Incentives Of Policymakers Research Articles

Does the Validity of the Environmental Kuznets Curve Postulation Empirically Depend on the Level of Human Development in Africa?

Purpose: The interconnectedness between human development and environmental degradation is a complex issue that warrants investigation in Africa. Although there are a few studies on the economic growth and environmental degradation nexus for African countries, there is a huge scarcity of empirical research that explores the Environmental Kuznets Curve (EKC) postulation in the context of human development and environmental degradation in Africa. The study therefore empirically explored the relationship between Human Development and Environmental Degradation within the framework of the EKC using 50 African countries subdivided into High Human Development Index Countries (HHDICs), Medium Human Development Index Countries (MHDICs) and Low Human Development Index Countries (LHDICs) from 2000 to 2019. Data for the study were obtained from the World Bank’s development indicators and the Human Development Reports of the United Nations Development Programme (UNDP-HDR).
 Methodology: The study made use of the Panel Corrected Standard Error (PCSE) model and the Feasible Generalised Least Squares Regression model (FGLS) which are econometrically suitable to handle N > T and T > N panels respectively, and are both robust to cross sectional dependence, contemporaneous correlation, group wise heteroscedasticity and slope heterogeneity. Other econometric techniques such as Descriptive Statistics, Correlation Analysis, Variance Inflation Factor test (Multicollinearity), second generation unit root tests (CADF and CIPS), Durbin Watson, Breusch Godfrey tests (Serial Correlation) and the White Test (Heteroscedasticity) were also employed in the study.
 Findings: The empirical results produced evidence that the data is integrated of order one I(1) and exhibits cross sectional dependence, slope heterogeneity and cointegration. The data was also found to be serially correlated and heteroscedastic. However, multicollinearity was absent. The panel estimates of the PCSE and the FGLS estimators showed that Human Development is a key driver of Environmental Degradation in Africa, with the greatest proportion of the impact on HHDICs, followed by MHDICs and then finally LHDICs. The results also revealed the validity of the EKC postulation only in the HHDICs, evidenced by the presence of an inverted U-shaped relationship between Environmental Degradation and Human Development. In The LHDICs and MHDICs on the other hand, U-shaped relationships between Environmental Degradation and Human Development were found, signalling the invalidity of the EKC. There was significant evidence for the support of the feedback hypothesis between Human Development and Environmental Degradation in HHDICs, MHDICs, LHDICs and all the 50 African countries at large. Based on the findings, Policymakers were given recommendations that took into consideration the uniqueness of the economic situations in HHDICs, MHDICs, LHDICs and Africa as a whole.
 Recommendations: The study shows that the degree of environmental degradation is proportional to the level of human development in Africa and indicates that the validity of the EKC postulation in the context of human development) is exclusive to only the HHDICs in Africa. This provides an incentive for policy makers in the MHDICs and LHDICs of Africa to make human development a priority through industrialisation and other profitable economic activities. This is likely to help them afford innovations and technological developments that protect the environment through the greater use of cleaner energy than the naturally abundant fossil fuel as well as the institutionalisation of policies that protect the environment as human development appreciates.

International Trade with Social Comparisons

As consumers in countries around the world become increasingly aware of and sensitive to the products that their foreign counterparts consume, a natural question is what predictions do classic trade frameworks hold when incorporating social comparison-based preferences? We analyze this question in a general equilibrium framework for a two-country, two-good world, in which the gap between domestic and foreign consumption of a product can enter into the representative consumer's utility function. We consider nine exhaustive social comparison scenarios, which differ based upon the combination and origin of products that consumers of each country hold a social comparison over. We show that Home Comparison preference (social comparison over the home-produced good) unilaterally brings consumption and welfare bene fits to the home country, and global welfare is enhanced when both countries maintain such preferences. On the other hand, Foreign Envy (social comparison over the foreign-produced good) is disadvantageous to the home country, contributing negatively to welfare when the other country either prefers its own produced good or has no particular social preference. Mutual Foreign Envy however, tends to contribute positively to global welfare. Our analysis helps to explain the social welfare incentives of policy-makers in promoting cross-country comparisons of domestic goods among their own consumers, while advocating domestically-produced goods as status symbols abroad.

Mental Healthcare Act, 2017, and addiction treatment: Potential pitfalls and trepidations.

