Federalism & Inequality, Part Two

In my last post on this topic, I described an ideal system of federalism and its advantages and disadvantages. One of the concerns that progressives often have about this kind of federalism, which I wish to take seriously, is that it will lead to a growing gap between the incomes of rich and poor regions [...]

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Saturday Afternoon Bemusement

Tyler Cowen makes the case that a large, inefficient public sector can be a good thing: we should not be trying to squeeze the entire economy into the shoebox of the dynamic but risky “Economy I.” For public choice reasons, as well understood by Karl Polanyi (an underrated public choice theorist if there ever was [...]

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Lessons in Constitutional Law

From the former head of the Harvard Law Review and sometimes professor of constitutional law (via CNN transcript): Ultimately, I’m confident that the Supreme Court will not take what would be an unprecedented, extraordinary step of overturning a law that was passed by a strong majority of a democratically elected Congress. And I’d just remind [...]

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“[E]mpirical evidence about the inefficiency and motives of the public sector is minimal.”

The quotation above comes from page 16 of a public finance textbook by Robin Boadway and Anwar Shah (Fiscal Federalism: Principles and Practice of Multiorder Governance, Cambridge UP 2009). Is that right? Let me throw out just one counterexample: Bates, Markets and States in Tropical Africa.

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Federalism & Inequality, Part One

Constitutional debates swirling around the PPACA’s individual mandate have much to do with federalism. The core issue the Supreme Court is addressing is whether the federal government has essentially unlimited authority in economic policy, or whether they are yet some areas of economic policy-making (such as whether to compel commerce) exclusive to the states. As [...]

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A Sea Change on Afghanistan?

The long war is hemorrhaging support among the public. As the NYT reports, a new NYT/CBS poll provides some rather striking evidence: The survey found that more than two-thirds of those polled — 69 percent — thought that the United States should not be at war in Afghanistan. Just four months ago, 53 percent said [...]

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Deficits and Delegates

David Corn’s soon-to-be released new book Showdown examines the pivot to address deficits in the summer of 2010-11. Many Democrats were bewildered that the administration would move on to the GOP’s turf and begin addressing the problem of deficits and debt (one might pause for a moment and ask whether there is any empirical evidence [...]

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Could a Scottish Secession Referendum Bring About Salutary Decentralization?

For all the usual association of independence movements with violence and “separatism,” the fact is that secessionist movements in liberal democracies usually pursue their aims peacefully, through the democratic process, and central governments resolve not to use military force to prevent secession authorized by a democratic vote (imagine that!). Such is the case in Scotland, [...]

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Secessionism

My first book, Secessionism: Identity, Interest, and Strategy, has been released by McGill-Queen’s University Press. Secessionism is the first comprehensive, empirical study of the causes and consequences of contemporary secessionist movements worldwide. It also has a normative component, as I interpret from the empirical results a case for “legalizing secession” in order to reduce the [...]

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JPR Special Issue on Climate Change and Conflict

Will global climate change increase resource-based conflicts around the world? Journal of Peace Research has a special issue on the topic, looking at how weather variability has already influenced the rate of conflict. The issue is free to the public until the end of February. Most of the studies find that weather variability does not [...]

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How to Solve the Scottish Referendum Question Controversy

Scotland’s upcoming independence referendum has been in the news in Britain. The Scottish government wants to hold the referendum in 2014, but UK Prime Minister David Cameron has said that Westminster holds ultimate control over the wording and timing of any legally binding referendum and wants to hold the referendum sooner. Another point of contention [...]

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Who Killed Local Autonomy in the U.S.?

Once upon a time, local governments accounted for the lion’s share of economic policy-making in the United States. Before World War I, not only was the federal government’s economic policy-making activity strictly limited to areas such as international trade, management of federal lands, trust-busting, and food and drug regulation, but state governments themselves were also [...]

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Briefly Noted

Libertarianism.org – Finally! A non-technical, one-stop shop for the major ideas in the philosophical tradition of liberty. Cato Institute project. Governance Without a State: Policies and Politics in Areas of Limited Statehood (Columbia UP) – File under “order in anarchy.” Mostly European scholars giving somewhat different takes than you get with the UK-US “economics of [...]

