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  • Author: Alan Reynolds
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: Estimates of the elasticity of taxable income (ETI) investigate how high‐​income taxpayers faced with changes in marginal tax rates respond in ways that reduce expected revenue from higher tax rates, or raise more than expected from lower tax rates. Diamond and Saez (2011) pioneered the use of a statistical formula, which Saez developed, to convert an ETI estimate into a revenue‐​maximizing (“socially optimal”) top tax rate. For the United States, they found that the optimal top rate was about 73 percent when combining the marginal tax rates on income, payrolls, and sales at the federal, state, and local levels. A related paper by Piketty, Saez, and Stantcheva (2014) concluded that, at the highest income levels, the ETI was so small that comparable top tax rates as high as 83 percent could maximize short‐​term revenues, supposedly without suppressing long‐​term economic growth. Such studies could be viewed as part of a larger effort to minimize any efficiency costs of distortive taxation while maximizing assumed revenue gains and redistributive benefits.
  • Topic: Economics, History, Tax Systems, High-Income People
  • Political Geography: North America, Global Focus, United States of America
  • 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, Culture
  • Political Geography: Europe, Finland, Estonia
  • Author: Alan Yang
  • Publication Date: 01-2021
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: Alan Yang examines how ordinary U.S. Latinos of different national origin ancestries have become an increasingly cohesive panethnic political group since the time of the 1990 Latino National Political Survey. He argues that this trend towards increasing convergence across national origin has been both reinforced and disrupted on questions related to politically relevant sentiments and perceptions two years into the Trump presidency.
  • Topic: Politics, History, Ethnicity, Political Science, Donald Trump
  • Political Geography: North America, United States of America
  • Author: Wendy Gomez
  • Publication Date: 05-2021
  • Content Type: Journal Article
  • Journal: Journal of Public and International Affairs (JPIA)
  • Institution: School of Public and International Affairs, Princeton University
  • Abstract: This paper explores the potential of abolishing school resource officers (SROs), their history in education, and their role in exacerbating the effects of the school-to-prison pipeline and racial injustice. In the midst of calls to defund the police, policies to abolish police in schools are a vital first step. This paper argues that there is an interconnected history between SROs and surveilling youth-led civil rights movements. Today, we see the results—SROs have negatively impacted Black and brown youth subjugating them to higher rates of school-related arrests. Using historical case studies of Oakland and Los Angeles, this research draws on the potential to enact policies that end police in schools. Additionally, this paper places organizers as key actors in policy change. The analysis situates the movement to eliminate SROs as an extension of the civil rights struggle and as a microcosm of the modern-day struggle for abolition.
  • Topic: Education, History, Police, Domestic Policy, Black Lives Matter (BLM), Case Study
  • Political Geography: North America, United States of America
  • Author: Clifford F. Thies, Christopher F. Baum
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: With the collapse of the Soviet Union, it was thought that major wars had become obsolete (Mueller 1989) and perhaps regional conflicts might be brought under control (Cederman, Gleditsch, and Wucherpfennig 2017). But, while the level of violence declined, the number of wars in the world appears to have reached a new steady state. A world that was once organized by East-West rivalry is now characterized by ethno-religious conflicts, as well as by spontaneously arising transnational terrorist organizations and criminal gangs. For various reasons, economists have become interested in investigating the causes and effects of war and other armed conflict (e.g., Coyne and Mathers 2011). This article uses a consistent measurement of these forms of violence across space and time to conduct a rigorous quantitative analysis of the effect of war on economic growth.
  • Topic: Cold War, War, History, Economic Growth, Conflict
  • Political Geography: Global Focus
  • Author: J. Robert Subrick
  • Publication Date: 10-2020
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: After the Second World War, the entrepreneur virtually disappeared from economic analysis (Baumol 1968). This neglect followed from the emerging models of general equilibrium that formed one aspect of the core of economic theory. By assumption, the Walrasian auctioneer knew the appropriate prices necessary to equate quantity supplied with quantity demanded in each market. In addition, the auctioneer knew when and by how much to adjust prices when an exogenous factor changed such as income or production technology. Trade only occurred at equilibrium prices so that markets cleared. No market participant chose or changed prices; it occurred exogenously. Kenneth Arrow recognized the lack of real world mechanisms to determine and adjust prices in competitive markets. He identified a logical gap in the perfectly competitive model. He wrote that “there is no place for a rational decision with respect to prices as there is with respect to quantities” (Arrow 1959: 42). Prices exist independent of consumer and firm behavior. A complete model would have to provide a solution to the conundrum.
