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Posts Tagged ‘state legislatures’

NH House in 2 Dimensions

Ideal Points of NH State Legislators in 2 Dimensions (Click to Expand)

The New Hampshire Liberty Alliance does a Liberty Rating each year in which they analyze liberty-related roll-call votes of state representatives and senators and grade them. (The NHLA is a great government accountability organization, by the way, and well worth supporting; a lifetime membership is only $100.)

I used their roll-call votes for the 2014 N.H. House of Representatives but analyzed them differently (I also corrected three errors in their spreadsheet). The vast majority of roll-call votes are on economic issues, where conservative Republicans and libertarians line up. So the Liberty Rating might overstate how libertarian conservative House members really are, if those social issues that are voted on are disproportionately important. The Liberty Rating tries to assess how important each vote is, but the way they do it is arbitrary and subject to dispute (for instance, they rate a bill restricting the sharing of public school student information as highest-priority, on a level with legalizing marijuana and three times as important as a bill enacting occupational licensure of medical technicians). Furthermore, some of their bills are disputably freedom-related: they rated as negative a bill creating a new crime of “domestic violence.” Now, that bill might or might not have been a good idea, but it doesn’t seem like a liberty-related issue, unless you’re an anarchist who wants to legalize everything, including violence.

I used Item Response Theory in a Bayesian framework to estimate the ideal points of legislators in two dimensions. Let me unpack that statement for the layman. I let the data speak for itself. If legislators who generally voted libertarian voted in favor of a bill, the data are telling me that that bill is liberty-enhancing. If legislators who generally vote libertarian split on a bill, then maybe it’s not a liberty issue. Some votes might be “harder” or “easier” than others, like questions on a test. Even a pretty libertarian legislator might vote the wrong way on a hard vote, like a bill legalizing physician-assisted suicide (“Death with Dignity”, HB 1325 in 2014), which failed 219-66.

Using the R package “pscl,” I first hypothesized that all 93 roll-call votes in 2014 reflected a single ideological dimension: each legislator’s degree of libertarian-ness. We could line up all legislators’ ideal points in ideological space along a single line, and that line would be the best way to predict how all the legislators vote on any given issue.

That hypothesis ended up being wrong. On 84 roll-call votes, I couldn’t reject that hypothesis, but on 9, I could. Those were votes on which those voters who tended to vote in a libertarian direction on the other 84 votes tended to vote in an anti-libertarian direction instead – and conversely, those voters who usually voted anti-libertarian actually tended to vote libertarian on those 9 votes.

What were those 9 votes?

  1. HB1237, prohibiting local sex-offender residency restrictions (passed 231-97)
  2. HB1325, Death with Dignity (failed 66-219)
  3. HB1501, mandating licensing of outpatient abortion facilities (killed 211-86) (the NHLA generally stays out of abortion bills, but they believed, and I agree, that business licensing is the wrong way for pro-lifers to restrict abortion)
  4. HB1577, allowing alkaline hydrosis for the disposal of human remains (passed 209-116)
  5. HB1624, modernizing the juvenile justice system (passed 256-40)
  6. HB1625, decriminalizing small amounts of marijuana (passed 215-92)
  7. HB249, mandating employer use of E-Verify (killed 266-68)
  8. HB492, legalizing marijuana (passed 170-162)
  9. SB296, discriminating in favor of veterans in public employment (killed 210-128)

What do all these issues have in common? They’re social issues on which libertarians make common cause with the left! And note that apart from Death with Dignity, libertarians won on every one of these bills. Part of that has to do with the fact that socially liberal Democrats were in the majority in 2014, and part of it has to do with the fact that libertarians are numerous enough in the House to swing some close votes, like the legalization of marijuana.

There were also a few votes without a clear libertarian position; in statistical jargon, they didn’t “load” onto the first ideological dimension at all:

  1. SB318, establishing the crime of domestic violence (passed 325-3)
  2. SB336, banning deer baiting on public land (killed 200-85)
  3. SB366, establishing two casinos in New Hampshire (killed 173-172)

Arguably these roll-calls shouldn’t have been included in the Liberty Rating.

So I divided the roll-call votes into two groups: (more…)

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All 50 states ban the direct sales of motor vehicles from manufacturers to consumers. The politics of this regrettable policy are clear: auto dealers are powerful political players in every state, while only a few states actually have manufacturing facilities. Banning direct manufacturer sales benefits dealers while hurting manufacturers and consumers.

State governments continue to insert themselves into the contractual relationships between car manufacturers and dealers, typically to the ostensible benefit of the latter. The New Hampshire Senate recently passed a bill regulating the terms and conditions of dealer contracts with manufacturers, prohibiting manufacturers from requiring dealers to alter the appearance of their showrooms, for instance. (Disturbingly, the state director of Americans for Prosperity in New Hampshire supports the bill.) The bill is actually unlikely to change any “balance of power” between automakers and auto dealers. Automakers will simply respond by vetting potential dealerships far more closely and perhaps charging higher franchise fees. The onus of this response is likely to fall more on new dealerships than on incumbents. So the real losers from the bill are going to be potential entrants into the car dealer industry and, of course, consumers.

These are not the only examples of “state protectionism,” in which state governments adopt laws meant to reduce competition from out-of-state businesses for the benefit of local incumbents. Some states still prohibit certain out-of-state direct-to-consumer wine shipments. Regulatory barriers can accomplish the same ends. States have widely varying regulations on insurance products, making regulatory compliance a huge barrier for a company trying to market a standard policy in multiple states. For a long time, major life insurance companies lobbied Congress to adopt a national life insurance regulatory regime, pre-empting state laws. They were opposed by local life insurance agents, for whom knowledge of and compliance with distinctive state regulations were a significant source of competitive advantage. In the end, no national legislation materialized, but Congress authorized the formation of an interstate compact, essentially a contract among consenting states that sets up a single insurance regulator. More than 40 states have joined the Interstate Insurance Product Regulation Commission, which regulates life insurance and annuities.

Such state protectionism potentially runs afoul of the so-called “dormant commerce clause” of the U.S. Constitution. The commerce clause allows Congress to regulate trade among the several states. By implication, then, states are presumptively prohibited from burdening interstate trade, unless authorized by Congress. Unfortunately, courts have been reluctant to scrutinize state economic regulations that have an essentially protectionist character, although especially blatant discrimination against out-of-state imports has been overturned. (more…)

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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 and “proposed” tax increases per capita over the 2009-2011 years, based on figures from the Association of State Budget Officers.

Almost all the states on the list either had unified Democratic control for most of the period of analysis (New York, Delaware, Connecticut, Wisconsin, Washington, Oregon, Massachusetts, New Hampshire) or are ideologically liberal (Connecticut, California). Arizona is one of two exceptions; they had a particularly large real estate bust. Kansas I can’t explain – but they only show up because of “proposed” increases. I will go out on a limb and predict that most of those increases will never be enacted.

By the way, the two-thirds requirement for raising taxes in California, which effectively gives veto power to moderate Republicans, does not seem to have had the ill consequences attributed to it – California is #2 on the list.

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