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South Sudan: Archaic Nescience Unleashed*

The South Sudan Liberation Army, apparently armed by the Sudanese government, has been attacking the government of the newly independent South Sudan. Some observations about these stories: No one thought it would be rainbows and leprechauns for South Sudan after independence. It’s extremely poor, highly oil-dependent, ethnically diverse, adjacent to countries that are all in [...]

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Green Auto Corporate Welfare: The Next Solyndras?

ABC News has done a carefully researched investigative report on the Department of Energy’s billions of dollars in awards to electric car programs that remain years away from profitability. They lead with a headline intended to appeal to the economic nationalism of the mass public — “Car Company Gets Loan, Builds Cars in Finland” — [...]

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Boettke, Munger, Leeson, Horwitz, Coyne, Sen, Ostrom, & others on James Buchanan

The latest issue of Journal of Economic Behavior and Organization is dedicated to James Buchanan’s work. Some of the most provocative pieces here include Kliemt on Buchanan as Kantian, Leeson on why clubs have self-enforcing constitutions and governments do not, and Voigt on how to test hypotheses drawn from constitutional economics. Especially recommended for those [...]

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Rate of Return on Bank Lobbying

This working paper is already getting substantial attention, and it’s not hard to see why. They find that banks that lobbied more in the years leading up to the Troubled Asset Relief Program (TARP) of 2008 received more money through TARP. What’s particularly astounding is the rate of return, which they estimate at between $485 [...]

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Starving the Courts

In the latest issue, The Economist gives a startling look on the dire situation of courts in America. Budget cuts and, at the federal level, political obstruction have fostered delays and case backlogs. Some of the dire consequences: In California, uncontested divorces now take a year to obtain. One circuit court in Georgia has stopped [...]

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Voter Support for Limiting Voting’s Reach

John Sides has a short but interesting post on 538 today looking at surprisingly strong public support for technocratic limitations on pure democracy. A few months ago I floated the idea of multiple voting as a way of overcoming, partially, the baleful effects of voter irrationality. Technocratic management would be another way to do it. [...]

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Political Scientists and Democracy

Since Jason brought up the topic of representation, some readers might enjoy James Caeaser’s take on the role of democracy in the American Political Science Association.

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Do We Want Everyone Represented Equally?

Political scientist John Sides has contributed an interesting guest post to FiveThirtyEight, in which he reviews the evidence that social class influences the way Congresspeople vote. In particular, Congresspeople are unlikely to come from working-class backgrounds, and class seems to affect voting at the individual level. If Congress had the same mix of class backgrounds [...]

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Land-Use Regulation and Growth

I want to piggy-back here on Mark’s great post on urban planning and the poor. I’ve been playing around with some state-level data on local land-use regulations and cost of living. The last decade in the U.S. has been one of very slow productivity growth. As a result, fast-growing states tend to be those with [...]

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Florida’s Drug Testing Law Not Working Out So Well

Florida recently passed a law requiring welfare recipients to be tested for drugs and throwing them off welfare if they test positive. Governor Rick Scott justified it as saving taxpayers’ money and discouraging drug use. It turns out to be costing taxpayers more money than it saves them, because hardly anyone tests positive. This isn’t [...]

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Interposition: Part Nine: The Hartford Convention

Few in power find it convenient to notice inconsistencies in their own conduct. Alas, but President Madison was no exception. Federalism and decentralization exist precisely because free constitutions should not depend on the good graces of those in office, but on the checks necessary to harry them back under the law. Seeking the financial means [...]

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Texas Job Numbers and Inter-State Migration

Political Math’s piece on Texas’ amazing job growth has been getting a lot of attention around the ‘Net. As regular Pileus readers know and as Political Math’s piece confirms, job growth is largely a consequence of population growth, and population growth is largely a consequence of warm climate, low cost of living, low taxes, and [...]

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Stability, Peace, and Poverty

The last issue of The Economist has a feature on “middle-income fragile and failed states” (MIFFs). It compares the World Bank list of countries by development level (high, middle, and low) to the OECD list of “fragile and failed states,” finding that fragile and failed states are by no means exclusively low-income: [S]ome 15 of [...]

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Do Politicians Regulate When They Can’t Spend?

