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2. Economic Well‐Being under Plan versus Market: The Case of Estonia and Finland
- Author:
- Anna Bocharnikova
- Publication Date:
- 01-2021
- Content Type:
- Journal Article
- Journal:
- The Cato Journal
- Institution:
- The Cato Institute
- Abstract:
- This article investigates the dynamics of individual economic well‐being in Estonia and Finland over three periods: (1) 1923–1938, when both countries were similarly situated; (2) 1960–1988, during which Estonia was under Soviet control; and (3) 1992–2018, after Estonian independence. Economic well‐being is calculated using the purchasing power of wages in terms of the affordability of a minimal food basket. The results show that, in 1938, the purchasing power of wages in Estonia was 4 percent lower than in Finland; in 1988, it was 42 percent lower; and, by 2018, the gap had fallen to 17 percent. Consequently, as measured by the purchasing power of wages, well‐being in Estonia and Finland was similar before the Soviet occupation, widely diverged during Soviet rule, and converged after Estonian independence, with the transition from plan to market.
- Topic:
- Economics, Markets, Politics, History, and Culture
- Political Geography:
- Europe, Finland, and Estonia
3. The Limits of Democracy
- Author:
- D. Eric Schansberg
- Publication Date:
- 10-2021
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- There’s an old saying that democracy is the worst form of government, except for all of the others. Or putting it another way: the best form of government is a benevolent and knowledgeable dictator, except for the problem of finding a good and wise leader. Whatever democracy’s strengths, they are relative not absolute, and they are contingent on context—namely, the people being governed, the people governing, and the underlying institutions.
- Topic:
- Politics, Governance, Democracy, and Populism
- Political Geography:
- Global Focus
4. The Case against a Carbon Tax
- Author:
- Robert P. Murphy, Patrick J. Michaels, and Paul "Chip" Knappenberger
- Publication Date:
- 10-2015
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- A vigorous campaign aimed at American policymakers and the general public has tried to create the perception that a federal carbon tax (or similar type of “carbon price”) is a crucial element in the urgently needed response to climate change. Within conservative and libertarian circles, a small but vocal group of academics, analysts, and political officials are claiming that a revenue-neutral carbon tax swap could even deliver a “double dividend” — meaning that the conventional economy would be spurred in addition to any climate benefits. The present study details several serious problems with these claims. The actual economics of climate change — as summarized in the peer-reviewed literature as well as the U.N. and Obama Administration reports — reveal that the case for a U.S. carbon tax is weaker than the public has been told.
- Topic:
- Climate Change, Economics, Energy Policy, and Politics
- Political Geography:
- Global Focus
5. A Tale of Two Villages: Kinship Networks and Political Preference Change in Rural India
- Author:
- Neelanjan Sircar
- Publication Date:
- 09-2015
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- This paper develops a theory on how voters form and change political preferences in democratic developing world contexts. In the developing world, where state institutions are often weak, voters tend to be more focused on the competence and capacity of parties and candidates to deliver benefits. Such information may be difficult to ascertain, so voters must glean information from how candidates conduct themselves during the electoral campaign. Voters use kinship networks to develop more accurate preferences by collectively reasoning through newly available information on candidates. In order to demonstrate these claims, this study analyzes data collected on political preferences and kinship networks in two villages just before and after the campaign period during the 2011 Assembly election in the Indian state of West Bengal. The paper finds very strong kinship network effects on changes in issue preferences and vote choice over the course of the campaign and explains the results through qualitative work and a series of network autoregressive statistical models. In sum, this paper demonstrates how voters develop independent preferences and implement political change, even in low information contexts with weak human capital.
