Moral hazard and free riding in collective action

Most political and economic theorists point to moral hazard in teams as the main obstacle to lobbies’ collective action. In this paper, we address this important issue with a coalition-formation game. In the process of doing so, we characterize equilibrium lobby structures both in the absence and in the presence of moral hazard. Three notable results emerge from such an exercise: (1) an equilibrium lobby structure exists under both specifications of the model, (2) moral hazard in teams may raise large groups’ equilibrium lobby size, and (3) it may also raise the level of collective action of large groups with low organizational costs. I wish to express my appreciation to Helmuth Cremer, Philippe De Donder, Kai A. Konrad, Michel Le Breton, Daniel Seidmann, Shlomo Weber, an associate editor of this journal and a referee for valuable comments and suggestions. I am also grateful to Paul Belleflamme, Francis Bloch, Robert Dur, Joan Esteban, Debraj Ray, and the audience at the CESifo Area Conference on Public Sector Economics 2006 and at the 15th Aix-Marseille SSIEIO for helpful discussions.     

DISCRIMINATION, WOMEN, AND WORK: Processes and Variations by Race and Class

Research on gender and workplace stratification has made clear that persistent employment, wage, and mobility gaps exist, and that discrimination at organizational and interactional levels is playing a role. Few studies, however, have been able to directly capture processes involved. In this article, we draw on unique qualitative and quantitative data pertaining to verified cases of workplace sex and race discrimination (1988 to 2003), and analyze the discriminatory experiences of African-American and white women across various occupational statuses. Notable are high levels of discriminatory firing for both groups, but higher instances of race-based promotional discrimination for black women—a pattern partially linked to their disparate concentration in sex-segregated workplaces and in positions of lower occupational prestige. Our qualitative immersion into case materials reveals influential mechanisms and employer justifications, unique manifestations of differential treatment on the job, and the use of "soft skill" criteria in gatekeeper decision making. We conclude by discussing important dimensions of workplace discrimination for women, variations by social class and race status, and how complexities of status matter for what women experience and gatekeeper behavior.     

Is There a Link Between Poverty and Food Security?

The study examines cointegration and causal relationship between FDI, terrorism and economic growth in Pakistan using quarterly frequencies for the period 1988–2010. For empirical analysis data is divided into two sub-periods i.e. pre 9/11 (1988–2001) and post 9/11 (2002–2010) periods. The results show that long run cointegration holds between FDI, terrorism and economic growth. Granger causality results indicate that there is bidirectional short and long run causality between economic growth and FDI for both sub-samples. These findings are supported by variance decomposition and impulse response analysis. The findings suggest applicability of modernization theory to explain FDI and economic growth relationship. The results also reveal that terrorism has a deteriorating impact on FDI.     

Where Lies the Harm in Lottery Gambling? A Portrait of Gambling Practices and Associated Problems

Lotteries are one of the most prevalent forms of gambling and generate substantial state revenues. They are also argued to be one of the least harmful forms of gambling. This paper is one of the first to examine exclusive lottery gamblers and compares their gambling patterns and problems as well other associated risky behaviours to those who are not exclusive lottery gamblers. Data were derived from two large surveys conducted with representative adult samples in France (n?=?15,635) and Québec (n?=?23,896). Participants were separated into two groups: exclusive lottery gamblers (ELGs) and non-exclusive lottery gamblers. Using multivariate analysis, study results reveal that ELGs, who represent two thirds of gamblers, generally exhibit less intensive gambling patterns and are less likely to report other risky behaviours. However, harms associated with moderate risk and problem gambling are found to be concentrated in specific subpopulations for both groups, primarily males, older individuals, and those who report lower income and education level. Given widespread participation in lotteries and concentration of harm within specific subgroups, these findings point to the need for prevention efforts despite the lower levels of harm associated with lottery gambling.     

Mining,indigeneity, alterity: or,mining Indigenous alterity?