Noel Johnson, Matt Mitchell, and Steve Yamarik have a new working paper answering that question in the affirmative. They look at state fiscal and regulatory policies and find that Democrats generally like to increase taxes and spending when in control of state houses and Republicans do the reverse. But when states have tough balanced-budget requirements [...]

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Liberty as Amenity: Freedom, Migration, and Growth

Is liberty an “amenity” that people find attractive? We know that people do not necessarily tend to vote for liberty, in part because they are politically ignorant or even irrational, but when it comes to where they choose to live, people can be expected to pay close attention to how the laws in different places [...]

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Why Do More Conservative States Take More Federal Grants?

Once you control for everything else, conservative states don’t take more federal grant money than liberal states – in fact, they may even tend to take less.

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Multiple Voting in Elections, Part 2

I recently ran a poll here to gauge support for the idea of giving voters with bachelor’s and/or doctoral degrees extra votes in elections. I ran the same poll on a non-political site to get an idea of support from the general public. Surprisingly, Pileus readers opposed the reform overwhelmingly, 82-18%, while respondents on the [...]

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Interposition: Part Eight: Federalism, Finance and The War of 1812

When tensions with England finally began to degenerate into violent altercations, first on the western frontier in such places as Tippecanoe and later along the Great Lakes, the Madison administration decided the time had come to vindicate America’s claims of offended sovereignty. Unsurprisingly, these claims also happened to coincide with popular desires to expand into [...]

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Multiple Voting in Elections

At a recent Institute for Humane Studies conference, I had a bit of a debate with Bryan Caplan about the potential popularity of this proposal. In conjunction with this poll, which admittedly suffers from serious self-selection bias, I have another poll running on a non-political site. We’ll check back in a few days and see [...]

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State Policy Ideology in 2 Dimensions

As many readers already know, the Mercatus Center at George Mason University just released a new study I’ve coauthored with Texas State political scientist William Ruger, Freedom in the 50 States 2011: An Index of Personal and Economic Freedom. It’s the second edition of a study first published in 2009. The new edition updates and [...]

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More Evidence for Greek Default

The Economist has a chart up today comparing growth rates pre- and post-default in recent years. Interestingly, countries have typically grown faster after default than before. There are reasons to be skeptical of a causal relationship, but it still shows that default is no disaster. Scholarly work by John Ahlquist also has shown that default [...]

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Freedom in the 50 States

I’ve just gotten back from a Cato Institute event discussing the new study, Freedom in the 50 States, with my coauthor William Ruger, John Samples, and Michael Barone. I’ll post the video when it’s available. The Mercatus site for the study allows you to download the study and to use a calculator to see how [...]

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Interposition: Part Seven: The Embargo and Noncooperation

With the war in Europe between France and England intensifying, Americans found their rights as neutral traders regularly violated by both French and British navies, and French and British port restrictions further limited American opportunities for commerce. To make matters worse, on numerous occasions, English vessels had boarded American ships and “impressed” many of their [...]

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What Caused Recent Tax Increases at the State Level?

The recent recession cut deeply into state treasuries, forcing legislatures to raise taxes or cut spending or both to eliminate budget deficits. It is interesting to note which states opted for big tax hikes over big spending cuts. USNews Money blogger Rick Newman has compiled a list of the 10 states with the largest enacted [...]

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Socialism in One State

Vermont has passed a law authorizing a single-payer, government-run health insurance system. Apparently the plan fails to grasp the fiscal nettle and thus may never come to fruition. Nevertheless, I hope they go forward with it. I don’t think it will work – to the contrary, the experiment should serve as an object lesson to [...]

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Bailouts and the Optimal Size of States

Risk-pooling in an era of frequent financial crisis is not as good an argument against Scottish independence as Tyler Cowen thinks it is. First off, bailing out is a policy choice to which there are alternatives. Second, financial governance matters. Who had a worse financial crisis in 2008: the United States (population 300 million) or [...]

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Interposition:Part Five: Assuming Powers from National Bank to Seditious Libel

Not long after the ratification of the Constitution, Madison came to have serious doubts about his former Federalist friends. Particularly, he came to suspect the sincerity of many who had asserted that the new government would possess only those powers specifically delegated to it. The first disappointment came with Hamilton’s championing of the incorporation of [...]

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