The Mental Healthcare Act (MHCA), 2017, is enacted with an aim to promote and protect the rights of and improve the care and treatment for people affected by mental illness in India. The Act purportedly includes substance use disorder (SUD) specifically in the definition of mental illness itself. However, some of the phrases used in the definition such as “abuse” are not clear, as the current classificatory systems of mental illnesses do not have any diagnostic category termed “abuse.” Another important issue is the lack of clarity on which categories of SUD would be covered under MHCA. Simple reading of the text of the Act seems to suggest that SUD is a single entity for the purpose of this law. In such case, many provisions of the act such as supported admission that are meant for the treatment of people with severe mental illnesses with gross impairment may become applicable to all types of SUD. This can create potential problems for addiction treatment providers. On the other hand, certain other provisions of the Act are good news for patients suffering from SUD. The Act lays down various rights that include, among others, protection from cruel, inhuman, or degrading treatment in any mental health establishment. This is very important from the perspective of treatment of SUD in the context of India, where human rights violations in the name of addiction treatment are often reported. The inclusion of SUD in MHCA, 2017, slots SUD as a health issue, rather than a law-and-order issue alone. This displays the intent of policymakers toward SUD, which, in itself, is laudable. There are certain ways in which the potential pitfalls mentioned earlier can be addressed, which is discussed in the article.

Policy and the image of the child: a critical analysis of drivers and levers in English early years curriculum policy

ABSTRACT Using a post-structuralist framework, this article seeks to analyse the ways in which English early years curriculum policy has led to different constructions of young children. Although policy is often presented as being logical and factual, policy making can also be seen as a value-laden process in which meanings are socially constructed and can, therefore be deconstructed and reconstructed. In this article, I analyse the different interests that are served by curriculum policy, the intentions of policy makers and how policy levers and drivers might combine to produce potentially conflicting images of the child. I conclude that these conflicting images create tensions between policy makers’ pursuit of cost efficiency and the rights of young children in early years settings. However, post-structural analysis suggests that these are political decisions and things do not have to be this way. Those working in early years can challenge policy makers’ constructions of young children, to adopt a more ethical rights-based approach to early education.

Příspěvek na péči jako "zvláštní peníze": chápání a užívání příspěvku na péči v blízkých vztazích

The paper presents the comparative results of two qualitative researches on long-term informal family care in the Czech Republic: one researching the life strategies of women caring for their elderly parents and the other researching women caring for a child with a disability. The interviews with the two groups of caregivers make it possible to compare the ways in which people in different caring situations interpret and use the same state benefit intended for people who need personal long-term care. The analysis shows how the individual understanding of the same benefit is shaped by cultural values and norms, leading to the use of the money in distinct ways, which then has specific consequences for the economic situation of caring women. While the mothers caring for a disabled child view the benefit as their work income, which they are entitled to by the fact that they are providing care, the caring daughters (and sons) understand the allowance as money that belongs to their elderly parent and earmark it for the parent´s special needs. They do not interpret or use this money in accordance with the intentions of policy-makers because they fear they could be accused of commodifying the care or breaching the norm of intergenerational solidarity. I therefore argue that different situations of care require different policy solutions. In the situation of care for an elderly parent, in the context of a country with strong norms of intergenerational solidarity and a high proportion of informal care, the measures of financial support for end users have proved ineffective as financial support for caregivers.

How Asian countries understand policy experiment as policy pilots?

ABSTRACTPolicymaking based on the classical experimental design is regarded as a golden rule in the field of public policy. Despite the methodological superiority of randomized control experiment, the practices of policy experiment differ across countries, reflecting the different intentions of policymakers. This paper reviews how policy experiments are practised in Asian countries, especially Korea, China, and Singapore. As our review suggests, the term ‘policy pilot’ is preferred to ‘experiment’ as the former is considered as an exemplar proposed by the central government. At the same time, the selection of pilot sites depends on central government’s political and practical (rather than methodological) consideration. Moreover, the utilization of policy pilots does not solely depend on the success of the pilot programme or the effect size per se. As the policymaking process is a complex endeavour involving multiple streams of actors, resources, and solutions, Asian countries use policy pilot results to get ideas on how different actors respond to policy, instead of a determinant of policy decision. Therefore, we conclude that Asian countries emphasize less the rigorousness of experimental design than the possibility of pragmatic utilization of policy pilots.