- Topic:
- Democratization, Politics, Self Determination, and Elections
- Political Geography:
- India
6. Whose Side Are You On? Identifying the Distributive Preferences of Local Politicians in India
- Author:
- Mark Schneider and Neelanjan Sircar
- Publication Date:
- 08-2015
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- The literature on decentralized public programs suggests that errors in the targeting of anti-poverty programs are rooted in the capture of these programs by local elites or local politicians. Consistent with the literature on moral economy in political science and experimental economics, we argue that voters in contexts of rural poverty prefer local leaders who target subsistence benefits to the poor. In a high information village context, where voters and leaders know each other, we argue that local elections lead to the selection of local leaders with pro-poor preferences over the distribution of these benefits. We show this with a novel theory of local politicians’ social preferences. We test our theory with unique data from a behavioral measure, conducted in the context of a lottery with a modest cash prize in rural India, that captures a scenario in which local leaders have full discretion and anonymity over allocation among members of their rural communities. We analyze our data using a novel estimation strategy that takes the characteristics of the pool of potential beneficiaries into account in decisions over allocation under a budget constraint. We find that local leaders have strong preferences for targeting the poor, and particularly those they believe supported them politically in the past. This article suggests that free and fair elections at the local level can powerfully encourage pro-poor targeting even in contexts of weak institutions and pervasive poverty. It also makes a fundamental contribution to research on distributive politics by challenging research in this area to demonstrate the effect of electoral strategies and other distortions on allocation relative to local leaders’ baseline distributive preferences.
- Topic:
- Democratization, Economics, Politics, Political Theory, and Elections
- Political Geography:
- India
7. The Independent Payment Advisory Board: PPACA's Anti-Constitutional and Authoritarian Super-Legislature
- Author:
- Michael F. Cannon and Diane Cohen
- Publication Date:
- 06-2012
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- When a member of Congress introduces legislation, the Constitution requires that legislative proposal to secure the approval of the House of Representatives, the Senate, and the president (unless Congress overrides a presidential veto) before it can become law. In all cases, either chamber of Congress may block it.
- Topic:
- Government, Politics, Governance, and Law
- Political Geography:
- United States
8. Libertarian Roots of the Tea Party
- Author:
- David Kirby and Emily McClintock Ekins
- Publication Date:
- 08-2012
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Many people on the left still dismiss the tea party as the same old religious right, but the evidence says they are wrong. The tea party has strong libertarian roots and is a functionally libertarian influence on the Republican Party.
- Topic:
- Democratization, Economics, Politics, Insurgency, and Financial Crisis
- Political Geography:
- United States
9. Publication Practices for Transparent Government
- Author:
- Jim Harper
- Publication Date:
- 09-2011
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- Government transparency is a widely agreed upon goal, but progress on achieving it has been very limited. Transparency promises from political leaders such as President Barack Obama and House Speaker John Boehner have not produced a burst of information that informs stronger public oversight of government. One reason for this is the absence of specifically prescribed data practices that will foster transparency.
- Topic:
- Democratization, Political Economy, Politics, Communications, and Governance
- Political Geography:
- United States
10. The Case for Gridlock
- Author:
- Marcus E. Ethridge
- Publication Date:
- 01-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- In the wake of the 2010 elections, President Obama declared that voters did not give a mandate to gridlock. His statement reflects over a century of Progressive hostility to the inefficient and slow system of government created by the American Framers. Convinced that the government created by the Constitution frustrates their goals, Progressives have long sought ways around its checks and balances. Perhaps the most important of their methods is delegating power to administrative agencies, an arrangement that greatly transformed U.S. government during and after the New Deal. For generations, Progressives have supported the false premise that administrative action in the hands of experts will realize the public interest more effectively than the constitutional system and its multiple vetoes over policy changes. The political effect of empowering the administrative state has been quite different: it fosters policies that reflect the interests of those with well organized power. A large and growing body of evidence makes it clear that the public interest is most secure when governmental institutions are inefficient decisionmakers. An arrangement that brings diverse interests into a complex, sluggish decisionmaking process is generally unattractive to special interests. Gridlock also neutralizes some political benefits that producer groups and other well-heeled interests inherently enjoy. By fostering gridlock, the U.S. Constitution increases the likelihood that policies will reflect broad, unorganized interests instead of the interests of narrow, organized groups.
- Topic:
- Democratization, Government, Politics, Power Politics, and Governance
- Political Geography:
- United States and America
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