关系研究

通过对公共产品的内涵分析表明，仅由政府提供公共产品经常会出现不经济现象；只要解决外部性问题，公共产品是可以由私人提供的。以上海公共绿地为例，在分析目前公共绿地政府投资方式的基础上，研究绿地建设与房产开发商的利益互动关系，探讨城市绿地外部效应内部化的投资方式改革，提出房产与绿地联合开发建议，以期减轻政府建设城市绿地的资金压力，为实现城市公共绿地的最优投资提供理论上的依据。     

On equity with public goods

Existence theorems for envy-free and efficient allocations are derived for economies with public goods. For economies with an arbitrary but finite number of private and public goods, an adaptation of the existence proof of Svensson for private good economies is used. For economies with one private and one public good, a case often studied in theory and applications, two more direct proofs are given, using different conditions and taking advantage of the particularly simple structure of the set of envy-free allocations in this case. These proofs are also shown to apply to the case of excludable public goods with congestion.I am grateful to William Thomson, Marcus Berliant, Robert Gilles, Hervé Moulin, Thomas Palfrey, Tomoichi Shinotsuka, Simon Wilkie, and two anonymous referees for their comments. This paper is a revised version of Chap. 1 of my doctoral dissertation submitted to the University of Rochester in July 1988. The financial support of the University of Rochester in the form of the Raymond N. Ball Dissertation Year Fellowship is gratefully acknowledged. All shortcomings of this paper are solely of my own creation.     

A corporate responsibility? The constitution of fly-in,fly-out mining companies as governance partners in remote,mine-affected localities

In some remote parts of Australia, mining companies have positioned themselves as central actors in governing nearby affected communities by espousing notions of ‘voluntary partnerships for sustainability’ between business, government and community. It is argued in this paper that the nature and extent of mining company interventions in nearby communities constitutes a new problematic for these corporate actors. Drawing on research conducted in two remote areas in Australia, this paper undertakes an analytics of government to ask how mining companies have become leading actors in determining the future of local, mine-affected communities. It is suggested that their interventions arise from two processes: industry priorities for securing a ‘social license to operate’ by making a positive contribution to affected communities; and the restructuring of the state which has created an institutional void in these remote localities. As a result, mining companies are ‘filling the gaps’ in local service delivery through a mode of governing that takes the form of patronage rather than partnership. This raises questions about the future viability of these communities once the mines eventually close, and new challenges of governing for corporate actors.     

Integrating psychometric and cultural theory approaches to formulate an alternative measure of risk perception

Psychometric and cultural theory are key approaches used to explain risk perceptions. However, both approaches explain only 20 and 5–10% of the variance of risk perceptions, respectively. Through advances in social psychology, terror management theory revealed that certain survey questions used in the psychometric approach primed thoughts of death. Such unintentional priming evoked defense mechanisms that would subconsciously activate participants’ cultural biases and values when answering some questions but not others. There are two implications: one, psychometric theorists need to modify their questionnaires to reduce the incidence of priming thoughts of death; and two, integrating the psychometric and cultural theory approaches may potentially explain a higher amount of variance in risk perceptions. Specifically, attitudes (psychometric approach), demographics, affect and past behavior collectively influence cultural biases, which in turn exert an effect on risk perception. However, such a model calls for an appropriate measure of the dynamic nature of cultural biases that current attitudinal measures fall short of. Drawing from methodology within industrial/organizational psychology, the Situational Judgment Test (SJT) is proposed as an alternative measure for risk perception. Steps to designing an SJT are outlined and followed through to culminate in a 10-item SJT that measures cultural biases.     

Emergency management communication: The paradox of the positive in public communication for preparedness

Government emergency management agencies use public communication to inform and educate around risks such as floods, fires, storms, and earthquakes with the aim to help communities understand how to prepare for these emergency events. This study of government communication relating to emergency management preparedness examines an Australian context to understand the types of messages preparing community members for natural hazards. Findings suggest that agencies employ a two-track approach combining warranting and engagement messages. Yet a deeper look at the messages suggests a “paradox of the positive” that overemphasizes the capacity of local agencies to respond to crises and underemphasizes citizen shared responsibility. Implications for the paradox of the positive in other national contexts and public relations theory building are also discussed.     