Learning one’s place and position through play: social class and educational opportunity in Early Years Education

ABSTRACTDrawing on the theoretical work of the British sociologist Basil Bernstein, this paper documents how learning is structured and organised through play in three Early Years Education (EYE) settings catering for children aged three to five in England, UK. Its data address current issues raised within EYE research relating to ‘quality and high returns’ and ‘school readiness’ for compulsory education. The analyses reveal that multiple forms of play are evident in all three settings; however, they are afforded very different status and value in each, influenced by the assumptions practitioners [in this paper practitioner is used because this is what those working in the nursery settings viewed themselves as. Although we acknowledge that early childhood educator is perhaps a more common term in certain countries] make about children and their families’ knowledge and resources for learning. The effect of such processes is the reproduction of social class and cultural hierarchies inside EYE settings, reflecting those longstanding in wider UK society. Despite the best intentions of policy-makers and practitioners, EYE play as currently configured does not provide equal opportunities for all.

Threshold-Based Forward Guidance: Hedging the Zero Bound

Motivated by policies implemented by some central banks in response to the financial crisis, we use a simple New Keynesian model to study a particular form of forward guidance. We assume that the policy maker makes a state-contingent commitment to hold the policy rate at the zero lower bound (ZLB) in a way that ensures that specific macroeconomic variables (eg inflation) do not breach particular ‘thresholds’. In common with other similar policies, threshold-based forward guidance (TBFG) can be used to stimulate the economy at the ZLB via a commitment to hold the policy rate lower-for-longer than would otherwise have been the case. But TBFG also acts as a hedge against the asymmetric effects of shocks. That is because if further adverse shocks arise, prolonging the recession, exit would be expected to occur later and the policy would provide additional stimulus. In contrast, if positive shocks arrive, so that the economy recovers more quickly than originally expected, exit would be expected to occur sooner, thereby removing some of the policy stimulus. This hedging property of TBFG also means that there is a relatively low incentive for policy makers to renege on the policy, unlike lower-for-longer policies that depend purely on calendar time.

The Embedment of Responsible Research and Innovation Aspects in European Science Curricula

The recent and current discourse on education policy across Europe places great emphasis on the importance of incorporating aspects of Responsible Research and Innovation (RRI) in science education. A key aspect of education policy is that citizens should become better equipped to enquire into and understand socio-scientific issues, as well as to apply scientific knowledge and ethical values in order to form evidence-based opinions. The question of how the intentions of policy-makers can be translated effectively into educational practice, however, has yet to be answered. Against this background, the present paper will investigate how aspects of RRI can be embedded in the curricula of science education in various European countries. The framework we will present illuminates both the intentions of policy-makers and current practices with regard to RRI within science curricula. It also helps map such policies and strategies in the area of science education across Europe. In the context of the ENGAGE project, this framework has been used as a tool for analysing the RRI components of curricula in the science education of students aged 11–16. The analysis is based on data gathered in 2014, takes into account prospective reforms and covers 11 European countries. The results of the analysis illustrate the potential of this framework as a tool for investigating how RRI can be embedded in science education and for exploring the space for intervention that policy-makers have. They also show that this framework can shed light on how the intentions of policy-makers and current practices with regard to RRI interrelate and on how moving from “words to deeds” can be achieved in a meaningful and constructive manner.

Ten years after “Worrying trends in econophysics”: developments and current challenges

Econophysics has made a number of important additions to scientific knowledge. Yet it continues to lack influence with both economists and policy makers. Ten years ago, I and three other economists sympathetic to econophysics wrote a paper on worrying trends within the discipline. For example, its lack of awareness of the economics literature, and shortfalls in the use of statistical analysis. These continue to be obstacles to wider acceptance by economists. Like all agents, policy makers respond to incentives, and economists understand this very well. Much of the econophysics community appears to think that simply doing good science is sufficient to have the work recognised, rather than relating to the motivations and incentives of policy makers. Nevertheless, econophysics now has three major opportunities to advance knowledge in areas where policy makers perceive weaknesses in what they are presented with by economists. All can benefit from the analysis of Big Data. The first is a core model of agent behaviour which is more relevant to cyber society than the rational agent model of economics. Second, extending our understanding of the business cycle, primarily by incorporating the importance of networks into models. Third, devising proper measures of output in cyber society.