  • Topic: Markets, History, Entrepreneurship, Economy
  • Political Geography: North America, United States of America
  • Author: Elizabeth R. Nugent
  • Publication Date: 09-2020
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: The economic decline of the Muslim world and the rise of Western Europe has long captured the attention of scholars across disciplines. Explanations largely focus either on Islam, whether its financial institutions or the essence of its teachings, or on Western colonialism as the culprit. In Islam, Authoritarianism, and Underdevelopment, Ahmet T. Kuru puts forward a new explanation rooted in class relations. He takes issue with existing approaches, convincingly demonstrating the intellectual and economic vibrancy of the Muslim world between the eighth and twelfth centuries, undermining arguments about Islam’s incompatibility with progress, and asserting that colonialism occurred too late to explain multiple political and socioeconomic crises. Instead, Kuru identifies the eleventh century as a critical juncture when the Muslim world witnessed the emergence of alliances between Islamic scholars (ulema; singular alim) and the military. These alliances persisted through path dependence and gradually hindered intellectual and economic creativity by marginalizing independent intellectual and bourgeois classes in the Muslim world. In turn, the absence of these classes led to the persistence of authoritarianism and the well-documented underdevelopment in the contemporary period.
  • Topic: Development, Islam, History, Authoritarianism, Book Review, Political Science
  • Political Geography: Europe, Middle East, North Africa
  • Author: Christopher Way
  • Publication Date: 07-2020
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: In a climate of concern about the future of capitalism and democracy, this book provides a robust defense of both. Capitalism and democracy, Torben Iversen and David Soskice argue, are mutually reinforcing, and the combination has been remarkably successful over the past century. In what will probably be the most discussed part of the book, they anticipate that the symbiotic pair will continue to thrive, overcoming the challenges posed by populism and inequality. Democracy and Prosperity provides a challenge to those who believe that capitalism is increasingly unable to fulfill the needs of broad swaths of society and that democracy is creaking under the strains of populism.
  • Topic: History, Democracy, Capitalism, Book Review
  • Political Geography: Global Focus
  • Author: Dawn Langan Teele
  • Publication Date: 07-2020
  • Content Type: Journal Article
  • Journal: Political Science Quarterly
  • Institution: Academy of Political Science
  • Abstract: David A. Bateman’s new book explores nearly all of the crucial questions concerning democracy and inclusion that we are grappling with today, from the very broad—how do the ways in which we think about the origins of our nation inform the welcoming or hostile attitudes we assume in relation to immigrants and outsiders?—to the very narrow—do requirements that voters present physical documents verifying their identity reduce the electoral participation of minority groups? In answering these questions, Bateman offers a detailed portrait of the political machinations that result in electoral reforms, describing elites’ efforts to blur lines between expediency and morality and the circumstances that led conservative parties (the same that today seek to abolish laws that give special status to protected classes of people) to work hard to establish and maintain legal provisions that awarded different rights to different groups. Fundamentally, Bateman explains why steps toward inclusive democratic institutions are often accompanied by steps back, which leave us uncertain of our accomplishments and anxious about our future. Remarkably, though, Disenfranchising Democracy considers these familiar dynamics and dilemmas not in the contemporary world but in the rather distant past, drawing on a wealth of archival sources to analyze the timing of electoral reforms, the emergence and ossification of party- based patterns of support for franchise reform, and the political ideas of would-be reformers and resisters in three of the world’s first semidemocratic countries: the United States, the United Kingdom, and France.
  • Topic: History, Elections, Democracy, Book Review, Political Science
  • Political Geography: United Kingdom, Europe, France, North America, United States of America
  • Author: Ian D. Henry
  • Publication Date: 04-2020
  • Content Type: Journal Article
  • Journal: International Security
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: Leaders often believe that states that demonstrate disloyalty toward an ally will acquire a reputation for disloyalty, and thus damage other alliances. But in some circumstances, excessive loyalty to one ally can damage—perhaps even destroy—other alliances. The First Taiwan Strait Crisis (1954–55) shows that alliance interdependence is governed not by a reputation for loyalty, but by assessments of allied reliability.
  • Topic: Security, History, Partnerships, Alliance, State
  • Political Geography: Taiwan, Asia, North America, United States of America