In this special issue on ‘extraction’, we think critically about two urgent and entangled questions, examining the political economy of mining and Indigenous interests in Australia, and the moral economy of Indigenous cultural difference within Cultural Studies and Anthropology. In settler colonial states such as Australia, Indigenous cultural difference is now routinely presented as commensurate with, rather than obstructive of, extractive industry activity. Meanwhile, the renewed interest in ‘radical alterity’ across these disciplines has seen a movement away from regarding authoritative claims about ‘others’ as morally suspect – as only extracting from or mining Indigenous worlds for insights and academic prestige. The ‘ontological turn’, however, leads us to question the empirical status of the ontologies circulating through academic discussions. What happens when Indigenous people disappoint, in their embrace of environmentally destructive industries such as mining, for example? We argue that in cases where ‘they’ are not as different as ‘we’ might hope them to be, scholars should be concerned to foreground the potential role of colonial history and processes of domination in the production and reduction of ontological difference. Second, we call for critical assessment of the political, epistemological, and social effects of both academic and societal evaluations of difference. We conclude by urging for a scholarship that does not pick and choose between agreeable and less agreeable forms of cultural difference.     

Residential Remittances and Food Security in the Upper West Region of Ghana

In recent years, out migration from the Upper West Region to the southern belt of Ghana for farming has become commonplace. The natural question that has arisen is: what is the potential impact of remittances from this migration pattern on food security in the region? Using multivariate ordered logistic regression this study assesses the linkage between remittances and household food security (derived using the HFIAS) among urban and rural households (n=1,438) in the region. The findings show that urban remittance‐receiving households and rural remittance and non‐remittance receiving households were more likely (OR=2.44, p<0.05; OR=2.46, p<0.001; and OR=1.49, p<0.1, respectively) to report being more severely food‐insecure than urban non‐remittance receiving households. The findings demonstrate that household strategies such as migration and remittances on their own are not sufficient to ameliorate the precarious food insecurity situation of the region. The study calls for development of alternative livelihoods in the region.     

Gambling Patterns and Problems of Gamblers on Licensed and Unlicensed Sites in France

In 2010 France enacted a law to regulate supply and consumption of online gambling. Its primary aim was to protect citizens from gambling-related harm. This study aims to assess differences in gambling patterns and related harm between online gamblers who use licensed versus unlicensed sites. Participants (N = 3860) completed a self-administered online survey on gambling practices. Pairwise logistic regressions examined the association between the legal statuses of gambling sites people patronized and demographic variables and gambling types. Multivariate logistic regression models explored associations between gambling patterns and related problems according to the legal status of sites people have gambled on. Overall, 53.7 % of online gamblers report gambling exclusively on licensed sites. Those who bet on regulated activities on unlicensed sites, versus licensed sites, are more likely to be female, younger, less educated, inactive in the labor market and are more likely to perceive their financial situation to be difficult. Gambling on unlicensed sites is associated with more intense gambling patterns and more gambling-related problems compared to licensed sites. Findings demonstrate that gambling activities carried out on state licensed sites are associated with less overall harm to gamblers. Implications of these findings on future policy are discussed and prospective research directions are outlined.     

THE GREAT OVERESTIMATION: TAX DATA AND INEQUALITY MEASUREMENTS IN THE UNITED STATES, 1913–1943

Historical measures of income inequality in the United States must grapple with the challenge of data quality. We examine one such problem affecting the well-known estimates of income inequality produced by Piketty and Saez (2003) using the records of the Internal Revenue Service (IRS). Prior to 1943, incomes were self-reported. Combined with lax enforcement on the part of the IRS, self-reporting of incomes could provide a misleading portrait of the income distribution. To test the accuracy of IRS records, we compare them to independently tabulated state income tax returns between 1919 and 1945 from states with more comprehensive and rigorously enforced tax collection procedures. State income tax records show lower overall levels of income inequality than IRS records. However, we still find that top income concentrations declined across the period between 1929 and World War II. These findings attest to the sensitivity of distributional estimation to the reporting selectivity and economic quality of underlying tax data, suggesting that the existing IRS-derived series systematically overstates top-income concentration in the interwar period. (JEL H2, N32, D31, E01)