Putting a Lid on the Melting Pot: Determinants of American Immigration Policy

The closing of the United States to immigrants is arguably the most economically and socially significant policy shift in American history. The U.S. had virtually open borders until 1879, when the first of a series of federal laws prohibiting or limiting immigration of particular groups was passed. By 1924, immigration had been reduced to a small fraction of the peak in the 1890s. During this time frame, 42 major votes were considered in the House and 31 in the Senate to limit immigration. Using data from the U.S. Congressional record, I explain the policy shift in public choice terms: identifying voting patterns that can be explained by shifts in public and elite opinion, the incentives of policymakers, and changing economic conditions. Explanations of the policy shift from previous scholarship are evaluated in light of roll-call voting data and NOMINATE scores. Using multivariate analysis, I find that Congressional ideology was an important factor in the development of immigration restriction policy, with the most restrictive legislation passed when legislators from the rural South joined a Congressional coalition against immigration.

A Cross-National Measure of Electoral Competitiveness

Electoral competitiveness is a key explanatory construct across a broad swath of phenomena, finding application in diverse areas related to political incentives and behavior. Despite its frequent theoretical use, no valid measure of electoral competitiveness exists that applies across different electoral and party systems. We argue that one particular type of electoral competitiveness'electoral risk'can be estimated across institutional contexts and matters most for incumbent behavior. We propose, estimate, and make available a cross-nationally applicable measure for elections in 22 developed democracies between 1960 and 2011. Unlike extant alternatives, our measure captures vote volatility and is constructed at the party (not system) level, exogenous to most policy predictors, and congruent with the perceptions and incentives of policy-makers.

Things you Wanted to Know about Bias in Evaluations but Never Dared to Think

The thrust for evidence‐based policymaking has paid little attention to problems of bias. Statistical evidence is more fragile than generally understood, and false positives are all too likely given the incentives of policymakers and academic and professional evaluators. Well‐known cognitive biases make bias likely for not dissimilar reasons in qualitative and mixed methods evaluations. What we term delinquent organisational isomorphism promotes purportedly scientific evaluations in inappropriate institutional contexts, intensifying motivated reasoning and avoidance of cognitive dissonance. This leads to states of denial with regard to the validity of much evaluation activity. Independent replications, revisits and restudies, together with codes of ethics that relate to professional integrity, may mitigate these problems.

Higher education reforms and unintended consequences: a research agenda

Higher education in Europe has undergone remarkable transformations over the last two decades. Germany is a very interesting case in point here. While the country was labeled as a laggard in the process, over the last decade the pace of higher education reforms in Germany has grown considerably. This paper will focus on the by now visible effects of these remarkable transformations, which have led to numerous consequences that go beyond the explicit intentions of policy-makers. Unintended consequences resulting from rapid institutional change will be discussed with regard to research, third-mission activities, and structural reforms concerning governance and organization. It can be assumed that, due to a variety of such unintended consequences, also in other European countries the next decade will be shaped by efforts aiming at reforming the reforms, re-regulating the significant changes brought about during the last two decades. The paper closes with a brief discussion of the necessary linkages to three related interdisciplinary research areas, from which both higher education research and policy-making will benefit, and a summary of the main points of the paper.

Reinforcement Planning Decision of Old Bridge Based on TOPSIS-AHP Method

The application of technique for order preference by similarity to ideal solution(TOPSIS) and analytic hierarchy process(AHP) in reinforcement scheme optimization for bridge is investigated in order to select the optimal scheme from several primarily feasible ones. This paper calculates every index through AHP and applies the improved TOPSIS method to normalize and sort the evaluation index values. Integrating TOPSIS and AHP may Consider both the subjective intentions of policy makers, but also to a certain extent, to avoid arbitrariness.A real project demonstrates that this method is effective and feasible.

Civic and Political Participation of Women and Youth in Turkey: An Examination of Perspectives of Public Authorities and NGOs

The aim of this article is to present a review of the discourses of public authorities and non-governmental organizations (NGOs) on civic and political participation of youth and women in Turkey. Drawing on policy documents and elite interviews, this article explores the role of civil society organizations in promoting civic and political organizations in traditionally marginal groups. The article is primarily concerned with unpacking dominant discourses, as produced by public documents and official statements by both civil society organizations and policy-makers. The analysis will produce an overview of their general discursive orientations and the related legal changes and policy implementations. The article then looks at the impact of these discursive formulations to the issue of participation. What is important to note is that action plans and strategies are not always implemented in a manner that is in keeping with the original intentions of policy-makers. The review of public and civil society documents highlights serious differences in focus and coverage between the groups. It also highlights limited engagement with the actual issues of civic and political participation. While youth participation is paid limited attention, women participation is mostly associated with political representation in national and local political bodies.