Media Uses in Disaster Situations: A New Focus on the Impact Phase

The media, in the sociology of natural disasters, are mainly viewed as management tools used to influence people's preparedness and response to natural disasters. As a consequence, research in this area has been limited to the warning, preparedness, and recovery phases. Through interviews with residents of eight communities in Mayagüez, Puerto Rico, impacted by Hurricane Georges in 1998, this paper shows that through integrating mass communication research to disaster theory we can obtain a more accurate picture of the media–audience relationship during natural disasters. In addition to the manifest functions of providing information, the media also have latent functions in disasters, which consist of emotional support and companionship. The media also help isolated individuals to feel connected with the "outside world." These functions are most salient in the impact phase of disasters. These functions are also particularly crucial as they have been shown to reduce the negative effects of stressful life events.     

DIRECT TESTS OF INDIVIDUAL PREFERENCES FOR EFFICIENCY AND EQUITY

Departures from “economic man” behavior in many games in which fairness is a salient characteristic are now well documented in the experimental economics literature. These data have inspired the development of models of social preferences that assume agents have preferences for equity and efficiency as well as their own material payoffs. Empirical failure of the economic man model comes from experiments that provide direct tests of its distinguishing characteristic: indifference to the payoffs of others. This paper reports an experiment that subjects popular social preferences models to the same type of empirical challenge. We report direct tests of the distinguishing characteristics of these models: preference for allocations that have higher efficiency and greater equity. (JEL A12, A13, B49, C70, C91, D63)     

Linear cost sharing in economies with non-Samuelsonian public goods: Core equivalence

 We consider an economy with non-Samuelsonian public goods and we focus on linear cost sharing. In a linear cost sharing equilibrium all agents in the economy optimize given a certain fixed cost share to be contributed towards the provision of public goods in the economy. Hence, each agent pays a certain fraction of the total establishment costs of public goods and these cost shares are common knowledge. We show that for a certain fixed contribution scheme the resulting linear cost share equilibria are equivalent to corresponding core allocations, in which the core is based on the integral of the individual cost shares. We also show that there is no equivalence of the Foley core with cost share equilibria, even in well-behaved large economies. Received: 16 August 1995/Accepted: 29 July 1996     

A social capital approach to improving public relations’ efficacy: Diagnosing internal constraints on external communication

This article extends Heath's (2006) concept of fully functioning society theory (FFS) and argues that public relations can be used as a force to enhance collective social capital in communities. To serve this purpose, however, the effectiveness of an organization to serve its external publics is often dependent on the status and relationships the public relations function has developed within the organization. This paper provides a network analysis of a government agency in Jordan that illustrates the relationship between internal organizational social capital and the potential problems for establishing external relationships with publics. Implications for public relations research methods and theory are also discussed.     

World Music,nation and postcolonialism

Recent scholarship on representational politics in popular music tends to dwell on the macropolitical entailments of contradictory desires acted out through the consumerization of culture within the globalized circuitry of supranational capitalism. This article takes a micropolitical look at what salsa means for working-class Puerto Ricans in the colonial diaspora, positing salsa as a musical culture that fuels, and is fuelled by, the organic intelligence of its practitioners. Comparatively analysing the performative content and contexts of two albums produced at the symbolic juncture of the Quincentennial (1992) – Willie Colón's Hecho in Puerto Rico and Ruben Blades' Amor y Control – and sharing an auto-ethnographical account of experiences with salsa music in the Puerto Rican colonial diaspora, this article explores the cultural politics obtained between mainstream appropriations of Latin musical cultures and salsa within the working-class communities who created it. Thus shifting the critical lens from above to below, the most salient concerns become the ethical dimensions of subaltern (kin)aesthetics and knowledges, which can be charted alongside the overt rejection of consumerist assimilation, the conscious racialization of cultural agency and other articulations of liberatory desire.     

