New Economics Papers
on Collective Decision-Making
Issue of 2005‒11‒05
two papers chosen by

  1. Local Public Good Provision: Voting, Peer Effects, and Mobility By Stephen Calabrese; Dennis Epple; Thomas Romer; Holger Sieg
  2. AGENCY, ASSOCIATIONS AND CULTURE: A THALE OF STATE AND SOCIETY By Ioan Talpos; Bogdan Dima; Cosmin Enache; Mihai Ioan Mutascu

  1. By: Stephen Calabrese; Dennis Epple; Thomas Romer; Holger Sieg
    Abstract: Few empirical strategies have been developed that investigate public provision under majority rule while taking explicit account of the constraints implied by mobility of households. The goal of this paper is to improve our understanding of voting in local communities when neighborhood quality depends on peer or neighborhood effects. We develop a new empirical approach which allows us to impose all restrictions that arise from locational equilibrium models with myopic voting simultaneously on the data generating process. We can then analyze how close myopic models come in replicating the main regularities about expenditures, taxes, sorting by income and housing observed in the data. We find that a myopic voting model that incorporates peer effects fits all dimensions of the data reasonably well.
    JEL: H4 H7 H1 R5
    Date: 2005–10
  2. By: Ioan Talpos (West University of Timisoara); Bogdan Dima (West University of Timisoara); Cosmin Enache (West University of Timisoara); Mihai Ioan Mutascu (West University of Timisoara)
    Abstract: The way in which the social subjects take decisions, the interactions established between these, the web of social institutions and rules, the architecture of the power relationships between the various “points of social coagulation” have as a foundation a complex set of determinants, in which the “pure” economic factors have an important, but not unique role. Thus, this paper intends to draft a possible analytical framework, capable of allowing the stress of some existing connections between the cultural variables, the social actions and the role of the public power. Heavy indebted to OLSON and NOZICK, the starting point is made out by a version of the mandate theory, within the way in which society, as a whole, as well as its individual components, delegates a certain set of social responsibilities to the public authorities, based on some social utility functions, which include the characteristics of the dominant cultural model. Part I of the paper deals with the elements of the theoretical foundation, elements resumed by a set of critical postulates and a special definition of state as the dominant agency in a social space and also of the negotiation/parallel associations. Part II is an attempt to examine some empirical evidences in the favor of some results derived from this foundation. The main conclusion of the paper could be resumed by the idea that trying to describe the interactions between state and society without taking into the account the characteristics of the cultural paradigm is equivalent to talk about Hamlet without mentioning the prince of Denmark.
    Keywords: agency, negotiation/parallel associations, cultural paradigm
    JEL: D6 D7 H
    Date: 2005–10–30

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