HTA AND INNOVATION OF VALUE: GETTING TO KNOW YOU

Fostering innovation for societal gain has been a core attribute of technology assessment (TA) since its inception. Although many observers were concerned that TA would be a means by which government would impede the development and use of technology, this was not the intent of policy makers or the agencies that conducted the original TAs.

Summaries of Papers in this Issue

Summaries of Papers in this Issue

Did the 2003 Tax Act Increase Capital Investments by Corporations?

This study investigates the role of shareholder-level taxes on corporate investment. We use the passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (hereafter, 2003 Tax Act) as a quasi-natural experiment to answer our research questions. The 2003 Tax Act reduced shareholder-level taxes on dividends and capital gains. Relative to legislative changes in 1993 and 1997 that also impacted shareholder-level taxes, the 2003 Tax Act changed tax rates on both capital gains and dividends and led to a dramatic decrease in the average marginal shareholder-level tax rate. Furthermore, prior research suggests that the 2003 Tax Act increased firms' share prices (Auerbach and Hassett 2006) and reduced firms' cost of equity capital (Dhaliwal et al. 2007). We predict that firms increased investment in response to the Act.Our study focuses on corporate investment for two reasons. First, a stated goal of the 2003 Tax Act was to encourage capital investment by corporations. Second, capital investment is a fundamental component of firm value (Hanlon and Heitzman 2010). Thus, our study is of interest to policymakers and academics. Whether changes in shareholder-level taxes will impact corporate investment is an open empirical question. Prior research suggests that firms could increase dividends in response to reductions in shareholder-level taxes instead of increasing investment (Chetty and Saez 2005). In addition, some firms may fund investment with internal funds and not equity, in which case, any reduction in the cost of equity capital derived from the 2003 Tax Act is unlikely to impact investment.We regress capital expenditures on an indicator variable equal to one for time periods after the Act, and controls for cross-sectional differences in capital expenditures. We first document that capital expenditures increase after the 2003 Tax Act. Because the economy was coming out of a recession around the 2003 Tax Act, it is possible that macroeconomic conditions unrelated to taxes caused investment to increase. To better link our findings to the 2003 Tax Act, we use a difference-in-differences research design to show that this increase in capital expenditures varies predictably with two shareholder-level tax-motivated hypotheses. First, we find that the increase in investment is smaller for firms largely held by investors that are less sensitive to shareholder-level taxes. Second, we find that the increase in investment is larger for firms most likely to fund investment from new equity issuances, rather than internal funds.In additional analysis, we examine how firms' dividend payout policy impacts our results. We find that while the majority of firms increase investment after the tax cut, a small subset of larger, older, and cash-rich firms increased dividend payout instead. Overall, our results suggest that, consistent with the intent of policymakers, the shareholder-level tax rate reductions set forth in the 2003 Tax Act increased corporate investment. Our findings add further evidence to the question of whether taxes impact firms' value and investment.

Did the 2003 Tax Act Increase Capital Investments by Corporations?

ABSTRACT On May 28, 2003, the Jobs and Growth Tax Relief Reconciliation Act of 2003 (2003 Tax Act) reduced shareholder-level taxes on dividends and capital gains. One of the goals of the 2003 Tax Act was to encourage capital investment by corporations. We investigate whether firms increased investment in response to the Act. We first document that capital expenditures increase after the 2003 Tax Act. We then use a difference-in-differences research design to show that this increase in capital expenditures varies predictably with two shareholder-level tax-motivated hypotheses. First, we find that the increase in investment is smaller for firms largely held by investors that are less sensitive to shareholder-level taxes. Second, we find that the increase in investment is larger for firms most likely to fund investment from new equity issuances rather than internal funds. Additional analysis suggests that while the majority of firms increase investment after the tax cut, a small subset of larger, older, and cash-rich firms increased dividend payout instead. Overall, our results suggest that, consistent with the intent of policymakers, the shareholder-level tax rate reductions set forth in the 2003 Tax Act increased corporate investment. JEL Classifications: G12, G31, G32, G24