Migrant labor in agriculture: an international comparison

The May 1984 Conference on Migrant Labor in Agriculture at the University of California-Davis discussed papers by 22 farm labor experts from 12 nations. Each industrial nation utilizes a different set of public and private policies to supply workers for labor-intensive agriculture, but none is entirely satisfactory. Labor-intensive agriculture is becoming more dependent on workers who are shut out of labor markets. Some countries have simply accepted foreign workers in agriculture, while others have adopted policies to integrate farm and nonfarm labor markets. Polices to reduce agriculture's reliance on workers-without-options include restructuring employment practices to employ fewer seasonal workers for longer periods, mechanizing production, and importing fruits and vegetables from nearby developing countries. This article explains the salient features of labor-intensive agriculture, the various polices for obtaining seasonal farmworkers, and options to reduce farming's dependence on migrant labor.     

SPORTS‐LED TOURISM,SPATIAL DISPLACEMENT,AND HOTEL DEMAND

We analyze the relationship between professional sports events and concerts held in LA's Staples Center and nearby hotel performance. Government‐led economic redevelopment projects often envision sports facilities as tourist magnets. Little evidence exists supporting links between sporting events and hotel demand. An empirical analysis exploiting exogenous daily variation in the timing of games and concerts from 2002 to 2017 shows a small positive impact on room revenue at hotels within one mile and larger room revenue decrease at hotels located one to 4 miles away. The overall impact on hotel room revenue and rooms rented was not positive. Nearby hotel room rates increased during NBA and NHL work stoppages. The city granted four new hotels built very near the arena exemptions from occupancy taxes for 20–25 years; these exemptions reduced hotel tax revenues by a minimum of $4.5 million annually and may not have been needed to spur new hotel development. (JEL H26, H71, Z28)     

A voluntary participation game through a unit-by-unit cost share mechanism of a non-excludable public good

The strategic analysis of voluntary participation in the public good provision has shown two distinct results. First, when the provision of public goods is binary, there are Nash equilibria supporting efficient allocations, and these are Strong Nash equilibria of the game. On the other hand, a model of a continuous public good (Saijo–Yamato, J Econ Theory 84:227–242, 1999) showed that the participation of all agents is not an equilibrium in many situations. This article considers the provision of a discrete and multi-unit public good, and examines a unit-by-unit participation game. Namely, people are asked to participate in each unit of public good provision, and those who chose to participate share the marginal cost of public good. In this game of public good provision, there are subgame-perfect equilibria that are Pareto efficient. We also use the refinement concepts to eliminate inefficient subgame-perfect equilibria and also to characterize the efficient subgame-perfect equilibria.     

Trade-off between equity and efficiency in a general economy with indivisible goods

In most of the recent literature on fair allocation in economies with indivisible goods and a single infinitely divisible good, it is assumed that each agent can consume at most one indivisible good. In this paper, we show that if this assumption is dropped, there do not necessarily exist envy-free and Pareto efficient allocations. However, envy-free allocations still exist and so do Pareto efficient allocations. Hence, a trade-off between equity and efficiency arises.     

Nash implementation of Lindahl allocations

We define a class of Nash based mechanisms that implement Lindahl allocations in standard public good economies. As those that first proved Nash implementation of Lindahl allocations, defined by Hurwicz (1979) and Walker (1981), the mechanisms provided here are continuous, feasible, and independent of agents' characteristics. In economies with two agents (e.g., bilateral monopolies, duopolies, principal-agent models), our mechanisms are also applicable, in contrast to the well-behaved mechanisms in the literature, and they satisfy favourable stability properties.     

PUBLIC OPINION AND THE END OF BUSING: (Mis) Perceptions of Policy Failure

Public opinion was largely ignored when the federal government first compelled busing for school desegregation in the 1970s. Yet, public opinion has a potentially large impact on local school boards' plans and policies when communities seek or obtain unitary status. Scholarship suggests that self-interest, racial attitudes, and philosophical values shape antibusing sentiments. Analysis of survey data from Nashville, Tennessee, shows that they do there as well. More important, though, further analysis shows that perceptions of busing's failure, which seem to be misguided, have a substantial impact on whether respondents want busing to end, even when race, self-interest, and ideological values are controlled. Perception, as mis-perception, is therefore a potentially salient factor in policy evaluation. Perceptions of policy success or failure may be socially constructed by media, elites, or people themselves. Additional research in this direction is clearly necessary.